Infosys Q1FY24 Results: Infosys Q1FY24 Results: India’s second largest IT services company Infosys on Thursday posted fiscal first quarter profit at Rs 5,945 crore, up 10.9 per cent in comparison to Rs 5,360 crore during the same quarter last year, missing estimates. But sequentially, net profit was down 3 per cent. It posted revenue from operations at Rs 37,933 crore, up 10 per cent on-year as against Rs 34,470 crore during Q1FY23. According to CNBC TV18, Infosys was expected to post Q1FY24 profit at Rs 6,193.5 crore, and revenue at Rs 37,716 crore. While the total income for the quarter was at Rs 38,494 crore, total expenditure during Q1 stood at Rs 30,132 crore.
Infosys’ Q1FY24 balance sheet
Infosys’ large deal for the quarter was at $2.3 billion, with net new of 56.1 per cent. It said that the operating margin for the quarter was stable at 20.8 per cent while ROE improved 180 bps to 32.8 per cent. The IT services company revised its FY24 revenue guidance to 1.0-3.5 per cent and retained the operating margin guidance at 20-22 per cent. “We have expanded the margin improvement program with a holistic set of actions for the short, medium and long-term, working on five key areas, supported by our leadership team,” said Salil Parekh, CEO and MD, Infosys.
“We had a solid Q1 with a growth of 4.2 per cent and large deals of $2.3 billion which helps us to set a strong foundation for future growth. Our generative AI capabilities are expanding well, with 80 active client projects. Topaz, our comprehensive AI offering, is resonating well with clients,” said Salil Parekh.
The attrition rate during the quarter declined to 17.3 per cent. However the headcount of the employees at the firm stands at 3,36,294 at the end of June 30 declining from 3,43,234 employees at the end of March 31, 2023
Infosys said that the FCF was posted at $699 million, up 6.6 per cent YoY. FCF conversion was at 96.6 per cent of net profit. “Free Cash conversion was robust at 96.6 per cent of net profits. Execution of strong capital allocation policy resulted in higher payouts to investors and improved ROE to 32.8 per cent,” Nilanjan Roy, CFO, Infosys.
“Q1 operating margins were resilient in an uncertain macro environment on the back of our continued focus on cost optimization. Company’s rigorous operational discipline including improved productivity measures and higher utilization helped margins for the quarter,” he added.
Infosys’ performance across business verticals
Infosys’ financial services segment drove the Q1 revenue generation with revenue for the quarter at Rs 10,661 crore. The retail business segment, which includes retail, consumer packaged goods and logistics, posted revenue of Rs 5,513 crore. The revenue generated by the communication vertical was at Rs 4,441 crore, while energy, utilities, resources and services posted revenue at Rs 4,889 crore during the quarter. The manufacturing segment recorded a revenue of Rs 5,350 crore; and the hi-tech vertical was at Rs 3,056 crore, and the life sciences vertical revenue was at Rs 2,749 crore.