IT major Infosys on Thursday posted Q3 profit for FY 24 at Rs 6,106 crore, down 7.3 per cent as against Rs 6,586 during the third quarter of FY23, surpassing estimates. It posted revenue from operations at Rs 38,821 crore, marginally up by 1.3 per cent in comparison to Rs 38,318 crore during the same period last year. According to a CNBC TV18 poll, Infosys was expected to record Q3 profit at Rs 6,043 crore and revenue was expected at Rs 38,555 crore. The company EBIT stood at Rs 7,961 crore.
While the IT firm recorded a total income during the quarter at Rs 39,610 crore, total expenses incurred during the period was at Rs 30,991 crore.
“Our performance in Q3 was resilient. Large deal wins were strong at $3.2 billion, with 71 per cent of this as net new, reflecting the relevance and strength of our portfolio of offerings ranging from generative AI, digital and cloud to cost, efficiency and automation,” said Salil Parekh, CEO and MD. “Our clients are leveraging our Topaz generative AI capabilities and our Cobalt cloud capabilities to create long-term value for their businesses,” he added.
Infosys’ FY24 revenue guidance was revised to 1.5 per cent- 2.0 per cent and operating margin guidance at 20 per cent- 22 per cent.
Infosys delivered $4,663 million in Q3 revenues with year-on-year and sequential decline of 1.0 per cent in constant currency. Large deal TCV for the quarter was $3.2 billion, with 71 per cent being net new. Operating margin for the quarter was 20.5 per cent, posting a sequential decline of 70 bps.
“Q3 performance is a demonstration of our strong execution capabilities reflected in improved operational efficiencies achieved under ‘Project Maximus’, despite a challenging environment,” said Nilanjan Roy, Chief Financial Officer. “Cash generation remained robust with FCF to net profit conversion for Q3 at 90.6 per cent,” he added.
Infosys’ attrition declined further to 12.9 per cent, the firm said in the regulatory filing.
Furthermore, based on the recommendation of the Nomination and Remuneration Committee, Infosys board considered and approved the re-appointment of Chitra Nayak as an Independent Director for the second term of three years from March 25, 2024 to March 24, 2027. Infosys board also approved the Postal Ballot Notice to seek approval of the shareholders for the appointment of Nitin Paranjpe as an Independent Director for a term of five years from January 1, 2024 to December 31, 2029.
