IT major Infosys on Thursday posted its fiscal fourth quarter profit at Rs 7,975 crore, up 30 per cent as against Rs 6,134 crore during the same quarter of last year, surpassing estimates. It posted revenue from operations at Rs 37,923 crore, marginally up by 1.3 per cent in comparison to Rs 37,441 crore during the same period last year. According to a CNBC TV18 poll, Infosys was expected to record Q4 profit at Rs 6,180 crore and revenue was expected at Rs 38,640 crore.
While the total income posted during the quarter stood at Rs 40,652 crore, total expenses incurred during Q4FY24 was at Rs 30,412 crore.
The company also recommended a final dividend of Rs 20 per equity share for the financial year ended March 31, 2024 and additionally a special dividend of Rs 8 per equity share.
“We delivered the highest ever large deal value in the financial year 2024. This reflects the strong trust clients have in us. Our capabilities in Generative AI continue to expand. We are working on client programs, leveraging large language models with impact across software engineering, process optimization, and customer support. I would like to thank our 317,000 employees across the world that are working to create value for our clients,” said Salil Parekh, CEO and MD.
Infosys delivered $18.6 billion in FY24 revenues with a growth of 1.4 per cent in constant currency and operating margin of 20.7 per cent. Free Cash Flow was at $2,882 million, posting an increase of 13.7 per cent over FY23. Q4 revenues were at $4,564 million, flat year-on-year and down 2.2 per cent sequentially in constant currency. Operating margin for the quarter was 20.1 per cent. Free Cash Flow was robust at $848 million.
“Free cash flow of $848 million in Q4 was highest in the last 11 quarters driven by our relentless focus to improve working capital cycle. Consistent with the objective of giving high and predictable returns to shareholders, the Board has approved the capital allocation policy under which the company expects to return 85 per cent over the next 5 years and progressively increase annual dividend per share,” said Jayesh Sanghrajka, CFO.
Infosys’ large deal TCV for FY24 was highest ever at $17.7 billion, with 52 per cent being net new. Large deal TCV for the quarter was $4.5 billion, with 44 per cent being net new.
FY25 revenue guidance
Infosys slashed its revenue guidance for FY25 to 1-3 per cent from 4-7 per cent a year back, amidst uncertain demand conditions. The IT services company has revised its annual revenue growth guidance five times in the previous five quarters.
Attrition rate
Infosys’ attrition rates have declined over the past year, from 20.90 per cent in Q4FY23 to 12.6 per cent during the quarter in review. Attrition stood at 12.9 per cent for the quarter ending on December 31 last year.