Infy Q4 net surges 30% to Rs 7,969cr

Bengaluru: Infosys on Thursday posted a weak set of fourth quarter numbers with conservative revenue growth guidance for FY25 though the company management exuded confidence of better growth prospects in coming quarters on the back of strong deal pipeline and improving spend in the key BFSI vertical.

The Bengaluru-headquartered company posted a consolidated net profit at Rs 7,969 crore, an increase of 30 per cent over the last year for the quarter ended March 2024. Its revenues from operations rose 1.3 per cent at Rs 37,923 crore on year-on-year basis. In dollar term, revenue for Q4 stood at $4.56 billion, a decline of 2.2 per cent sequentially on constant currency basis. This is the second consecutive quarter when the company saw a decline in revenue on constant currency basis. Its larger peer TCS last week reported 1.1 per cent rise in its fourth quarterly revenue ended March.

For the whole financial year (FY24), Infosys’ revenue stood at $18.56 billion, an increase of 1.9 per cent over the previous year.

On the operating margin front, Infosys posted a margin of 20.1 per cent, in Q4 which was a decline of 40 basis points over the previous quarter. For FY24, operating margin came at 20.7 per cent, a decline of 30 basis points over previous year.

The Bengaluru-headquartered company gave a revenue growth guidance of 1-3 per cent in constant currency term with an operating margin guidance of 20-22 per cent.

The last financial year turned out to be a good year for Infosys in terms of bagging large deals. In Q4, the company bagged large deals worth $4.5 billion, while it won deals worth $17.7 billion in FY24.

“We see the environment with regard to discretionary and digital deal spend remaining same as last year. We see clients’ focus on cost optimisation and consolidation continuing. As far as growth in vertical is concerned, there is better outlook for BFSI vertical than last year and the growth in manufacturing is likely to be slow. Our revenue guidance has factored in the all the factors including the robust large deal pipeline,” Salil Parekh, CEO and MD of Infosys said at the post-results press conference.

Meanwhile, the company informed that it had to take a 100 basis point impact owing to renegotiation of contract with a large financial services client. Sources in the know said that this incident was linked to last year cyberbreach at Infosys McCamish, leading to unauthorized access of BoFA’s customer information.