Infosys said that its net sales increased 10% YoY to Rs 37,933 crore from Rs 34,470 crore in the same period the previous year.
Infosys Q1 profit climbed
The second-largest IT company by revenue, Infosys, announced on Thursday that its net profit for the June quarter increased by 10.9% year over year to Rs 5,945 crore from Rs 5,360 crore the previous quarter. The bottom line was projected by analysts to increase by 14–18% for the quarter.
The company, which has its headquarters in Bengaluru, had a 10% YoY increase in net revenues, from Rs 34,470 crore in the same period last year to Rs 37,933 crore this quarter. Revenue increase met expectations on the stock market.
Operating margin for the quarter was 20.8%, up 80 basis points from the same period last year but down 20 basis points from the March quarter’s operating margin of 21.0%. This matched expert predictions.
The IT company reported $4,617 million in revenue, representing a 1% sequential increase (up 4.2% YoY) in revenues measured in constant current (CC) terms. Analysts anticipated a sequential gain of 0.5% to 8%.
Wins from significant deals totaled $2.3 billion. The IT company lowered its 4-7 percent initially indicated FY24 CC revenue projection downward to 1-3.5 percent. It still expects its Ebit margin to be between 20 and 22 percent. While a few brokerages did expect a little downward revision to revenue guidance, a growth target of 1-3.5% fell far short of their expectations.
The quarter’s attrition rate dropped to 17.3%% from 20.9% in March and 28.4% in the previous quarter.
“We had a good first quarter with growth of 4.2% and significant agreements totaling $2.3 billion, which helps us lay a solid groundwork for future growth. With 80 ongoing client projects, our generative AI skills are increasing successfully. Our all-encompassing AI solution, Topaz, is getting good feedback from customers. Salil Parekh, CEO and MD, stated, “We see this as being transformative for clients and increasing our total service portfolio.
With the help of our leadership team, “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”, he continued.
In spite of the macroeconomic climate being unpredictable, Q1 operating margins held up well, according to CFO Nilanjan Roy, thanks to our ongoing commitment to cost optimization.
According to him, Infosys’ strict operational discipline, which included increased productivity measures and higher utilisation, contributed to the quarter’s margins. “The conversion of Free Cash was strong at 96.6% of net earnings. Strong capital allocation strategy execution led to larger investor payments and increased ROE to 32.8%, he continued.
Next, what?
Today at 4:30 pm, the Infosys leadership team will hold a press conference. During this engagement, which will be webcast live on the Investor Relations page of Infosys’ website, the participating executives will respond to questions from the media. After 6:30 p.m., a copy of the same archive would be accessible.
In addition, the Bengaluru-based company announced it will hold a 60-minute conference call at 6:00 pm where top management will analyze the performance of the IT major and take participants’ questions. The price of Infosys shares on the BSE was Rs 1,450, down 1.65%, prior to the release of its quarterly results. The top Nifty performer over the past month, Infosys shares dropped as analysts predicted weak sequential revenue growth, a sequential decline in margin on salary increases, and potential for the IT giant to cut its FY24 revenue projection.
HISTORY OF INFOSYS
Business consulting, information technology, and outsourcing services are all offered by Infosys Limited, a multinational information technology firm based in India. Bangalore serves as the company’s headquarters; it was established in Pune. According to 2020 revenue estimates, Infosys is the second-biggest Indian IT business after Tata Consultancy Services, and it is ranked as the 602nd largest public company in the world by Forbes Global 2000.
In Pune, Maharashtra, India, seven engineers created Infosys. $150 served as its first financing.[9] On July 2nd, 1981, Infosys Consultants Private Limited was registered.[10] It moved to Bangalore, Karnataka, in 1983.
When the business became a public limited company in June 1992, it changed its name from Infosys Technologies Private Limited to Infosys Technologies Limited. In June 2011, Infosys Limited was given a new name.
In February 1993, a company floated an initial public offering (IPO) with a share price of 95 (equivalent to 690 or $8.60 in 2023) and a book value of 20 (equivalent to 140 or $1.80 in 2023). Morgan Stanley, a US investment firm, “bailed out” the undersubscribed IPO.
In Pune, Maharashtra, India, seven engineers created Infosys. $150 served as its first financing.[9] On July 2nd, 1981, Infosys Consultants Private Limited was registered.[10] It moved to Bangalore, Karnataka, in 1983.
When the business became a public limited company in June 1992, it changed its name from Infosys Technologies Private Limited to Infosys Technologies Limited. In June 2011, Infosys Limited was given a new name.
In February 1993, a company floated an initial public offering (IPO) with a share price of 95 (equivalent to 690 or $8.60 in 2023) and a book value of 20 (equivalent to 140 or $1.80 in 2023). Morgan Stanley, a US investment firm, “bailed out” the undersubscribed IPO.