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Infosys Q1 PAT at Rs 5,945 crore; FY24 revenue guidance trimmed to 1-3.5%

Jul 20, 2023

By: BlinkX Research Team

Infosys, the second largest IT services company in India announced its financial results for the first quarter of FY24 today. The IT services company reported an increase of 11% in net profit to Rs 5,945 crore in Q1FY24. The consolidated revenue increased by 10% YoY to Rs 37,933 crore.

The second largest software services exporter in the country delivered $4,617 million in Q1 revenues with year-on-year growth of 4.2% and sequential growth of 1.0% in constant currency. 

Large deal TCV for the quarter was at $2.3 billion, with net new of 56.1%. 

Operating margin for the quarter was stable at 20.8%. ROE improved by 180 bps to 32.8%. 

Attrition declined further to 17.3%. FY24 revenue guidance was revised to 1.0%-3.5% and operating margin guidance was retained at 20%-22%.

We had a solid Q1 with a growth of 4.2% 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. We see this being transformative for clients and enhancing our overall service portfolio” said Salil Parekh, CEO and MD. “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”, he added.

“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” said Nilanjan Roy, CFO. 

“Free Cash conversion was robust at 96.6% of net profits. Execution of strong capital allocation policy resulted in higher payouts to investors and improved ROE to 32.8%” CFO added.

Source: Media reports