Infosys Q4 results: Profit rises 30.5% QoQ to ₹7,969 crore, revenue guidance at 1-3% for FY25

Infosys Q4 FY24 results: Indian IT major Infosys reported a 30.5% quarter-on-quarter (QoQ) rise in Q4 net profit to ₹7,969 crore. Its consolidated revenue stood at ₹37,923 crore, down 2.3% QoQ. Infosys Q4 net profit was in-line with estimate, but its revenue was below estimate.

For the financial year ended 31 March 2024, Infosys reported a 8.9% year-on-year (YoY) rise in net profit to ₹26,233 crore and a 4.7% YoY increase in its consolidated revenue to ₹153,670 crore.

Infosys share price reaction

Ahead of Q4 result announcement, Infosys shares closed 1.06% higher, with a day high of ₹1,444 per share on NSE. As the results were announced after market hours, the exact impact will be seen on 19 April.

Also Read: F&O strategy: How to trade in Infosys ahead of Q4 results?

Infosys FY25 guidance

The second largest IT player by sales revised its FY25 revenue guidance to 1-3% on a constant currency basis compared to 1.5 to 2% guidance in the previous quarter. Meanwhile, EBIT margin guidance is kept unchanged at 20-22%.

Attrition rate

The total employee count at Infosys as of March 31 stood at 317,240. The IT services’ attrition was further down at 12.6% for the last twelve months, from 12.9% a quarter ago.

Infosys declares final dividend ₹20, special dividend of ₹8 per share

Infosys board has recommended a final dividend of ₹20 per share for the financial year 2023-24. Additionally, the IT major has also announced a special dividend of ₹8 per equity share.

Record date for the payment of final dividend and special dividend has been fixed as May 31, 2024. The dividend will be paid on July 1, 2024, the company said in a filing.

Large deal wins and operating margins

For the quarter ended 31 March 2024, Infosys reported a large deal total contract value (TCV) of $4.5 billion, with 44% being net new deals. For the fiscal year, the large deal value was the highest ever at $17.7 billion. Meanwhile, the operating margin stood at 20.1%, a decline of 0.9% YoY and 0.4% QoQ.

Infosys added a total of 98 new clients in the March quarter of FY24. Total active clients rose to 1,882 from 1872 in the year ago period. Infosy saw a major growth in $1 million plus clients to 959 in Q4FY24 from 922 in Q4FY23.

In segment revenue, financial services saw an 8.5% drop in revenue share while retail saw a 3.7% decline. High Tech and Manufacturing segments contributed more to the overall revenue.

From a regional perspective, North America contributed 59.6% to overall revenue, while the Eurozone contributed 28.6% to Infosys’s revenue. Rest of the world added 9.6% to overall revenue, while the India region contributed 2.2% to overall revenue.

Along with the Q4 result, Infosys also announced that it will acquire a 100% stake in German firm in-tech in an all cash deal for 450 million euros.