Infosys, one of India’s leading IT services companies, recently announced its financial results for the fourth quarter (Q4) of the fiscal year 2023-2024. Despite the ongoing global economic challenges and uncertainties, the company managed to deliver impressive numbers.
While the Q4 results were impressive, Infosys’ guidance for FY25 indicates a tepid financial year. The company expects challenges related to supply chain disruptions, inflationary pressures, and geopolitical uncertainties.
Highlights of the Infosys Q4 report
The IT services major, owned by Indian Businessman and the father-in-law of British Prime Minister Rishi Sunak – NR Narayana Murthy – reported a 30 percent escalation YoY with a net profit of Rs. 7,969 crores for the fourth quarter that ended in Match 31, 2024. During FY24, the company reported a profit of Rs. 6,128 crores.
An increase has been noticed in Revenue from operations from Rs 37,441 crore in the last fiscal year to 1.3 percent to Rs 37,923 crore in this quarter, but still fell short of expectations.
Infosys has cropped its revenue guidance for the fiscal 2025 to 1-3 percent from 4-7 percent a year back, amidst uncertain demand conditions.
About Stock Market dynamics, India’s second-largest IT services firm after TCS quoted that its board has recommended a final dividend of Rs 20 per share. Prior to Q4FY24 results, Shares of Infosys on April 18 closed 0.41 percent higher at Rs 1,420.55 apiece on BSE.
According to stock market analysis, on 19th April, Infosys is trading −7.30 lower at Rs 1,411.95 as compared to its last closing price. Infosys has been trading in the price range of 1,426.75 & 1,379.70. Infosys has given -8.01% in this year & -5.06% in the last 5 days.
Here’s what the Management has to say
Salil Parekh, CEO and MD of Infosys showed gratitude towards all the clients as he said “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 who are working to create value for our clients,” he added.
Jayesh Sanghrajka, CFO commented on the company’s recent performance and prospects as he said, “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 giving high and predictable returns to shareholders, the Board has approved the capital allocation policy under which the company expects to return 85% over the next 5 years and progressively increase annual Dividend Per Share, operating margin expansion in the medium-term and improving cash generation continue to remain our priorities underpinned by early success in Project Maximus”.
Infosys’ headcount for the previous financial year (FY24) declined by 25,994, for the first time in at least 23 years since 2001. The total headcount for the FY24 is released to be at 317,240, this is a 7.5 percent decrease from the previous year’s numbers. Considering the quarter as well Infosys added 5,423 fewer employees, a drop for the fifth consecutive quarter. “About Haven’t decided on salary hike yet, last hike was in November”, said CFO.
