IT services major Infosys has recorded lower than expectated earnings on Thursday, with its net profit growing by 10.9% to ₹5,945 crore in the quarter ending June 30, 2023, as compared to ₹5,362 crore in the year-ago period. The Infosys shares dipped 1.73% to ₹1,448.85 on the BSE today.
India’s second-largest IT services company's revenue from operations surged 10% to ₹37,933 crore, up from ₹34,470 crore in the same quarter last year, the company says via a stock exchange filing. Operating profit increased 14.1% to ₹7,891 crore YoY, while the operating margin of the company increased to 20.8% from 20.1% in the year-ago period.
The Bengaluru-based company has sharply trimmed its FY24 revenue guidance to 1.0%-3.5% from 4-7% earlier, and while retaining operating margin guidance 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.
In dollar terms, Infosys' revenue surged 3.9% to $4,617 million on a YoY basis, while its net quarterly profit increased 5.1% to $724 million.
In constant currency, Infosys' revenue growth surged 4.2%, while it increased 1% on a quarterly basis. The company recorded a 12.4% YoY increase in earnings per share in INR terms.
Segment-wise, manufacturing recorded maximum year-on-year growth of 21.3% as of June 30, 2023, followed by life sciences at 14.9% and energy, utilities, resources, and service at 8.3%.
In terms of revenue garnered by client geography, Infosys saw the highest share of 60% coming from North America, up 2.3%, followed by Europe at 26.8%, up 10.9%, and India at just 2.7%, down from 9.3% on a year-on-year basis.
Infosys had 1,883 active clients as of June 30, 2023, up from 1,778 during the corresponding period last year. The company added 99 clients during the first quarter of FY24 vs 106 added during the last year's same quarter.
The number of clients in the 1 million dollar+ category stood at 940, up from 877 in the year-ago period, while those in the 10 million dollar+ category were 312. In the 50 million dollar+ category, the company had 79 clients, while 38 were in the 100 million dollar plus group.
The company says the top five clients contributed 13.4% to its revenue in the quarter, while the top 25 contributed 34.6%.
Infosys had 3,36,294 employees as of June 30, 2023, up from 3,35,186 in the same period last year. The voluntary attrition rate in the last 12 months saw a massive decline to 17.3% from 28.4% recorded in the year-ago period. Infosys says 39.5% of the total employees were womenby June 30, 2023, slightly up from 39.3% in the year-ago period.
Infosys' free cash slow by June 30, 2023, was ₹5,749 crore, up from ₹5,106 crore in the same period last year. Its consolidated cash and investments stood at ₹29,469 crore, down from ₹34,854 crore in the year-ago period.
