Infosys on Thursday reported fourth-quarter net profit rose 30% YoY to ₹7,969 crore, from ₹6,128 crore a year earlier.
The IT major’s revenue from operations rose 1.3% to ₹37,923 crore in the quarter against ₹37,441 crore in the corresponding period last year. But its revenues in constant currency terms remained flat YoY and slid 2.2% sequentially.
Infosys reported large deal total contract value for Q4 rose 44% sequentially to $4.5 billion, 44% of which were net new deals.
For FY24, the company reported revenues of ₹1,53,670 crore, a 4.7% growth YoY and an operating margin of 20.7%, a decline of 0.4%.
Given uncertain demand conditions across key customer markets, Infosys pegged its revenue growth guidance for FY25 at 1%-3%.
Infosys CEO Salil Parekh said, “We are seeing good traction in large deals. Digital and discretionary spending are a bit slower. Yet we have a good view of the early part of the year. There is slowness in telco, high-tech and manufacturing; however, BFSI (banking, financial services and insurance) may get better in FY25.”
Mr. Parekh said the company saw a slower outlook in the U.S markets, especially with interest rates in flux, during the fourth quarter and the whole fiscal. But he added, ‘‘Good growth (was) reported from Europe despite a changed economic environment. We are seeing different European countries experiencing different growth tractions and market environments.’‘
‘No fresh hiring’
Infosys said there were no hiring plans yet for the new fiscal, as current utilisation was at 85%.
“Hiring models have changed significantly over the years,” said CFO Jayesh Sanghrajka. “We are doing more than half of the hiring off-campus. Our attrition has also come down significantly. That is the reason for net headcount reduction,” he added.
Infosys’s headcount for FY24 declined by 25,994 to 3,17,240.
Cyberattack loss
Infosys also disclosed that Infosys McCamish, its software and services arm for the life insurance industry, incurred a $38 million loss in FY24 due to a cyber attack in November 2023.
Sanjeev Hota, Head of Research, Sharekhan by BNP Paribas said, Infosys sharply missed market revenue estimates and also provided softer than expected guidance for FY25 at 1-3%. ‘’Headcount continues to decline... with the only silver lining being strong large deal TCV in Q4 and record $17.7 billion in FY24,’‘ Mr. Hota said.
