Infosys Q1 Results: Net profit rises 11% on year to ₹5,945 crore

Infosys Q1 Results: Information Technology (IT) services major, Infosys Ltd on Thursday reported an 11% year-on-year rise in its consolidated net profit (attributable to owners of the company) for the fiscal's first quarter ended June (Q1FY24) to ₹5,945 crore. The company had reported a profit of ₹5,360 crore in the year-ago period. Sequentially, the consolidated net profit was down 2.9%. Infosys shares ended at ₹1,448.85 apiece, down 1.73% on BSE.

The IT company's consolidated revenue from operations stood at ₹37,933 crores during the quarter ended June from ₹34,470 crore in Q1FY23. Sequentially, up 1.3% from ₹37,441 crore in Q4FY23.

The company's consolidated total income for the quarter ended June surged 9.5% year-on-year to ₹38,494 crore, and sequentially rose by 1%.

In constant currency terms, revenue grew by 4.2% year over year, and by 1% sequentially. 

According to the company's exchange filing, major deal TCV for the quarter was $2.3 billion, with net new at 56.1%. The operating margin for the quarter was 20.8%, growth of 0.7% year-on-year, and decline of 0.2% quarter-on-quarter.  Basic earnings per share (EPS) was at ₹14.37, up 12.4% on year. 

Return on equity (ROE) increased by 180 basis points to 32.8%. To 17.3%, attrition decreased even more. Revenue guidance for FY24 was revised to 1.0% - 3.5%, while operating margin guidance was left unchanged at 20% to 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.

Nilanjan Roy, CFO, said, “Q1 operating margins were resilient in an uncertain macro environment on the back of our continued focus on cost optimisation. Company’s rigorous operational discipline including improved productivity measures and higher utilisation helped margins for the quarter. 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%."

Infosys attrition rate drops in Q1, employee headcount falls marginally