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Business News/ Companies / News/  Infosys FY24 guidance: Company sees revenue growth at 4-7% in constant currency, margins at 20-22%
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Infosys FY24 guidance: Company sees revenue growth at 4-7% in constant currency, margins at 20-22%

Infosys has given revenue growth guidance of 4% to 7% for FY24.

FILE PHOTO: The Infosys logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. Picture taken October 19, 2017. REUTERS/Chris Helgren/File Photo (REUTERS)Premium
FILE PHOTO: The Infosys logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. Picture taken October 19, 2017. REUTERS/Chris Helgren/File Photo (REUTERS)

IT company Infosys on Thursday gave a revenue guidance of 4% to 7% in constant currency terms for the current financial year. Operating margin guidance was placed at 20% to 22%. The Bengaluru-based IT giant also posted a 7.8% year-on-year rise in consolidated net profit at 6,128 crore in March quarter of FY23.

“Q4 year on year growth was 8.8% and sequential decline was 3.2% in constant currency terms. Operating margin for the quarter was 21.0%. Free cash flow conversion was 95.3% for Q4. Continuing the recent trend, attrition declined further in the fourth quarter," reads an exerpt from the press note shared by the company.

Infosys - which competes in the market with Tata Consultancy Services, Wipro and other IT firms - also logged a 16% year-on-year growth in consolidated revenue in the fourth quarter of FY23 at 37,441 crore. The net profit (after minority interest) stood at 5,686 crore in the fourth quarter of FY22. Seen sequentially, the net profit for Q4 came in 7% lower.

During Q3 earnings announcement in January this year, Infosys had raised FY23 revenue guidance to 16% -16.5% against the previously projected band of 15% to 16%.

ALSO READ: Infosys let go of 3,611 employees in Q4, attrition rate dips sharply to 20.9%

The net profit was up 9% on year at 24,095 crore for FY23, while revenue was 20.7% higher at 146,767 crore.

CEO and MD Salil Parekh lauded the company's ‘strong performance in FY23’ and asserted that Infosys' continued focus on digital, cloud and automation capabilities had resonated with clients. 

“We have launched exciting programs with our clients leveraging generative AI platforms. As the environment has changed, we see strong interest from our clients for efficiency, cost and consolidation opportunities, resulting in a strong large deal pipeline. We have expanded our internal program on efficiency and cost to build a path to higher margins in the medium term. We continue to invest in our people and in supporting our clients," he added.

ALSO READ: Infosys declares 17.50 per share dividend, revenue up 16%, PAT stood at 6,128 cr

As the company geared up to release its Q4 results, there had been growing concerns about a sell-off in IT stocks in case Infosys delivered subdued guidance for FY24. The company's shares had also tanked more than 3% on Thursday before closing at 1,388.60 apiece - down by 39.85 or 2.79% on BSE.

(With inputs from agencies)

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Published: 13 Apr 2023, 05:12 PM IST
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