Infosys Q1 Results: India's second-largest software services major will hold its board meeting on July 18 to consider and approve its April-June quarter results of the current fiscal (Q1FY25). The financial results of the June quarter will be presented to the Infosys' Board of Directors on July 18, 2024 for their approval.
In a regulatory filing to the stock exchanges, Infosys said, ‘’The Board of Directors of the Company will be held on Wednesday and Thursday, July 17 and 18, 2024 inter alia to:
--Approve and take on record the audited consolidated financial results of the company and its subsidiaries as per Indian Accounting Standards (INDAS) for the quarter ending June 30, 2024;
--Approve and take on record the audited standalone financial results of the company as per INDAS for the quarter ending June 30, 2024; and
--Approve and take on record the audited financial statements of the company and its subsidiaries as per INDAS and IFRS for the quarter ending June 30, 2024.''
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On April 18, the Sahil Parekh-led tech giant reported a rise of 30 per cent in net profit at ₹7,975 crore in the January-March quarter of FY24, compared to ₹6,134 crore in the year-ago period. The revenue for the quarter under review came at ₹37,923 crore, up 1.3 per cent year-on-year (YoY). The revenues in constant currency (CC) terms remained flat YoY and declined by 2.2 per cent sequentially.
The company expects a revenue growth of 1-3 per cent in constant currency for FY25 and operating margin of 20-22 per cent. "Growth guidance for next year is higher than where we finished for this year. The difference is small. As we go into the industries, we see financial services to see a better outlook in the next year compared to the past year," said Infosys MD and CEO Parekh.
The growth projection is lower compared to the outlook of between four per cent and seven per cent for the just-ended 2023-24. Infosys posted an operating margin of 20.1 per cent during the reported quarter and 20.7 per cent for FY24. During the financial year ended March 2024, net profit increased 8.9 per cent to ₹26,233 crore from ₹24,095 crore recorded in FY23.
The company's employee headcount fell 7.5 per cent to 3,17,240 at the end of FY24 from 3,43,234 in FY23. The full-year headcount fell for the first time in 23 years, while attrition rate declined to 12.6 per cent in the March quarter from 12.9 per cent in the December quarter. The large deal total contract value of Infosys for FY24 was the highest ever at $17.7 billion, with 52 per cent being net new.
The revenue growth outlook for FY25 has been discouraging with Tier-1 companies expected to report below mid-single digit growth on average, while Tier-2 companies are capping their revenue growth to high-single digits, according to domestic brokerage firm Prabhudas Lilladher.
Unlike in FY24, companies have become more conservative in FY25 projections, and are baking in anticipated delays in executions and project closure activities. ‘’However, if the spending recovery coexists with an anticipated macro recovery in the near-term, then we might see an upward revision to the estimates for the companies as they progress through the year,'' said the brokerage.
Infosys has been the outlier and reported another quarter of decline at 2.2 per cent CC quarter-on-quarter comapred a decline of one per cent CC reported in 3Q, according to Prabhudas Lilladher. ‘’Infosys has multiple large deals that are yet to ramp-up and would contribute to 2.5-3.0 per cent revenue growth in FY2025E,'' said Kotak Institutional Equities.
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