Revenue Misses Estimates; CFO Says Hiring Models Have Changed ‘Significantly’: Infosys Q4 Results Highlights
Infosys’ fourth-quarter earnings fell short of expectations, with the CFO citing changes in the company’s hiring practices as the driving force.
In its financial report on April 18, Infosys announced a 30% year-on-year rise in its consolidated net profit for the first quarter ended March 31, 2024. This represents a significant increase in the revenue of the IT company. 6,128 crore in the same period last year. Its operations posted a revenue of Rs 37,923 crore in the quarter under review, an increase of 1.3% compared to revenue of Rs 37,441 crore in the previous fiscal.
Earnings at a Glance: Infosys Q4 results LIVE
The company’s net profit has grown significantly by 30% year-on-year, now totaling Rs. 6,128 crore as against Rs. 7.969 crore, higher than earlier estimates. However, despite this progress, revenue from operations grew by only 1.3% to Rs 37,923 crore compared to a lower-than-expected Rs 37,441 crore.
Future revenue estimates for FY2025 have been reduced to just 1-3% from 4-7% last year, mainly due to the demand environment. To provide profitable returns to its investors, Infosys announced two dividends: a final dividend of Rs 20 per share issued and a one-off dividend of Rs 8 per share distributed. However, Infosys’s ADR fell by 7% before the market opened due to Q4 figures.
CFO Jayesh Sanghrajka on Hiring
Jayesh Sangharajaka, CFO, commented on the changing hiring practices used by Infosys during its live Q4 results. Over the past few years, they have seen a significant shift with more than 50% of new hires being sourced off-site.
CEO Salil Parekh on implementation of Gen AI
During Infosys’ Q4 results discussion, Salil Parekh expressed satisfaction with the growing scope of its generative AI capabilities. He shared that he is currently collaborating with clients to use large language models to evolve their software engineering activities, streamline their workflows, and enrich real-time customer support.
Infosys Q4 results LIVE
Infosys’ fourth quarter results are currently live. The CFO noted that he has yet to make a decision on a salary increase, despite having already raised wages in November.
Good Traction in Large Deals,Some of it to Flow Through Next Year, Says CEO Salil Parekh
Alternative projects and electronic work areas are parallel in terms of surroundings. On a positive note, the deal prospectus is promising. Future expansion also shows promise with expected growth compared to our current position.
The work environment for both discretionary and digital functions remains unchanged and we still have good projects in the works. Our projected expansion rate for this year is higher than our current rate.
Project Maximus has seen positive results, increasing inflation at its onsite locations. Additionally, consumers have accepted the implementation of increased prices. Regarding consumption, a range of 84-85 percent has been considered as a suitable level of quietness. Any recruitment efforts will be based directly on relevant demand signals.
Full-year Headcount Declines for the First Time in 23 years,Net Addition Drops By 25,994
Their annual workforce declined for the first time with a decline of 25,994 net additions. These Q4 results are currently available to access in real-time.
For the first time in at least 23 years since 2001, Infosys’ headcount has declined by about 26,000 for fiscal 2024.
In fiscal 2024, the total headcount for Infosys was 317,240, down 7.5% from the previous year.
FY25 Revenue Guidance Slashed To 1-3%
Infosys has witnessed volatile market patterns that forced it to cut its previous revenue guidance for fiscal 2025 to 1-3% from 4-7%.
At present, Infosys is highlighting lean strategies due to a sharp decline in market demand.
The Bengaluru-based corporation has updated its estimated annual revenue growth forecast five times in the last five seasons. In January, it again revised its full-year growth forecast to 1.5-2 percent.
The move came after it had earlier slashed revenue guidance in September to 1-2.5 percent from 1-3.5 percent. Before that, the company had reduced its revenue guidance for the fiscal to 1-3.5 percent from 4-7 percent, amid an increasingly challenging demand environment.
Net Profit Rises 30% YoY to Rs 7,969 crore,Revenue Up 1.3%
For the quarter ended March 31, 2024, IT services provider Infosys posted a consolidated net profit of Rs 7,969 crore, up 30 percent year-on-year.
In the same period last year, the Bangalore-based technology major had posted a profit of Rs 6,128 crore.
During the quarter under review, revenue generated from operations showed a growth of 1.3 per cent to Rs 37,923 crore as against Rs 37,441 crore in the previous fiscal. Additionally, India’s second largest IT services provider announced that its board has approved a final dividend of Rs 20 per share.
Ahead of Infosys’ earnings report for Q4FY24, its stock saw a slight increase of 0.41 percent to close at Rs 1,420.55 per share on the BSE on April 18.
