DBT Bureau
Bengaluru, 18 July 2024
Infosys on Friday reported better than expected first quarter performance with the IT major increasing its revenue guidance for the whole fiscal.
In Q1, the Bengaluru-headquartered firm reported a net profit of Rs 6,368 crore, which was a growth of 7.1% over the same period last year. Its revenue from operations during this period rose 3.6% YoY to Rs 39,315 crore. In dollar terms, revenue for April-June quarter stood at $4.714 billion, which was a rise of 3.6% sequentially in constant currency basis.
Its number of large deal wins was the highest ever at 34 with TCV (total contract value) of $4.1 billion, out of which 57.6% were net new, the company said in its release.
On the back of these factors, Infosys raised its revenue growth guidance for the financial year 2024-25 to 3-4% from earlier guidance of 1-3%.
“We had an excellent start to FY25 with strong and broad-based growth, operating margin expansion, robust large deals, and highest ever cash generation. This is a testimony to our differentiated service offerings, enormous client trust, and relentless execution”, said Salil Parekh, CEO and MD.
The IT major also improved its operating margin to 21.1%, a growth of 100 basis points over the previous quarter.
“Our relentless drive on cost optimization through Project Maximus, a comprehensive margin expansion programme, is reflected in the all-round improvement in key operating metrics leading to 1.0% growth in operating margin in Q1”, said Jayesh Sanghrajka, CFO at Infosys.
In the post-results press conference, the company said it has seen sequential growth in all its geographies and verticals during the quarter.
Among verticals, the growth momentum was seen in the financial services vertical, which showed a sequential rise after many quarters. The company’s management indicated that the financial services segment in the US was showing signs of recovery in the first quarter.
Infosys’ headcount continued to decline as the company saw its employee strength falling by 1,908 people to 315,332 by the end of the June quarter. It said as its utilisation level touched around 85%, the company would start hiring from the second quarter onwards.
