Infosys Q1 Results; Firms lower the growth outlook for FY24

Infosys, India’s second-largest IT services company, released its quarterly earnings report on Thursday. The company’s revenue from operations witnessed a 10% year-on-year growth, reaching Rs 37,933 Crore in June 2023, compared to Rs 34,470 Crore in the same quarter the previous year.
On a sequential basis, the revenue increased by 1.3%, moving from Rs 37,441 Crore in Q4 FY23 to Rs 37,933 Crore in Q1 FY24.
Additionally, the company’s gross profit experienced significant growth of 14.4% YoY, rising from Rs 10,101 Crore to Rs 11,551 Crore. On a sequential basis, it showed a modest growth of 1.1% from Rs 11,430 Crore to Rs 11,551 Crore.
The operating profit of the company also demonstrated substantial growth, increasing by 14.1% YoY from Rs 6,914 Crore to Rs 7,891 Crore. The operating profit margin for the current quarter stood at 20.8%, compared to 20.1% in the same quarter last year.
Moving on to the bottom line, the net profit of the company grew by 10.9% YoY, reaching Rs 5,945 Crore compared to Rs 5,360 Crore. However, on a sequential basis, the net profit declined by 3% from Rs 6,128 Crore to Rs 5,945 Crore.
Furthermore, the company’s Earnings per Share experienced a growth of 12.5%, rising from Rs 12.76 per share to Rs 14.37 per share. However, decline EPS declined by 2.8% from Q4 FY23 to Q1 FY24.
The nation’s second-largest IT services company, which competes with TCS, Wipro, and other industry players, made a significant downward revision to its revenue guidance for the full year. The earlier projection of 4% to 7% growth in constant currency has now been lowered to a range of 1% to 3.5%.
“We had good Q1 with large mega deals, but we have seen some of the deal signing and start dates being delayed,” Infosys CEO Salil Parekh said during an earnings briefing.
In the quarter, the Total Contract Value (TCV) of large deals secured by the company amounted to USD 2.3 billion.
The company witnessed a decrease in its headcount, with nearly 7,000 employees leaving, resulting in a current headcount of 3,36,294. The attrition rate for the last twelve months improved, declining to 17.3% from 20.9% in the March quarter and 28.4% in the same period last year.
Following are the biggest fall in the last 15 years in the share price of Infosys during the intraday session:

Over the last 15 years, there have been notable instances of Infosys share price experiencing significant falls during the intraday session. The major fall company’s share price ever registered was on April 12, 2013, when the company’s share price was down by 22% from the previous day’s closing price.
During the COVID-19 pandemic in 2020, the company’s shares also encountered declines twice within the same year. In March 2020, there were two separate occasions when the share price dropped, once by 9.2% and another time by 10%.
Interestingly, the trend of experiencing two significant declines within the same year recurred in 2023. In April 2023, the company’s share price underwent a major intraday decline of 9.4%. At the time of writing the article, it had experienced an approximate 7.7% decline today on account of its quarterly results announced yesterday.
Currently, the shares of the company are trading at Rs 1335.45 each on BSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.