Infosys Q4 Results: Revenue Misses Estimates, Forecasts 1-3% Growth For FY25
Infosys Ltd.'s revenue during the fourth quarter of fiscal 2024 missed street estimates, while it forecasted its revenue to grow 1-3% in the ongoing financial year.
The top line of India's second largest IT services firm fell 2.1% sequentially to Rs 37,923 crore in the three months ended March 31, according to an exchange filing on Thursday. That compares with the Rs 38,576-crore consensus estimate of analysts tracked by Bloomberg.
The reported revenue growth in constant currency terms was 1.4% in the previous fiscal. That fell marginally short of its forecast of 1.5%-2%.
Infosys Q4 FY24 Highlights (Consolidated, QoQ)
Revenue down 2.3% to Rs 37,923 crore (Estimate: Rs 38,576 crore).
EBIT down 4.3% to Rs 7,621 crore (Estimate: Rs 7,994.7 crore).
EBIT margin at 20.1% versus 20.5% (Estimate: 20.70%).
Net profit up 30.5% at Rs 7,975 crore (Estimate: Rs 6,162 crore).
Company to pay dividend of Rs 20 per share and a special dividend of Rs 8 per share.
The surge in net profit was due to the interest on income tax refund to an extent of Rs 1,914 crore during the quarter. Excluding items, net profit fell 0.8% on a sequential basis.
The pressure on discretionary segment remains overhanging, due to which the deals are not getting converted into revenue, the company's Chief Executive Officer Salil Parekh said in a post-earnings conference on Thursday.
Infosys' American Depository Receipts fell 7.3% during the pre-market trade, after the earnings announcement.
FY25 Guidance
Company expects revenue growth of 1%-3% in constant currency terms.
Sees FY25 operating margin at 20%-22%.
Other Key Highlights
Approved acquisition of in-tech Holding GmbH, engaged in engineering R&D services. The acquisition is likely to be completed by the second half of FY25.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
-
'Never Seen This Level Of Negativity': Sandeep Tandon Says The Next Rally May Be Closer Than You Think
Veteran investor Sandeep Tandon says foreign selling is easing, large-caps are due a comeback and mid-caps are crowded, while he turns positive on gold, power and pharma this Diwali.
-
Indians Stay With Family, Not In Hotels | The Reason Why
India still lacks enough clean, reliable and affordable hotels for budget-conscious travellers.
-
The Economic Imperative: Analysing The Material Driving Force Behind India-Canada Strategic Reset
This economic complementarity is further reinforced by deep institutional investment ties and talent mobility, which form the bedrock of the bilateral framework.
