Infosys Q3 Numbers In Red: Consolidated PAT Drops To Rs 6,106 Crore; Revenue Falls Sequentially

The second largest IT firm in India in terms of market share, Infosys has registered a consolidated net profit of Rs 6,106 crore in the third quarter of FY24. The latest bottom line has declined by 7.3 % year-on-year and 1.7% quarter-on-quarter.

Meanwhile, consolidated revenue came in at Rs 38,821 crore in Q4FY24, registering a marginal growth of 1.3% YoY but slipped -0.4% QoQ.

In dollar terms, Infosys revenue stood at $4,663 million, flat compared to revenue of $4,659 million in Q3FY24, but down by 1.2% from Rs 4,718 crore in Q2FY24.

The majority of experts had predicted de-growth in Infosys constant currency revenue in Q3FY23.

In its financial result report, Infosys said, large deal TCV for the quarter was $3.2 billion, with 71% being net new. Operating margin for the quarter was 20.5%, a sequential decline of 70 bps.

Salil Parekh, CEO and MD said, "Our performance in Q3 was resilient. Large deal wins were strong at $3.2 billion, with 71% of this as net new, reflecting the relevance and strength of our portfolio of offerings ranging from generative AI, digital and cloud to cost, efficiency and automation."

He added, "Our clients are leveraging our Topaz generative AI capabilities and our Cobalt cloud capabilities to create long-term value for their businesses."

Further, Nilanjan Roy, Chief Financial Officer said, "Q3 performance is a demonstration of our strong execution capabilities reflected in improved operational efficiencies achieved under 'Project Maximus', despite a challenging environment."

Roy also added, "Cash generation remained robust with FCF to net profit conversion for Q3 at 90.6%."

Apart from this, Infosys recorded decline in attrition rate to 12.9%. While the company revised its FY24 revenue guidance revised to 1.5%-2.0% and operating margin guidance at 20%-22%.

Infosys had extended its selling pressure on stock exchanges during the trading session of January 11, with the stock price erasing its Rs 1,500 mark. Overall, on the day, the stock price tumbled by 2% to hit an intraday low of Rs 1,492.60 apiece.

Infosys share price and its ADR will react to Q3 numbers of FY24 on Friday.

Infosys is a global leader in next-generation digital services and consulting. Over 300,000 of its people work to amplify human potential and create the next opportunity for people, businesses and communities. Infosys enable clients in more than 56 countries to navigate their digital transformation.

Also, with over four decades of experience in managing the systems and workings of global enterprises, Infosys expertly steer clients, as they navigate their digital transformation powered by cloud and AI. Infosys enable them with an AI-first core, empower the business with agile digital at scale and drive continuous improvement with always-on learning through the transfer of digital skills, expertise, and ideas from our innovation ecosystem.