Infosys Q4 Results: Cons PAT Shoots Up 30% YoY To Rs 7,975 Crore; FY25 Guidance Here

Tech giant, Infosys has outperformed street expectations in terms of profitability in Q4 of FY24. On April 18, Infosys announced its financial earnings for the quarterly and full-year period ending March 31, 2024. In Q4FY24, Infosys posted a consolidated net profit of Rs 7,975 crore, before minority interest, registering a growth of 30% YoY and 30.5% QoQ.

Infosys profit was at Rs 6,134 crore in Q4FY23 and Rs 6,113 crore in Q3FY24.

Coming to the top-line front, however, consolidated revenue dipped by 2.3% sequentially but marginally up by 1.3% YoY to Rs 37,923 crore. In constant currency, revenue dipped by 2.2% QoQ and was flat on a year-on-year basis.

Operating margin stood at 20.1%, declining by 0.9% YoY and 0.4% QoQ.

Infosys said that it delivered $18.6 billion in FY24 revenues with a growth of 1.4% in constant currency and an operating margin of 20.7%. Free Cash Flow was strong at $2,882 million, an increase of 13.7% over FY 23. Large deal TCV for FY24 was the highest ever at $17.7 billion, with 52% being net new.

Further, in dollar terms, Infosys stated that Q4 revenues were at $4,564 million, flat year on year and decrease of 2.2% sequentially in constant currency. Large deal TCV for the quarter was $4.5 billion, with 44% being net new. Operating margin
for the quarter was 20.1%, a sequential decrease of 40 bps. Free Cash Flow was robust at $848 million.

Salil Parekh, CEO and MD said, "We delivered the highest ever large deal value in the financial year 2024. This reflects the strong trust clients have in us. Our capabilities in Generative AI continue to expand. We are working on client programs, leveraging large language models with impact across software engineering, process
optimization, and customer support."

For the financial year 2024-25 guidance, Infosys estimates revenue growth of 1%-3% in constant currency, while operating margin is at 20%-22%.

Infosys board also reviewed and approved the capital allocation policy for the next 5 years from FY25 - FY29 after taking into consideration the strategic and operational cash requirements.

The company decided that effective from the financial year 2025, the Company expects to continue its policy of returning approximately 85% of the free cash flow cumulatively over 5 years through a combination of semi-annual dividends and/or share buyback/ special dividends subject to applicable laws and requisite approvals, if any.

Also, Infosys received approval for the acquisition of in-tech Holding GmbH engaged in Engineering R&D services. This strategic investment further strengthens Infosys' Engineering R&D capabilities and reaffirms its continued
commitment to global clients to navigate their digital engineering journey.

During Q4, Infosys had rescoping and renegotiation of one of the large contracts in the financial services segment leading to a one-time impact of approximately 100bps in Q4. Nearly 85% of the scope of the contract continues as-is.

Infosys is a global leader in next-generation digital services and consulting. Over 300,000 of our people work to amplify human potential and create the next opportunity for people, businesses and communities

On BSE, Infosys share price stood at Rs 1420.55 apiece, up by 0.41% with market cap of Rs 5,89,651.48 crore.