Infosys Q4 net profit jumps 30% to ₹7,969 cr

Net profit of Infosys Ltd rose 30% year-on-year to ₹7,969 crore for the quarter ended March 31, 2024 compared with ₹6,128 crore in the year-ago quarter.

Revenue of India's second-largest software services provider rose 1.3% to ₹37,923 crore in the fourth quarter as against ₹37,441 crore in the corresponding quarter last year.

Infosys declared a final dividend of ₹20 per equity share and a special dividend of ₹8 per share.

Operating margin for the quarter stood at 20.1%

“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, says Salil Parekh, CEO and managing director, Infosys. “I would like to thank our 317,000 employees across the world that are working to create value for our clients.” he added.

For the ongoing fiscal, IndiGo’s revenue guidance stands at 1-3% growth in constant currency. Operating margin guidance is 20-22%.

“Free cash flow of $848 million in Q4 was highest in the last 11 quarters driven by our relentless focus to improve working capital cycle. Consistent with the objective of giving high and predictable returns to shareholders, the Board has approved the capital allocation policy under which the company expects to return 85% over the next 5 years and progressively increase annual Dividend Per Share”, says Jayesh Sanghrajka, CFO. “Operating margin expansion in the medium-term and improving cash generation continue to remain our priorities underpinned by early success in Project Maximus,” he adds.

North America contributed 59.6% to Infosys’ revenues during the March quarter while Europe accounted for 28.6% revenues.

Infosys reported a drop in staff headcount for the fifth straight quarter. The software major ended FY24 with 317,240 employees compared with 322,663 at the end of December 2023 and 343,234 at the end of March 2023.

Infosys’ free cash flow was strong at $2.8 billion, an increase of 13.7% over FY23. Large deal TCV for FY24 was highest ever at $17.7 billion, with 52% being net new.

The software giant announced an agreement to acquire in-tech, an engineering R&D services provider focused on the German automotive industry, for 450 million euros. This strategic investment further strengthens Infosys’ Engineering R&D capabilities and reaffirms its continued commitment to global clients to navigate their digital engineering journey, the company says.

Headquartered in Germany, in-tech, offers digitisation in the automotive, rail transport and smart industry sectors. in-tech develops solutions in e-mobility, connected and autonomous driving, electric vehicles (EV’s), off-road vehicles and railroad. intech's offerings include system design, methodical consulting, advanced electronics platform development and validation of automotive specific software and hardware systems, infotainment, and experience validation.