Infosys softens view as growth slows
Given uncertain demand conditions across key customer markets, Infosys projected revenue to grow by 1%-3% in constant currency terms in the current scal year to March 2025; CEO Parekh says digital, discretionary spending ‘are a bit slower’
Infosys on Thursday reported fourth-quarter net prot rose 30% YoY to ₹7,969 crore, from ₹6,128 crore a year earlier.
The IT major’s revenue from operations rose 1.3% to ₹37,923 crore in the quarter against ₹37,441 crore in the corresponding period last year. But its revenues in constant currency terms remained at YoY and slid 2.2% sequentially.
Infosys reported large deal total contract value for Q4 rose 44% sequentially to $4.5 billion, 44% of which were net new deals.
For FY24, the company reported revenues of ₹1,53,670 crore, a 4.7% growth YoY and an operating margin of 20.7%, a decline of 0.4%.
Given uncertain demand conditions across key customer markets, Infosys
pegged its revenue growth guidance for FY25 at 1%-3%.
Infosys CEO Salil Parekh said, “We are seeing good traction in large deals. Digital and discretionary spending are a bit slower. Yet we have a good view of the early part of the year. There is slowness in telco, high-tech and manufacturing; however, BFSI (banking, nancial services and insurance) may get better in FY25.”
‘No fresh hiring’
Infosys said there were no hiring plans yet for the new scal, as current utilisation was at 85%.
“Hiring models have changed signicantly over the years,” said CFO Jayesh Sanghrajka. “We are doing more than half of the hiring o-campus. Our attrition has also come down signicantly. That is the reason for net headcount reduction,” he added.
Infosys’s headcount for FY24 declined by 25,994 to 3,17,240.
Infosys also disclosed that Infosys McCamish, its software and services arm for the life insurance industry, incurred a $38 million loss in FY24 due to a cyber attack in November 2023.