- 11 Jan 2024
- ICICIdirect
INFOSYS Q3 RESULTS 2024: PROFIT DOWN SEQUENTIALLY, IN LINE WITH ESTIMATES
INFY - 1967 Change: 49.65 (2.59 %)
Infosys reported its Q3FY24 numbers after the market hours today. Earlier today, Infosys stock price closed flat at Rs 1,494.20 per share. The key highlight is the revised revenue guidance, even lower than the previous quarter. Let us look at Infosys' Q3FY24 quarterly numbers in detail.
About Infosys Limited
Infosys is a multinational IT services and consulting company. It offers a wide range of services, including software development, business consulting, and outsourcing. Founded in 1981, Infosys has become one of India's leading IT companies and a global player in the technology industry.
Crucial Parameters
- PE: 25.49
- ROE: 33.90
- Market Cap: Rs 6,20,491.91 crore
- 52-week High: Rs 1,620
Share Price Movement
In the last one month, Infosys' share price has remained muted, while 12.42% in the last six months. However, in a one-year time frame, the share price grown by 1.66%. Despite the muted one-year returns, the 5-year is nearly 104.65%.
How has Infosys performed in Q3FY24?
Below are key updates from Infosys' December quarter results:
Revenue: Infosys reported an increase in consolidated revenue by 1.3% YoY to Rs 38,821 crore from Rs 38,318 in the year-ago period. In constant currency terms, the revenue increased by 2.5% YoY. Sequentially, the revenue was down 0.4% from Rs 38,994 in CC.
Financial Services segments reported the highest revenue contribution at 27.8%, followed by Manufacturing. Revenue from manufacturing increased by 12.5%, followed by Life Science at 8.2% YoY growth. Communication, Financial Services, and Hi-Tech reported a decline in YoY growth.
Profits: The company reported a net profit of Rs 6,106 crore, a fall of 7.3% YoY. In the year-ago period, the company reported a net profit of Rs 6,586 crore, and sequentially profits decreased from Rs 6,212 crore.
Guidance: Infosys has revised FY24 revenue guidance to 1.5 - 2.0% against 1 - 2.5% earlier. Meanwhile, it kept operating margin guidance unchanged at 20-22%.
Active Clients: The total number of clients reported by the company for Q3FY24 was 1872, a fall from 1,884 in the September 2023 quarter and an increase from 1,850 in the year-ago period. The number of 100 million dollar+ clients has increased by a count of 1 sequentially and stood at 40. Clients in the 50 million dollar+ increased by a count of two to 82 from 78 in the previous quarter and 79 in the year-ago period.
Employee Count: The employee count has reduced for the fourth consecutive quarter to 3,22,663 from 3,28,764 in Q2FY24 and 3,46,845 in the year-ago period. Voluntary attrition has come down to 12.9% from 14.6% in the September quarter and 24.3% in the year-ago period.
Dividend: The company has not declared a dividend for this quarter.
Other Updates: The operating margins reported by the company were 20.8%. In the year-ago period, the operating margins were 21.2%. The large deal wins were strong at $3.2 billion, with 71% of this as net new. The earnings per share or EPS has increased by 3% YoY.
For the quarter, Cash generation remained robust with FCF to net profit conversion for Q3 at 90.6% Infosys entered into a definitive agreement to acquire 100% of the equity share capital in InSemi Technology Services Private Limited, a semiconductor design services company headquartered in India, for consideration including earn-outs, and management incentives and retention bonuses totaling up to Rs 280 crore (approximately $34 million).