Infosys performance: Infosys reduced its revenue growth forecast from 1%-3.5% to 1%-2.5%. The unexpected part was the adjustment in revenue projection for FY24.
Infosys is a worldwide leader in digital services and consulting, assisting customers in over 50 countries with their digital transformation. With over 30 years of expertise managing the systems and operations of multinational organizations, Infosys effectively guides its customers through their digital journey.
Infosys provides a broad variety of services, including Business consulting, information technology, outsourcing, cloud computing, data analytics, artificial intelligence, machine learning, and other services.
In constant currency terms, it now expects sales growth of 1% to 2.5% in FY24. It did, however, maintain its year-end operating margin forecast of 20%-22%. In its Q1FY24 results, Infosys significantly reduced its FY24 revenue forecast from 4%-7% to 1%-3.5%.
“Our future prospects are greatly enhanced by the big and mega contract wins, but as we anticipate the ramp-ups that will occur towards the end of the year, as we previously disclosed, even some of those ramp-ups will be pushed out, so that’s where we are with the guidance,” said Salil Parekh, CEO, and MD in a press conference today.
Infosys Q2 2023 Results
Infosys Ltd reported a 3.2% year-on-year increase in its consolidated net profit (attributable to the company’s owners) for the fiscal second quarter ended September (Q2FY24) to 6,212 crore on Thursday. In the previous fiscal year, Infosys recorded a profit of 6,021 crore. The combined net profit increased by 4.5% year on year. Infosys shares closed at 1,464.55 per share, down roughly 2% on the BSE.
According to an Infosys exchange statement, the major IT business recorded $4,718 million in Q2 sales, indicating a 2.5% year-on-year increase and 2.3% sequential growth in constant currency. The major transaction TCV for the quarter was $7.7 billion, with a net new of 48%. The operating margin for the quarter was 21.2%, up 40 basis points from the previous quarter. Attrition fell even more, to 14.6%. Infosys has maintained its 20%-22% operating margin target.
“We had our highest large deals value at $7.7 billion in Q2 spread across all verticals and geographies. This, in an uncertain macro-environment, is a testament to our ability to pivot and stay relevant to the evolving client needs, by delivering the benefits of transformation as well as productivity and cost savings at scale,” said Salil Parekh in an exchange filing.