Infosys Q4FY24 Results

India’s second-largest IT company has recently shared its final quarter result of the financial year which displays the surge in the Net Profit. After sharing the result of Q4FY24, the company also declared a final dividend of their equity share for the financial year 2024. As per the announcement of Infosys made on Thursday, 19 April 2024, the company reported a net profit of ₹7,975 crore in the final quarter of FY24. Whereas the total revenues of the company stood at ₹37,923 crore. Moreover, the firm also mentioned that the revenues of the company in constant currency (CC) terms remained flat year-on-year (YOY) and fell by 2.2% sequentially. 

In last year’s March quarter, Infosys’s net profit was ₹6,134 crore and this year it stood at Rs 7,769 crore. This is against a flattish profit growth that analysts were expecting ahead of the second-largest IT exporter quarter results. On the other hand, Tata Consultancy Services reported 9% YoY profit growth for Q4FY24. Now after reporting a 30% net profit in Q4FY24, Infosys has directed for 1-3% growth in revenue in the wake of CC terms. This went against the company’s updated growth projection of 1.5% to 2% for FY24. Infosys had projected a revenue growth of 4–7% for FY24 before cutting it quarterly. In line with the FY24 guidance, Infosys provided margin guidance of 20–22 per cent.

Infosys said the sales of the company for the quarter were up 1.3% YoY at ₹37,923 crore against Rs 37,441 crore. However, the expectations of analysts for sales growth were lying in the range of 3% to 4%. The Bengaluru-based technology company also announced a final dividend of ₹20 and a special dividend of ₹28 per share for FY24. In constant currency terms (CCT), revenues decreased 2.2% year over year and stayed unchanged. Revenue in dollars reached $4,564 million, up 0.2% year over year. According to Infosys, its operating margin was 20.1%, a decrease of 0.4% QoQ and 0.9% YoY.

Salil Parekh, CEO and MD of Infosys 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.” 

According to Infosys, the quarter’s large deal total contract value (TCV) was $4.5 billion, of which 44% was net new. This exceeded the $2–3 billion in deal wins that analysts had previously expected. In addition to this, for the financial year 2023-24, Infosys shared a final dividend per share which is Rs 20. Moreover, the company has decided on a total dividend which is ₹8 per share. For the year, the company has announced a total dividend of Rs 46. The meeting of the Infosys board was conducted on Thursday, 18 April 2024 in which they reviewed and approved the capital allocation policy for FY25 to FY29. 

In a released statement, Infosys said, “Effective from fiscal year 2025, the Company expects to continue its policy of returning approximately 85% of the free cash flow cumulatively over a 5-year period through a combination of semi-annual dividends and/or share buyback/ special dividends subject to applicable laws and requisite approvals, if any.”

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