Infosys has forecast a single-digit revenue growth of 4-7% in constant currency for FY24. This is less than half of the 15. 4% growth it clocked in constant currency in FY23. Even the performance for the whole of last year was lower than its own guidance of 16-16. 5% for the year, showing a dramatic adverse turn in the last quarter of the year.
Infosys CEO & MD Salil Parekh said on Thursday that in Q4, the company saw unplanned project ramp-downs in some of its clients and delayed decision-making, which resulted in lower volumes.
“In addition, we had a one-time revenue impact. While we saw some signs of stabilisation in March, the environment remains unstable,” he said. The revenue in the quarter dropped by 3. 2% in constant currency compared to the precedingone, and rose by 8. 8% compared to the year-ago quarter. Both numbers were significantly lower than that for TCS, which announced its numbers on Wednesday.
For the 2024 fiscal, Infosys has guided for an operating margin of between 20% and 22%. Parekh said financial services, mortgages, asset management and investment banking saw unplanned ramp-downs.
Operating margin in the March quarter stood at 21%, down 50 basis points (100bps = 1percentage point) compared to preceding and the year-ago quarter. Parekh said the company saw some headwinds because of higher compensation and some travel coming back. “But with higher utilisation and more automation,we also have a runway to increase margins and it gives us flexibility next year,” he said. In the March quarter, Infosys signed large deals worth $2. 1 billion and Parekh said there are opportunities in cost-optimisation programmes and in deal consolidation. Digital revenue now comprises 62. 2% of total revenue.
Employee utilisation dropped to 80% in the 2022-23 financial year, from 87% in the previous year. Infosys has refrained from calling out the number of freshers it will hire in the 2023-24 financial year. Parekh said they would honour all the campus offers made so far, but did not share details on onboarding dates. He also didn’t share details on the pay hikes, promotions and variable payouts.
if(typeof window !== ‘undefined’) {
window.TimesApps = window.TimesApps || {};
const { TimesApps } = window;
TimesApps.loadScriptsOnceAdsReady = () => {
var scripts = [
‘https://static.clmbtech.com/ad/commons/js/2658/toi/colombia_v2.js’,
‘https://timesofindia.indiatimes.com/grxpushnotification_js/minify-1,version-2.cms’,
‘https://connect.facebook.net/en_US/sdk.js#version=v10.0&xfbml=true’,
‘https://timesofindia.indiatimes.com/locateservice_js/minify-1,version-14.cms’
];
scripts.forEach(function(url) {
let script = document.createElement(‘script’);
script.type=”text/javascript”;
if(!false && !false && !false && url.indexOf(‘colombia_v2’)!== -1){
script.src = url;
} else if (!false && !false && !false && url.indexOf(‘sdkloader’)!== -1) {
script.src = url;
} else if (!false && (url.indexOf(‘tvid.in/sdk’) !== -1 || url.indexOf(‘connect.facebook.net’) !== -1 || url.indexOf(‘locateservice_js’) !== -1 )) {
script.src = url;
} else if (url.indexOf(‘colombia_v2’)== -1 && url.indexOf(‘sdkloader’)== -1 && url.indexOf(‘tvid.in/sdk’)== -1 && url.indexOf(‘connect.facebook.net’) == -1){
script.src = url;
}
script.async = true;
script.defer = true;
document.body.appendChild(script);
});
}
}
More News
Saudi Arabia’s non-oil business activity growth steady in April-PMI – Times of India
‘Just like nuclear weapons’: Warren Buffett has this big warning on the use of artificial intelligence – Times of India
Warren Buffett says AI may be better for scammers than society. And he’s seen how – Times of India