Infosys Q4 Result: Net Profit Rises 8 Per Cent To Rs 6,128 Crore, Misses Estimates

Infosys' posted 16 per cent YoY growth in consolidated revenue in the fourth quarter of FY23 at Rs 37,441 crore

Infosys' headcount growth for the year was 29,219 employees, down 46 per cent from last year’s net addition of 54,396. ( Image Source :Getty )

Infosys on Thursday logged a 7.8 per cent year-on-year (YoY) rise in consolidated net profit at Rs 6,128 crore in March quarter of FY23, and gave 4-7 per cent revenue growth forecast for FY24 amid macro economic uncertainities. The net profit (after minority interest) stood at Rs 5,686 crore in the fourth quarter of FY22. Seen sequentially, the net profit for Q4 came in 7 per cent lower. The results were below street estimates.

The Bengaluru-based firm, which competes in the market with Tata Consultancy Services (TCS), Wipro and other IT companies, also logged a 16 per cent YoY growth in consolidated revenue in the fourth quarter of FY23 at Rs 37,441 crore. Infosys has given revenue growth guidance of 4-7 per cent for FY24. The company, during Q3 earnings announcement in January this year, had raised FY23 revenue guidance to 16-16.5 per cent against the previously projected band of 15-16 per cent.

For the full year FY23, the net profit was up 9 per cent on year at Rs 24,095 crore, while revenue was 20.7 per cent higher at Rs 146,767 crore.  "Our strong performance in FY23 is a testimony to the continued focus on digital, cloud and automation capabilities which resonated with our clients. We have launched exciting programs with our clients leveraging generative AI platforms," Infosys CEO and MD Salil Parekh said.

"As the environment has changed, we see strong interest from our clients for efficiency, cost and consolidation opportunities, resulting in a strong large deal pipeline. We have expanded our internal program on efficiency and cost to build a path to higher margins in the medium term. We continue to invest in our people and in supporting our clients," Parekh added.

The company saw its EBIT (earnings before interest and taxes) margin contracting 0.5 per cent YoY to 24.5 per cent vs 0.1 per cent expansion expected while EBIT increased 14.7 per cent to Rs 14,488 crore for the quarter.

Infosys ended the Q4 with 3,611 fewer employees than the preceding quarter. The company’s headcount growth for the year was 29,219 employees, down 46 per cent from last year’s net addition of 54,396.

Share price of Infosys logged Rs 1,388.60, down 2.79 per cent on the BSE on Thursday, before the announcement of the Q4 earnings.