Infosys Q1 results: Net profit rises 11% to Rs 5,945 crore; FY24 revenue guidance cut
The increase in the IT giant's net profit is lower than what analysts had expected, reflecting growing challenges in an uncertain global environment.
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- Infosys' net profit increased by 11% but fell short of analyst estimates.
- Due to the worldwide economic slump, sequential earnings were dismal.
- Due to the worldwide economic slump, sequential earnings were dismal.
- For the first quarter ending June 30, Infosys, the second-largest provider of IT services in India, recorded a noteworthy 11% increase in net profit, coming in at Rs 5,945 crore. However, Refinitiv statistics cited in a Reuters story showed that this amount was less than the Rs 6,141 crore profit that analysts had predicted.
For the quarter, the company's consolidated revenue increased by 10% to Rs 37,933 crore. However, Infosys lowered its full-year revenue growth expectation, cutting it from the previous estimate of 4-7% to 1-3.5% due to a difficult economic climate.
However, the business kept its operating margin forecast of 20% to 22% for the current fiscal year.
In the June quarter, Infosys' earnings declined sequentially as a result of a slowdown in its business that was driven by the gloomy prognosis for the world economy.
Consolidated sales for the company increased 1.3% sequentially, but net profit decreased by almost 3%. Revenue for the company increased 1% from one quarter to the next in constant currency (CC) terms. The combined operating margin was recorded at 20,8%, a decrease of 20 basis points from the previous quarter.
Infosys credited its continuing emphasis on cost optimisation and strict operational discipline for its strong Q1 operating margins. According to Nilanjan Roy, the CFO at Infosys, increased efficiency initiatives and improved utilisation also helped to preserve margins during the quarter.
Despite these obstacles, the business proved it could land significant contracts by securing $2.3 billion worth of contracts during the quarter, a modest increase from the $2.1 billion worth of contracts secured in the March quarter the year prior.
The CEO and MD of Infosys, Salil Parekh, expressed his happiness with the strong Q1 growth of 4.2% and stressed the importance of the significant agreements, which will create a solid platform for future growth.
