Revenue from operations during the third quarter rose by 1% to Rs 38,821 crore, compared with Rs 38,318 crore in the corresponding quarter of last year. The ET NOW poll pegged revenue at Rs 38,570 crore.
Infosys FY24 Guidance
The company has revised its revenue guidance to 1.5%-2% in constant currency terms from 1%-2.5% earlier.
In the revenue forecast for FY24, the Bengaluru-based IT exporter has raised the estimate to 1.5% but trimmed the same at the upper end to 2%. However, the company has retained its operating margin target of 20-22%.
During the third quarter under review, revenue in constant currency terms (CC) terms declined 1% YoY. Operating margins for the same period fell 1% YoY.
Deal Wins
The IT major has bagged $3.2 billion worth large deals (TCV) in the reporting December quarter, with 71% of the same coming from net new deals.
“Our performance in the third quarter was resilient. Large deal wins reflect the relevance and strength of our portfolio of offerings ranging from generative AI, digital and cloud to cost, efficiency and automation,” said Salil Parekh, CEO and MD.Cash generation remained steady during the third quarter with FCF (free cash flow) showing a growth of 17% YoY to Rs 5,548 crore. The FCF conversion to net profit for Q3 is at 90.6%.
Attrition Rate
Infosys reported a further decline in attrition to 12.9% on a 12-month trailing basis from 14.6% in the September 2023 quarter and 24.3% a year ago.
The net employee headcount was down marginally in the October-December period quarter to 3,22,663.
Segment-wise Revenue
Among verticals, financial services, which makes up a significant portion of the overall revenue, declined nearly 6% YoY in constant currency terms. Communications saw a 8% drop in constant currency revenue.
The retail and manufacturing segments, on the other hand, rose 0.4% and 10.6%, respectively in the reporting period.
On Thursday, ahead of the earnings, Infosys shares closed flat Rs 1,520 on NSE.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
