In a noteworthy financial update on Thursday, reputable IT giant Infosys Ltd. announced a significant uptick in its consolidated profit by 30 percent to Rs 7,969 crore in the final quarter of the fiscal year concluding in March. This robust increase from a profit of Rs 6,128 crore the previous year comes as a strong indicator of the company’s growth, as per its latest regulatory filing. This period also witnessed a moderate revenue increase, going up by 1.3 percent to Rs 37,923 crore, compared to Rs 37,441 crore recorded in the corresponding quarter of the prior year.
As corporate forecasting turns into a refined art in these fiscally unpredictable times, Infosys has projected a revenue growth ranging between 1-3 percent in constant currency terms for the financial year 2025 (FY25). The operating margin is expected to remain healthy, hovering around 20-22 percent, signaling a continued positive trajectory for the IT firm. This growth guidance slightly overtakes the final figures for the year that just ended. Infosys Managing Director and CEO Salil Parekh elucidates that financial services are anticipated to exhibit a more promising outlook in the coming period compared to the present fiscal year. However, the company’s growth projection appears more subdued when juxtaposed with the 4 to 7 percent outlook for the recently concluded 2023-24.
Parekh also pointed out that slower growth is predicted in the manufacturing sector for the year, attributing the cautious outlook to stable discretionary spending and digital work, combined with a greater emphasis on cost efficiency and consolidation.
When it comes to financial performance, Infosys demonstrated steadfast resilience throughout the fiscal year ending March 2024. The net profit climbed by an admirable 8.9 percent, resting at Rs 26,233 crore, an increase from Rs 24,095 crore noted in FY23. Similarly, the income from operations soared by 4.7 percent to Rs 1,53,670 crore in FY24, up from Rs 1,46,767 the year previously.
In an era where human resources are as valuable as ever, Infosys observed a notable 7.5 percent reduction in its workforce, concluding the fiscal term with 3,17,240 employees compared to the 3,43,234 from the prior year. CFO Jayesh Sanghrajka attributed the decrease to improved utilization of their existing workforce, which leveraged from 77 to 82-83 percent, including trainees. A drop in attrition rates also contributed to the net headcount reduction, conveying a stabilizing employment landscape within the firm.
Further reinforcing its growth accomplishments, Infosys achieved the highest-ever total contract value of large deals in the fiscal year 2024 at USD 17.7 billion, 52 percent of which consisted of new contracts. CEO Parekh highlighted this achievement as a testament to the deep-rooted trust clients place in Infosys. The company’s expanding capabilities in Generative AI, with innovative projects harnessing large language models, underscore its commitment to pushing the envelope in software engineering, process optimization, and customer support.
In line with this performance and forward-looking strategy, the Infosys board has recommended a final dividend of Rs 20 per equity share and an enticing special dividend of Rs 8 per equity share for FY24. The board also meticulously reviewed and approved a capital allocation policy anticipating the strategic and operational cash necessities for the next five years—FY25 through FY29.
This comprehensive account not only underscores Infosys’ solid financial standing and promising future prospects but also highlights the technology leader’s ability to adapt and thrive in a dynamically evolving digital landscape. With substantial dividends and strategic planning in place, the company is well-positioned to continue its trajectory as a dominant player in the global IT industry.
