Infosys Q1 Results 2023: Profit Jumps 10.9%, FY24 Revenue Guidance Revised Downward
In its latest quarter, Infosys, the second-largest IT firm by sales, delivered impressive financial results with a 10.9% YoY growth in net profit. However, the company has revised its FY24 revenue guidance, leading to anticipation in the market. Let’s take a closer look at the key highlights of Infosys Q1 results 2023.
Profit and Revenue Growth as per Infosys Q1 Results 2023:
Infosys reported a significant jump in net profit, reaching Rs 5,945 crore for the June quarter, compared to Rs 5,360 crore in the same period last year. This growth of 10.9% surpassed analyst expectations, who had projected a higher 14-18% growth.
The company’s net sales also saw a positive trajectory, rising 10% YoY to Rs 37,933 crore in Q1, meeting Street expectations. These results indicated the company’s resilience in the face of a challenging macro environment.
FY24 Revenue Guidance Revision:
Despite its strong performance, Infosys has revised downward its FY24 constant currency (CC) revenue guidance to 1-3.5%, down from the earlier projection of 4-7%. This move has garnered attention from analysts and investors, with some predicting a potentially challenging path ahead for the IT giant.
Operating Margin and Large Deal Wins as per Infosys q1 results:
Infosys Q1 results 2023: Infosys maintained a healthy operating margin of 20.8%, which saw an 80 basis points increase YoY. However, there was a slight decline of 20 basis points QoQ, standing at 20%. The company’s large deal wins amounted to $2.3 billion, reflecting its capability to secure substantial contracts despite the challenging market conditions.
Attrition and Future Growth of Infosys:
The attrition rate for the quarter decreased to 17.3% from 20.9% in the previous quarter, indicating that Infosys is successfully addressing retention challenges.
Looking forward, the leadership team expressed confidence in their generative AI capabilities and emphasized the transformative potential of their comprehensive AI offering, Topaz. The company aims to set a strong foundation for future growth, building on the success of Q1 and its substantial large deals.
Infosys Q1 results demonstrated its resilience and capacity for growth, with a notable increase in net profit and healthy operating margins. However, the revised FY24 revenue guidance has sparked curiosity in the market, prompting questions about the company’s strategy moving forward. As the leadership team engages with the media and investors in press conferences and conference calls, all eyes are on Infosys’ plans for navigating the dynamic IT landscape