Infosys Ltd.'s revenue during the fourth quarter of fiscal 2024 missed street estimates, while it forecasted its revenue to grow 1-3% in the ongoing financial year.
The top line of India's second largest IT services firm fell 2.1% sequentially to Rs 37,923 crore in the three months ended March 31, according to an exchange filing on Thursday. That compares with the Rs 38,576-crore consensus estimate of analysts tracked by Bloomberg.
The reported revenue growth in constant currency terms was 1.4% in the previous fiscal. That fell marginally short of its forecast of 1.5%-2%.
Infosys Q4 FY24 Highlights (Consolidated, QoQ)
Revenue down 2.3% to Rs 37,923 crore (Estimate: Rs 38,576 crore).
EBIT down 4.3% to Rs 7,621 crore (Estimate: Rs 7,994.7 crore).
EBIT margin at 20.1% versus 20.5% (Estimate: 20.70%).
Net profit up 30.5% at Rs 7,975 crore (Estimate: Rs 6,162 crore).
Company to pay dividend of Rs 20 per share and a special dividend of Rs 8 per share.
The surge in net profit was due to the interest on income tax refund to an extent of Rs 1,914 crore during the quarter. Excluding items, net profit fell 0.8% on a sequential basis.
The pressure on discretionary segment remains overhanging, due to which the deals are not getting converted into revenue, the company's Chief Executive Officer Salil Parekh said in a post-earnings conference on Thursday.
Infosys' American Depository Receipts fell 7.3% during the pre-market trade, after the earnings announcement.
FY25 Guidance
Company expects revenue growth of 1%-3% in constant currency terms.
Sees FY25 operating margin at 20%-22%.
Other Key Highlights
Approved acquisition of in-tech Holding GmbH, engaged in engineering R&D services. The acquisition is likely to be completed by the second half of FY25.
Also Read: TCS Has A Macro Hangover Going Into FY25
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