Revenue from operations declined 2.31% to Rs 37,923 crore in Q4 FY24 as compared with Rs 38,821 crore in Q3 FY24. Year on year basis, the company?s net profit jumped 30.01% while revenues increase 1.29% as compared with Q4 FY23. During the quarter, operating profit was Rs 7,621 crore, down 4.3% QoQ and 3.2% YoY. Operating margin for the quarter was 20.1%, a sequential decrease of 40 bps. In dollar terms, the IT firm reported revenues of $4,564 million (down 2.1% QoQ and up 0.2% YoY) for the quarter ended 31 March 2024. In constant currency terms, the company's revenue has declined by 2.2% QoQ and YoY growth remained flat during the period under review. In Q4 FY24, free cash flow (FCF) was Rs 7,032 crore, registering a YoY growth of 20.33%. The total contract value (TCV) of large deal wins was $4.5 billion in Q4 FY24, with net new of 44%. The company had 1,882 active clients as of 31 March 2024 as compared with 1,872 active clients as of 31 December 2023 and 1,872 as on 31 March 2023. Total headcount as on 31 March 2024 was 3,17,240. Last twelve months IT services attrition rate slipped to 12.6% as of 31 March 2024 as compared with 12.9% as of 31 December 2023 and 20.9% as on 31 March 2023. In terms of guidance, the company has revised its FY25 revenue guidance to 1%-3% in constant currency and operating margin guidance at 20%-22%. On FY24 basis, the company?s net profit increased 8.8% to Rs 26,248 crore in FY24 as compared with Rs 24,108 crore in FY23. Revenue from operations rose 4.7% YoY to Rs 1,53,670 crore in FY24. Salil Parekh, CEO and MD, said, ?We delivered the highest ever large deal value in the financial year 2024. This reflects the strong trust clients have in us. Our capabilities in Generative AI continue to expand. We are working on client programs, leveraging large language models with impact across software engineering, process optimization, and customer support.? Jayesh Sanghrajka, CFO, said, ?Free cash flow of $848 million in Q4 was highest in the last 11 quarters driven by our relentless focus to improve working capital cycle. Consistent with the objective of giving high and predictable returns to shareholders, the Board has approved the capital allocation policy under which the company expects to return 85% over the next 5 years and progressively increase annual Dividend Per Share. Operating margin expansion in the medium-term and improving cash generation continue to remain our priorities underpinned by early success in Project Maximus.? Meanwhile, the company?s board has a signed definitive agreement to acquire in-tech, a leading Engineering R&D services provider focused on German automotive industry. This strategic investment further strengthens the company?s engineering R&D capabilities and reaffirms its continued commitment to global clients to navigate their digital engineering journey. The company will acquire 100% stake in in-Tech for total consideration of EUR 450 million, includes upfront and earnouts, excluding management incentives, and retention bonus. The said acquisition is expected to close during first half of fiscal year 2025. Further, the company's board has declared dividend of Rs 20 per equity share for financial year ended 31 March 2024 and additionally a special dividend of Rs 8 per equity share. Furthermore, the board has also approved the capital allocation policy for the next 5 years from FY25 ? FY29 after taking into consideration the strategic and operational cash requirements, ?Effective from financial year 2025, the company expects to continue its policy of returning approximately 85% of the free cash flow cumulatively over a 5-year period through a combination of semi-annual dividends and/or share buyback/ special dividends subject to applicable laws and requisite approvals, if any.? Infosys is a global leader in next-generation digital services and consulting. The scrip rose 0.41% to end at Rs 1,420.55 on Thursday, 18 April 2024. Powered by Capital Market - Live News |