Infosys has posted revenue of $4.714 billion in April-June quarter of 2024, with a sequential growth of 3.6 percent and year on year growth of 2.5 percent.
Infosys has generated 27.5 percent of its sales revenue from financial services; 13.8 percent from retail; 12.1 percent from communication; 13.3 percent from energy, utilities, resources & services; 14.7 percent from manufacturing; 8 percent from hi-tech; 7.3 percent from life sciences and 3.3 percent from others.
North America has contributed 58.9 percent of its sales revenue; while 28.4 percent came from Europe, 9.6 percent from Rest of the world and 3.1 percent from India, Infosys said.
Infosys said its operating margin was at 21.1 percent, a sequential growth of 1 percent. Free cash flow was highest ever at $1,094 million, an increase of 56.5 percent year over year.
Infosys has revealed the number of employees has reached 315,332 at the end of Jun 30, 2024 vs 317,240 in March, 2024 and 336,294 in June, 2023.
The number of software professionals at Infosys has reached 298,123 at the end of Jun 30, 2024 vs 299,814 in March, 2024 and 317,611 in June, 2023.
Salil Parekh, CEO and MD of Infosys, said: “With our focused approach for generative AI for enterprises working with their data sets on a cloud foundation, we have strong traction with our clients. This is building on our Topaz and Cobalt capabilities.”
The number of large deal wins was the highest ever at 34 with TCV of $4.1 billion, 57.6 percent being net new, Infosys said.
For comparison, revenue of TCS (Tata Consultancy Services) rose 5.4 percent to $7.5 billion in the April-June quarter. TCS won deals worth $8.3 billion during the quarter, down from a record $13.2 billion in the quarter ended March.
Infosys said the number of clients has reached 1,867. Infosys has 987 clients in the $1 million + deal size; 309 with $10 million; 84 with $50 million and 40 with $100 million. Top 5 clients contribute 13.5 percent of its sales revenue, while 20.9 percent comes from top 10 clients and 34.9 percent comes from top 25 clients, Infosys said.
ANALYST FEEDBACK
Despite various microeconomic challenges and discretionary client spending, Infosys’s outlook remains positive as its deal pipeline remains good.
A 3.6 percent increase quarter on quarter is a strong indicator of its performance. IT service buyers will be cautious with discretionary spending, prioritizing strong business outcomes. Organizations will approach new projects carefully in the first half of 2024, expecting a slightly improved environment later, Biswajit Maity, Sr Principal Analyst at Gartner, said.
Infosys has effectively managed its fiscal situation thus far. A successful large-deal pursuit strategy has secured numerous significant deals in recent years, with FY24 wins expected to drive strong revenue growth in FY25.
Infosys leverages established relationships to initiate transformation projects focused on cost savings and value creation across domains such as analytics, big data, customer service, and software engineering.
Infosys has enhanced its AI capabilities by reskilling employees and utilizing both proprietary and open-source large language models (LLMs). In 2023, Infosys launched Project Maximus to improve margins through automation, hierarchy index, project portfolio, pricing, and cost initiatives.
Baburajan Kizhakedath
