Infosys Q3 net profit at ₹6,106 crore, IT firm tightens FY24 revenue guidance: Key highlights

The headcount at the Bengaluru-based tech services giant slipped over 6,100 employees during the October–December 2023 quarter, whereas the attrition rate for the period has declined to 12.9%.

The Board of IT major Infosys on Thursday, January 11, announced a definitive agreement to acquire InSemi, a leading semiconductor design and embedded services provider for ₹280 crore. “Consideration including earn-outs, and management incentives, and retention bonus totaling up to ₹280 crore subject to customary closing adjustments,” the company said.

Bengaluru-based technology services bellwether Infosys Ltd. expects revenue growth of 1.5% to 2% in constant currency terms. This is in comparison to the 1% to 2.5% guidance it had projected during the September quarter.

Addressing the media after Infosys declared its Q3FY24 results on Thursday, MD and CEO Salil Parekh said that the company has tightened guidance in this quarter although the outlook is quite similar to what we have seen in the past three quarters. Parekh also said that he sees no difference in client budgets and behaviour or no particular increase or decrease in budgets.

Further, he said generative artificial intelligence (AI) is seeing a lot of interest and traction. On the recent termination of a $1.5 billion MoU, Parekh avoided any additional comments. On the recent high-profile exits within the company, Parekh said that we have a strong set of leaders within the company to take over.

#Infosys to acquire Insemi for Rs 280 cr pic.twitter.com/d5OKjinKhV

— CNBC-TV18 (@CNBCTV18Live) January 11, 2024

“Infosys, there are a couple of interesting things, especially related to headcount and all which in my view is something that probably starts telling you that things would change. We also saw that interim increment that they announced some time back, I think about a month back, that was the first indication that there we anticipating some sort of a build-up in order values, new contracts or the executions could kind of ramp up. So that I think is again an endorsement or a validation of that view, which is something that probably seems more positive. So the market would probably like that and start believing that things could improve for Infosys from here on,” Diwan told CNBC-TV18.

“I would say that these numbers are slightly better than estimate on both revenue and margin front. Margin everyone was around 20.3, they have come at 20.5 so that is slightly better. And also on revenue front, as you rightly mentioned, the decline was expected to be a little sharper at 1.4 -1.5% in constant currency it is lower than that and obviously guidance has to be recalibrated because there is only a residual quarter four so I think that these numbers also, you can say that they are either in line or slightly better than expectation. The next year is what people will look at, and I think commentary, when the earnings call happens and the press conference happens will be more important, because that will give some highlight on how they are seeing the client budgets to be,” Agarwal told CNBC-TV18.

Infosys CEO and MD Salil Parekh said, “Our performance in Q3 was resilient. Large deal wins were strong at $3.2 billion, with 71% of this as net new, reflecting the relevance and strength of our portfolio of offerings ranging from generative AI, digital, and cloud to cost, efficiency, and automation. Our clients are leveraging our Topaz generative AI capabilities and our Cobalt cloud capabilities to create long-term value for their businesses.”

INFOSYS FY24 GUIDANCE | FY24 revenue growth guidance is at 1.5-2% Vs CNBC-TV18 poll of 1-2%

Upper-end of FY24 revenue #guidance cut while lower end raised#3QWithCNBCTV18 pic.twitter.com/NtIqbjRLmS

— CNBC-TV18 (@CNBCTV18Live) January 11, 2024

IT firm Infosys’s dollar revenue came in at $4,663 million against a CNBC-TV18 poll of $4,634 million, the company announced while declaring its third-quarter earnings.

As expected, Infosys revised its FY24 revenue guidance to 1.5%-2.0% and operating margin guidance to 20%-22%.

Infosys Q3FY24 net profit comes at ₹6,106 crore against a CNBC-TV18 poll Of ₹6,043 crore. Infosys Q3 revenue came in at ₹38,821 crore against the  CNBC-TV18 poll of ₹38,555 crore. Infosys EBIT came in at ₹7,961 crore against the CNBC-TV18 poll of ₹7,859 core, while the EBIT margin is at 20.5% against the CNBC-TV18 poll of 20.4%.

Tata Consultancy Services (TCS) posted revenue at ₹60,583 crore in Q3 FY24, against a CNBC-TV18 poll of ₹59,950 crore.  For more, click here

During an exclusive interview with CNBC-TV18, NRN Murthy emphasised the importance of having a lofty and noble dream, such as demonstrating that anyone, irrespective of connections or familial wealth, could start and run a successful company.

The Street will closely watch any dividend announcement from the information technology (IT) services firm Infosys today when it declares its third-quarter results. The firm had announced a dividend of ₹18 per equity share for FY24 with its second-quarter results. The record date for the same was fixed on October 25, 2023. The tech giant has declared 48 dividends since October 25, 2000. In the past 12 months, Infosys has declared an equity dividend amounting to ₹34 per share.