Infosys Q4 net profit jumps 30%; company buys German tech firm for Rs 450 million
Infosys, which has the highest Nifty weighting among locally listed technology companies, Thursday said fourth-quarter net profit climbed 30% on gains in non-core income, beating D-Street estimates. Revenue guidance for FY25, a key monitorable for investors, remained conspicuously circumspect, although India's outsourcing bellwether announced its biggest M&A deal in history, commiting nearly about half a billion dollars.
Profit climbed to ₹7,969 crore in the March quarter, beating ET's poll of ₹6,103 crore. Other income buttressed the bottom-line through what turned out to be a tough year for revenue expansion, which hit the lowest pace in a decade. Headcount shrank by about 26,000, again a rarity for India's technology bellwether.
Revenue at ₹37,923 crore in the fourth quarter declined 2.3% sequentially and was up by merely a percentage point (1.2%) on a year-on-year basis. The company's operating margin came at 20.1%, a decline of 40 bps (1.9%) sequentially and decline of 90 bps (4.2%) y-o-y.
The American-listed shares of Infosys slumped 3% to $16.45 apiece late evening India time.
Infosys' new chief financial officer Jayesh Sanghrajka told analysts after the earnings that the company rescoped a financial services deal, causing an impact of more than one percentage point on revenues. «While part of the work got rescoped, over 85% of the contract is still with us,» he said. Sanghrajka clarified that this rescoping and renegotiation «has nothing to do with gen AI.»
Infosys gave a FY25 revenue guidance of 1-3%
