Infosys Q3 profit falls 7% to $737Mn

BENGALURU, INDIA — Digital services and consulting firm Infosys reported a 7% year-on-year decline in consolidated net profit at Rs 6,106 crore (US$737 million) for the third quarter ended December 31, 2023. Revenue rose 1.3% to Rs 38,821 crore (US$4.69 billion).
In constant currency terms, revenue fell 1% while operating margin declined to 20.5% from 21.5% a year ago.
Because of these results, Infosys revised its FY2024 revenue growth guidance to 1.5-2% in constant currency from 1-2.5% earlier. Its operating margin forecast was retained at 20-22%.
“Our performance in Q3 was resilient. Large deal wins reflect the relevance and strength of our portfolio of offerings ranging from generative AI, digital and cloud to cost, efficiency and automation,” said CEO Salil Parekh.
The IT major bagged $3.2 billion worth of large deals during the December quarter — including an AI deal with Google Cloud and car parts distributor LKQ Europe.
Among verticals, growth remained uneven. Financial services and communication segments saw revenue declining 6% and 8%, respectively, in constant currency terms. However, retail and manufacturing posted modest growth.
North America, which accounts for 59% of the firm’s revenue, declined 4.9% in constant currency, while Europe saw a 5% growth.
Still, the company reported steady cash generation, with free cash flow up 17% to Rs 5,548 crore. The cash conversion to net profit was healthy at 90.6%.
Meanwhile, employee attrition eased further to 12.9% from 14.6% in the previous quarter, bringing the firm’s total headcount to 322,000.
Infosys is ranked 8th in the 2023 Time Doctor OA500, an objective index of the world’s top 500 outsourcing companies. The 2024 edition of the OA500 will be released next month.