Infosys revenue hits $18.6Bn in FY2024
BENGALURU, INDIA — Digital services and consulting provider Infosys reported modest growth in its financial results for the fiscal year 2024.
Despite a challenging economic environment, the company delivered a total revenue of $18.6 billion, marking a 1.4% growth in constant currency terms.
Infosys revenue and profitability
The company’s operating margin stood at 20.7%, with a slight decline from the previous fiscal year. The basic earnings per share (EPS) saw a 7.3% increase year-on-year, reaching $0.77.
Infosys also reported a robust free cash flow of $2.8 billion, which is an increase of 13.7% over FY23.
Infosys fourth quarter performance
For the fourth quarter, Infosys’s revenues were flat year-on-year at $4.5 billion and saw a sequential decrease of 2.2% in constant currency.
The operating margin for Q4 was reported at 20.1%, with a sequential decrease of 40 basis points. The large deal Total Contract Value (TCV) for the quarter was $4.5 billion, with 44% being net new.
Infosys CEO and Managing Director Salil Parekh expressed confidence in the company’s performance, stating, “We delivered the highest ever large deal value in the financial year 2024. This reflects the strong trust clients have in us.”
He also highlighted the company’s expanding capabilities in Generative AI and its impact across various domains.
“We are working on client programs leveraging large language models with impact across software engineering, process optimization, and customer support.”
Capital allocation and dividends
The Board recommended a final dividend of ₹20 ($0.24) per share and a special dividend of ₹8 ($0.096) per share for FY24.
This aligns with the company’s capital allocation policy, which aims to return 85% of free cash flow to shareholders over the next five years.
Outlook and focus areas
Looking ahead, Infosys projects revenue growth of 1%- 3% in constant currency and an operating margin of 20%- 22% for FY25.
CFO Jayesh Sanghrajka added that the company’s focus will remain on expanding its operating margin and improving cash generation.
Infosys is a global leader in next-generation digital services and consulting. It recently secured the #8 spot in the OA500 2024, an objective index of the world’s top 500 outsourcing companies.
