Infosys has revised its revenue growth guidance for FY24 to be between 4-7%, compared to the earlier projection of 16-16.5% during the Q3 earnings announcement in January. The IT major’s net profit has increased by 7.8% to reach Rs. 6,128 crore in Q4.
On Thursday, Infosys reported underwhelming Q4 figures that fell short of the street’s expectations, with its revenue guidance for FY24 disappointing as well. Although the company narrowly missed its earlier revenue guidance for FY23, its operating margin was at the lower end of its projected range. The Q4 results were impacted by one-time revenue and unplanned project ramp-downs, reflecting an uncertain demand environment for Infosys moving forward.
According to a statement, certain industries, including mortgages, asset management, investment banking, telecom, high-tech, and retail, are more affected, causing uncertainty in spending and delaying decision-making. The situation is more severe in the U.S. than in Europe. Nilanjan Roy, the Chief Financial Officer, discussed the challenges in detail. He mentioned that budgeting delays at the beginning of the year, macroeconomic uncertainties, and a decline in mortgages, asset management, and investment banking have impacted the financial services sector. On the other hand, the manufacturing and energy sectors are increasing their spending.
According to Nilanjan Roy, the Chief Financial Officer of Infosys, there are numerous freshers undergoing training while on the bench. As a result, the hiring of freshers in FY24 will be contingent on the demand environment and project execution. In the meantime, the company has announced a final dividend of Rs 17.50 per share for the financial year that concluded in March.
In the quarter, we experienced a decline in volumes due to unplanned project ramp downs, decision-making delays, and certain one-time revenue impacts. Although there were indications of stabilization in March, the environment is still unpredictable.
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