Infosys Surpasses Expectations with Strong Q1 Performance, Raises FY25 Growth Outlook

Infosys Share Price Today Live Updates 19 July 2024: Infosys share price surge over 3% after Q1 results; profit beats estimate

Infosys Share Price / Stock Price Today Live Updates: Infosys stock has hit a 52-week on the NSE in early trade on Friday at ₹1,844. The company recorded its revenue at ₹39,315 crore in Q1 FY25, up from Q4 FY24's revenue of ₹37,923 crore. ALL UPDATES July 19, 2024 10:11 bl's Stock Market Live Updates Find here all the live updates related to Sensex, Nifty, BSE, NSE, share prices and Indian stock markets for 19 July 2024. July 19, 2024 10:05 JM Financial on Infosys INFO's 1Q headline print was strong. Revenues grew 3.6% cc QoQ, exceeding expectations (JMFe: 2.1%). EBIT margin expanded 100bps QoQ (JMFe: 50bps). INFO raised its FY25 cc revenue growth guidance to 3-4% (from 1-3%). There were caveats though in all these numbers. Revenue/margin was aided by one-off benefit of 50bps/40bps. Revised guidance includes in-organic contribution (in-tech acquisition) of c.80bps (JMFe). These one-offs aside, we still find a lot of positives in the result. Core volumes grew after three quarters of decline. BFSI returned to sequential growth after six quarters. Management cited evidence of discretionary spend pick-up in BFS. Our TCV-Revenue waterfall model indicates stability in smaller deal revenues. Quality of revenue improved too. Services revenues (ex pass-through) grew 4.5% QoQ. Organic guidance uplift, though modest, seem driven more by management's conservatism. Guide implies organic CQGR of 0-0.5% through FY25. Sustained deal momentum (Net new TCV up 83% YoY) and uptick in short-cycle deals should drive better growth. We build 5% growth and see high probability of upward revision in the guide. Better momentum flows into FY26/27E estimates driving 2-7% EPS upgrade for FY25-27E. For INFO at least, this seems like the beginning of earnings upgrade cycle. That should drive multiples higher. We now value the stock at 27x EPS (from 23x) - at 1-SD above its past-5 year median. Reiterate BUY with a revised TP of INR 2,010. July 19, 2024 10:04 Infosys beats expectations with strong Q1 performance, ups growth guidance to 3-4% Bengaluru-headquartered IT services giant Infosys beat market expectations with sequential revenue growth of 3.6 per cent quarter on quarter (QoQ) in constant currency (CC) during the first quarter of the fiscal year 2024-2025. The company has significantly improved its guidance and expects a revenue growth of 3-4 per cent in constant currency in FY25, up from the 1-3 per cent it had guided earlier. Read moreJuly 19, 2024 10:03 Infosys Q1 results: Why an analysis of numbers douses the excitement around results Investors need to reconcile the logic of paying the same valuation for Infosys as compared to two years back when growth was significantly better Read more July 19, 2024 10:02 Brokerage Nomura on Infosys Buy Call, Target Raised To Rs 1,950 Q1FY25 Was An All-round Beat Surprise Revenue Guidance Driven By Strong Start, Deal Wins, & Acquisition Integration Project Maximus' Impact On Margin Continues To Play Out Raise Our FY25-26 EPS By Nearly 2-3%, Reiterate As Top Pick Jefferies on Infosys Buy Call, Target Raised To Rs 2,040 Q1 Beat Estimates, Driven By Strong Revenue Growth Of 3.6% QoQ Co Has Raised Its FY25 Growth Guidance Which Seems Conservative In Context Of Strong Deal Wins Initial Signs Of Recovery In BFSI, Strong Deal Wins Suggest The Worst Is Behind All-Round Improvement In Operating Performance Suggest The Worst Is Behind Raise Estimates By 3-4% & Expect Co To Deliver 10% EPS CAGR Over FY24-27 Bernstein on Infosys Outperform Call, Target Raised To Rs 2,100 Delivered Its Strongest Beat In 10 Quarters In Q1 Across Revenue, Margin & EPS FY 25 Revenue Guidance Was Raised To 3% To 4% YoY CC (From 1% To 3%) Deal Momentum Was Strong At $4.1 Bn TCV With Net New Of 57 See Beginning Of An Upcycle Trend As Growth Recovers, BFSI Inflects & AI Deals Scale Up JPM on Infosys OW, TP Rs 1950 1Q perfect foil to a poor 4Q24, handsomely beating rev/margin/EPS/FCF &upgrading guide with some +ve one-off revenues/margins Cos' new revenue guidance of 3-4% parses out as 2.3-3.3% organic implies 0.8-1.5% CQGR GS on Infosys Buy, TP Rs 1870 1Q beat: Upside risks to guidance INFY 1Q, coupled with commentary from some of its peers, suggest demand environment is incrementally getting better Expect FY25E reve growth for Infy/sector to be c.400 bps higher vs FY24 CITI on Infosys Buy, TP raised to Rs 1850 1Q revenue came in well above expectations; Deal TCV +87% yoy LTM. Margins were slightly ahead, aided by one off. July 19, 2024 10:00 Infosys share price focus Infosys stock traded at ₹1,800.80 on the NSE, higher by 2.43% as at 9.33 am. SHARE Copy linkEmailFacebookTwitterTelegramLinkedInWhatsAppReddit Published on July 19, 2024

Infosys beats expectations with strong Q1 performance, ups growth guidance to 3-4%

Bengaluru-headquartered IT services giant Infosys beat market expectations with sequential revenue growth of 3.6 per cent quarter on quarter (QoQ) in constant currency (CC) during the first quarter of the fiscal year 2024-2025. The company has significantly improved its guidance and expects a revenue growth of 3-4 per cent in constant currency in FY25, up from the 1-3 per cent it had guided earlier. In Q1FY25, revenue stood at ₹39,315 crore, an increase from Q4FY24's revenue of ₹37,923 crore. In the same quarter last fiscal, the company's revenue was ₹37,933 crore, a growth of 2.5 per cent YoY in CC terms. One-time interest The net profit for the quarter stood at ₹6,368 crore, a decline of 20.1 per cent from Q4's ₹7,969 crore. The decline in net profit was due to a one-time interest on an income tax refund included in 'Other income' in the fourth quarter of the previous financial year, amounting to ₹1,916 crore. However, profit after tax (PAT) rose by 7.1 per cent from ₹5,945 crore in Q1 of the last fiscal. "Strong deal pipeline, improvement in key markets, and recent acquisition are building the confidence for us to up the guidance. Our performance in Q1 was strong on volumes, and financial services in the US are seeing early signs of improvement. Strong performance on the large deals front in the first quarter gives more visibility into this financial year; the in-tech acquisition also helps us in this guidance," said Salil Parekh, CEO and MD of Infosys. "With our focused approach for generative AI for enterprises working with their data sets on a cloud foundation, we have strong traction with our clients. This is building on our Topaz and Cobalt capabilities." The company claimed that the number of large deal wins this quarter was its highest ever at 34 with the total contract value (TCV) being $4.1 billion. However, TCV for the last quarter stood at $4.5 billion. Operating margins for the quarter stood at 21.1 percent, with a growth of 0.3 percent yoy and 1 percent q-o-q. Operating margin guidance, even for FY25, has been retained at 20-22 percent. Jayesh Sanghrajka, CFO, said, "We had 80 bps coming from project Maximus - a margin expansion program, on the back of better pricing, value-based selling, and better benefits from efficiency. 40 bps was from a one-off benefit from one of the clients." Hiring plan Infosys' total headcount fell by 1,908 employees to 3,15,332, from 3,17,240 last quarter. In the first quarter of FY24, the headcount was 3,36,294, a reduction of 20,962 employees since. Voluntary attrition during the quarter rose to 12.7 per cent from 12.6 per cent in Q4. "Our utilisation is already at 85 per cent, and we have a little headroom left, so as we start seeing growth, we will look at hiring. We are looking at hiring 15,000-20,000 freshers this year depending on the growth," the CFO said. About 58.9 per cent of Infosys' revenue came from North America, with a contribution of 3.1 per cent from India, an increase from last quarter's 2.2 per cent. As far as verticals are concerned, Infosys has shown growth in the BFSI sector. The retail and communication sectors follow behind in terms of revenue share. Biswajit Maity, senior principal analyst at Gartner, said, "Despite various microeconomic challenges and discretionary spending from clients, Infosys's overall outlook remains positive as its deal pipeline remains good. A 3.6 per cent increase QoQ is a strong indicator of its performance. We've consistently highlighted that this year will bring growth. IT service buyers will be cautious with spending and focus on strong business outcomes. Organisations will carefully approach new projects in the first half of 2024, expecting a better environment later." He added that over the past few years, Infosys has successfully attracted an increasing number of large deals through an effective large-deal pursuit strategy. Significant deal wins in FY24 are expected to drive revenue growth in FY25. Commenting about the results, Shaji Nair, Research Analyst at Sharekhan by BNP Paribas said, "Infosys 3.6 per cent quarter-on-quarter revenue growth in constant currency, surpassing estimates led by broad-based growth across verticals, while the EBIT margin expanded by 100 basis points aided by Project Maximus, also beating expectations. Notably, the company is experiencing early signs of improvement in financial services in the US which augurs well for the stock. The strong Q1 numbers and upward guidance revision is likely to lead to an upward revision in earnings estimates." in-tech buy Meanwhile, the company said it had also completed the acquisition of in-tech, a leading engineering R&D services provider focused on the German automotive industry which it had announced in April of this year. Shares of the company were up 2.2 per cent higher during the day and closed at ₹ 1,764.05 per share on BSE, even though results were announced post-market closure. SHARE Copy linkEmailFacebookTwitterTelegramLinkedInWhatsAppRedditPublished on July 18, 2024

Infosys Q1 net profit rises 7.1% to ₹6,368 crore; hikes FY25 growth outlook

IT major Infosys Ltd on Thursday (July 18, 2024) reported a 7% rise in first quarter net profit and raised its growth outlook for the current financial year. The consolidated net profit of Infosys increased to ₹6,368 crore in the April-June quarter, compared to ₹5,945 crore in the same period a year back, according to a stock exchange filing by the company. Quarter-on-quarter the company's net profit fell 20% from ₹7,969 crore in the January-March quarter. For the current fiscal year, it raised revenue growth guidance to 3% to 4% in constant currency terms. "We had an excellent start to FY25 with strong and broad-based growth, operating margin expansion, robust large deals, and highest ever cash generation. This is a testimony to our differentiated service offerings, enormous client trust, and relentless execution," said Salil Parekh, CEO and MD. "With our focused approach for generative AI for enterprises working with their data sets on a cloud foundation, we have strong traction with our clients. This is building on our Topaz and Cobalt capabilities," Mr. Parekh added. Read Comments

Infosys profit rises 7 pc to Rs 6,368 cr in April-June; company raises growth outlook for FY25

The company has been reporting continuous decline in headcount since March 2023 quarter. In the year-ago period, the company clocked a profit of Rs 5,945 crore, according to a BSE filing. Sequentially, the net profit in April-June fell 20 per cent from Rs 7,969 crore in the preceding January-March quarter. The consolidated revenue of Infosys increased by 3.6 per cent to Rs 39,315 crore during the reported quarter from Rs 37,933 crore a year ago. For the current fiscal year, the company raised its revenue growth guidance to 3-4 per cent in constant currency terms from 1-3 per cent projected earlier. "We had an excellent start to FY25 with strong and broad-based growth, operating margin expansion, robust large deals, and the highest ever cash generation. This is a testimony to our differentiated service offerings, enormous client trust, and relentless execution," said CEO and MD Salil Parekh. The company's operating margin during the quarter stood at 21.1 per cent. Infosys expects its operating margin to be 20-22 per cent in the current fiscal year. "With our focused approach for generative AI for enterprises working with their data sets on a cloud foundation, we have strong traction with our clients. This is building on our Topaz and Cobalt capabilities," Parekh added. The company won large deals worth USD 4.1 billion during the quarter. "We had very strong performance on large deals in the first quarter, which gives us more visibility into the full year," Parekh said. He said there was an improvement in the financial services segment in the US, but the macroeconomic environment which impacts clients discretionary spending is still slow compared to the level it was several quarters ago. "I think the sense we have on discretionary spend, which is a function of macro as it impacts our clients, is still the same as what we were seeing in the past quarters with the exception that we saw a little bit better outcome for financial services in the US. Otherwise, it's the same. "Discretionary is still low from where it was several quarters ago," Parekh said. While the retail segment's share fell 3 per cent to 13.8 per cent, the communication segment's share rose 5.4 per cent to 12.1 per cent and energy, utilities, resources, and services grew 6.3 per cent to 13.3 per cent on a constant current basis. "Engineering services is one of those areas which is growing well for us. We are seeing a lot of traction in the automotive space, medical devices space, broadly across all elements of engineering services. We have had now two acquisitions that we have done on that," Parekh said. He said the company is witnessing improvement in financial service revenue in the US. While revenue share of Infosys from North America fell by 1.2 per cent, in Europe it increased by 9.1 per cent, India 19.9 per cent and the rest of the world 2.3 per cent on a constant currency basis. The company's headcount fell by about 6 per cent to 3,15,332 in June 2024 quarter from 3,36,294 a year ago. The headcount fell marginally from 3,17,240 in the previous quarter. The company has increased the utilisation level of employees to 83.9 per cent from 78.9 per cent on a year-on-year basis. "Our utilisation is already at 85 per cent. So we have little headroom now left. So you know, as we start seeing growth...we are looking at hiring 15,000 to 20,000 freshers this year depending on...how we see the growth," Infosys Chief Financial Officer Jayesh Sanghrajka said. He said that some of the earlier placement offers are still pending and the hiring will be a combination of from the campus and off campus depending on the demand environment. PTI PRS HVA HVA

Infosys Q1 net profit rises 7.1%, hikes FY25 growth outlook | Business Insider India

IT major Infosys Ltd on Thursday reported a 7 per cent rise in first quarter net profit and raised its growth outlook for the current financial year. The consolidated net profit of Infosys increased to Rs 6,368 crore in the April-June quarter, compared to Rs 5,945 crore in the same period a year back, according to a stock exchange filing by the company. Quarter-on-quarter the company's net profit fell 20 per cent from Rs 7,969 crore in the January-March quarter. For the current fiscal year, it raised revenue growth guidance to 3-4 per cent in constant currency terms. "We had an excellent start to FY25 with strong and broad-based growth, operating margin expansion, robust large deals, and highest ever cash generation. This is a testimony to our differentiated service offerings, enormous client trust, and relentless execution," said Salil Parekh, CEO and MD. "With our focused approach for generative AI for enterprises working with their data sets on a cloud foundation, we have strong traction with our clients. This is building on our Topaz and Cobalt capabilities," Parekh added.

Infosys regains its stripes, outpaces peers on the back of financial services, India businesses | Mint

India's second-largest software services company projected revenue growth of 3-4% in constant currency terms for 2024-25, indicating a revival in client spending. Infosys Ltd has started the financial year ending March 2025 on the front foot with industry-leading growth led by a recovery in its financial services segment and on the back of its India business. Infosys's revenue for the three months ended June totalled $4.7 billion, up 3.3% from the preceding quarter. At the heart of this growth is the company's biggest contributor, its financial services business, which saw a sequential revenue boost of $91 million, accounting for almost 61% of Infosys's overall incremental revenue of $150 million. Infosys earned 28%, or $1.3 billion, of its overall first-quarter revenue from its financial services business. "We had a strong performance in Q1 on volumes, as well as the point that we made on financial services in the US," said Salil Parekh, chief executive officer of Infosys, during a post-earnings briefing at the company's Bengaluru office. "Second, we had a very strong performance on large deals, which gives us more visibility into this financial year." The company's strong start to 2024-25 is a respite from its lacklustre performance last year when it reported its slowest-ever dollar revenue growth of 1.9%. India's second-largest software services, once regarded the Indian IT services industry's bellwether, surprised investors on the revenue front, edging past the expectations of 29 analysts polled by Bloomberg, who had forecast revenue of $4.65 billion. Parekh was optimistic of the company's prospects given an improvement in the macroeconomic environment. "My sense is that as and when the macro (environment) changes, when the companies are spending on large technology programs, we are at the best position to start to get that benefit." Among Infosys's peers that have reported first-quarter earnings so far, Tata Consultancy Services Ltd's revenue grew 1.93% sequentially to $7.5 billion, whereas HCL Technologies Ltd reported a revenue decline to $3.4 billion. Constant currency eliminates the impact of currency fluctuations. "Positive revenue growth is a surprise aided by its India business and we expect the company's growth to continue for the remainder of the year on the back of its deal wins," said Manik Taneja, executive director for IT services at Axis Capital. Also read | Shareholder discontent rises with Nilekani's reappointment as Infosys director Much like peer Tata Consultancy Services Ltd, Infosys's cash generation from homegrown businesses grew. The company's revenue from India increased by $46 million sequentially to $146 million, even as the North American market continues to be its biggest revenue pool. Infosys reported 34 large deal wins during the first quarter, its highest ever. More than half of those were new. Investors gave a thumbs-up to the company's results. In pre-market trading on the New York Stock Exchange, Infosys's shares were up 4% at $21.4 each. The results were declared after market hours in India. Even though Infosys's first-quarter net profit fell 20.4% sequentially to $763 million, this was greater than the median estimate of 23 analysts polled by Bloomberg, who had forecast a profit of $748.93 million. Infosys reported an operating margin of 21.1%, which is 100 basis points higher than the three months through March. A basis point is one-hundredth of a percentage point. But, in continuation with the trend shown last year, Infosys culled headcount by 1,908 to end the June quarter with 315,332 employees. This reduction comes after the company ended last year with its sharpest decline in headcount. "The continuous reduction in headcount can prove to be a headwind going ahead," said Taneja of Axis Capital. Also read | Gen AI takes centre stage at AGM of TCS and Infosys Parekh did not throw light on the company's revenue pipeline through generative artificial intelligence, which doomsayers have predicted would automate work done by IT outsourcing companies and hence eat into their revenues. In contrast, India's largest IT services company, TCS, announced a Gen AI pipeline of $1.5 billion as of the quarter ended June. "We are not at this stage of disclosing and quantifying externally our revenue from it. The work we are doing is quite incredible. The focus is really on what enterprises are doing on generative AI," said Parekh.

Infosys Q1 results: Net profit jumps 7.1 pc to Rs 6,368 crore

The IT services company's revenues during the quarter grew 3.6 per cent to 39,315 crore from Rs 37,933 crore. The company's Board approved the audited consolidated financial results and its subsidiaries today. "We had an excellent start to FY25 with strong and broad-based growth, operating margin expansion, robust large deals, and highest ever cash generation. This is a testimony to our differentiated service offerings, enormous client trust, and relentless execution," said Salil Parekh, CEO and MD, of Infosys. "With our focused approach for generative AI for enterprises working with their data sets on a cloud foundation, we have strong traction with our clients," Parekh added. Jayesh Sanghrajka, CFO, of Infosys, said the company generated the highest ever free cash flow (FCF) generation at USD 1.1 billion and the return on equity (ROE) increased to 33.6 per cent due to higher payouts to investors. Infosys has completed the acquisition of in-tech, a leading Engineering R&D services provider focused on German automotive industry. This follows the announcement the company made on April 18, 2024. The entire shareholding in in-tech Group India Private Limited, a step-down subsidiary of in-tech Holding GmbH, will be acquired by Infosys Limited. Infosys had launched Infosys AsterTM - a set of AI-amplified marketing services, solutions and platforms that deliver engaging brand experiences, enhanced marketing efficiency, and accelerated effectiveness for business growth. With over 300,000 human resources, Infosys enables clients in more than 56 countries. Infosys had a voluntary attrition of 12.7 per cent in the June quarter against 17.3 per cent in the same quarter last year. (ANI)