Results     19-Apr-24
Analysis
Infosys
Net Profit up 30% YoY to Rs 7969 crore in Q4FY2024
On consolidated basis

Quarter ended March 2024 compared with Quarter ended December 2023.

Net sales (including other operating income) of Infosys has declined 2.31% to Rs 37923 crore.  

Operating profit margin has declined from 23.54% to 23.16%, leading to 3.86% decline in operating profit to Rs 8,784.00 crore.  Employee cost increased from 53.20% to 53.77%.   Other expenses fell from 23.27% to 23.06%.   Selling and administration expenses rose from 2.73% to 2.92%.   Software technology development services cost rose from 17.49% to 17.55%.   

Other income rose 245.88% to Rs 2729 crore.  PBIDT rose 15.99% to Rs 11513 crore.  Provision for interest fell 16.03% to Rs 110 crore.  Loan funds declined from Rs 8,744.00 crore as of 31 December 2023 to Rs 8,359.00 crore as of 31 March 2024.  Sundry debtors were lower at Rs 30,193.00 crore as of 31 March 2024 compared to Rs 30,618.00 crore as of 31 December 2023.  Cash and bank balance rose to Rs 14,786.00 crore as of 31 March 2024 from Rs 13,645.00 crore as of 31 December 2023.  Investments rose to Rs 24,623.00 crore as of 31 March 2024 from Rs 19,244.00 crore as of 31 December 2023 .  

PBDT rose 16.42% to Rs 11403 crore.  Provision for depreciation fell 1.11% to Rs 1163 crore.  Fixed assets declined from Rs 21,148.00 crore as of 31 December 2023 to Rs 19,215.00 crore as of 31 March 2024.  Intangible assets increased from Rs 7,435.00 crore to Rs 8,700.00 crore.  

Profit before tax grew 18.81% to Rs 10,240.00 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 2265 crore, compared to Rs 2506 crore.  Effective tax rate was 22.12% compared to 29.08%.

Minority interest decreased 14.29% to Rs 6.00 crore.  Net profit attributable to owners of the company increased 30.51% to Rs 7,969.00 crore.  

Equity capital increased from Rs 2,070.00 crore as of 31 December 2023 to Rs 2,071.00 crore as of 31 March 2024.  Per share face Value remained same at Rs 5.00.  

Promoters’ stake was 13.22% as of 31 March 2024 ,compared to 13.22% as of 31 December 2023 .  

 

Quarter ended March 2024 compared with Quarter ended March 2023.

Net sales (including other operating income) of Infosys has increased 1.29% to Rs 37923 crore.  Sales of Financial Services segment has gone down 7.47% to Rs 10,010.00 crore (accounting for 26.40% of total sales).  Sales of Manufacturing segment has gone up 10.06% to Rs 5,589.00 crore (accounting for 14.74% of total sales).  Sales of Telecom segment rose 5.78% to Rs 4,666.00 crore (accounting for 12.30% of total sales).  Sales of Retail segment has gone down 1.95% to Rs 5,429.00 crore (accounting for 14.32% of total sales).  Sales of Others & Hi Tech segment has gone up 10.94% to Rs 3,316.00 crore (accounting for 8.74% of total sales).  Sales of Energy Utilities & Telecommunicatio segment has gone up 5.04% to Rs 5,068.00 crore (accounting for 13.36% of total sales).  Sales of segment has gone up 3.02% to Rs 2,762.00 crore (accounting for 7.28% of total sales).  Sales of segment has gone down 1.72% to Rs 1,083.00 crore (accounting for 2.86% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has slumped 2.38% to Rs 8,784.00 crore.  PBIT of Financial Services segment fell 25.35% to Rs 1,941.00 crore (accounting for 22.10% of total PBIT).  PBIT of Manufacturing segment rose 19.84% to Rs 1,081.00 crore (accounting for 12.31% of total PBIT).  PBIT of Telecom segment fell 15.45% to Rs 810.00 crore (accounting for 9.22% of total PBIT).  PBIT of Retail segment rose 14.08% to Rs 1,864.00 crore (accounting for 21.22% of total PBIT).  PBIT of Others & Hi Tech segment rose 7.07% to Rs 803.00 crore (accounting for 9.14% of total PBIT).  PBIT of Energy Utilities & Telecommunicatio segment rose 9.91% to Rs 1,431.00 crore (accounting for 16.29% of total PBIT).  PBIT of segment fell 10.35% to Rs 632.00 crore (accounting for 7.19% of total PBIT).  PBIT of segment rose 51.02% to Rs 222.00 crore (accounting for 2.53% of total PBIT).  

PBIT margin of Financial Services segment fell from 24.03% to 19.39%.  PBIT margin of Manufacturing segment rose from 17.76% to 19.34%.  PBIT margin of Telecom segment fell from 21.72% to 17.36%.  PBIT margin of Retail segment rose from 29.51% to 34.33%.  PBIT margin of Others & Hi Tech segment fell from 25.09% to 24.22%.  PBIT margin of Energy Utilities & Telecommunicatio segment rose from 26.98% to 28.24%.  PBIT margin of segment fell from 26.30% to 22.88%.  PBIT margin of segment rose from 13.34% to 20.50%.  Overall PBIT margin fell from 24.03% to 23.16%.  

Operating profit margin has declined from 24.03% to 23.16%, leading to 2.38% decline in operating profit to Rs 8,784.00 crore.  Employee cost decreased from 54.25% to 53.77%.   Other expenses rose from 21.72% to 23.06%.   Selling and administration expenses rose from 2.63% to 2.92%.   Software technology development services cost rose from 16.03% to 17.55%.   

Other income rose 306.71% to Rs 2729 crore.  PBIDT rose 19.07% to Rs 11513 crore.  Provision for interest rose 34.15% to Rs 110 crore.  Loan funds rose to Rs 8,359.00 crore as of 31 March 2024 from Rs 8,299.00 crore as of 31 March 2023.  Sundry debtors were higher at Rs 30,193.00 crore as of 31 March 2024 compared to Rs 25,424.00 crore as of 31 March 2023.  Cash and bank balance rose to Rs 14,786.00 crore as of 31 March 2024 from Rs 12,173.00 crore as of 31 March 2023.  Investments rose to Rs 24,623.00 crore as of 31 March 2024 from Rs 19,478.00 crore as of 31 March 2023 .  

PBDT rose 18.94% to Rs 11403 crore.  Provision for depreciation rose 3.75% to Rs 1163 crore.  Fixed assets declined from Rs 20,516.00 crore as of 31 March 2023 to Rs 19,215.00 crore as of 31 March 2024.  Intangible assets declined from Rs 8,997.00 crore to Rs 8,700.00 crore.  

Profit before tax grew 20.95% to Rs 10,240.00 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 2265 crore, compared to Rs 2332 crore.  Effective tax rate was 22.12% compared to 27.55%.

Net profit attributable to owners of the company increased 30.04% to Rs 7,969.00 crore.  

Equity capital increased from Rs 2,069.00 crore as of 31 March 2023 to Rs 2,071.00 crore as of 31 March 2024.  Per share face Value remained same at Rs 5.00.  

Promoters’ stake was 13.22% as of 31 March 2024 ,compared to 13.30% as of 31 March 2023 .  


Full year results analysis.

Net sales (including other operating income) of Infosys has increased 4.70% to Rs 153670 crore.  Sales of Financial Services segment has gone down 3.67% to Rs 42,158.00 crore (accounting for 27.43% of total sales).  Sales of Manufacturing segment has gone up 17.14% to Rs 22,298.00 crore (accounting for 14.51% of total sales).  Sales of Telecom segment fell 0.53% to Rs 17,991.00 crore (accounting for 11.71% of total sales).  Sales of Retail segment has gone up 6.13% to Rs 22,504.00 crore (accounting for 14.64% of total sales).  Sales of Others & Hi Tech segment has gone up 4.58% to Rs 12,411.00 crore (accounting for 8.08% of total sales).  Sales of Energy Utilities & Telecommunicatio segment has gone up 8.07% to Rs 20,035.00 crore (accounting for 13.04% of total sales).  Sales of Life Sciences and Healthcare segment has gone up 14.18% to Rs 11,515.00 crore (accounting for 7.49% of total sales).  Sales of segment has gone up 13.61% to Rs 4,758.00 crore (accounting for 3.10% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 3.69% to Rs 36,425.00 crore.  PBIT of Financial Services segment fell 14.01% to Rs 9,324.00 crore (accounting for 25.60% of total PBIT).  PBIT of Manufacturing segment rose 34.82% to Rs 4,197.00 crore (accounting for 11.52% of total PBIT).  PBIT of Telecom segment fell 1.89% to Rs 3,688.00 crore (accounting for 10.12% of total PBIT).  PBIT of Retail segment rose 7.60% to Rs 6,882.00 crore (accounting for 18.89% of total PBIT).  PBIT of Others & Hi Tech segment rose 6.56% to Rs 3,153.00 crore (accounting for 8.66% of total PBIT).  PBIT of Energy Utilities & Telecommunicatio segment rose 7.14% to Rs 5,523.00 crore (accounting for 15.16% of total PBIT).  PBIT of Life Sciences and Healthcare segment rose 12.94% to Rs 2,898.00 crore (accounting for 7.96% of total PBIT).  PBIT of segment rose 124.19% to Rs 760.00 crore (accounting for 2.09% of total PBIT).  

PBIT margin of Financial Services segment fell from 24.78% to 22.12%.  PBIT margin of Manufacturing segment rose from 16.35% to 18.82%.  PBIT margin of Telecom segment fell from 20.78% to 20.50%.  PBIT margin of Retail segment rose from 30.16% to 30.58%.  PBIT margin of Others & Hi Tech segment rose from 24.93% to 25.40%.  PBIT margin of Energy Utilities & Telecommunicatio segment fell from 27.81% to 27.57%.  PBIT margin of Life Sciences and Healthcare segment fell from 25.44% to 25.17%.  PBIT margin of segment rose from 8.09% to 15.97%.  Overall PBIT margin fell from 23.94% to 23.70%.  

Operating profit margin has declined from 23.94% to 23.70%, leading to 3.69% rise in operating profit to Rs 36,425.00 crore.  Employee cost increased from 53.39% to 53.76%.   Other expenses fell from 22.67% to 22.53%.   Selling and administration expenses rose from 2.67% to 2.71%.   Software technology development services cost fell from 17.01% to 16.75%.   

Other income rose 74.42% to Rs 4711 crore.  PBIDT rose 8.74% to Rs 41136 crore.  Provision for interest rose 65.49% to Rs 470 crore.  Loan funds rose to Rs 8,359.00 crore as of 31 March 2024 from Rs 8,299.00 crore as of 31 March 2023.  Sundry debtors were higher at Rs 30,193.00 crore as of 31 March 2024 compared to Rs 25,424.00 crore as of 31 March 2023.  Cash and bank balance rose to Rs 14,786.00 crore as of 31 March 2024 from Rs 12,173.00 crore as of 31 March 2023.  Investments rose to Rs 24,623.00 crore as of 31 March 2024 from Rs 19,478.00 crore as of 31 March 2023 .  

PBDT rose 8.31% to Rs 40666 crore.  Provision for depreciation rose 10.72% to Rs 4678 crore.  Fixed assets declined from Rs 20,516.00 crore as of 31 March 2023 to Rs 19,215.00 crore as of 31 March 2024.  Intangible assets declined from Rs 8,997.00 crore to Rs 8,700.00 crore.  

Profit before tax grew 8% to Rs 35,988.00 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 9740 crore, compared to Rs 9214 crore.  Effective tax rate was 27.06% compared to 27.65%.

Minority interest increased 15.38% to Rs 15.00 crore.  Net profit attributable to owners of the company increased 8.87% to Rs 26,233.00 crore.  

Equity capital increased from Rs 2,069.00 crore as of 31 March 2023 to Rs 2,071.00 crore as of 31 March 2024.  Per share face Value remained same at Rs 5.00.  

Promoters’ stake was 13.22% as of 31 March 2024 ,compared to 13.30% as of 31 March 2023 .  

Cash flow from operating activities increased to Rs 25,210.00 crore for year ended March 2024 from Rs 22,467.00 crore for year ended March 2023.  Cash flow used in acquiring fixed assets during the year ended March 2024 stood at Rs 2,201.00 crore, compared to Rs 2,579.00 crore during the year ended March 2023.  

Guidance for FY25:

 

Revenue growth guidance for FY2025 is 1-3% in constant currency.

 

EBIT margin guidance for the FY2025 is in the range of 20-22%.

 

 

Acquisition: The company announced that it will acquire a 100% stake in German firm in-tech in an all cash deal for 450 million euros, or about Rs 4,000 crore. in-tech develops solutions in e-mobility, connected and autonomous driving, electric vehicles, off-road vehicles and railroad. 

Dividend:

The board has recommended a final dividend of Rs 20/- per equity share for FY2024 and additionally a special dividend of Rs8/- per equity share. This constitutes 85% payout as per capital allocation policy.

Deals: The company signed large deals to the tune of US $ 4.5 billion in Q4FY2024 of which 44% were net new.

For the full year the company singed US $ 17.7 billion worth deals with total deals of 90. Of this 52% were net new and 8 were mega deals

 

 

Management commentary:

Commenting on the performance Mr Salil Parekh, CEO & MD said: “We delivered the highest ever large deal value in the financial year 2024. This reflects the strong trust clients have in us. Our capabilities in Generative AI continue to expand. We are working on client programs, leveraging large language models with impact across software engineering, process optimization, and customer support”

He further added “I would like to thank our 317,000 employees across the world that are working to create value for our clients.”

Mr Jayesh Sanghrajka –CFO said: “Free cash flow of $848 million in Q4 was highest in the last 11 quarters driven by our relentless focus to improve working capital cycle. Consistent with the objective of giving high and predictable returns to shareholders, the Board has approved the capital allocation policy under which the company expects to return 85% over the next 5 years and progressively increase annual Dividend Per Share”.

He further added “Operating margin expansion in the medium-term and improving cash generation continue to remain our priorities underpinned by early success in Project Maximus”



Infosys : Consolidated Results
 Quarter endedYear ended
Particulars202403202303Var.(%)202403202303Var.(%)
Net Sales (including other operating income)37,923.0037,441.001.291,53,670.001,46,767.004.70
OPM (%)23.1624.03-87 bps23.7023.94-23 bps
OP8,784.008,998.00-2.3836,425.0035,130.003.69
Other Inc.2,729.00671.00306.714,711.002,701.0074.42
PBIDT11,513.009,669.0019.0741,136.0037,831.008.74
Interest110.0082.0034.15470.00284.0065.49
PBDT11,403.009,587.0018.9440,666.0037,547.008.31
Depreciation116311213.754678422510.72
PBT10,240.008,466.0020.9535988333228.00
Share of Profit/(Loss) from Associates00-00-
PBT before EO10240846620.9535988333228.00
EO Income00-00-
PBT after EO10240846620.9535988333228.00
Taxation22652332-2.87974092145.71
PAT7975613430.0126248241088.88
Minority Interest (MI)660151315.38
Net profit7969612830.0426233240958.87
P/(L) from discontinued operations net of tax00-00-
Net profit after discontinued operations7969612830.0426233240958.87
EPS (Rs)*19.2014.7630.0463.2058.058.87
* EPS is on current equity of Rs 2,075.43 crore, Face value of Rs 5, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database


Infosys : Consolidated Segment Results
 Quarter endedYear ended
% of (Total)202403202303Var.(%)% of (Total)202403202303Var.(%)
Sales
Financial Services26.4010,010.0010,818.00-7.4727.4342,158.0043,763.00-3.67
Manufacturing14.745,589.005,078.0010.0614.5122,298.0019,035.0017.14
Telecom12.304,666.004,411.005.7811.7117,991.0018,086.00-0.53
Retail14.325,429.005,537.00-1.9514.6422,504.0021,204.006.13
Others & Hi Tech8.743,316.002,989.0010.948.0812,411.0011,867.004.58
Financial Services & Insurance0.000.000.00-
Manufacturing enterprises0.000.000.00-
Energy Utilities & Telecommunicatio13.365,068.004,825.005.0413.0420,035.0018,539.008.07
Retail Logistics Consumer Product0.000.000.00-
 7.282,762.002,681.003.027.4911,515.0010,085.0014.18
 2.861,083.001,102.00-1.723.104,758.004,188.0013.61
Total Reported Sales100.0037,923.0037,441.001.29100.001,53,670.001,46,767.004.70
Less: Inter segment revenues 0.000.00- 0.000.00-
Net Sales100.0037,923.0037,441.001.29100.001,53,670.001,46,767.004.70
PBIT
Financial Services22.101,941.002,600.00-25.3525.609,324.0010,843.00-14.01
Manufacturing12.311,081.00902.0019.8411.524,197.003,113.0034.82
Telecom9.22810.00958.00-15.4510.123,688.003,759.00-1.89
Retail21.221,864.001,634.0014.0818.896,882.006,396.007.60
Others & Hi Tech9.14803.00750.007.078.663,153.002,959.006.56
Financial Services & Insurance0.000.000.00-
Manufacturing enterprises0.000.000.00-
Energy Utilities & Telecommunicatio16.291,431.001,302.009.9115.165,523.005,155.007.14
Retail Logistics Consumer Product0.000.000.00-
 7.19632.00705.00-10.357.962,898.002,566.0012.94
 2.53222.00147.0051.022.09760.00339.00124.19
Total PBIT100.008,784.008,998.00-2.38100.0036,425.0035,130.003.69
Less : Interest110.0082.0034.15470.00284.0065.49
Add: Other un-allcoable1,566.00-450.00LP33.00-1,524.00LP
PBIT Margin(%)
Financial Services 19.3924.03-464.34 22.1224.78-265.98
Manufacturing 19.3417.76157.87 18.8216.35246.82
Telecom 17.3621.72-435.88 20.5020.78-28.49
Retail 34.3329.51482.36 30.5830.1641.71
Others & Hi Tech 24.2225.09-87.61 25.4024.9347.02
Financial Services & Insurance 0.000.000.00
Manufacturing enterprises 0.000.000.00
Energy Utilities & Telecommunicatio 28.2426.98125.15 27.5727.81-23.95
Retail Logistics Consumer Product 0.000.000.00
  22.8826.30-341.42 25.1725.44-27.66
  20.5013.34715.92 15.978.09787.85
PBT100.0010,240.008,466.0020.95100.0035,988.0033,322.008.00
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