Infosys, India’s second-largest IT services company, has announced its financial results for the first quarter (April–June) of the current financial year. The company reported a net profit of ₹6,921 crore, which is a 9% increase compared to the same period last year.
Key Highlights:
- Revenue: Infosys earned ₹42,279 crore in revenue, up 8% from last year.
- CEO’s Statement: Salil Parekh, the CEO and MD, said that the company’s strong performance reflects its success in Artificial Intelligence (AI), strong client relationships, and the efforts of its 3 lakh+ employees.
- Big Deals: Infosys secured deals worth $3.8 billion, with 55% being brand-new projects.
- Profit Margin: Operating profit margin stood at 20.8%, slightly lower than last year. The company expects it to remain between 20% and 22% this year.
- Gross Profit: The company’s gross profit rose to ₹13,055 crore from ₹12,138 crore last year.
Business Segment Performance:
- Financial Services grew by 5.6%.
- Manufacturing grew the most at 12.2%.
- Retail and Hi-tech sectors showed small growth, while the Life Sciences sector declined by 7.9%.
- Other business areas dropped by 15.3%.
Infosys is continuing with its investment plan called Project Maximus, which focuses on increasing profits and returns for stakeholders.
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Other Financial Updates:
- Free Cash Flow: The company generated $884 million in free cash flow, marking the fifth quarter in a row with over 100% cash flow conversion.
- Currency Impact: CFO Jayesh Sanghrajka mentioned that the company managed currency risks well using a smart hedging strategy.
- Attrition: Employee attrition (people leaving the company) rose slightly to 14.4%, compared to 14.1% last quarter.
- Employee Strength: Total employees stood at 323,788, nearly the same as last quarter.
- Stock Update: Infosys shares closed at ₹1,558.9 on the NSE, down by 0.8% before the results were announced.
Overall, Infosys had a steady quarter with good growth in profits, strong deal wins, and effective cost and currency management.
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