- By Vaamanaa Sethi
- Thu, 20 Jul 2023 05:40 PM (IST)
- Source:JND
India’s second largest IT company has reported a 11% rise in consolidated net profits to Rs 5,945 crore, compared to ₹5,360 crore in the corresponding period last year. However, revenue guidance fell for FY24 to 1-3.5% from 4-7% amid an increasingly challenging demand environment.
Its consolidated revenue from operations stood at ₹37,933 crore during the quarter ended June from ₹34,470 crore in Q1FY23. In constant currency terms, revenue grew by 4.2% year over year, and by 1% sequentially.
However, the tech major retained its operating margin guidance of 20-22% for FY24. Its earnings per share at ₹14.3, remained muted on a sequential basis in the June quarter, led by significant slowdown in business amid global macroeconomic headwinds.
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“Q1 operating margins were resilient in an uncertain macro environment on the back of our continued focus on cost optimization. Company’s rigorous operational discipline, including improved productivity measures and higher utilization helped margins for the quarter,” said Nilanjan Roy, CFO at Infosys.
The second largest IT company also reported a growth in its consolidated sales by 1.3% sequentially, while net profit fell by 3%.In constant currency terms, the revenue rose just 1% quarter-on-quarter (QoQ). The consolidated operating margin came in at 20.8%, down 20 basis points sequentially.
“We had a solid Q1 with a growth of 4.2% and large deals of $2.3 billion, which helps us to set a strong foundation for future growth,” said Salil Parekh, CEO and MD.
He further added, “We have expanded the margin improvement program with a holistic set of actions for the short, medium and long-term, working on five key areas, supported by our leadership team.”
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Infosys also saw its attrition rate coming down like its peers. The 12-month trailing attrition rate was down to 17.3% in the first quarter from 20.9% a quarter ago. In June quarter last year, it was as high as 24.8%.
The total employee strength as of June end was 3,36,294, down by 6,940 from a quarter ago.