Infosys Reports Lowest Annual Revenue Growth of 1.4% in 43-Year History | India Business News

Apr18,2024


Bengaluru: Infosys Lowest annual report recorded on Thursday increase in revenue At 1.4% since its establishment in 1981. IT giant stablecoin Revenue increased by 1.4% financial year 2023-24, slightly missed its own forecast, as clients continued to cut spending after the pandemic surge. And signaling that the pain in the IT sector is far from over, Infosys said it expects revenue to grow 1-3% in the current fiscal year as well.
A sequential revenue decline in the March quarter and subdued management commentary disappointed the market, sending Infosys shares down at least 5% in early trade on the NYSE on Thursday.
Weak revenue forecast for FY 25 This has come to light amid increasing uncertainty in the macroeconomic environment. This includes rate cuts by the US Fed amid high inflation, low discretionary spending and political turmoil. The company's worst growth in the last 15 years was during the global financial crisis in 2009–10 when the figure fell to 3%. However, it has retained its operating margin guidance for FY25 at 20-22%.

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“As we look to the start of FY2015, we see discretionary spending and digital transformation operating at the same level, and we see a continued focus on cost efficiency and consolidation. Finance as a Band Guidance for 2015 is higher than where we finished last year. Although the difference is small, it is still slightly higher than where we finished last year, there are some changes in terms of different industries and discretionary spending. The approach is similar on digital engagement and consolidation, we have formulated revenue growth guidance, he said. Let's see, for example, we expect to see a better outlook in financial services this year compared to last year. There will be slow growth in manufacturing.”
Infosys' performance in constant currency was flat year-on-year, with a sequential decline of 2.2%. For the FY24 financial year, its revenue grew to $18.6 billion, a marginal increase of 1.4% in constant currency compared to the year-ago period. Infosys has narrowed its revenue guidance for last year to a range of 1.5% to 2%. The banking and financial services sector, a key vertical for Infosys, declined 8.5% in constant currency, while North America saw a decline of 2.2%. Infosys renegotiated a large contract in financial services, leading to a 1 per cent impact in the March quarter.
In comparison, TCS reported revenue growth of 3.4% in constant currency for the 2023-24 financial year, as challenges in North America and the banking and financial services sector persist. For the quarter ended March, TCS' revenue grew 2.2% year-on-year in constant currency, with sequential revenue growth of 1.1% in constant currency.

Infosys' EBIT margin declined slightly to 20.7% in the March quarter, from 21% in the previous fiscal. The total contract value of the company's large deals for the quarter was $4.5 billion, a 40% sequential increase, of which 44% were net new deals. For the full fiscal year, large deals amounted to $17.7 billion, with 52% being new deal wins.
Infosys' headcount declined for the first time in 20 years with a reduction of 25,994 employees from the previous year, taking the total employee strength to 3.1 lakh at the end of FY2014.



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