CM inaugurates Infosys’s Kolkata Development Centre
Chief Minister Mamata Banerjee said on Wednesday that the setting up of the Kolkata Development Centre of Infosys will attract other IT leaders to invest in Bengal.
Infosys ADR slumped by more than 9 per cent in pre-market trade after the company cut revenue guidance.
The Infosys ADR was trading at $16.07. Analysts are concerned at the profit miss and sharp lowering of revenue guidance in Infosys Q1 results.
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IT major Wipro’s ADR also went down by 3.5 per cent on Thursday.
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Infosys delivered $4,617 million in Q1 revenues with year-on-year growth of 4.2 per cent and sequential growth of 1.0 per cent in constant currency.
Large deal TCV for the quarter was at $2.3 billion, with net new of 56.1 per cent. Operating margin for the quarter was stable at 20.8 per cent. While ROE improved 180 bps to 32.8 per cent, Attrition declined further to 17.3 per cent. FY24 revenue guidance was revised to 1.0-3.5 per cent while operating margin guidance retained at 20-22 per cent.
“We had a solid Q1 with a growth of 4.2 per cent and large deals of $2.3 billion which helps us to set a strong foundation for future growth. Our generative AI capabilities are expanding well, with 80 active client projects. Topaz, our comprehensive AI offering, is resonating well with clients. We see this being transformative for clients and enhancing our overall service portfolio,” said Salil Parekh, CEO and MD, Infosys.
“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”, he added.
“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, Infosys.
“Free cash conversion was robust at 96.6 per cent of net profits. Execution of strong capital allocation policy resulted in higher payouts to investors and improved ROE to 32.8 per cent,” he added.
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