Infosys Q3FY24 results: Net profit drops 7.3%, revenue rises 1.3%

IT major Infosys on Thursday announced a 7.3 per cent fall in its net consolidated profit in the October-December quarter to Rs 6,106 crore as compared to Rs 6,586 crore in the same quarter in 2022-23 (FY23).

The company’s operating margin for the quarter was 20.5 per cent, a sequential decline of 100 basis points (bps) as compared to the previous year. Sequentially, the margin was down by 70 bps.

Infosys revised the FY24 revenue guidance to 1.5 per cent to 2 per cent in constant currency and operating margin guidance at 20 per cent to 22 per cent.

The attrition of the company improved to 12.9 per cent from 14.6 per cent.

“Our performance in Q3 was resilient. Large deal wins were strong at $3.2 billion, with 71 per cent of this as net new, reflecting the relevance and strength of our portfolio of offerings ranging from generative AI, digital and cloud to cost, efficiency and automation,” said Salil Parekh, chief executive officer and managing director at Infosys.

The company’s earnings per share (EPS) declined 6.1 per cent to Rs 14.76. Infosys to acquire InSemi
Infosys also announced that it has reached an agreement to acquire semiconductor design and embedded servcies provider InSemi. The acquisition is expected to close during the fourth quarter the current financial year.

“This collaboration will help accelerate Infosys’ Chip-to-Cloud strategy, by bringing niche design skills at scale and will also pair seamlessly with existing investments in AI/Automation platforms and industry partnerships,” the company said.

“With the advent of AI, Smart devices, 5G and beyond, electric vehicles, the demand for next generation semiconductor design services integrated with our embedded systems creates unique differentiator. InSemi is a strategic investment as we usher a next wave of growth and a leadership position in Engineering R&D,” said Dinesh R, executive vice president and co-delivery head at Infosys.