Infosys, a global leader in next-generation digital services and consulting reported its Q1FY24 results on Thursday.
It has delivered $4,617 million in Q1 revenues with year-on-year growth of 4.2% and sequential growth of 1.0% in constant currency. Large deal TCV for the quarter was at $2.3 billion, with net new of 56.1%. Operating margin for the quarter was stable at 20.8%. ROE improved by 180 bps to 32.8%.
“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. 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.
“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.
“Free Cash conversion was robust at 96.6% of net profits. Execution of strong capital allocation policy resulted in higher payouts to investors and improved ROE to 32.8%” he added.
The attrition rate at Infosys has improved over 300 bps and stands at 17.3 per cent. Moreover, the net employee headcount has seen a marginal decline.
| Jun 30, 2023 | Mar 31, 2023 | Jun 30, 2022 | |
| Total employees | 3,36,294 | 3,43,234 | 3,35,186 |
| S/W professionals | 3,17,611 | 3,24,816 | 3,18,447 |
| Sales & Support | 18,683 | 18,418 | 16,739 |
| Voluntary Attrition % (LTM – IT Services) | 17.3% | 20.9% | 28.4% |
| % of Women Employees | 39.5% | 39.4% | 39.3% |
The total employee headcount for Q1 FY24 stood at 3,36,294, while the employee headcount for Q4 FY 23 stood at 3,43,234.