Earnings Conference Call Q1FY24 - Infosys Limited
Q1 growth was 4.2% year-on-year and 1.0% quarter-on-quarter in constant currency.
Company had 21% growth in manufacturing, 14% in Life Sciences.
Their Europe region grew by 10%. and operating margin for the quarter was strong at 20.8%.
Company generated robust free cash flow of $699 mn in Q1.
Their large deal value for Q1 was $2.3 bn, 56% of this was net new. They had one mega deal win in Q1. and value of deals of financial services was 50% of the overall large deal value in Q1. Company announced a mega deal of $2 bn value after the close of Q1 and before their results.
before July 20, 2023. Company wins a strong large deal and mega deal.
Company has working on 80 generative AI projects for their clients at this time. The work Company doing are encompasses large language models for software development, text, document, voice and video.
Company are working with open-source and proprietary generative AI platforms and modules. they have trained 40,000 employees on generative AI. Company see opportunities for new work and for productivity improvements through this technology. All of these elements are available within their Topaz set of capabilities.
Company had launched a broader and comprehensive margin expansion program. The program will work across five areas: pyramid efficiency, automation and generative AI, improvements in critical portfolios, reducing our indirect costs and communicating and deriving value across the portfolio.
Company are working on this program with their clients, employees and partners, and they are taking steps for the short, medium and long term, while keeping the overall strategic direction of the company in mind. Company have an ambition to improve their operating margin in the future periods. Their operating margin guidance for the financial year remains unchanged at 20% to 22%.
Company Q1 revenue growth was 4.2% on a Y-on-Y basis in constant currency. Sequentially, revenue grew by 1% in constant currency and 1.4% in dollar terms.
Company operating margin for Q1 was 20.8%, 20 basis points lower sequentially. This was primarily due to a 70 basis points of benefit from cost optimization, including utilization and automation, which was offset by a balanced 90 basis point impact from employee-related costs, including higher variable pay, promotions, etc.
The Client metrics remained strong with the number of $50 mn clients increasing to 79 and $200 mn clients at 15, reflecting company strong ability to mine top clients by providing them multiple relevant services.
Headcount at the end of the quarter stood at 336,000 employees, which is a decline of 2% from the previous quarter. A substantial portion of attrition has been backfilled by training and reskilling existing pool of talent and deployment of freshers.
Q2FY24...........................Next day
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Specialist - Finance & Accounts
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