Infosys pegs 2023-24 constant currency revenue growth at 4-7%, margin at 20-22%

Infosys guidance: India's second largest IT services firm, Infosys (INFY), guided for revenue growth of between four per cent and seven per cent for the financial year ending March 2024. This marks the first guidance by an Indian IT company in the ongoing Q4 results season that began this week.

Infosys guidance: India's second largest IT firm pegged revenue growth in constant currency at 4-7% in 2023-24. | Image: Reuters

Infosys guidance: Infosys (INFY) — India's second largest IT services firm — on Thursday pegged revenue growth in constant currency terms in a range of 4-7 per cent for the current financial year, which ends in March 2024. That marked the first revenue guidance by a blue-chip IT company in the corporate earnings season that began this week, with Tata Consultancy Services (TCS) reporting a muted set of quarterly numbers. TCS — the Tata group IT major that is the country's largest IT firm — does not give specific guidance for revenue or earnings.

Analysts stared at the sharp fall in the Bengaluru-based IT services provider's revenue guidance compared with the previous year. In January 2023, Infosys pegged revenue growth for 2022-23 at 16-16.5 per cent, having entered the year with a projection of 13-15 per cent.

Infosys projected its operating margin between 20 per cent and 22 per cent for the current financial year (April 2023-March 2024) — as against 21-22 per cent for the previous year (January 2023), according to a company statement.

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Infosys guidance: FY24 vs FY23

Guidance	FY24	FY23
Revenue growth (cc)	4-7%	16-16.5%
Operating margin	20-22%	21-22%
Source: Regulatory filings

Here's how India's second largest software exporter fared in the year gone by:

Period	Revenue growth (cc)	Operating margin
Jan-Mar 2023	8.8	21
Oct-Dec 2022	13.7	21.5
July-Sept 2022	18.8	21.5
Apr-June 2022	21.4	20.1

Infosys Q4 results: Key takeaways

Top-line & bottom-line: Infosys saw seven per cent contraction in net profit on a quarter-on-qurater basis to Rs 6,128 crore for the quarter ended March 2023, according to the statement. Revenue came in at Rs 37,441 crore, a 2.3 per cent decline sequentially. Revenue in dollars declined 2.3 per cent to $4,554 million.
Margin: The company's operating margin shrank by 50 basis points to 21 per cent.
Attrition: Infosys reported attrition of 20.9 per cent on a last-twelve-months (LTM) for the final quarter of 2022-23 — better than 24.3 per cent for the previous three months, and 27.7 per cent for the quarter ended March 2022.

Here's where Zee Business analysts had placed their estimates for Infosys: