On January 11, 2024, Infosys Limited (BSE, NSE, NYSE: INFY) announced its Q3 2023-24 financial results, showing a healthy performance in an otherwise weak quarter with 71% new deals driving growth and Infosys Topaz boosting leadership in the market of generative AI.
Additional Read: Quarterly Results Dashboard
Table of Content
Consolidated Result Takeaways
Here are the overall consolidated highlights in Q3 results:
- For Q3, Revenues in constant currency decreased by 1.0% YoY and QoQ.
- In Q3, Infosys clocked Revenues at ₹38,821 Cr, showing a 1.3% YoY growth.
- The Operating margin for Q3 stood at 20.5%, a decrease of 1.0% YoY and 0.7% QoQ, and a sequential decrease of 70 bps.
- Basic EPS saw a decline of 6.1% YoY and stood at ₹14.76.
- FCF was at ₹5,548 Cr for the quarter, portraying a growth of 17.0% YoY with FCF conversion standing at 90.8% of the Net Profit.
- On the day of the generation of Q3 results (11/01/2024), Infosys announced that it would acquire InSemi, a top company offering embedded services and semiconductor design. This has been undertaken to further boost Infosys’ existing robust Engineering Research and Design capabilities.
- Infosys reported large deal wins at $3.2 billion for Q3.
Other Notable Q3 Features
Here are some other features of the Q3 results of Infosys Limited:
- In terms of business segments, Q3 witnessed the highest revenues being generated from the Financial Services segment at 27.8%. Revenues from Manufacturing stood at 14.9%, and from Retail at 14.6%.
- By client geography, North America saw the highest revenues at 59.0%, with Europe at 28.2%, India at 2.4%, and the rest of the globe at 10.4%.
- Concerning employee metrics, the company had 322,663 employees at the end of Q3 FY24 compared to 346,845 employees in Q3 FY23.
Additional Read: Infosys Share Price
Q3 Collaborations and Winning Deals
In Q3, Infosys witnessed a series of partnerships, among other achievements, and these are detailed below:
- The company partnered with smart Europe GMBH for a period of five years in order to generate sustainable mobility for clients. The move was made largely due to Infosys’ capabilities in robust end-to-end solutions and its sound leadership.
- A collaboration with TK Elevator has been made by Infosys in Q3. This has been done so that Infosys may contribute its skills to help TK Elevator to modernise and consolidate its digital ecosystem.
- In Q3, Infosys has partnered with a leading European market leader, LKQ Europe to aid the company in standardising and integrating its business systems and processes.
- A dedicated centre for aerospace engineering was inaugurated by Infosys and Spirit Aerosystems in Q3.
- In Q3, Infosys made a partnership deal with Proximus to aid the latter in modernising its IT stack, broadening its portfolio, and optimising expenses and costs.
- Spotlight Retail Group was aided by Infosys so that the company could boost its customer growth through an omnichannel digital stream using Infosys’ Topaz to enhance analytics.
- In Q3, the Bank of Commerce chose Infosys to transform its core banking systems and aid the Bank in replacing its existing platform.
Q3 Recognitions
In Q3, Infosys witnessed many recognitions and accolades in key areas of its operations. These are listed below:
- Cloud Services and AI: In this area, Infosys has been positioned as the leader in HFS Horizons: Generative Enterprise Services, 2023. In addition to this accolade, Infosys has been recognised as a leader in the Constellation Shortlist 2023 for AI-Driven Cognitive Applications and AI and ML Best-of-Breed Platforms.
- Main Digital Services: in this area, the company has won several recognitions including ratings as the leader in quality management and digital services in the fields of Finance and Healthcare, among others.
- Industries and Solutions: in this segment, Infosys has earned several recognitions for its contributions to Finance and Technology solutions, especially in the areas of digital modernisation and transformation.
Management Commentary
The management of Infosys Limited had some insights on the results and these are shared below:
- The CEO and MD stated that huge deal wins had made the company stronger in Q3, especially in a challenging business atmosphere. Furthermore, the CEO and MD went on to reflect that this was largely due to the company’s relevance in the industry and its resilient portfolio comprising digital and cloud-to-cost, generative AI, efficiency, and automation. Finally, the CEO and MD stated that the company’s clients were taking advantage of the use of generative AI via the company’s Topaz functionalities and Cobalt Cloud abilities so that they may add value to their businesses in the long term.
- The CFO of Infosys commented on the performance of the company in Q3, stating that the company’s healthy performance in Q3, despite challenges, has been due to strong execution capabilities and enhanced operational efficiency. In addition to this, the CFO highlighted the positive effects of Project Maximus on the overall success of the company. Furthermore, the CFO remarked that cash generation has stayed strong with FCF to Net Profit conversion at 90.6% for the quarter in question.
Financial Results
Here are the financial results of Q2 in a nutshell (all figures in ₹ Cr, except where indicated by %):
| Metrics | Q3 FY 2023-24 | Q3 FY 2022-23 | Growth % YoY | Q2 FY 2023-24 | Growth % QoQ |
| Revenues | 38,821 | 38,318 | 1.3% | 38,994 | -0.4% |
| Gross Profit | 11,568 | 11,757 | -1.6% | 11,963 | -3.3% |
| Profit Before Tax | 8,619 | 8,931 | -3.5% | 8,768 | -1.7% |
| Operating Margin % | 20.5 | 21.5 | -1.0% | 21.2 | -0.7% |
About Infosys Limited
With a prominent global footprint, Infosys has arisen as a top-notch company that deals with next-generation consulting and digital services and solutions. With an impressive employee count of above 300,000 individuals working to boost human potential, the company aims to provide future opportunities for businesses, people, and communities. The company is a proud enabler of customers in above 56 countries, supporting and guiding them in their journey of digital transformation. With well over 40 years of experience in the management and operations of international enterprises, Infosys has the unique expertise to boost clients in their journey towards digital transformation with the power of the cloud. Infosys provides enterprises with a core powered by AI and this empowers businesses with agility at scale and innovative practices. The company is tremendously committed to the sustainability of the environment and displays this commitment in its standards of operation and compliance. Infosys boasts of a workplace where diversity thrives and talent excels.
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