Infosys, one of India's largest IT consulting and services companies, saw its share price drop marginally despite reporting strong full-year financial performance. The Bengaluru-based tech giant announced net profits of Rs. 7,975 crores for the quarter ending March 2024, marking a 30% increase year-over-year. However, revenues remained flat for the quarter when compared to the previous year.
For the full financial year ending March 2024, Infosys' net profit grew nearly 9% to Rs. 26,233 crores while total revenues increased close to 5% to Rs. 153,670 crores. The company highlighted strong customer demand and trust as evidenced by securing several large multi-million dollar deals over the past year. Operating margins did see a slight decline compared to previous periods, coming in at 20.1% for the March quarter.
Following the results announcement, Infosys shares dipped 1.04% to close at Rs. 1,404.45 on Indian bourses. Analysts believe the modest revenue growth, combined with a falling operating margin, disappointed some investor expectations. However, company management expressed confidence in their expanding digital capabilities and pipeline of customer projects. Infosys CEO Salil Parekh noted the large deals win highlights the confidence clients have in the organization.
Going forward, Infosys will look to strengthen its cloud, cybersecurity and AI service offerings. With continued deals momentum and a robust demand environment, the company is well positioned for growth over the coming years.
