Infosys Q4 Results Live: PAT drops 16% QoQ to ₹6,128 cr, key highlights here

Infosys Q4 Results

Live: Infosys Q4 Results 2023: Infosys had a quarter that was worse than the one before it. The quarter ended on March 31, 2023. (Q4FY23). The IT giant’s Q4 PAT was 6,128 crore, which was down by almost 16% from QoQ. While sales fell by 2.2% quarter-over-quarter to 37,441 crore. With the same amount of money, the company’s sales grew by 3.2% QoQ and 8.8% YoY. In Q4, the operating margin was 21%. The company also said that each share will get a final dividend of 17 for FY23. Infosys’ rival TCS has also missed street’s estimates in Q4.

13:18:45 IST (13 April 2023)
The head of research at Stoxbox, Manish Chowdhury, said this about Infosys Q4:

The head of research at Stoxbox, Manish Chowdhury, said:

Infosys’s fourth-quarter numbers were bad, and all of them were worse than what the market expected. Revenue in CC terms fell by 3.2% from one quarter to the next, even though flat growth was expected, and margins were also under pressure at 21%. The fact that FY23 revenue guidance was off, and FY24 guidance was below average, shows that the weak global macroeconomic environment is hurting the company’s performance. As a result, discretionary projects are being put on hold, and the time it takes to make decisions is getting longer. It would be interesting to see how the company gets through this hard time, especially since demand is weakening and becoming more widespread across all business verticals.

13:51:32 IST (13 April 2023)
In FY23, Infosys gives its shareholders 86% of its FCF.
Infosys said that, as part of its capital allocation policy, it gave about 86% of its Free Cash Flow back to its shareholders. This included a plan to buy back shares for 9,300 crore and a dividend payout of 14,200 crore.

Infosys has said that the last dividend for FY23 will be 17.50 per share. It used to cost 16.50 per share. In FY23, Infosys paid a total of 34 per equity share, which is 9.7% more than it paid in FY22.

Infosys has announced that the last dividend for FY23 will be 17.5 per share. Know the record, ex-dividend, and payment dates

13:24:17 IST (13 April 2023)
Nilanjan Roy, the Chief Financial Officer, talks about Infosys’s fourth quarter.
Nilanjan Roy, the company’s Chief Financial Officer, said, “Our continued focus on cost optimisation and operational efficiencies has helped us reach operating margins of 21.0% in FY23.

He also said, “Free cash flow was strong in Q4, thanks to strong collections. In line with our policy for allocating capital, we bought back shares and have proposed a final dividend of 17.50 for FY23.

13 Apr 2023, 06:02:13 PM IST Infosys laid off 3,611 people in the fourth quarter.
According to the financial results, Infosys had 3,43,234 employees at the end of the March 2023 quarter. This means that the company fired 3,611 people during that time.

In the December 2022 quarter, there were 3,46,845 people on staff.

Compared to the same time last year, the company now has 29,219 more employees, for a total of 3,14,015 in Q4FY22.

13:51:24 IST (13 April 2023)
The number of people leaving Infosys drops sharply in Q4.
Infosys’s attrition rate for LTM-IT services continued to go down by a large amount. In Q4, the rate of people leaving was only 20.9%. This is a big drop from Q3FY23, when it was 24.3%, and from the same quarter last year, when it was 27.7%.

13 Apr 2023, 05:28:09 PM IST
Key things about Q4: 1. In rupees, revenue went down 2.2% from Q3 to Q4, but it went up 16% from Q3 to Q4.

  1. In terms of CC, sales went up 8.8% year over year and down 3.2% quarter over quarter.
  2. The operating margin was 21.0%, which was down 0.6% year over year and 0.5% quarter over quarter.
  3. PAT stood at ₹6,128 crore down by nearly 16% QoQ but up by nearly 6% YoY.
  4. Basic EPS at ₹14.79, growth of 9.0% YoY.
  5. FCF at ₹5,844 crore, growth of 1.3% YoY. 95.3% of net profit was turned into FCF.
  6. Attrition went down even more in Q4, to 20.9%, keeping up with the recent trend.

13 April 2023, 5:21:04 PM IST
Salil Parekh, who is the CEO and MD, talks about earnings.
Salil Parekh, CEO and MD of Infosys said, “Our strong performance in FY23 is a testimony to the continued focus on digital, cloud and automation capabilities which resonated with our clients. We have launched exciting programmes with our clients leveraging generative AI platforms.”

He also said, “As the environment has changed, our clients are very interested in efficiency, cost savings, and consolidation opportunities. This has led to a strong pipeline of large deals.” We have built a way to get higher margins in the medium term by making our internal programme on efficiency and costs bigger. We keep putting money into our people and helping our clients.

13 April 2023, 5:01:32 PM IST
Infosys declares dividend

For the fiscal year FY23, the company has set a dividend of 17.50 per share. It set June 2 as the date for figuring out which shareholders are eligible for the dividend.

Infosys said that the dividend payment would be made on July 3, 2023.

13:56:38 IST (13 April 2023)
Infosys’s Q4 sales
On a sequential basis, the company’s revenue dipped by 2.2% to ₹37,441 crore in Q4FY23. During Q3FY23, Infosys made 38,318 crore in sales.

But sales were up 16% from Q4 of the previous fiscal year, when they were 32,276 crore.

13:52:09 IST (13 April 2023)
Q4 profit for Infosys
Infosys posted a consolidated net profit of ₹6,128 crore in Q4FY23, down by 15.68% from a PAT of ₹7,283 crore in the preceding quarter.

But the most recent PAT went up by 7.8% from 5,686 crore in the fourth quarter of FY22. The profits belong to the people who own the business.

13:20:33 IST (13 April 2023)
Nifty IT drops over 2%
The Nifty IT index dropped by 637.50 points, or 2.2%, to 28,342.80 before Infosys reported its earnings. All of the stocks on the index were down.

The worst-performing stock on the index was LTI Mindtree, which fell by almost 4%. This was followed by Persistent Systems and Infosys, which each fell by more than 3.1% and 3.2%.

Mphasis was down 2.8%, Tech Mahindra was down 2.2%, and HCL Tech was down 2.01%. The IT giant TCS lost 1.53%. Stocks like Wipro, Coforge, and LTTS all went down by more than 1%.

13:14:18 IST (13 April 2023)
The last price of Infosys stock
Infosys closed at 1,388.60 per share, which is down by 39.85 or 2.79 percent on BSE. It is the second largest IT company in terms of market share. The stock is near its day’s low of ₹1,383.60 apiece.

Before its Q4 results, the stock was under pressure.

Infosys stock came close to its 52-week low of 1,355.50 per share.

13:57:54 IST (13 April 2023)
Infosys Q4: Watch out for these things
Watch out for: an update to the FY24 guidance. Commentary on deal wins and margins will be key monitorable

13:35:47 IST (13 April 2023)
Shares of Infosys fall by 3%
IT services stocks major Infosys fell 3.14 percent on Thursday, and each share ended the day at 1,383.40.

13:19:41 IST (13 April 2023)
Infosys’s Q4 revenue may go up by 20.4% year-over-year.
The IT giant’s consolidated revenue is likely to reach 38,859 crore, which is an increase of 20.4% from the previous year. Net profit could go up by 16.5% from last year to 6,623 crore.

Analysts expect revenue growth to be between 0.3% and 0.6% QoQ in terms of constant currency (CC).

13:38:15 IST (13 April 2023)
Growth of Infosys and TCS in the near future
If you look at the first half of the year in any given year, Infosys has better QoQ growth than TCS in the first half of that year. So, from this point of view, Sumeet Jain of ICICI Securities told ET Now that Infy will grow a little more quickly than TCS in the next quarter.

13:02:48 IST (13 April 2023)
IT stocks drop because fears of a recession are growing.
The high-weighted IT sector lost more than 1.8%, and nine out of the ten companies in the index also lost money. TCS, Tech Mahindra Ltd, HCL Tech Ltd, and Infosys Ltd all dropped more than 1.5% and were among the biggest losers in the Nifty 50 index.

13:50:33 IST (13 April 2023)
Brokerages on the Q4 outlook for Infosys
The target price for Infosys shares set by ICICI Securities is 1,759. The target price for the stock set by HDFC Institutional Equities is 1,830.

13 April 2023, 1:29:30 PM IST
Stock price goals for Infosys
Trendlyne data shows that the average price target for the stock is 1,720, which means that the counter could go up by 23%.

13:06:12 IST (13 April 2023)
Infosys gives a report
The script was trading 2.78 per cent lower at ₹1,388.55 per share during noon deals.

13 Apr 2023, 1:04:03 IST
Key monitorables
1) Tech budgets by clients; 2) Impact on BFSI in US & Europe 3) Large deal pipeline and wins; 4) Impact on discretionary spends, 5) Attrition level and trends 6) Margin outlook, 7) Outlook on Telecom, retail, BFSI & Hi-tech verticals, 8) IT budget allocation, and 9) Attrition.

13 Apr 2023, 12:28:01 PM IST
On Infy deal wins, headcount, attrition
“We would closely watch for the company’s commentary relating to deal wins, pricing environment, attrition levels, headcount additions and any fallout on their BFSI and discretionary spending verticals post the recent banking crisis in the US and Europe,” said Manish Chowdhury, Head of Research at Stoxbox.

13 Apr 2023, 12:00:26 PM IST
What Dalal Street is expecting
Investors expect Infosys to report muted revenue growth of 0.1-0.2% quarter-on-quarter (QoQ) in constant currency terms. “We expect 25 bps sequential decline in EBIT margin with headwinds from visa costs (40 bps) partially offset by operational efficiencies and lower passthrough expense,” Kotak Institutional Equities said, adding that deal TCV and pipeline will take centerstage.

13 Apr 2023, 11:43:04 AM IST
Infosys Q4 earnings timing
Infosys would announce its quarterly earnings after market hours today, which would be followed by a press conference at 4:30 pm and a 60-minute earnings call at 6 pm.

13 Apr 2023, 11:35:22 AM IST
Other IT counters
Weak trends were also witnessed in other IT counters, with Infosys, Tech Mahindra, HCL Technologies and Wipro trading lower in morning trade.

13 Apr 2023, 11:32:51 AM IST
Infosys shares dip over 2%
Shares of IT services major Infosys tanked more than 2 per cent ahead of its March quarter results on Thursday.

Source: Team CurrencyVeda