Infosys Faces Profit Decline Yet Aims High with Fresh Hiring and Large Deals

Infosys, India's second-largest IT company, reported an 11.7% decline in profit for Q4 but exceeded annual revenue guidance. With plans to hire 20,000 freshers and a notable USD 11.6 billion contract deal, Infosys aims to strengthen operations amidst economic headwinds. The company announced improved operating margins despite challenges.

Infosys, the second-largest IT firm in India, has reported an 11.7% drop in consolidated net profit for the March quarter to Rs 7,033 crore, down from Rs 7,969 crore a year ago. The company has, however, surpassed its revenue guidance for the full fiscal year, adjusting its 2024-25 outlook upwards to 4.5-5%.

Despite challenges, Infosys is on a recruitment drive, aiming to onboard 20,000 freshers this fiscal year. Revenue figures for the reviewed quarter reached Rs 40,925 crore, marking a 7.9% increase from Q4 FY24. With sequential profits rising 3.3%, yet facing a 2% revenue decline, Infosys remains resilient.

CEO Salil Parekh emphasized the company's robust operations and market responsiveness, achieving a significant USD 11.6 billion contract with 56% net new wins. Operating margins have seen growth, aided by focused client-centric strategies and enhanced efficiency in AI, cloud, and digital solutions. Meanwhile, employee attrition stands at 14% as the firm announces a 13.2% dividend increase.

(With inputs from agencies.)