Infosys announces strong FY24 financial results and strategic collaborations
Infosys Limited (NSE, BSE, NYSE: INFY), a global leader in next-generation digital services and consulting, delivered substantial financial results in FY24. The company achieved revenues of $18.6 billion, reflecting a 1.4% growth in constant currency, alongside an operating margin of 20.7%. Infosys Limited also reported its highest-ever large deal Total Contract Value (TCV) of $17.7 billion for the year, with 52% being net new, indicating a robust foundation for future growth.
Q4 Performance and Strategic Financial Decisions
During the fourth quarter, Infosys maintained steady performance with revenues totaling $4.564 million, despite a year-on-year flat growth and a 2.2% sequential decrease in constant currency. The quarter’s large deal TCV was $4.5 billion, with 44% new additions. CEO and MD Salil Parekh highlighted the quarter’s achievement, stating, “We delivered the highest ever large deal value in the financial year 2024. This reflects the strong trust clients have in us.”
Enhanced Capital Returns and Investment in Innovation
Chief Financial Officer Jayesh Sanghrajka emphasized the company’s focus on enhancing shareholder returns and operational efficiencies. Infosys announced a dividend of ₹20 per share and a special dividend of ₹8 per share, aligning with its policy to return 85% of the free cash flow over the next five years. This strategy underscores Infosys’s commitment to delivering consistent and predictable returns to its shareholders.
Tax Updates and Regulatory Compliance
Infosys received favorable orders from the Income Tax Authorities in India, confirming the company’s position on previously contentious tax matters. This resulted in a pre-tax interest income of ₹1,933 crore and a reversal of ₹525 crore in income tax provisions.
Broadening Client Engagements and Digital Initiatives
Infosys announced several strategic collaborations aimed at accelerating digital transformations across various industries. Notable partnerships include engagements with Musgrave, PROG Holdings, Inc., Pacific International Lines, and Handlesblatt Media Group. These collaborations are focused on leveraging Infosys’s AI and cloud capabilities to enhance operational efficiencies and customer experiences globally.
The financial year 2024 has been pivotal for Infosys in demonstrating its resilience and adaptability in a rapidly evolving digital landscape. The company’s financial strength, combined with strategic investments in technology and global partnerships, positions it well for sustained growth. Investors and stakeholders can be optimistic about the company’s trajectory towards achieving higher operational efficiency and market expansion.