Today, Infosys, India’s second-largest software services provider, announced its earnings for the March quarter. Analysts had anticipated lackluster results due to a downturn in discretionary spending. It is expected that Infosys’ revenue for Q4 will show a sequential decline, while the operating margin, or EBIT margin, is projected to remain unchanged, as per analysts’ assessments.
CEO Salil Parekh highlighted the company’s advancements in Generative AI, emphasizing its expanding capabilities. Parekh stated, “We are actively engaged in client programs, harnessing the potential of large language models to drive improvements in software engineering, process optimization, and customer support.”
Regarding salary hikes, Infosys CFO mentioned that no decision had been made yet, with the last increment occurring in November, as per company records. Additionally, Parekh commented on changes in the company’s hiring strategies, noting a significant shift towards off-campus recruitment, which now constitutes over half of their hiring endeavours.
Jayesh Sanghrajka emphasized, “In Q4, we achieved a remarkable free cash flow of $848 million, marking the highest figure in the past 11 quarters. This accomplishment is a result of our unwavering commitment to enhancing our working capital cycle. In line with our goal of providing substantial and consistent returns to our shareholders, the Board has endorsed a capital allocation policy that aims to return 85% of our earnings over the next 5 years while gradually increasing the annual Dividend Per Share. Our medium-term focus remains on expanding operating margins and enhancing cash generation, supported by early successes in Project Maximus.”
Salil Parekh announced, “In the fiscal year 2024, we achieved the highest-ever value in large deals, a testament to the strong trust our clients place in us. Our capabilities in Generative AI continue to evolve, with ongoing work on client programs that leverage large language models to drive improvements across software engineering, process optimization, and customer support. I extend my gratitude to our global workforce of 317,000 employees, whose dedication contributes to creating value for our clients.”
Infosys has greenlit the acquisition of in-tech Holding GmbH, a company specializing in Engineering R&D services. Furthermore, Infosys has proposed a final dividend of ₹20/- per equity share for the financial year concluding on March 31, 2024, along with an additional special dividend of ₹8/- per equity share.
