Infosys (INFY) is a global leader in next-generation digital services and consulting. Over 300,000 people of the company work to amplify human potential and create the next opportunity for people, businesses and communities. The company enables clients in more than 56 countries to navigate their digital transformation. With over four decades of experience in managing the systems and workings of global enterprises, it expertly steers clients, as they navigate their digital transformation powered by the cloud. The company enables them with an AI-powered core, empower the business with agile digital at scale and drive continuous improvement with always-on learning through the transfer of digital skills, expertise, and ideas from our innovation ecosystem.

Result Analysis:  Infosys Limited (CMP: Rs.1495.00) Result Update: Q3FY24
Stock Details
Market Cap. (Cr.) 620492
Equity (Cr.) 2069.00
Face Value 5
52 Wk. high/low 1620 / 1215
BSE Code 500209
Book Value (Rs) 170.49
Sector IT-Software
Key Ratios
Debt-equity: 0.1
ROCE (%): 44.36
ROE (%): 36.42
EPS TTM: 58.77
P/BV: 8.77
P/E TTM: 25.44

Financial Performance:


Shareholding Pattern:

Particulars (In %) Q2FY24 Q1FY24
Promoters Group 13.29 13.29
FIIs 30.90 30.79
DIIs 31.63 31.01
Public 23.33 24.04
Others 0.85 0.87


Result Highlights:

  • The revenue from operations and net profit decreased on a QoQ basis by ~0.4% and 1.6% respectively.

  • Infosys McCamish Systems, a wholly-owned subsidiary of the company witnessed a cyber-security incident during the quarter resulting in the non-availability of certain applications and systems. The loss in revenue along with costs to remediate the same was $30 million (~₹250 crore).

  • During the quarter, the operating margin decreased by 70 bps on a QoQ basis. The company benefitted by 50 bps through cost optimization, efficiency and higher utilisation, ~10 bps due to exchange rate fluctuations. However, the same was offset by 70 bps due to higher salary on account of wage hikes and one-time impact of 60 bps due to the McCamish incident.

  • Among segments the growth on a YoY basis in cc terms for the Manufacturing was 10.6%, Life Sciences 6.3%, and Others 7%. Retail and Energy, Utilities, Resources & Services (EURS) were flat at 0.4% and 0.3%, respectively. However, Communication, Financial Services and Hi-tech saw a decline of 8%, 5.9% and 5.1%, respectively.

  • Across geographies, ROW witnessed growth of 7.8%, followed by Europe growing by 5%. However, North America and India de-grew by 4.9% and 1%, respectively, on a YoY basis in cc terms.

  • In Q3 FY24, it closed 23 large deals with total contract value (TCV) of $3.2 billion, of which 71% were net new deals. The TCV during Q3 FY23 was $3.3 billion. Out of these large deals, ~1 was regarded as mega deal.

  • The company on a QoQ basis saw gross reduction by 7 clients in the $1 million+ band taking the total to 944, 4 clients in the $10 million+ band taking the total to 308. However, it added 2 clients in the $50 million+ band to reach 82 and 1 client in the $100 million+ band to reach 40.

  • The company had a net reduction sequentially of 6,101 employees during the quarter, taking the total to 3,22,663 employees as on 31st December 2023, along with this the company has trained over 1,00,000 employees in Generative AI to boost its AI led projects.

  • The company has entered into an agreement to acquire 100% of InSemi Technology Services Private Limited on 11th January 2024. It is a semi-conductor design service company based in India.


Infosys posted muted Q3FY24 results, the results of the company reflect the seasonality impact of Q3 generally being slower due to higher furloughs and holiday periods. The discretionary spending environment continued to remain sluggish. Despite that, they continue to see healthy traction towards their margin expansion program. The company has guided for a revenue growth of 1.5%-2% from the previous guidance of 1%-2.5% in cc terms for FY24. Further, they guided operating margins to be in the range of 20%-22%. The management remains optimistic regarding the deal pipeline going ahead despite weak discretionary spending budget spends. Hence we recommend to buy for the target of 1,880.


Particulars (In Rs. Cr.) Q3FY24 Q2FY24 Q3FY23 QoQ%      YoY%
Revenue from Operations 38,821 38,994 38,318 -0.4% 1.3%
Other Income 789 632 769 24.8% 2.6%
Total Income 39,610 39,626 39,087 0.0% 1.3%
Employee Benefit Expenses 20,651 20,796 20,272 -0.7% 1.9%
Employee benefit Expenses as % of Sales 53.2% 53.3% 52.9% -10 bps 30 bps
Cost of Equipment, Software licences & Others 7,292 6,848 6,829 6.5% 6.8%
Depreciation & Amortisation Expense 1,176 1,166 1,125 0.9% 4.5%
Other Expenses 1,741 1,910 1,850 -8.8% -5.9%
EBIT 7,961 8,274 8,242 -3.8% -3.4%
EBIT Margin (%) 20.5% 21.2% 21.5% -70 bps -100 bps
PAT 6,113 6,215 6,586 -1.6% -7.2%
PAT Margin (%) 15.7% 15.9% 17.2% -20 bps -150 bps
EPS (In Rs.) 14.76 15.01 15.72 -1.7% -6.1%
Segment Revenue (In Rs. Cr.) Q3FY24 Revenue % Q2FY24 QoQ% Q3FY23 YoY%
Financial Services 10,783 27.8% 10,705 0.7% 11,235 -4.0%
Retail 5,649 14.6% 5,913 -4.5% 5,480 3.1%
Communication 4,421 11.4% 4,463 -0.9% 4,710 -6.1%
Energy, Utilities, Resources, and Services 5,121 13.2% 4,957 3.3% 4,957 3.3%
Manufacturing 5,786 14.9% 5,574 3.8% 5,099 13.5%
Hi-Tech 2,985 7.7% 3,053 -2.2% 3,095 -3.6%
Life Sciences 2,954 7.6% 3,050 -3.1% 2,695 9.6%
All other segments 1,122 2.9% 1,279 -12.3% 1,047 7.2%
Total 38,821 100.0% 38,994 -0.4% 38,318 1.3%
Geography Revenue % Q3FY24 Q2FY24 Q3FY23 YoY Growth (%)
Reported CC
North America 59.0% 61.1% 62.0% -4.7% -4.9%
Europe 28.2% 26.5% 25.8% 9.2% 5.0%
Rest of the World 10.4% 9.6% 9.8% 7.1% 7.8%
India 2.4% 2.8% 2.4% -1.9% -1.0%


Management Commentary:

Commenting on the December quarter results, Salil Parekh, CEO and MD said, “Our performance in Q3 was resilient. Large deal wins were strong at $3.2 billion, with 71% of this as net new, reflecting the relevance and strength of our portfolio of offerings ranging from generative AI, digital and cloud to cost, efficiency and automation. Our clients are leveraging our Topaz generative AI capabilities and our Cobalt cloud capabilities to create long-term value for their businesses.”

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