18 April 2024
Global IT services provider Infosys Ltd. (NYSE: INFY) reported revenue today of $4.56 billion for the fourth quarter ended 31 March 2024, an increase of 0.2% on a reported basis and flat on a constant currency basis.
The Bengaluru, India-based firm also announced today that it signed a definitive agreement to acquire in-tech, an engineering R&D services provider focused on German automotive industry for €450 million.
“We delivered the highest ever large deal value in the financial year 2024. This reflects the strong trust clients have in us. Our capabilities in Generative AI continue to expand. We are working on client programs leveraging large language models with impact across software engineering, process optimization, and customer support,” said Salil Parekh, CEO and MD. “I would like to thank our 317,000 employees across the world that are working to create value for our clients.”
| (USD millions) | Q4 2024 | Q4 2023 | Change | Change (constant currency) |
| Revenue | 4,564 | 4,554 | 0.2% | 0.0% |
| Gross profit | 1,345 | 1,390 | -3.2% | – |
| Operating profit | 917 | 957 | -4.2% | – |
| Net profit (after minority interest) | 958 | 744 | 28.7% | – |
Q4 revenue fell below analysts’ expectations, according to Reuters.
North America revenue fell by 2.2% in constant currency. In Europe, revenue rose by 4.9% in constant currency. At the same time, Rest of World saw revenue increase by 4.5% while India saw revenue dip by 15.4%, in constant currency, respectively.
Looking at revenue by business segment, revenue from financial services firms fell 5.8% in constant currency. Retail saw revenue fall 3.7% in constant currency.
During the Q4 period, the number of active clients stood at 1,882, up from 1,872 the year prior.
Revenue for the full year period grew by 1.9% on a reported basis and by 1.4% on a constant currency basis.
Acquisition of in-tech
On the acquisition of in-tech, Infosys says this strategic investment further strengthens Infosys’ Engineering R&D capabilities and reaffirms its continued commitment to global clients to navigate their digital engineering journey.
Headquartered in Germany, in-tech, is one of the fastest growing engineering R&D services providers that shapes digitization in the automotive, rail transport and smart industry sectors. in-tech develops solutions in e-mobility, connected and autonomous driving, electric vehicles (EV’s), off-road vehicles and railroad.
intech offerings include system design, methodical consulting, advanced electronics platform development and validation of automotive specific software and hardware systems, infotainment, and experience validation.
The acquired firm brings to Infosys, marquee German original equipment manufacturers (OEMs) deep client relationships, and an extensive industry expertise with a multidisciplinary team of 2,200 people across locations in Germany, Austria, China, UK, and nearshore locations in Czechia, Romania, Spain, and India.
The €450 million acquisition price includes upfront and earnouts, excluding management incentives, and retention bonus. The acquisition is expected to close during the first half of fiscal 2025, subject to customary closing conditions and regulatory approvals.
McCamish Cybersecurity Incident
Infosys also provided an update the McCamish Cybersecurity incident. The group said that by 31 December 2023, McCamish, with external specialists’ assistance, substantially remediated and restored the affected applications and systems. Actions taken by McCamish also included investigative analysis conducted by a third-party cybersecurity firm to determine, among other things, whether and the extent to which data was subject to unauthorized access or exfiltration and engaging a third-party eDiscovery vendor in assessing the extent and nature of such data.
McCamish in coordination with its third-party eDiscovery vendor identified up to approximately 6.5 million individuals whose information was subject to unauthorized access and exfiltration in the November 2023 cybersecurity incident. The information associated with each individual varies, but the data as a whole includes information such as email and mailing addresses, phone numbers, birth dates, social security numbers and other identification numbers, usernames, passwords, financial and customer account numbers, policy numbers, salaries and personal medical information.
The group added that not all of these individuals had all of this information accessed and exfiltrated. McCamish also identified corporate customers whose business data was subject to unauthorized access and exfiltration. McCamish will be notifying its impacted customers and intends to work with these customers to support their respective reporting obligations, as appropriate. McCamish’s review process is ongoing.
Guidance
Looking ahead, Infosys is forecasting revenue growth of 1%-3% in constant currency with operating margin of 20%-22%.
Infosys published its results today at 4:54 IST time. Infosys Ltd shares closed on Thursday at INR 1,419.25 (USD 16.99), up 0.34% on the day and 19.74% above the 52 week low of INR 1,185.30 (USD 14.19) set on 17 April 2023. The company has a market cap of INR 5.85 trillion (USD 70.0 billion).