The following is a summary of the Infosys Limited (INFY) Q4 2024 Earnings Call Transcript:
Financial Performance:
Infosys reported flat q-o-q revenue growth and a 2.2% decline q-o-q.
Operating margin at 20.1% for Q4 was due to one-time impacts, though overall '24 operating margin was 20.7%.
The company secured $17.7 billion in large deals throughout the year.
Expenses saw an increase, notably in salary expenditure, brand building, and visa charges.
Free cash flow for the year rose by 14% from FY 2023 to $2.9 billion, 85% of which will be paid out.
A dividend of INR20 along with a special dividend of INR8 per share was declared for FY '24, as part of a plan to return approximately 85% of free cash flow to shareholders.
The large deal value for the year stood at $17.7 billion, with the renegotiation of a large financial services contract seen as a potential future revenue base impact.
Business Progress:
Forward-looking, Infosys is anticipating a 1-3% growth in revenue and operating margin in the range of 20%-22% for FY '25.
The company sees growth in the Financial Services and Telecom sectors, while the Manufacturing sector may show lower growth.
Increment in Infosys' headcount led to higher utilization rates, amid a drop in employee attrition rates.
The company's focus remains on pursuing ethical and responsible AI, as evident from their ISO 42001:2023 certification and progress in generative AI.
Infosys reported strong performance in the European market and is focusing on the automotive sector via a recent acquisition for engineering services.
Margins are expected to improve over a period of time through the company's margin program.
More details: Infosys IR
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