Infosys’ Q1 net profit rises 11% to Rs 5,945 crore

Bengaluru: IT services firm Infosys on Thursday reported an 11 per cent rise in consolidated net profit in the June quarter at Rs 5,945 crore, but delivered a shocker by slashing full year growth outlook to 1-3.5 per cent hurt by macro uncertainties and delayed decision-making in the market.

The net profit (before minority interest) during the same period previous year stood at Rs 5,362 crore.

The company posted a revenue growth of 10 per cent to Rs 37,933 crore, up from Rs 34,470 crore in the year-ago period.

The country’s second largest IT services company -- which competes in the market with TCS, Wipro and others -- drastically lowered its revenue guidance for the full year to 1 to 3.5 per cent in constant currency, down from 4 to 7 per cent projected earlier.

Seen sequentially, net profit declined 3 per cent over the March quarter, while the revenue rose 1.31 per cent quarter-on-quarter. Salil Parekh, CEO of Infosys, flagged delayed decision-making, saying, “We had good Q1 with large mega deals, but we have seen some of the deal signing and start dates being delayed.”

Accordingly, the revenue from these mega deals will flow in the later part of the financial year.

Through the quarter, Infosys saw volumes in specific industries being impacted where clients reduced transformational projects and decision making slowed. “When we look at volumes of discretionary projects, we see some of them slowing down. We see good traction from generative AI and mega deals,” Parekh said during a briefing on Q1 earnings.