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Revenue
₹38,821 Cr
verified against source
Revenue YoY
-1%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Infosys reported Q3 FY24 revenue declined 1% YoY in constant currency, with operating margin at 20.5%, down 70bps sequentially due to salary hikes and the McCamish cyber incident. Large deal TCV was strong at $3.2 billion (71% net new), contributing to a record $13.2 billion YTD. However, discretionary spending remains subdued, particularly in financial services and telecom, while cost efficiency and consolidation deals drive wins. Management tightened FY24 revenue guidance to 1.5%-2% CC (from 1%-2.5%), retaining margin guidance of 20%-22%. Generative AI traction is broad but not yet quantified. Risks include delayed conversion of large deals into revenue and sustained pressure on digital transformation programs.
Colored figures show movement against the previous available record.
Guidance to track
- Revised from previous 1%-2.5% range, reflecting Q3 performance and Q4 outlook.
- Unchanged despite Q3 margin of 20.5%, with confidence from Project Maximus.
- Multiple tracks including value-based selling, pyramid optimization, and GenAI expected to drive margin expansion over time.
Risks flagged
- Analysts raised concerns that large deal wins may not convert to revenue on time; management acknowledged but provided no specific timeline.
- Digital transformation programs remain weak, with clients prioritizing cost takeout; no signs of recovery in Q3.
- Analyst questioned if lower-margin cost deals signed recently could pressure margins; management downplayed but acknowledged historical pattern.
- Third-party items now over 8% of revenue, potentially diluting margins if not managed; management expressed comfort but no target level.
Key quotes
- We see lower traction for digital transformation programs and more activity for cost and efficiency programs and increasing interest in generative AI programs.
- Our large deal TCV is over $13 billion, which is the highest ever for any comparative period.
- We have 100,000 employees trained in generative AI areas.
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