Infosys Q4 results highlights: Revenue misses estimates; CFO says hiring models have changed 'significantly'

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--Net profit up 30% YoY to Rs 7.969 crore vs 6,128 crore; beats estimates
--Revenue from operations up 1.3% to Rs 37,923 crore vs 37,441 crore; misses estimates
--Revenue guidance for the fiscal 2025 slashed to 1-3 percent from 4-7 percent a year back, amidst uncertain demand conditions
--Final dividend of Rs 20 per equity share and a one-time dividend of Rs 8 per share declared
--Infosys ADR fell 7% pre-market after Q4 show

--Bajaj Auto Ltd reported a consolidated net profit of Rs 2,011.43 crore for the fourth quarter of FY2023-24. The Pune-based company’s profit was up from Rs 1,704.74 crore reported during the same period last year.

--The homegrown two- and three-wheeler manufacturer posted revenue of Rs 11,554.95 crore for the January-March quarter this year, up from Rs 9,192.73 crore during the same period last year.

--Analysts projected a profit of Rs 1,816 crore on revenue of Rs 11,096 crore, according to an average estimate of eight brokerages polled by Moneycontrol.

--The company's total income for Q4 was Rs 11,914.94 crore, up 29.6 percent from Rs 9,192.73 crore during the same period last year.

--The automaker's board also approved a dividend at the rate Rs 80 per share (800 percent) of face value of Rs 10 each on equity shares for the financial year ended 31 March 2024, the filing said.

"Hiring models have changed significantly over the years. Doing more than half of the hiring off campus."

“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.

Haven't decided on salary hike yet, last hike was in November, says CFO

--Environment in terms of discretionary and digital work is the same; deal pipeline remains good
--Growth guidance is as a band higher than where we finished this year
--Project maximus has done well
--Seeing an increase in onsite inflation
--Clients amenable to price increases
--84-85 percent is our comfort level in utilisation
--Hiring will depend on demand

--Infosys’ headcount for the financial year 2024 declined by 25,994, for the first time in at least 23 years since 2001.

--The total headcount for the FY24 stood at 317,240, this is a 7.5 percent decrease from the previous year’s numbers.

--On a quarterly basis too, Infosys added 5,423 fewer employees, a drop for the fifth consecutive quarter.

--Infosys slashed its revenue guidance for the fiscal 2025 to 1-3 percent from 4-7 percent a year back, amidst uncertain demand conditions.

--The Bengaluru-based company has revised its annual revenue growth guidance five times in the previous five quarters.

--In January, it narrowed its revenue growth guidance for the full year to 1.5-2 percent for the full year. The move came after it had earlier slashed revenue guidance in September to 1-2.5 percent from 1-3.5 percent.

--Before that, the company had reduced its revenue guidance for the fiscal to 1-3.5 percent from 4-7 percent, amid an increasingly challenging demand environment.

--IT services major Infosys on April 18 reported 30 percent rise YoY in consolidated net profit at Rs 7,969 crore for the quarter ended March 31, 2024. The Bengaluru-based IT firm had reported a profit of Rs 6,128 crore in the year-ago period.

--Revenue from operations increased 1.3 percent to Rs 37,923 crore in the quarter under review from Rs 37,441 crore last fiscal.

--India's second largest IT services firm after TCS also said that its board has recommended final dividend of Rs 20 per share.

--Shares of Infosys on April 18 closed 0.41 percent higher at Rs 1,420.55 apiece on BSE ahead of its Q4FY24 results.

Shares of Infosys on April 18 closed 0.41 percent higher at Rs 1,420.55 apiece on BSE ahead of its Q4FY24 results. The company's stock has declines 8 percent in year-to-date basis.

--HDFC Life reported 15 percent jump in net profit at Rs 411 crore for the quarter ended March 31, 2024. The numbers beat the market expectations which expected 6.1 percent growth in profit to Rs 382.1 crore.

--The net premium income of the insurer came in at Rs 20,488 crore, up 5.4 percent from Rs 19,426 crore in the year-ago quarter.

--The solvency ratio of the insurer stood at 187 percent, up from 203 percent a year ago.

--The total annual premium equivalent (APE) was at Rs 4,727 crore against Rs 5,162 crore a year ago. The value of new business (VNB) of the insurer was at Rs 1234 crore, down 18.3 percent.

HDFC Life on April 18 reported 15 percent jump in net profit at Rs 411 crore for the quarter ended March 31, 2024. The company had reported a net profit of Rs 358 crore in the year-ago period.

HDFC Life also declared final dividend of Rs 2 per share for the financial year 2023-2024.

IT services major Infosys will report its earnings for the January to March 2024 quarter after market hours (post 3:30 pm) on April 18.

--Infosys’ larger rival Tata Consultancy Services declared its fourth-quarter results on April 12, and indicated that clients are still cautious on IT spending. Discretionary IT spending has not picked up and the focus on cost optimisation continues.

--The fourth quarter is usually weak because of the seasonality factor, which results in muted sequential growth. In terms of sectors, manufacturing, energy and utility, and life sciences are doing well, whereas banking, financial services and insurance (BFSI), luxury retail, hi-tech, and telecom continue to be under pressure.

--Riding on continued cost optimisation, analysts expect Infosys to maintain its operating margin guidance for FY25 in the range of 20-22 percent.

--Most brokerages expect Infosys to maintain its revenue growth guidance in the range of 2-7 percent for the financial year, even as a recovery in discretionary spending by clients remains elusive.

--Analysts at ICICI Securities are the most conservative, pegging the range at 1.5-2 percent, while brokerage Antique is the most optimistic, expecting growth guidance of 5-7 percent.

--Bajaj Auto stock has jumped 33 percent since January this year, and has nearly doubled in the last 12 months, beating NSE Nifty 50.

--It is trading over 2 percent up at Rs 9,110.95 apiece on BSE at 1 pm ahead of earnings.

--The stock is the second-best performer among the Nifty 50 stocks, trailing only Tata Motors, which has delivered over a 100 percent return during the same period.

India’s third largest two-wheeler maker is expected to see its fiscal fourth quarter net profit rise to Rs 1,816 crore, up 25 percent from a year ago, according to the median estimate of eight brokerages polled by Moneycontrol. Revenue from operations, too, is seen rising 25 percent on-year to Rs 11,096 crore during the January-March quarter.

Ahead of the earnings, Infosys shares are trading 1 percent up at Rs 1,429 apiece during afternoon session

Moneycontrol’s consensus estimates indicate the company’s operating margin will expand by 20 basis points sequentially, but analysts are divided. Brokerages Nuvama and ICICI Securities expect its operating margin to fall, while Axis Securities, Nomura, Emkay Global and Jefferies expect it to expand.

Infosys Q4 results will likely be marred by continued weak discretionary spending in the US, with revenue falling and net profit little changed quarter-on-quarter. The Street expects the operating margin to expand moderately as cost optimisation continues under Project Maximus.

Seasonal drag

Seasonal impact will weigh on revenue, which may decline 1.1 percent sequentially to Rs 38,413 crore, according to the median estimate of 13 brokerages polled by Moneycontrol. Profit after tax is expected to remain flat both sequentially and YoY at Rs 6,128 crore, according to the estimates, dragged by lower revenue but supported by margins.