💡 Infosys – Q1FY23 Results 💡
• Revenue grew by 23.6% YoY to INR 34,470 Cr
• Net Profit was at INR 5,360 Cr, higher by 3.2% YoY
• Growth in revenue beats the estimates of 21.5 – 22.5%
• However, Infosys did meet the estimates of 5.5 to 9.5% growth in PAT
• Although there was widespread revenue growth across all business verticals, the margins were affected by supply-side issues and higher travel expenses
SEGMENT REVENUE
• Revenue is primarily derived from financial services, accounting for 30.6%. However, its contribution was reduced by 240 bps Q1FY22
• While the contribution from the communication vertical increased by 80 bps YoY to 13%, Retail continued to be a stable business, accounting for 14.5% of the revenue
• Energy, Utilities, Resources, & Services are still contributing 12.4%, while the manufacturing vertical's contribution increased 240 bps YoY to 12.1%.
• Hi-Technology, Life Sciences, and Other sectors' contributions to overall company revenues also remained steady
NEW CLIENTS
• Company added 106 new customers, bringing the total number of active customers to 1,778
• 13% of the total revenues came from the top five clients, 28% from the top ten, and 36.3% from the top 25
MARGINS & ATTRITION
• Infosys is struggling due to supply-side pressures, rising wages, and travel expenses, as well as a decline in utilization because of a higher proportion of new hires. As a result, the operating margins plunged 360 bps YoY to 20.1%
• LTM (Last 12 months) attrition was recorded at 28.4%, up from 27.7% in Q4FY22 and 13.9% in Q1FY22