Bad news for Narayana Murthy as Infosys reports massive decline in Q4 profit to…, will this lead to more layoffs?

Bad news for Narayana Murthy: In a matter of bad news for Narayana Murthy, Infosys, the second-largest IT company of the company of India has reported an 11.7 per cent decline in consolidated net profit to Rs 7,033 crore for the March quarter. Narayana Murthy’s company had posted a profit (attributable to owners of the company) of Rs 7,969 crore in the year-ago period. Here are all the details you need to know about the recent loss to Narayana Murthy’s Infosys.

In the recent turn of events, Infosys has exceeded its guidance for the full fiscal year. Notably, Infosys raised the 2024-25 fiscal year revenue guidance to 4.5-5 per cent, up from 3.75-4.50 per cent. The company has guided for a revenue growth of 0-3 per cent in constant currency terms in the current fiscal year.

Another Layoff at Narayana Murthy’s Infosys

In an update from last month, Narayana Murthy’s Infosys has laid off 40–45 more trainees out of the 1,200 engineers it onboarded between October and November. Therefore, speculations are rife that Infosys may go for another layoff.

Also, it should be noted that Infosys CEO and MD Salil Parekh said the company is on track to hire 20,000 freshers this fiscal year. Therefore, reports speculate that the company may be planning to replace its old employees with freshers at a much lower salary.

It should also be noted that the revenues for the quarter under review came in at Rs 40,925 crore, 7.9 per cent higher from Rs 37,923 crore in Q4 FY24. Consequently, the profits of the company rose 3.3 per cent, but revenues declined by only 2 per cent. Also, for the full FY25, profits increased by a marginal increase of 1.8 per cent to Rs 26,713 crore, the regulatory filing of the company said.

Readers should also note that the revenues of the company climbed 6.06 per cent to reach Rs 1,62,990 crore with the company bagging a large deal with a total contract value of USD 11.6 billion for the year, with 56 per cent net new wins. The operating margin of the company increased 0.9 per cent year-on-year while there was a 0.3 per cent decline in the margin on a quarter-on-quarter basis.

(With inputs from agencies)

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