Infosys released its financial reports for the first quarter of FY23. The company reached( Infosys Q1 performance) the market estimates in some aspects and missed a few.

image source: infosys

Infosys, the second largest IT company in the country released its Quarter 1 (Q1) results for this financial year (FY23). The company’s revenue has increased and generated profit but did not reach the market expectations. Though it has shown a lot of development in the IT sector, the numbers are not justifying the initiatives. The company has expanded, and with the economic recovery, it did score new levels. Technology innovation is challenging but the company has been doing it for the past few decades and surely even with the new changes the company has grown. During this quarter the company’s foreign operations have set a mark for its competitors. 


Here are some of the highlights of the Infosys performance.

Net Profit (Infosys Q1 performance)

The company reported a consolidated net profit of ₹5,360 crores which on a year-on-year (YoY) basis shows a growth of 3.2 percent. Last year for the same quarter the company generated a profit of ₹5,195 crores. In Q4 for FY22, the company has a net profit of ₹5,693 crores showing a decline from the last quarter of 5.84 percent. 

The company’s gross profit or profit after tax amounted to ₹7,534 crores which show a progress of 4.75 percent. Last year this profit was recorded at ₹7,176 but in the last quarter, this was shown at ₹7,543 crores. The market had expected the profit target amount of 56.26 billion rupees. Though there was progress, there are also some loopholes noted by stakeholders. The company stated the reason for decreased profit level was the continuous rise in prices. 

Revenue Generated

The revenue generated was on the higher side. The YoY comparison of the total revenue of the company shows a growth of 23.6 percent. The total consolidated revenue is shown as ₹34,470 crores for Q1 of FY23. Last year for the same quarter the company generated a revenue of ₹27,896 crores. The quarter-on-quarter (QoQ) is resulting at 6.8 percent as the company’s revenue for last quarter was ₹32,276 crores. 

The revenue from operations is shown in the reports as ₹34,470 crores after adding other income and net the amount is recorded at ₹35,146 crores. The operating margin was set at 20 percent. The total expenses result in ₹27,612 crores which include the employee benefit expenses, travel expenses, communication expenses, finance costs, etc. The revenue generated on the higher side still missed the market estimation. But the amount is satisfactory, analysts say


The company’s total assets adding current and non-current amounted to ₹1,19,979 crores where the current asset amount was ₹68,564 crores and the non-current assets resulted in ₹51,415 crores. Similarly, the balance sheet was tallied at ₹1,19,979 crores showing the same amount on the liabilities side. On the liability side, the current liabilities were shown at ₹36,671 crores and the non-current liabilities were reported at ₹9,187 cores showing total liabilities at ₹45,858 crores. The total equity of the company was ₹74,121 crores. 

Apart from this, Infosys re-appointed Salil Parekh as the CEO and MD of the company in its 41st Annual General Meeting (AGM). He started working in this position on 1 July 2022 and has been signed up for 5 years ending 31 March 2027. The company has also planned for mergers and acquisitions for this quarter and will be expanding in other sectors as well. Overall, the performance was not bad, the company generated higher revenues but due to the rising prices and other economic variables, the profit was reduced. The market appreciated the initiatives but expected higher numbers.

Neha Shah

Neha is a young writer with a keen interest in business, economy and share markets. She has also written across genres like entertainment, technology and politics. Her writing can be described as simple and to the point.


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