FY24 Large Deal Wins Will Help Infosys In FY25: CEO Salil Parekh
The deal wins were propelled the full-year large deal value to an impressive USD 17.7 billion
IT major Infosys on Thursday noted significant gains in its large deal acquisitions for the fiscal year 2024 (FY24). During Q4 FY24 post-earnings press conference, CEO and Managing Director Salil Parekh revealed that the company achieved its highest-ever large deal value in Q4 FY24, totaling USD 4.5 billion.
The deal wins were propelled the full-year large deal value to an impressive USD 17.7 billion, encompassing a total of 90 deals.
Parekh expressed optimism regarding the impact of these large deal wins on the company’s performance in the upcoming fiscal year, FY25. He stressed on the positive traction experienced in securing large deals, underlining that some of these deals are expected to yield benefits in the coming year due to their duration.
“As you’ve seen in this past financial year. We did 90 large deals at USD 17.7 billion. We have a good pipeline. The deals are more on cost and efficiency and consolidation. That is the theme in our large deals pipeline,” he said.
The CEO pointed out that while certain industries, such as financial services, are expected for a favourable outlook in the next fiscal year, others like manufacturing may witness slower growth. He attributed this variance to the prevailing market dynamics and the differing focus areas within each industry.
Parekh also spoke on the prevalent themes in Infosys’ large deals pipeline, noting a predominant emphasis on cost efficiency and consolidation. He reiterated the company’s commitment to capitalising on these trends to drive growth and deliver value to its clients.
“We are very comfortable with where we see our large deals and the way we are winning those because we think we are benefiting from the consolidation.” - Salil Parekh, CEO and MD, Infosys
However, he also acknowledged challenges posed by the slower pace of digital programmes and discretionary work within the current market landscape. Despite this, he expressed confidence in Infosys’ ability to secure large deals, attributing its success to a strategic focus on consolidation initiatives.
Considering the mixed macroeconomic environment, Parekh outlined the company’s growth guidance for FY25 to be between 1 per cent to 3 per cent. He explained that this guidance reflected the current market conditions and aligned with the observed trends in large deal acquisitions and industry dynamics.
In terms of revenue growth, Infosys saw a period of stagnation, witnessing a flat year-over-year (YoY) constant currency (CC) growth in Q4. This performance largely aligned with analyst forecasts. Despite concerted efforts to propel business momentum, the company’s revenue figures remained nearly unchanged from the corresponding period last year, totaling Rs 37,923 crore. Further, the quarter exhibited a 2.2 percent decline in revenues quarter-over-quarter (QoQ), indicative of the prevailing challenging operational landscape.
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