Infosys Apr-24
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Questions and Answers

What is the current utilization rate mentioned?

  • 12.6%
  • 85%
  • 82% - 83% (correct)
  • 90%

    • What change has been made to the hiring model in recent years?

  • No changes have been made to the hiring model.
  • Hiring only experienced professionals.
  • Hiring exclusively from campuses.
  • Hiring less than half from campus and more off-campus. (correct)

    • How many deals were completed in the last financial year?

  • 90 deals (correct)
  • 80 deals
  • 70 deals
  • 100 deals

    • What is the primary theme observed in the large deals pipeline?

    <p>Cost and efficiency, and consolidation</p> Signup and view all the answers

    What is the expected revenue growth guidance range discussed?

    <p>2% to 6%</p> Signup and view all the answers

    Why might there be a divergence between TCV numbers and revenue growth?

    <p>Runoff in existing discretionary programs.</p> Signup and view all the answers

    What lever did TCS management consider using to improve pricing?

    <p>Implementing price hikes.</p> Signup and view all the answers

    What is expected for manufacturing growth in FY '25 compared to FY '24?

    <p>Slower growth</p> Signup and view all the answers

    What did Salil Parekh indicate about the disclosure of large contract signings?

    <p>They do not disclose non-large deal signings</p> Signup and view all the answers

    What does the 100-basis point impact mentioned by Jayesh Sanghrajka primarily reflect?

    <p>Revenue impact flowing into margins</p> Signup and view all the answers

    According to Jayesh Sanghrajka, what does a 15% rescoping of work not equate to?

    <p>Total revenue loss in one quarter</p> Signup and view all the answers

    What is suggested by the overall pipeline and deal wins despite some constraints?

    <p>The overall color of pipeline and deal wins is good</p> Signup and view all the answers

    What aspect does the 1% revenue impact reflect, according to Jayesh Sanghrajka?

    <p>It represents a combination of revenue and scope retention</p> Signup and view all the answers

    What could potentially limit the growth forecast for the upcoming year?

    <p>Discretionary spending slowdown</p> Signup and view all the answers

    What percentage of scope has been retained according to the discussion?

    <p>85%</p> Signup and view all the answers

    What was the utilization rate including trainees last year?

    <p>77%</p> Signup and view all the answers

    What was the exiting utilization rate at the end of the reported year?

    <p>82%</p> Signup and view all the answers

    How much did the utilization rate increase from the previous year?

    <p>5 points</p> Signup and view all the answers

    What is the appropriate comfort level for utilization excluding trainees?

    <p>84% - 85%</p> Signup and view all the answers

    What factors are considered when deciding on compensation?

    <p>Inflation, peer practices, and multiple factors</p> Signup and view all the answers

    When was the last compensation decision made prior to the discussion?

    <p>November of the previous year</p> Signup and view all the answers

    What is the expected trend for wage hikes under current market conditions?

    <p>Wage hikes are expected to be lower.</p> Signup and view all the answers

    What has been identified as a headwind affecting compensation?

    <p>Weak market conditions</p> Signup and view all the answers

    What aspect of Generative AI is currently being discussed?

    <p>Supply side productivity</p> Signup and view all the answers

    What has been observed regarding productivity in software engineering with the use of Generative AI?

    <p>Significant productivity benefits in a narrow dataset</p> Signup and view all the answers

    Has there been any discussion on rate adjustments related to Generative AI productivity benefits?

    <p>No, there has not been a rate discussion so far</p> Signup and view all the answers

    How are clients expected to benefit from the productivity improvements?

    <p>By achieving more output for the same effort</p> Signup and view all the answers

    What is the current status of the mega deals mentioned in the discussion?

    <p>They started as planned in the fourth quarter</p> Signup and view all the answers

    What is suggested about guidance visibility for FY '25 due to larger deal wins?

    <p>Guidance visibility is expected to be slightly higher than usual</p> Signup and view all the answers

    What has not been reported concerning the ramp-up of mega deals?

    <p>They are progressing slower than expected</p> Signup and view all the answers

    What aspect is NOT being factored in regarding Generative AI in software development?

    <p>Benefits on the demand side</p> Signup and view all the answers

    What was the initial utilization percentage at the start of the year?

    <p>77%</p> Signup and view all the answers

    What is the current trend in attrition mentioned in the content?

    <p>It has decreased to 12.6%</p> Signup and view all the answers

    What is one reason cited for the reduced need for headcount?

    <p>Higher pricing from value-based selling</p> Signup and view all the answers

    What has been the impact on backlog as per the conversation?

    <p>Both B and C are correct</p> Signup and view all the answers

    What was the approximate amount of net new deals mentioned for FY '24?

    <p>$9.2 billion</p> Signup and view all the answers

    How has discretionary demand in FY '25 been characterized compared to FY '24?

    <p>It remains similar to FY '24</p> Signup and view all the answers

    What approach is being used for hiring mentioned in the content?

    <p>An agile hiring model</p> Signup and view all the answers

    What does the respondent imply about the flow of deals in 2Q regarding FY '25?

    <p>Most of the deal flow will ramp in FY '25</p> Signup and view all the answers

    What has been identified as a trend in discretionary spending for Q3 and Q4 of FY '24?

    <p>Mixed performance across various industries</p> Signup and view all the answers

    How does Q3 and Q4 typically compare to Q1 and Q2 in terms of performance?

    <p>Q3 and Q4 performance varies dramatically by industry</p> Signup and view all the answers

    What is the current utilization rate excluding trainees?

    <p>83.5%</p> Signup and view all the answers

    What model of hiring has the organization moved towards?

    <p>Agile hiring model</p> Signup and view all the answers

    What is the stated risk associated with maximizing utilization?

    <p>Potential loss of opportunities</p> Signup and view all the answers

    What has been the level of attrition mentioned in the context?

    <p>12.6%</p> Signup and view all the answers

    Is the discretionary spending headwind specific to the BFSI industry?

    <p>No, it is broad-based across industries</p> Signup and view all the answers

    What is the projected increase in utilization mentioned?

    <p>Up to 85%</p> Signup and view all the answers

    Study Notes

    Infosys Earnings Conference Call

    • Date: April 18, 2024
    • Key Participants: Salil Parekh (CEO), Jayesh Sanghrajka (CFO), and other Infosys executives
    • Sub Topic: Q4 and FY24 Financial Results:
      • Revenue Growth: 1.4% in constant currency for FY24
      • Operating Margin: 20.7% for FY24
      • Large Deals: $17.7 billion in FY24; $4.5 billion in Q4
      • Q4 Revenue: Flat year-over-year in constant currency; 2.2% decline quarter-over-quarter
      • Q4 Operating Margin: 20.1%
      • Deal Pipeline: Remains strong, with focus on cost efficiency and consolidation
      • Guidance for FY25: Revenue growth of 1-3% in constant currency; Operating margin of 20-22%
      • Impact of McCamish incident: $30m in FY24, reduced to $7-$8m in Q1
      • Focus Areas: Cost efficiency, consolidation, digital and discretionary work, Generative AI (Topaz)

    Corporate and Analyst Participants

    • List of individuals attending the conference call and representing different financial organizations. (Names and affiliations are omitted as per request.)

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    Related Documents

    Infosys Q4 2023-2024 Earnings Call Transcript PDF

    Description

    Test your knowledge on the recent financial insights and operational changes at TCS. This quiz covers key topics such as utilization rates, hiring models, revenue projections, and deal pipeline themes. Perfect for finance enthusiasts and business analysts looking to understand TCS's strategic direction.

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