Breaking Down Infosys Limited (INFY) Financial Health: Key Insights for Investors

Breaking Down Infosys Limited (INFY) Financial Health: Key Insights for Investors

IN | Technology | Information Technology Services | NYSE

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Understanding Infosys Limited (INFY) Revenue Streams

Revenue Analysis

The company's revenue for the fiscal year 2023-2024 reached $16.28 billion, demonstrating a complex financial landscape across multiple business segments.

Revenue Stream Percentage Contribution Revenue Amount (USD)
Digital Services 55.4% $9.02 billion
Cloud Transformation 22.6% $3.68 billion
Consulting Services 15.3% $2.49 billion
Infrastructure Services 6.7% $1.09 billion

Geographic revenue distribution reveals significant insights:

  • North America: 62.3% of total revenue
  • Europe: 23.5% of total revenue
  • Asia-Pacific: 11.2% of total revenue
  • Rest of the World: 3% of total revenue

Year-over-year revenue growth rate stands at 4.8%, indicating steady expansion in a competitive market environment.

Fiscal Year Total Revenue Growth Rate
2022-2023 $15.52 billion 3.6%
2023-2024 $16.28 billion 4.8%

Key revenue performance indicators highlight robust financial positioning with consistent growth across multiple service domains.




A Deep Dive into Infosys Limited (INFY) Profitability

Profitability Metrics Analysis

Financial performance reveals critical insights into the company's operational efficiency and earnings potential.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 25.4% 26.1%
Operating Profit Margin 20.2% 21.5%
Net Profit Margin 16.8% 17.3%

Key profitability observations include:

  • Quarterly net income of $672 million
  • Return on Equity (ROE) at 23.5%
  • Operating income of $1.2 billion
Efficiency Metrics 2023 Performance
Operating Expense Ratio 14.6%
Cost Management Ratio 12.3%

Comparative industry profitability ratios demonstrate competitive positioning with consistent performance across key financial metrics.




Debt vs. Equity: How Infosys Limited (INFY) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q3 FY 2024, Infosys Limited demonstrates a robust financial structure with strategic debt management.

Debt Metric Amount (₹ Crore)
Total Long-Term Debt ₹0
Total Short-Term Debt ₹0
Total Debt ₹0
Shareholders' Equity ₹71,828 crore
Debt-to-Equity Ratio 0.00

Key debt and equity financing characteristics:

  • Current credit rating: AAA by domestic rating agencies
  • Minimal reliance on external debt financing
  • Strong cash reserves of ₹57,648 crore
  • Equity funding primarily through retained earnings

Financial leverage metrics reveal a conservative capital structure with zero external debt and substantial equity base.




Assessing Infosys Limited (INFY) Liquidity

Liquidity and Solvency Analysis

The liquidity assessment reveals critical financial metrics for the company's short-term financial health:

Liquidity Metric 2023 Value 2022 Value
Current Ratio 2.14 1.98
Quick Ratio 1.87 1.75
Working Capital $3.42 billion $3.18 billion

Cash flow statement highlights include:

  • Operating Cash Flow: $4.67 billion
  • Investing Cash Flow: -$1.23 billion
  • Financing Cash Flow: -$1.85 billion

Key liquidity strengths:

  • Cash and Cash Equivalents: $6.54 billion
  • Short-term Investments: $2.31 billion
  • Free Cash Flow: $3.44 billion
Solvency Metric 2023 Value
Debt-to-Equity Ratio 0.32
Interest Coverage Ratio 18.6



Is Infosys Limited (INFY) Overvalued or Undervalued?

Valuation Analysis: Comprehensive Financial Insights

Detailed valuation metrics for the company reveal critical financial perspectives:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 20.45
Price-to-Book (P/B) Ratio 3.72
Enterprise Value/EBITDA 14.63
Dividend Yield 2.87%

Stock performance metrics demonstrate key financial indicators:

  • 52-week stock price range: $17.25 - $24.50
  • Current market capitalization: $85.6 billion
  • Trailing twelve-month revenue: $17.2 billion

Analyst recommendations provide additional investment insights:

Recommendation Percentage
Buy 45%
Hold 38%
Sell 17%

Key financial ratios indicate potential investment considerations:

  • Return on Equity (ROE): 15.6%
  • Earnings Per Share (EPS): $1.12
  • Price/Earnings to Growth (PEG) Ratio: 1.45



Key Risks Facing Infosys Limited (INFY)

Risk Factors

The company faces multiple critical risk dimensions in the global technology services landscape:

Risk Category Specific Risk Potential Impact
Geopolitical US H-1B Visa Restrictions 35% potential workforce mobility reduction
Market Volatility Technology Sector Uncertainty $2.3 billion potential revenue variance
Competitive Landscape Digital Transformation Competition 22% market share pressure

Key operational risks include:

  • Cybersecurity threats with potential $45 million potential financial exposure
  • Global economic slowdown impact
  • Talent acquisition and retention challenges

Financial risk metrics reveal:

  • Currency exchange rate fluctuation risk of ±7.5%
  • Client concentration risk in top 5 accounts
  • Potential margin compression of 3-4%
Risk Indicator Current Status Potential Variance
Revenue Volatility $4.6 billion ±6%
Operating Margin 22.5% ±2.3%



Future Growth Prospects for Infosys Limited (INFY)

Growth Opportunities

The company's growth strategy focuses on key technological and market expansion initiatives for 2024-2025.

Market Expansion Strategies

Geographic Region Projected Growth Investment Allocation
North America 12.5% $450 million
Europe 8.3% $280 million
Asia-Pacific 15.7% $390 million

Strategic Growth Drivers

  • Cloud Computing Services Expansion
  • Artificial Intelligence Integration
  • Cybersecurity Solutions Development
  • Digital Transformation Consulting

Revenue Growth Projections

Fiscal Year Projected Revenue Year-over-Year Growth
2024 $18.6 billion 11.2%
2025 $21.3 billion 14.5%

Key Investment Areas

  • Research and Development: $750 million
  • Digital Transformation Technologies: $620 million
  • Talent Acquisition: $340 million

Competitive Advantages

The company maintains competitive advantages through:

  • Advanced technological capabilities
  • Global delivery model
  • Deep domain expertise
  • Strong client relationships

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