Global IT services provider Infosys Ltd. (NYSE: INFY) reported revenue today of $4.56 billion for the fourth quarter ended March 31, an increase of 0.2% on a reported basis and flat on a constant currency basis. 

The Bengaluru, India-based firm also announced today that it signed a definitive agreement to acquire in-tech, an engineering R&D services provider focused on German automotive industry for $485 million. 

“We delivered the highest-ever large deal value in the financial year 2024. This reflects the strong trust clients have in us. Our capabilities in generative AI continue to expand. We are working on client programs leveraging large language models with impact across software engineering, process optimization and customer support,” Salil Parekh, CEO and managing director, said in a press statement. “I would like to thank our 317,000 employees across the world that are working to create value for our clients.” 

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Fourth-quarter revenue fell below analysts’ expectations, according to Reuters.  

North America revenue fell by 2.2% in constant currency. In Europe, revenue rose by 4.9% in constant currency. At the same time, the rest of world segment saw revenue increase by 4.5%, while India saw revenue dip by 15.4% in constant currency, respectively. 

Looking at revenue by business segment, revenue from financial services firms fell 5.8% in constant currency. Retail saw revenue fall 3.7% in constant currency. 

The number of active clients during the fourth quarter rose to 1,882 from 1,872 the year prior. 

Revenue for the full year period grew by 1.9% on a reported basis and by 1.4% on a constant currency basis. 

Acquisition of in-tech 

The acquisition of in-tech further strengthens Infosys’ engineering research and development capabilities and reaffirms its continued commitment to global clients to navigate their digital engineering journey, the company reported. 

Headquartered in Germany, in-tech is one of the fastest-growing engineering R&D services providers that shapes digitization in the automotive, rail transport and smart industry sectors. Iin-tech develops solutions in e-mobility, connected and autonomous driving, electric vehicles, off-road vehicles and railroads. 

The deal includes upfront payments and earnouts, excluding management incentives, and retention bonuses. The acquisition is expected to close during the first half of fiscal 2025, subject to customary closing conditions and regulatory approvals. 

McCamish Cyberattack Update 

Infosys also provided an update on the November 2023 cyberattack involving its Infosys McCamish Systems subsidiary. By Dec. 31, 2023, McCamish, with external specialists’ assistance, substantially remediated and restored the affected applications and systems, the company reported. Actions taken by McCamish also included investigative analysis conducted by a third-party cybersecurity firm to determine, among other things, whether and the extent to which data was subject to unauthorized access or exfiltration and engaging a third-party eDiscovery vendor in assessing the extent and nature of such data. 

McCamish, in coordination with its third-party eDiscovery vendor, identified up to approximately 6.5 million individuals whose information was subject to unauthorized access and exfiltration in the cybersecurity attack. The information associated with each individual varies, but the data as a whole includes information such as email and mailing addresses, phone numbers, birth dates, social security numbers and other identification numbers, usernames, passwords, financial and customer account numbers, policy numbers, salaries and personal medical information.  

The group added that not all affected individuals had all of this information accessed and exfiltrated. McCamish also identified corporate customers whose business data was subject to unauthorized access and exfiltration. McCamish will be notifying its impacted customers and intends to work with these customers to support their respective reporting obligations, as appropriate. McCamish’s review process is ongoing. 

Guidance 

Looking ahead, Infosys is forecasting revenue growth of 1% to 3% in constant currency with operating margin of 20% to 22%. 

Share Price 

Shares in Infosys were down 2.74% to $16.49 in New York as of 1:23 p.m. Eastern time today. They were 12.05% above the 52 week low of $14.71 set on April 24, 2023, according to FT.com.