Infosys Q3FY25 earnings: Revenue grows 7.6%; guidance revised to 4.5-5%
For the October-December quarter, Infosys results came in better-than-expectations.
Bengaluru-based IT bellwether Infosys for the October-December quarter reported revenues at Rs 41,764 crore, a 7.6 per cent growth of year-on-year (YoY). Zee Business research estimated revenue at Rs 41,370 crore. The same in the previous September ended quarter was at Rs 40,986 crore.
For the reporting quarter, the company's consolidated net profit came in at Rs 6,806 crore, while the same in the previous quarter was at Rs 6,506 crore. The profit figure came in higher than analysts' estimates of Rs 6,770 crore.
Furthermore, during the October-December quarter, revenue in constant currency (CC) terms -i.e. revenue figure without the impact of currency fluctuation grew by 6.1 per cent on-year while the same grew 1.7 per cent quarter-on-quarter (QoQ).
Free cash flow for Q3 was highest ever at $1,263 million, growing 90 per cent year on year, pointed out the company's press release.
TCV of large deal wins was $2.5 billion, with 63 per cent net new growing at 57 per cent sequentially, it added.
Operational performance
Operating margin for the period under review came in at 21.3 per cent, recording a 0.8 per cent y-o-y rise, while it was 0.2 per cent sequentially.
Guidance
For the FY25, the company's has raised the revenue growth guidance in constant currency terms to 4.5-5 per cent, while the operating margin is pegged between 20-22 per cent.
Our strong revenue growth sequentially in a seasonally weak quarter and broad-based year on year growth, along with robust operating parameters and margins, is a clear reflection of the success of our differentiated digital offerings, market positioning, and key strategic initiatives. We continue to strengthen our enterprise AI capabilities, particularly focusing on generative AI, which is witnessing increasing client traction”, said Salil Parekh, CEO and MD. “This has led to another quarter of strong large deal wins and improved deal pipeline giving us greater confidence as we look ahead”, he added.
Ahead of the company's earnings today, the stock settled with a cut of over 1 per cent at Rs 1,926.2 apiece on the BSE.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.