Infosys Q1 FY25 Results: From guidance to margin to attrition, key takeaways from earnings report of Bengaluru-based IT giant
Infosys Q1 FY25 Results Review: Bengaluru-headquartered Infosys - India's second largest IT company after Tata Consultancy Services (TCS) - staged a better-than-expected financial performance for the first three months of the financial year (Q1 FY25). Here are key takeaways from the IT giant's Q1 earnings report.
Infosys Q1 FY25 Results Review: Infosys - the country's second largest IT firm - on July 18 reported a better-than-expected set of financial results for the April-June (Q1 FY25) period. The Bengaluru-headquartered IT giant's consolidated net profit came in at Rs 6,368 crore for the June quarter, down 20.1 per cent sequentially, while its revenue grew 3.7 per cent to Rs 39,315 crore, according to a regulatory filing. Here is a summary of key takeaways from the IT major's Q1 earnings report.
Infosys Q1 FY25 Results: Revenue growth
In dollar terms, Infosys said its revenue grew 3.6 per cent sequentially to $4,714 million in the June quarter, while growth in constant currency was also recorded at 3.6 per cent.
Infosys Q1 FY25 Results: Revenue, PAT in line with Street estimates
According to Zee Business research, the Bengaluru-based IT major was estimated to register a consolidated net profit of Rs 6,300 crore over revenue of Rs 38,900 crore or $4,661 million for the fiscal first quarter.
Infosys Q1 FY25 Results: Here is what CEO Salil Parekh said
Excellent start to financial year with strong & broad-based growth, operating margin expansion, robust large deals, record cash generation, says CEO Salil Parekh
“We had an excellent start to FY25 with strong and broad-based growth, operating margin expansion, robust large deals, and highest ever cash generation. This is a testimony to our differentiated service offerings, enormous client trust, and relentless execution”, said Salil Parekh, CEO and MD.
“With our focused approach for generative AI for enterprises working with their data sets on a cloud foundation, we have strong traction with our clients. This is building on our Topaz and Cobalt capabilities,” Parekh added.
Infosys Q1 FY25 Results: Revenue guidance revised upwards sharply
The IT major revised its revenue growth guidance for the current financial year to 3-4 per cent in constant currency from 1-3 per cent three months ago.
Infosys Q1 FY25 Results: Operating margin guidance
Infosys maintained its operating margin guidance for FY25 at 20-22 per cent.
Infosys Q1 FY25 Results: FCF generation at record level, says CFO
“Our relentless drive on cost optimisation through Project Maximus, a comprehensive margin expansion
program, is reflected in the all-round improvement in key operating metrices leading to 1.0 per cent growth in
operating margin in Q1," said Infosys CFO Jayesh Sanghrajka.
“We had the highest ever FCF generation at $1.1 billion and RoE increased to 33.6 per cent due to higher payouts to investors”, the CFO added.
Infosys Q1 FY25 Results: Large deals galore
The number of large deal wins hit a record level of 34, with a total contract value (TCV) of $4.1 billion (57.6 per cent net new), according to Infosys.
Infosys Q1 FY25 Results: Attrition worsens by 10 bps sequentially
Voluntary IT services attrition at the company stood at 12.7 per cent in the June quarter, as against 12.6 per cent in the previous three months, according to Infosys.
Read more on attrition trends at India's second largest IT firm