Infosys Q3 FY25 Results: From bottom-line to margin to guidance, key takeaways from IT giant's latest earnings report
Infosys, the country's second largest IT firm, on Thursday reported a decent set of quarterly numbers, with a net profit of Rs 6,806 crore that met analysts' expectations. Here are key takeaways from the IT giant's earnings report.
Infosys, the country's second largest IT firm, on Thursday reported a 4.6 per cent sequential rise in its consolidated net profit for the quarter ended December 31, meeting analysts' expectations. Earlier on Thursday, the IT major's stock declined by Rs 23.6, or 1.2 per cent, to settle at Rs 1,926.2 apiece on BSE.
Here is a summary of at key takeaways from the IT giant's latest earnings report.
PAT
Infosys registered a consolidated net profit of Rs 6,806 crore for the third quarter of the current financial year, as against a net profit of Rs 6,506 crore for the previous three months, according to a regulatory filing.
That was better than a net profit of Rs 6,770 crore expected by Zee Business analysts.
Top-line Meets Expectations
Infosys clinched revenue of Rs 41,764 crore for Q3 of FY25, as against Rs 40,986 crore for the previous quarter, according to the filing.
According to Zee Business research, the IT major's quarterly revenue was estimated to grow to Rs 41,370 crore.
Revenue Guidance Revision
The IT major revised its revenue growth guidance to 4.5-5.0 per cent in constant currency terms for the current financial year, from 3.75-4.50 per cent in the previous quarter.
Margin Guidance
It also guided for an operating margin of 20-22 per cent for FY25—the same level as in the previous quarter.
In constant currency, revenue growth at 1.7% sequentially
The IT major registered revenue growth of 1.7 per cent sequentially in constant currency terms.
That was also better than what analysts had expected.
According to Zee Business research, Infosys was estimated to log quarter-on-quarter growth of 0.9 per cent.
Infosys CEO Salil Parekh says strong revenue growth in a seasonally weak quarter a clear reflection of success of company's differentiated digital offerings, market positioning, key strategic initiatives
Salil Parekh, CEO and MD, Infosys, said: “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... This has led to another quarter of strong large deal wins and improved deal pipeline giving us greater confidence as we look ahead."
How Infy fared operationally
Infosys said its operating margin stood at 21.3 per cent for Q3, unchanged from the previous three months.
Attrition increases by 80 bps sequentially
Infosys said that IT services attrition stood at 13.7 per cent in Q3.
That was worse than attrition of 12.9 per cent recorded in the previous quarter.
What Infosys CFO says
“We had another quarter of strong performance with revenue growth across segments and operating margin expansion, leading to 11.4 per cent EPS growth year on year in rupee terms. Our structured approach to operating margin expansion yielded more results in Q3, particularly due to benefits from improving realization and scale benefits," said Infosys CFO Jayesh Sanghrajka.
Deal Wins
Infosys said that the total contract value (TCV) of its large deal wins amounted to $2.5 billion, with 63 per cent of the net new growing at 57 per cent sequentially.
No dividend
The IT major did not announce any dividend on Thursday.
The company had declared a Rs 21 per share dividend while posting its financial results for the previous quarter.