Infosys Limited, a global IT services and consulting giant, announced its financial results for the quarter ended December 31, 2024, showcasing a steady performance. The company reported a 6.1% year-on-year (YoY) growth in constant currency (CC) revenues and 1.7% sequential growth. Net profit for the quarter stood at ₹6,806 crore, reflecting a year-on-year increase of 11.4%.
Key Financial Highlights:
Revenue from Operations:
- Infosys reported revenue from operations of ₹41,764 crore in Q3FY25, up 7.6% YoY from ₹38,821 crore and 1.9% quarter-on-quarter (QoQ) from ₹40,986 crore.
Operating Margin:
- The operating margin for the quarter stood at 21.3%, reflecting an expansion of 80 basis points YoY and 20 basis points QoQ.
Net Profit:
- Net profit for the quarter was ₹6,806 crore, up 11.4% YoY from ₹6,106 crore and marginally higher by 0.5% QoQ from ₹6506 crore.
Free Cash Flow (FCF):
- Infosys achieved FCF of ₹10,647 crore, marking a significant growth of 91.9% YoY with an impressive FCF conversion rate of 156.1%.
Large Deal TCV:
- The company signed large deals worth $2.5 billion during the quarter, with 63% of the deals being net new.
Nine-Month Performance:
For the nine months ended December 31, 2024, Infosys reported revenues of ₹1,24,474 crore, registering a 5.5% YoY growth. Net profit for the period was ₹19,712 crore, reflecting a YoY increase of 7.5%. The operating margin for the nine-month period stood at 21.2%, up 30 basis points YoY.
nfosys Limited has updated its FY25 revenue growth guidance in constant currency terms to 4.5%-5.0%, narrowing it from the previous guidance of 3.75%-4.5%. The company reaffirmed its operating margin guidance of 20%-22%, emphasizing its focus on efficiency and profitability.
Salil Parekh, CEO and MD of Infosys, highlighted the company’s strong performance, stating, “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 an improved deal pipeline, giving us greater confidence as we look ahead.”
The revision in guidance marks the third adjustment in FY25, as Infosys began the year with a modest 1%-3% revenue growth forecast, subsequently revising it to 3%-4% after the June quarter.
For the December quarter (Q3FY25), Infosys reported:
- Net Profit: ₹6,806 crore, up 11.4% YoY.
- Revenue: ₹41,764 crore, up 7.6% YoY and 1.9% QoQ.
- EBIT: ₹8,912 crore, exceeding expectations of ₹8,791 crore.
- EBIT Margin: 21.3%, meeting market expectations.
In pre-market trading, Infosys’ American Depository Receipts (ADR) showed signs of recovery, trading at $23.09, up by 0.87%. This recovery reflects positive investor sentiment following the announcement of guidance and quarterly results.
