
Infosys has raised its revenue growth forecast for the financial year 2025 to between 3% and 4%. This is an increase from the 1% to 3% guidance issued during the March quarter.
The company has also projected its EBIT margin to remain between 20% and 22%.
Infosys reported US Dollar revenue of $4,714 million for the recent quarter, which is 3.3% higher than the previous quarter and above the estimated $4,665 million. Revenue in rupee terms grew by 3.7% sequentially to ₹39,315 crore, surpassing the CNBC-TV18 poll estimate of ₹38,905 crore.
In constant currency terms, revenue growth stood at 3.6% sequentially, well above the 2.4% growth anticipated by analysts.
The EBIT margin for the quarter expanded by 100 basis points to 21.1%, higher than both the estimate of 20.7% and the March quarter figure of 20.1%. EBIT for the quarter was ₹8,288 crore, exceeding the CNBC-TV18 poll estimate of ₹8,040 crore and marking an 8.8% sequential increase.
Market expert Prakash Diwan remarked, “These numbers are far better than what all of us had anticipated, particularly the constant currency growth is stupendous in this environment, especially when you know that the likes of TCS and HCL Tech have been struggling.”
Net profit for the quarter was ₹6,368 crore, higher than the CNBC-TV18 poll estimate of ₹6,198 crore. However, on a quarter-on-quarter basis, this represents a 20% decline.
Total Contract Value (TCV) for large deals during the quarter stood at $4.1 billion.
“We had an excellent start to FY25 with strong and broad-based growth, operating margin expansion, robust large deals, and highest ever cash generation,” said Salil Parekh, MD & CEO of Infosys.
Free Cash Flow generated during the quarter increased by 59.2% from last year to ₹9,155 crore.
Infosys’ headcount declined for the sixth quarter in a row, with a reduction of 1,908 employees.
Shares of Infosys ended 1.85% higher on Thursday ahead of the earnings announcement, closing at ₹1,758.05 on NSE.