Strong Deals-Led Infy Raises Revenue Guidance

Bengaluru: Infosys posted a strong set of third quarter numbers with sound deal pipeline, prompting the company to raise its annual revenue guidance for FY25 again. For Q3 FY25, the Bengaluru-headquartered company posted a net profit of Rs6,806 crore, an increase of 11.4 per cent over the same period of last year. Revenues of the firm stood at Rs41,764 crore, growth of 7.6 per cent year-on-year basis. In dollar term, revenue of the IT firm was at $4.93 billion, a rise of 1.7 per cent sequentially in constant currency term. The IT firm posted a sound pipeline of contracts as its TCV from large deals came at $2.5 billion during the quarter.

With improving demand environment, the company raised its revenue guidance to 4.5-5 per cent in constant currency (CC) terms for FY25 from 3.75-4.5 per cent given earlier.

“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, Infosys. “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. For the third quarter, the company witnessed an expansion of its operating margin by 20 basis points to 21.3 per cent. The company maintained its operating margin guidance in the range of 20-22 per cent for the ongoing financial year. “Our structured approach to operating margin expansion yielded more results in Q3, particularly due to benefits from improving realization and scale benefits,” said Jayesh Sanghrajka, CFO at Infosys.

Among verticals, financial services vertical grew 6.1 per cent year-on-year basis, while manufacturing saw a strong growth of 10.7 per cent during the third quarter. Energy and hi-tech verticals also saw a growth of more than 8 per cent each during this period. However, retail saw flattish growth in the third quarter of ongoing financial year.