Infosys Q3 Results: FY25 revenue growth guidance revised higher for the third time in a row

Infosys Q3 Results: FY25 revenue growth guidance revised higher for the third time in a row

IT services giant Infosys Ltd. expects revenue growth in constant currency terms to be between 4.5% to 5% for financial year 2025, which is higher than the 3.75% to 4.5% growth they had projected at the end of the September quarter.

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This is the third straight instance of Infosys tweaking with the revenue growth guidance for the full year. It begun financial year 2025 with a 1% to 3% growth guidance, which was then revised higher to 3% and 4% at the end of the June quarter.

Infosys has maintained its EBIT margin guidance between 20% and 22%.

For the December quarter, Infosys reported a net profit of ₹6,806 crore, which was in-line with the CNBC-TV18 poll estimate of ₹6,753 crore. Infosys’ profit grow by 4.6% from the September quarter.

Revenue in rupee terms also was largely in-line with expectations at ₹41,764 crore. A CNBC-TV18 poll had projected the figure at ₹41,281 crore. That is a growth of 2% from the September quarter.

Infosys reported earnings before interest and tax (EBIT) stood at ₹8,912 crore, which was higher than the expectations of ₹8,791 crore. On a sequential basis, Infosys reported EBIT growth of 3%.

EBIT margin stood at 21.3%, which was in-line with expectations of 21.3% as well.

In constant currency terms, Infosys reported revenue growth of 1.7% on a sequential basis, while a CNBC-TV18 poll had expected the growth to be 0.9% quarter-on-quarter. This number is higher than TCS, whose revenue growth in constant currency terms was flat, while it is lower than HCLTech, who reported a 3.8% growth in constant currency terms.

Infosys won large deals worth $2.5 billion during the quarter. The company had won deals worth $2.4 billion in the September quarter.

“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 and MD at 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.

Shares of Infosys had ended at the lowest point of the day on Thursday ahead of its results, down 1.5% at ₹1,920.05.

“For a seasonally weak quarter this seems to be a good number. Also, with respect to the margin, there was nothing as such as a headwind or tailwind, the street, as well as we were anticipating flat margin and we are seeing that there is a slight improvement, actually, with respect to 20 basis points from our number. So both on those both fronts, it’s good,” Shaji Nair of Mirae Asset Sharekhan said post the results.

Shares of Infosys, which are listed in the US, were down 2.5% at one point in pre-market trading. They have now recovered following the results announcement to trade with gains of 1%.

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