Infosys Q3 net profit rises 11.4%; revises full-year revenue guidance upwards

Infosys Ltd., Bengaluru-based tech firm, on Thursday reported a 11.4% year-on-year growth in net profit to ₹6,806 crore.

Revenue grew 7.5% to ₹41,764 crore. The quarter saw the total contract value of large deal wins at $2.5 billion.

In his commentary, Salil Parekh, CEO and MD said the company saw YoY growth in all verticals and across most geographies. ‘‘We saw double-digit growth in Europe and in India in the manufacturing business. We have seen a revival in the European financial services business, while automotive growth remained slow in Europe. Financial services continue to grow strongly in the U.S. Retail and consumer products grew in the market with discretionary pressures easing,’‘ he observed.

Buoyed by Q3 performances and positive market outlook, the company revised its FY25 revenue guidance upwards to 4.5-5% from 3.75-4.5%. However, it maintained its margin guidance at 20–22%.

‘’This has led to another quarter of strong large deal wins and improved deal pipeline giving us greater confidence as we look ahead,’‘ he said.

The company continued to strengthen its enterprise AI capabilities, particularly focusing on generative AI, which was witnessing increasing client traction, he added.

Mr. Parekh said, “Our strong revenue growth in a seasonally weak quarter, 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.’‘

CFO, Jayesh Sanghrajka said, the tech firm had another quarter of strong performance with revenue growth across segments and operating margin expansion, leading to 11.4% cent EPS growth year on year in rupee terms. A structured approach to operating margin expansion yielded more results in Q3, particularly due to benefits from improving realisation and scale benefits, he commented.

“Our sharp focus on cash flow is reflected in Free cash conversion to net profits of 157% in Q3 with free cash generation for 9 months of FY25 surpassing that of entire FY24,’‘ he elaborated.

To hire over 20,000

The IT company said it would hire 20,000 freshers from campuses during the next fiscal. It reported a sequential people addition of 5,000 people in the third quarter and said it would complete its commitment of hiring 15,000 freshers in the current fiscal. Voluntary attrition was high at 13.7% as against 12.9% in the sequential quarter and also in the corresponding quarter a year ago. The firm had a total employee strength of 3,23,379 in the quarter as against 3,22,663 a year ago.

According to Mr. Sanghrajka, compensation review will happen in two phases, in January and in April this year, and the company is working on that currently.