Infosys Q1 Results: Beats Estimates, Cons PAT Rises By 7% YoY To Rs 6,368 Crore; Raises FY25 Revenue Guidance

Tech giant, Infosys beats estimates in first-quarter earnings for FY25. In Q1, the company posted 7.1% YoY growth in consolidated net profit to Rs crore. Its revenue from operations also surpassed estimates with a growth of 3.6% YoY to Rs 39,315 crore. The company has raised its revenue guidance for FY25, while retaining EBIT margins guidance for the fiscal.

Sequentially, Infosys PAT declined by 20.1%. Infosys' net profit was at Rs 5,945 crore in Q1 of June 2023 and at Rs 7,969 crore in March 2024 quarter.

In the quarter under review, Infosys logged an operating profit of Rs 8,288 crore, which was strong as it witnessed growth of 5% YoY and 8.8% QoQ. Meanwhile, operating margins came in at 21.1%, growth of 0.3% YoY and 1.0% QoQ.

Further, revenue in constant currency registered growth of y 2.5% YoY and 3.6% QoQ. In dollar terms, revenue was at $4,714 million, a growth of 2.1% YoY.

Salil Parekh, CEO and MD said, "We had an excellent start to FY25 with strong and broad-based growth, operating margin expansion, robust large deals, and highest ever cash generation. This is a testimony to our differentiated service offerings, enormous client trust, and relentless execution."

Infosys overall delivered $4,714 million in Q1 revenues with a sequential growth of 3.6% and year-on-year growth of 2.5% in constant currency. Operating margin was at 21.1%, a sequential expansion of 1%. Free cash flow was the highest ever at $1,094 million, an increase of 56.5% year over year. A number of large deal wins was highest ever at 34 with TCV of $4.1 billion, 57.6% being net new.

Also, Jayesh Sanghrajka, CFO said, "Our relentless drive on cost optimization through Project Maximus, a comprehensive margin expansion program, is reflected in the all-round improvement in key operating metrices leading to 1.0% growth in operating margin in Q1." He added, "We had the highest ever FCF generation at
$1.1 bn and ROE increased to 33.6% due to higher payouts to investors."

Parekh added, "With our focused approach for generative AI for enterprises working with their data sets on a cloud foundation, we have strong traction with our clients. This is building on our Topaz and Cobalt capabilities."

For FY25, the revenue growth guidance has been raised to 3%-4% in constant currency from earlier 1-3%. While operating margin guidance has been retained to 20%-22%.

Ahead of the earnings, Infosys share price rose to hit 2-year high. The stock ended at Rs 1759.15 apiece, up by 1.93% on BSE with market cap of Rs 7,30,404.09 crore. Infosys also touched new 52-week high of Rs 1,764.95 apiece in the trading session.

Infosys is a global leader in next-generation digital services and consulting. Over 300,000 of our people work to amplify human potential and create the next opportunity for people, businesses and communities.