Infosys Q4 Results: Narayana Murthy's Tech Giant Missed Estimates, Cons PAT Falls 12% YoY To Rs 7,033 Crore

Infosys Q4 Results: Narayana Murthy's IT giant, Infosys, which is the second-largest tech company in India, missed estimates in the fourth quarter of FY25. Q4 consolidated PAT witnessed a decline of 11.7% YoY to Rs 7,033 crore. However, sequentially, the company posted growth of 3.3%. Infosys reported its Q4FY25 earnings report card on April 17.

Consolidated PAT stood at Rs 7,969 crore in Q4FY24 and at Rs 6,806 crore.

Furthermore, Infosys reported revenue of Rs 40,925 crore, which was a mixed bag, down by 2% from Rs 41,764 crore in the preceding quarter. Q4 revenue, however, jumped by 7.9% compared to revenue of Rs 37,923 crore recorded in Q4FY24.

Furthermore, the company's Q4 revenues were $4,730 million, an increase of 4.8% year on year in constant currency and 3.6% in reported terms. Operating margin was at 21.0%, an increase of 0.9% year on year.

In constant currency, the revenue was at 4.8% YoY and 3.5% QoQ in Q4FY25. Free cash flow was at Rs 7,737 crore, higher by 10.0% YoY.

Salil Parekh, CEO and MD at Infosys said, "We have built a resilient organization with sharp focus on client-centricity and responsiveness to the market, thanks to the trust of our clients and dedication of our employees. Our performance for the year has been robust in terms of revenues, expansion in operating margins and highest ever free cash generation."

Additionally, he added, "Our depth in AI, cloud and digital and strength in cost efficiency, automation, and consolidation position us well for the needs of our clients."

Meanwhile, Jayesh Sanghrajka, CFO said, "FY25 operating margins expanded by 0.5% which reflects our relentless focus on identifying opportunities for efficiency and executing Project Maximus with discipline, after navigating through multiple headwinds in a challenging macro environment. We delivered the highest ever free cash flows in the history of the company in FY25."

Sanghrajka added, the board has proposed a final dividend of Rs 22, which along with the interim dividend, is an increase of 13.2% over last year.

For the full year, the company's revenue stood at Rs 162,990 crore, registering a growth of 6.1% YoY. Its constant currency revenue growth was at 4.2% YoY.

During the quarter under review, Infosys delivered $19,277 million in FY25 revenues, growth of 4.2% in constant currency. Operating margin was at 21.1%, expansion of 0.5% year on year. Free cash flow was the highest ever at $4,088 million, an increase of 41.8% year on year. TCV of large deal wins was $11.6 billion for the year, with 56% net new.

Infosys Guidance

For FY26, the company has projected revenue growth of 0%-3% in constant currency, while operating margin is predicted in the range of 20%-22%.

About Infosys: 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. in more than 56 countries to navigate their digital transformation. With over four decades of experience in managing the systems and workings of global enterprises, the company expertly steer clients, as they navigate their digital transformation powered by the cloud.