INFOSYS Q1 RESULTS 2025: PROFIT JUMP, FY25 REVENUE GUIDANCE INCREASED

Infosys reported its Q1FY25 numbers after the market hours on 18th July. Earlier in the day, Infosys stock price closed 1.93% higher at Rs 1,759.15 per share. The key highlight is the FY25 revenue guidance increase. Infosys ADR was trading 8-9% higher. Let us look at Infosys' Q1FY25 quarterly numbers in detail.

About Infosys Limited

Infosys is a multinational IT services and consulting company. It offers a wide range of services, including software development, business consulting, and outsourcing. Founded in 1981, Infosys has become one of India's leading IT companies and a global player in the technology industry.

Crucial Parameters

• PE: 26.81
• ROE: 33.60
• Market Cap: Rs 7,30,404.09 crore
• 52-week High: Rs 1,764.95

Share Price Movement

In the last six months, Infosys' share price has given a 15.67% return. However, in a one-year time frame, the share price grew by 32.27%. In the last 5 years, the Infosys' shares have increased by 123%.

How has Infosys performed in Q1FY25?

Below are key updates from Infosys' June quarter results:

Revenue: Infosys reported an increase in consolidated revenue by 2.1% YoY to Rs 39,315 crore from Rs 38,506 in the year-ago period. In constant currency terms, the revenue was up 2.5%. Sequentially, the revenue was up 3.6% in CC.

Financial Services segments reported the highest revenue contribution at 27.4%, followed by Manufacturing (14.7%). Financial Services and Retail reported a decline in YoY growth.

Profits: The company reported a 7.1% rise YoY in consolidated net profit at Rs 6,368 crore for the quarter that ended June 30, 2024. The firm had reported a profit of Rs 5,945 crore in the year-ago period. In the previous quarter, it was Rs 7,969 crore, but it had a one-time tax refund.

Guidance: Infosys expects revenue growth for the financial year 2025 to be between 3% and 4%. This number is higher than the 1% to 3% revenue growth guidance that the company had issued during the March quarter. The company has also guided for its EBIT margin to remain between 20% and 22%.

Active Clients: The total number of active clients reported by the company for Q1FY25 was 1,867, a reduction from 1,882 in the March quarter and a reduction from 1,883 in the year-ago period. The number of 100 million dollar+ clients has remained the same at 40. Clients in the 50 million dollar+ increased by a count of one to 84 from 83 in the previous quarter and 79 in the year-ago period.

Employee Count: The employee count has reduced for the sixth consecutive quarter to 3,15,332 from 3,17,240 in Q4FY24 and 3,36,294 in the year-ago period. Voluntary attrition has come down to 12.7% from 12.6% in the March quarter and 17.3% in the year-ago period.

Other Updates: The operating margins reported by the company were 21.1%. In the year-ago period, the operating margins were 20.8%. The number of large deal wins was highest ever at 34, with TCV of $4.1 billion, 57.6% being net new. The earnings per share or EPS has increased by 7% YoY.

Management Commentary: “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”, said Salil Parekh, CEO and MD. “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” he added.