Infosys, a global leader in technology services and consulting, anticipates a stronger performance in the first half of the financial year 2025 (H1FY25) compared to the second half (H2FY25). This outlook is driven by early signs of recovery in financial services, large deal wins, and strategic initiatives under Project Maximus.
"We still continue to believe our first half is going to be better than the second half. And I think Q1 is just a testimony of that from that perspective," Infosys said in a post-earnings conference call.
Infosys reported revenue of $4.7 billion, up 3.3 percent sequentially and 2.1 percent year-on-year in constant currency terms. The financial services segment grew 1.5 percent on year to Rs 10,816 crore and accounted for 27.5 percent of the company's total revenue. This, coupled with strong performance across other verticals and geographies, highlights the company's progress.
Also Read | Infosys Q1 Results: FY25 revenue growth guidance raised to 3-4 %; net profit beats estimate
Project Maximus, aimed at enhancing margin improvement and revenue growth, has shown significant results. "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 percent growth in operating margin in Q1," said Jayesh Sanghrajka, Chief Financial Officer (CFO) of Infosys.
Operating margin expanded by 1 percent sequentially and by 0.3 percent annually to 21.1 percent in the June quarter.
Infosys also achieved its highest-ever free cash flow generation in a quarter at $1,094 million, a 21.1 percent sequential increase. The company signed a record 34 large deals in Q1, with total contract value (TCV) of $4.1 billion, 57.6 percent of which were net new deals.
Also Read | Infosys loses 1,908 employees in Q1FY25, sixth consecutive quarter of decline
Despite these positive indicators, Infosys maintains a cautious outlook for H2FY25. While there are early signs of recovery in financial services, Infosys said that it needs more data points to assess the sustainability of this trend.
Infosys's consolidated net profit for Q1 FY25 fell 20.1 percent QoQ to Rs 6,368 crore, primarily due to a tax refund boost in the previous quarter. Revenue, however, increased by 3.7 percent QoQ to Rs 39,315 crore.
Annually, Infosys's net profit rose by 7.1 percent, and revenue grew by 3.6 percent. Both figures exceeded Moneycontrol's estimates of Rs 6,248 crore for net profit and Rs 38,850 crore for revenue.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
