IT major Infosys Ltd on January 16 reported its Q3 FY25 net profit rose 11.4 percent year-on-year, beating Street estimates, to Rs 6,806 crore, from Rs 6,106 crore in the year-ago period. According to a Moneycontrol poll of nine brokerages, the IT major's Q3FY25 profit was pegged at Rs 6,734 crore and revenue at Rs 41,206 crore.
Infosys revenue from operations rose 7.5 percent to Rs 41,764 crore in Q3FY25 as compared to Rs 38,821 crore in Q3FY24.
On January 16, Infosys' shares on BSE closed 1.5 percent lower at Rs 1,920 apiece, ahead of the results announcement.
Infosys also raised its CC revenue growth guidance for FY25 to 4.5-5% for the third quarter in a row, as against its previous guidance of 3.75-4.5%.
This has been the eighth revision in the revenue guidance in the last nine quarters for Infosys.
Infosys also retained the operating margin guidance of 20-22% for FY25.
In constant currency terms, the topline grew by 6.1 percent YoY.
The EBIT (earnings before interest and tax) margin or the operating margin was up by 10 basis points (bps) to 21.3 percent. Margins were marginally affected by furloughs.
The company won large deal Total Contract Value (TCV) worth $2.5 billion, of which 63% is net new.
“Our strong revenue growth sequentially in a seasonally weak quarter and broad-based year-on-year growth, 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. We continue to strengthen our enterprise AI capabilities, particularly focusing on generative AI, which is witnessing increasing client traction," said Salil Parekh, CEO and MD. “This has led to another quarter of strong large deal wins and improved deal pipeline giving us greater confidence as we look ahead”, he added.
In geography-wise performance, the North American region grew by 4.9 percent and accounted for 58.4 percent of the total revenue share. The European region grew by 11.9 percent, accounting for 29.8 of the revenue share, while the rest of the world decreased by almost 12 percent and accounted for 8.7 percent of the total revenue.
The IT major only reports the total contract value of its large deals, and reported a TCV of $2.5 billion, which is marginally higher than last quarter’s $2.4 billion.
"It's a strong pipeline with large deals and some mega deals. We feel good given the way that some of the conversions have happened," Parekh said.
Meanwhile, the IT services giant Infosys' headcount increased by 5,591 in the third quarter ended December 31. This is the second consecutive quarter of net employee addition, reversing the previous trend of six quarters of headcount decline.
This comes at a time when the company has started opening up hiring across levels, including freshers. In FY25, Infosys plans to hire around 15,000-20,000 freshers following a year of hiring slump.
The attrition rate for the quarter on the last twelve-month basis increased 13.7 percent from 12.9 percent in the September quarter.
Shares of the company ended down by 1.5 percent to Rs 1,920.
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