India’s second largest information technology (IT) company Infosys, on January 16, raised its constant currency (CC) revenue growth guidance for FY25 to 4.5-5% for a 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.
The IT bellwether had started the year with a 1-3% range for its revenue guidance. Brokerages were expecting an upward revision in full-year revenue growth guidance.
“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.
Jayesh Sanghrajka, the CFO, said the company had another quarter of strong performance with revenue growth across segments and operating margin expansion. “Our structured approach to operating margin expansion yielded more results in Q3, particularly due to benefits from improving realization and scale benefits” said Sanghrajka. “Our sharp focus on cash flow is reflected in Free cash conversion to net profits of 157% in Q3 with free cash generation for 9 months of FY25 surpassing that of entire FY24”, he added.
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