Infosys Q3 Results Live: Infosys' net profit at Rs 6,806 cr; CEO Salil Parekh says 'dependence on H1-B is reducing'

IT solutions provider LTIMindtree on Thursday reported a 7.14 per cent decline in consolidated net profit to Rs 1,085.4 crore in the December quarter of FY25.

The Mumbai-based firm had reported a profit of Rs 1,168.9 crore in the year-ago period.

Revenue from operations saw a 7.14 per cent increase to Rs 9,660.9 crore in the third quarter of the current fiscal year, against Rs 9,016.6 crore a year earlier.

Sequentially, profits fell 13.23 per cent while revenue rose 2.41 per cent.

"Our differentiated AI strategy has helped us record our highest-ever order inflow of USD 1.68 billion, laying the foundation for future growth. Our ongoing investments in AI, including new partnerships and specialisations, and accolades, support our efforts to continue growing as we enter CY25," company CEO and MD Debashis Chatterjee said.

The company had 742 active clients at the end of the quarter.

LTIMindtree added 2,362 staff during the third quarter, bringing the total employee count to 86,800.

• Salil Parekh, CEO, Infosys: Agentic AI is reducing the number of days a project can be executed in
• Salil Parekh, CEO, Infosys: Overall deal cycles have remained the same
• Salil Parekh, CEO, Infosys: Some clients are asking us to build their own SLM for them

• Salil Parekh, CEO, Infosys: Our dependence on H1-B is reducing, onsite is reducing, our non-H1-B employees are over 60% in US
• Salil Parekh, CEO, Infosys: On Margins, 30 bps from Project Maximus, 202 bps from lower sales provision, partly offset by third-party costs
• Salil Parekh, CEO, Infosys: Wage hike is a headwind in Q3, currency looks like a tailwind now for Q3
• Salil Parekh, CEO, Infosys: On track on the hiring target, targeting 15000 campus hires for FY25 and 25,000 for next fiscal

Jayesh Sangrajhka, CFO: We have earlier announced that compensation review will happen in two phases. First in January and the second one in April. We are on track with that. The first phase will start now, our HR is working on that

• Salil Parekh: Our Q1, Q2 are typically strong and Q3,Q4 are usually weak
• Salil Parekh, CEO, Infosys: We have a strong hiring in Q3; we see based on discretionary we'll take a call
• Salil Parekh, CEO, Infosys: We are making sure we are doing cost-take out deals
• Salil Parekh, CEO, Infosys: We have had strong hiring in Q3, with expansion of over 5,000 employees. Based on some our discretionary, this will continue

• Salil Parekh, CEO, Infosys: We have seen a revival in the European Financial Services
• Salil Parekh, CEO, Infosys: In Gen AI, we have built 4 SLMs
• Salil Parekh, CEO, Infosys: We are also developing over 100 new agents, clients already using them
• Salil Parekh, CEO, Infosys: Automotive sector in Europe continues to remain slow

• Another quarter of strong large deal wins
• Large deal TCV of $2.5 billion including 63% net new
• Headcount increased by 5,591

• “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.

Infosys Ltd, a leading IT company, reported a net profit of Rs 6,806 crore for the quarter ended December 31, 2024, compared to Rs 6,106 crore in the same period last year. A Moneycontrol poll of nine brokerages had projected the company's Q3FY25 profit at Rs 6,734 crore and revenue at Rs 41,206 crore. On January 16, Infosys shares closed 1.5% lower at Rs 1,920 apiece on the BSE. (Read More)

• Profit at Rs 6,806 crore; up 11.4% YoY and 4.6% QoQ
• Revenue at Rs 41,764 cr; up 6.1% YoY and 1.7% QoQ
• Operating Margin at 21.3%, 0.8% increase YoY

• Revenue guidance raised to 4.5-5%
• Margin guidance maintained at 20-22%

• Infosys reports net profit at Rs 6,806 crore
• EBIT margin at 21.3%; $ revenue at $4,939 million

• Axis Bank Q3
• Net Profit At Rs 6,304 Cr Vs CNBC-TV18 Poll Of Rs 6,284 Cr
• NII At Rs 13,606 Cr Vs CNBC-TV18 Poll Of Rs 13,677.3 Cr
• Net Profit (GU)3.8% At Rs 6,304 Cr Vs Rs 6,071 Cr (YoY)
• NII (GU)8.6% At Rs 13,606 Cr Vs Rs 12,532.2 Cr (YoY)
• Gross NPA At Rs 15,850.3 Cr Vs Rs 15,466 Cr (QoQ)
• Net NPA At Rs 3,774.8 Cr Vs Rs 3,612 Cr (QoQ)
• Gross NPA At 1.46% Vs 1.44% (QoQ)
• Net NPA At 0.35% Vs 0.34% (QoQ)
• Provisions At Rs 2155.6 Cr Vs Rs 1,028.3 Cr YoY & Vs Rs 2,204.1 Cr QoQ

Axis Bank reports net profit at Rs 6,304 cr; NII at Rs 13,606 cr

• We project sequential revenue growth of 0.7%, driven by increased revenues from the sale of third-party items for service delivery, partially offset by furloughs. The EBIT margin is expected to remain stable at 21.2%, with no significant headwinds or tailwinds anticipated during the quarter.
• Large-deal total contract value (TCV) is estimated at $3 billion, reflecting a quarter-on-quarter increase but a year-on-year decline. The focus will be on the annual contract value (ACV) of these deal wins.
• We anticipate Infosys will revise its FY2025 revenue growth guidance upward to 4.5-4.75% from the previous 3.75-4.5%. This adjustment implies a 0.7% decline at the lower end and a 0.2% increase at the upper end of the guidance range. The company is also expected to maintain its EBIT margin guidance at 20-22%.

Nuvama anticipates a 0.8% quarter-on-quarter revenue growth in constant currency (CC) terms, with revenue remaining flat quarter-on-quarter in USD terms.

Infosys is likely to begin rolling out annual pay hikes starting in February, as reported by The Economic Times. Employees at job level five (JL5) are expected to receive their letters in February, with the hike applied retrospectively from January 1. For employees at JL6 and above, letters will be issued in March, with the raise becoming effective from April. This update was reportedly shared by a senior executive during an Infosys Validation Services (IVS) unit town hall. Consequently, the management's commentary following the Q3 results announcement will be closely monitored.

• Cost optimisation under Project Maximus.
• Pricing gains.
• Reduced subcontractor expenses.

Consolidated net profit is expected to grow 3.5% sequentially to Rs 6,734 crore, up from Rs 6,506 crore in Q2FY25.

Furloughs and stabilizing large-deal ramp-ups, which boosted H1FY25, may weigh on Q3 performance.

Cross-currency headwinds of 90 basis points (bps) could also dampen growth, according to JM Financial.

Most Bullish Projection: Emkay Global, which anticipates stronger growth.

Slowest Growth Prediction: Elara Securities, forecasting a more subdued performance.

According to a poll conducted by Moneycontrol across six brokerages:

Net Interest Income (NII): Expected to increase to Rs 13,794 crore, up from Rs 12,532 crore in Q3FY24.

Net Profit: Likely to rise to Rs 6,416 crore, compared to Rs 6,071 crore in the year-ago period.

Analysts noted that estimates are in a narrow range, suggesting that any deviation from expectations could result in sharp movements in the stock price.

A sequential revenue growth of 0.8% in CC terms and flat growth in dollar terms is forecasted by Nuvama.

A Moneycontrol poll of nine brokerages estimates revenue to rise by 0.5% QoQ to ₹41,206 crore, compared to ₹40,986 crore in the previous quarter.

Analysts expect Infosys to revise its FY25 revenue growth guidance upwards to 4.25-4.75% in constant currency (CC) terms (Nuvama Institutional Equities) or 4.5-4.75% (Kotak Institutional Equities), up from the earlier 3.75-4.5%.

• Shares of SW Solar jumped around 5% to trade at Rs 447.
• This comes after the firm reported a net profit of Rs 17.14 crore in Q3, marking a strong comeback from the Rs 62.39 crore loss the company posted in Q3 of previous year (FY24)

• Sterling and Wilson Renewable Energy (SW Solar) reports a net profit of Rs 17.14 crore in Q3
• Revenue from operations jumps 215% YoY to Rs 1,837.20 crore in Q3

Brokerage Emkay Global expects Axis Bank to report a net profit of Rs 6,540 crore. This would mark a 7.7% rise from the Rs 6,071 crore profit reported in Q3 of previous financial year (FY24).

Shares of Sterling and Wilson Renewable Energy (SW Solar) jumped over 3% to trade at Rs 437.45. The company is set to announce its Q3 results today.

Nuvama Institutional Equities expects Q3 to rise 6%. Elara Capital anticipates a marginal decline

Shares of Spencers Retail jumped around 1.33% in early trade to Rs 94. The firm is set to announce its Q3 results today.

• Net profit drops 5% y-o-y to Rs 118.2 crore
• Revenue from operations sees marginal fall of 0.32% to Rs 642.7 crore

Shares of Waaree Renewable Technologies are currently trading 4.59% higher at Rs 1,198.55. The firm is set to announce its Q3 results today.

Shares of Havells jumped around 2% today to trade at around Rs 1,553.45. The firm is set to announce its Q3 results today.

LTIMindtree shares are currently trading 1.26% higher at Rs 5,909.70. The company is set to announce its Q3 results today.

Shares of Axis Bank are currently trading 1.12% higher at Rs 1,038.55.

This comes a day after the shares hit a 14-month-low level of Rs 1,025.5, following large block deals.

Infosys shares are currently trading 0.04% lower at Rs 1,949. The IT giant is set to announce its Q3 results.

According to a Moneycontrol poll of nine brokerages, Infosys is expected to post a 0.5 percent sequential uptick in revenue to Rs 41,206 crore, as against the Rs 40,986 crore that it clocked in the preceding quarter.

The poll also pegged the IT behemoth's consolidated net profit to grow 3.5 percent on quarter to Rs 6,734 crore. Infosys had recorded a net profit of Rs 6,506 crore in the previous quarter.

The Street expects Infosys to revise its FY25 revenue growth guidance upwards, with estimates ranging between 4.25-4.75 percent in constant currency (CC) terms, as per Nuvama Institutional Equities, and 4.5-4.75 percent, according to Kotak Institutional Equities.

Brokerage Nuvama predicts sequential revenue growth of 0.8 percent in CC terms and flat growth in dollar terms.

Analysts expect Infosys to raise its FY25 revenue growth guidance while maintaining its margin outlook. Investor focus will be on large deal wins, trends in discretionary spending, and how efficiently the company manages its operations.