Infosys has raised its constant currency revenue growth guidance for FY25 to 3.75-4.5% for a second quarter in a row, as against its previous guidance of 3-4%. This has been the seventh revision in the revenue guidance in the last eight quarters for Infosys.
Infosys also retained the operating margin guidance of 20-22% for FY25. You can track the September quarter earnings fineprint right here.
The IT bellwether had started year with a 1-3% range for its revenue guidance. Kotak Institutional Equities as well as Citi in their expectation for the September quarter had factored in a hike in full-year revenue growth guidance.
Speaking to reporters during the earnings call after the results, Salil Parekh, CEO and MD of Infosys said the decision to raise the guidance has been based on the company's business in the quarter, and the deal pipeline. Infosys said it found the discretionary spend in the financial services sector to be 'stable and strong', while the automotive sector saw some 'sluggishness' in Europe.
Parekh added that the guidance review during each quarter gives an outlook for the remaining quarters, and this way the company is able to give colour for the full year.
Jayesh Sanghrajka, the CFO said deal pipeline and H1FY25 business contributed to the guidance revision, and the company is confident of its full year guidance, even with the wage hike that has been planned during the fourth quarter.
Sanghrajka said as the company enters the H2FY25, it expects headwinds in terms of seasonal softness and fewer calendar working days. However, he sounded confident of maintaining the margin guidance, and added the the company will aspire to increase it, in the mid term.
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