Infosys Q1 Results: Net Profit Surges 7.1% To Rs 6,368 crore

However, quarter-on-quarter net profit declined by 20 per cent from Rs 7,969 crore in the January-March period. Infosys adjusted its revenue growth guidance for the current fiscal year to 3-4 per cent

Infosys, the IT giant, announced a 7 per cent increase in net profit for the first quarter of the fiscal year 2024-25 and revised its growth forecast for the year. According to the company's filing with the stock exchange, consolidated net profit rose to Rs 6,368 crore in the April-June quarter, up from Rs 5,945 crore a year earlier. 

However, quarter-on-quarter net profit declined by 20 per cent from Rs 7,969 crore in the January-March period. Looking ahead, Infosys adjusted its revenue growth guidance for the current fiscal year to 3-4 per cent.

Salil Parekh, CEO and MD of Infosys said, "We had an excellent start to FY25 with strong and broad-based growth, operating margin expansion, robust large deals, and highest ever cash generation. This is a testimony to our differentiated service offerings, enormous client trust, and relentless execution.”

"With our focused approach for generative AI for enterprises working with their data sets on a cloud foundation, we have strong traction with our clients. This is building on our Topaz and Cobalt capabilities," Parekh added. 

Infosys reported a 3.6 per cent quarter-on-quarter and 2.5 per cent year-on-year revenue growth in the March quarter. The company disclosed that its large deal wins amounted to $4.1 billion, which fell short of analyst expectations of $5 billion. Infosys also noted a significant increase in its free cash flow, which reached Rs 9,155 crore, marking a 59.2 per cent year-on-year rise.

Infosys' total workforce was 3,15,332, a decrease from 3,17,240 in the previous quarter. The voluntary attrition rate was reported at 12.7 per cent, slightly up from 12.6 per cent in March but lower than the 17.3 per cent recorded in the same quarter last year.

“Our relentless drive on cost optimisation through Project Maximus, a comprehensive margin expansion program, is reflected in the all-around improvement in key operating matrices leading to 1 per cent growth in operating margin in Q1. We had the highest ever FCF generation at $1.1 billion, and ROE increased to 33.6 per cent due to higher payouts to investors,”  said Jayesh Sanghrajka, CFO.