Infosys Q3 Results: IT Firm Reports 11.4% Jump In Net Profit To Rs 6,806 Crore

Quarterly revenue stood at Rs 41,764 crore, reflecting a 7.6 per cent Y-o-Y growth and exceeding the consensus estimate of Rs 41,353 crore. Sequentially, revenue grew by 1.9 per cent

The company has reaffirmed its operating margin guidance of 20–22 per cent for FY25

Source : Glassdoor

Infosys, India's second-largest software exporter by revenue, has raised its revenue guidance for the financial year 2024-25 (FY25) to 4.5–5 per cent in constant currency, the firm said on Thursday. This marks an upward revision from the 3.75–4.5 per cent guidance issued in Q2 (July–September) of FY25.

This is the company's second revision of its guidance. In Q1, the growth forecast was set at 3–4 per cent. Notably, this update reflects an increase at both the lower and upper ends, indicating strong growth momentum. The revised guidance suggests increased client spending, signalling a positive business outlook for Infosys.

The company reported an 11.4 per cent year-on-year (Y-o-Y) increase in net profit, reaching Rs 6,806 crore for Q3 of 2024-25 (FY25), surpassing Bloomberg's consensus estimate of Rs 6,773 crore. On a sequential basis, net profit rose by 4.6 per cent.

Quarterly revenue stood at Rs 41,764 crore, reflecting a 7.6 per cent Y-o-Y growth and exceeding the consensus estimate of Rs 41,353 crore. Sequentially, revenue grew by 1.9 per cent.

The company has reaffirmed its operating margin guidance of 20–22 per cent for FY25.

“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, chief executive officer and managing director.

Infosys reported a stable total contract value (TCV) of $2.5 billion for the quarter, up from $2.4 billion in Q2. However, it was lower than the $4.1 billion TCV recorded in Q1 FY25. The operating margin for the quarter stood at 21.3 per cent, reflecting a 0.8 per cent increase year-on-year (Y-o-Y) and a 0.2 per cent rise sequentially.

Jayesh Sanghrajka, chief financial officer, said, “We had another quarter of strong performance with revenue growth across segments and operating margin expansion, leading to 11.4 per cent earnings per share (EPS) growth year on year in rupee terms. Our structured approach to operating margin expansion yielded more results in Q3, particularly due to benefits from improving realisation and scale benefits.”