Infosys Reports Strong Growth in Q3 FY25
Infosys, a leading player in the IT services sector, has announced impressive financial results for the December quarter of FY25. The company reported a consolidated net profit of ₹6,806 crore, marking an 11.46% increase compared to ₹6,106 crore in the same period last year. This growth is attributed to strong performances in financial services and manufacturing sectors. Additionally, Infosys has raised its revenue guidance for the fiscal year, reflecting optimism about future growth.
Revenue Growth and Sector Performance
In the third quarter of FY25, Infosys achieved revenue from operations of ₹41,764 crore. This figure represents a 7.58% increase from ₹38,821 crore in Q3 FY24. The financial services sector was a significant contributor, accounting for 27.8% of total revenue. Manufacturing followed closely with a 15.5% contribution. Other sectors, including retail and energy, also played a role in the company’s overall performance.
Geographically, Infosys experienced double-digit year-on-year growth in both India and Europe. North America, while growing at a slower pace, still registered an annual growth of nearly 5%. Salil Parekh, CEO and Managing Director of Infosys, noted the strong growth in U.S. financial services and a revival in European financial services during the quarter. He also highlighted improvements in the retail and consumer product industries in the U.S., indicating a positive shift in discretionary spending.
Revised Revenue Guidance for FY25
For the third consecutive quarter, Infosys has raised its revenue guidance for the fiscal year 2024-25. The company now anticipates revenue growth of 4.5% to 5%, an increase from the previous estimate of 3.75% to 4.5%. This upward revision reflects the company’s confidence in its strategic initiatives and market positioning. Despite the challenges posed by a seasonally weak quarter, Infosys demonstrated strong sequential revenue growth and robust operating margins.
The operating margin guidance remains unchanged at 20% to 22%. Parekh emphasized that the company’s differentiated digital offerings and focus on enterprise AI, particularly generative AI, have contributed to its success. This focus has led to increased client traction and a solid foundation for future growth.
Workforce Expansion and Hiring Plans
During the quarter, Infosys added 5,591 employees, bringing its total headcount to 3,23,379. CFO Jayesh Sanghrajka confirmed that the company is on track to meet its hiring commitment, with plans to hire over 15,000 staff in the current fiscal year. Additionally, Infosys expects to recruit more than 20,000 fresh graduates for FY26.
Sanghrajka also addressed concerns regarding the potential impact of a new U.S. regime on the company. He noted that Infosys has significantly reduced its dependence on H1B visas over the years. The onsite workforce mix has shifted from 30% to 24%, with a notable increase in nearshore resources. This strategic adjustment has made Infosys more resilient and confident in its operational model.
Stock Performance and Market Outlook
On the stock market front, shares of Infosys closed at ₹1,926.20 on the BSE, reflecting a decline of 1.21% from the previous close. Despite this dip, the overall financial results and positive outlook for the company suggest a strong position in the IT services industry. As Infosys continues to adapt to market changes and invest in innovative solutions, it remains well-positioned for sustained growth in the coming quarters.
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