Infosys, India’s second-largest IT services exporter, reported its financial results for the first quarter of FY25, delivering a steady performance despite ongoing macroeconomic headwinds in key global markets. The company’s focus on operational efficiency and client-centric digital services played a major role in stabilizing growth.
Key Highlights of Infosys Q1 FY25 Results
- Net Profit: Infosys posted a consolidated net profit of ₹6,334 crore, up 9% year-on-year, compared to ₹5,945 crore in Q1 FY24. On a sequential basis, net profit rose around 4.9%.
- Revenue: Revenue for the quarter stood at ₹38,948 crore, a growth of 4.2% year-on-year and 1.3% quarter-on-quarter. Growth was led by demand in digital transformation, cloud, and AI-driven services.
- EBIT & Margins: Earnings Before Interest and Tax (EBIT) rose 6% YoY to ₹7,991 crore. EBIT margin stood at 20.5%, showing a marginal improvement due to better cost controls and utilization optimization.
- Operating Performance: The company saw a steady flow of large deals. The total contract value (TCV) of large deals during the quarter came in at $2.5 billion, with 51% being net new business.
- Guidance Update: Reflecting its confidence in deal momentum, Infosys raised its revenue growth guidance for FY25 to 1%–3% in constant currency terms (up from 1%–2.5% earlier). The operating margin guidance was maintained at 20%–22%.
CEO Commentary
Infosys CEO Salil Parekh stated:
“We are seeing strong interest from clients in large cost and efficiency programs, and consolidation opportunities. We are proactively investing in generative AI and have over 100 client projects in progress. Our focus remains on growth, margin resilience, and building long-term value.”
Sectoral Demand & Outlook
While discretionary tech spending remains muted in sectors like retail and telecom, Infosys reported relatively stronger traction in manufacturing, energy, and BFSI. With large global clients looking to optimize IT spends, Infosys is well-positioned to capitalize on digital and cloud migration opportunities.
The ongoing investments in GenAI, cybersecurity, and automation are also helping Infosys future-proof its service portfolio and deepen client relationships.
Stock Market Reaction
Following the results, Infosys shares showed a mildly positive response on the stock exchanges. Analysts appreciated the raised revenue guidance and stable margins, although near-term caution persists due to slow decision-making in the US and European markets.
Conclusion
Infosys has started FY25 on a solid note with resilient earnings and a healthy deal pipeline. While global uncertainties continue, the company’s balanced execution, investments in AI, and enhanced revenue visibility indicate that Infosys remains a strong player in the global IT services landscape.
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