Infosys Achieves 11.5% Net Profit Growth at ₹6,806 Crore in Q3
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Synopsis
Infosys has reported an impressive 11.5% growth in net profit for Q3, amounting to ₹6,806 crore, showcasing robust performance across digital services and consulting, with strong revenue growth and record free cash flow.
Key Takeaways
- Net profit increased by 11.5% to ₹6,806 crore.
- Q3 revenues reached $4,939 million.
- Operating margin improved to 21.3%.
- Free cash flow set a record at $1,263 million.
- Raised FY25 revenue growth guidance to 4.5-5%.
New Delhi, Jan 16 (NationPress) The prominent IT firm Infosys announced on Thursday a remarkable 11.5% increase in its net profit, reaching ₹6,806 crore during the third quarter (Q3) of this fiscal year, compared to ₹6,106 crore in the same quarter last year.
The leader in digital services and consulting showcased a robust and diversified performance with revenues amounting to $4,939 million in Q3, reflecting a sequential growth of 1.7% and a year-on-year increase of 6.1% in constant currency.
The operating margin for Q3 stood at 21.3%, marking a 0.2% sequential rise. The free cash flow also hit a record high of $1,263 million, soaring 90% year-on-year, as stated by the company.
“Our impressive revenue growth in a typically weaker quarter, along with consistent year-on-year growth and strong operating metrics, is a testament to the effectiveness of our unique digital solutions, market strategy, and critical initiatives,” commented Salil Parekh, CEO and MD.
“This has resulted in another quarter marked by significant large deal acquisitions and an enhanced deal pipeline, boosting our confidence for the future,” he added.
On the BSE, Infosys shares closed down by 1.5% at ₹1,920 each prior to the quarterly results.
For the third consecutive quarter, the company has raised its constant currency revenue growth forecast for FY25 to 4.5-5%, up from its earlier estimate of 3.75-4.5%.
“We experienced another quarter of strong performance with revenue growth across various segments and an expansion in operating margins, resulting in an 11.4% EPS growth year-on-year in rupee terms,” stated Jayesh Sanghrajka, CFO.
“Our systematic approach to enhancing operating margins yielded positive results in Q3, particularly due to advantages from improving realization rates and scale efficiencies,” added Sanghrajka.
Infosys secured large deal contract values (TCV) totaling $2.5 billion, with 63% being net new, compared to $2.4 billion in the preceding quarter. The total number of active clients reached 1,876.
