Infosys, India’s second-largest IT services exporter, posted an 11 per cent year-on-year increase in consolidated net profit, reaching ₹6,806 crore, while its revenue from operations rose by 8 per cent YoY to ₹41,764 crore.
On January 16, Infosys shares on the BSE ended 1.5 per cent lower, closing at ₹1,920 per share, ahead of the results announcement.
Here are five key highlights from Infosys Q3 results –
Net profit
The company reported a net profit of ₹6,806 crore for the quarter under review, marking an 11.4 per cent year-on-year (YoY) increase compared to ₹6,106 crore in Q3FY24. Sequentially, the profit grew by 4.6 per cent from ₹6,506 crore recorded in the September quarter (Q2FY25).
Revenue guidance
The IT services firm has raised its revenue guidance for the current fiscal year to a range of 4.5 per cent to 5 per cent.
The Bengaluru-based company reported robust year-over-year constant currency revenue growth of 6.1 per cent, with a 1.7 per cent increase on a quarterly basis.
Stock Grants
Based on the recommendations of the Nomination and Remuneration Committee, the Board approved annual time-based stock incentives in the form of Restricted Stock Units (RSUs) to Salil Parekh, CEO & MD having a market value of ₹ 3 crore as on the date of grant under the 2015 Stock Incentive Compensation Plan (2015 Plan) in accordance with the terms of his employment agreement. The RSUs will vest in line with the employment agreement. The RSUs will be granted w.e.f. February 1, 2025 and the number of RSUs will be calculated based on the market price at the close of trading on a date immediately preceding the grant date. The exercise price of RSUs will be equal to the par value of the share.
EBIT
Infosys has kept its EBIT margin forecast in the range of 20 per cent to 22 per cent.
The company secured a significant deal with a total contract value (TCV) of $2.5 billion in the December quarter, slightly higher than the $2.4 billion recorded in the previous September quarter.
Management on Q3 results
“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, CEO and MD.
The company further said that it is enhancing its enterprise AI capabilities, with a particular emphasis on generative AI, which is gaining growing attention from clients.
“We had another quarter of strong performance with revenue growth across segments and operating margin expansion, leading to 11.4% 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 realization and scale benefits” said Jayesh Sanghrajka, CFO.
