Infosys' robust performance in the first quarter of FY25 has positioned its shares prominently in the market spotlight. The Bengaluru-based IT giant reported a net profit of Rs 6,368 crore, exceeding analysts' expectations. Consolidated revenue also saw a healthy increase of 3.6% to reach Rs 39,315 crore, bolstered by strong operational metrics and strategic wins.
Of particular significance is Infosys' revised revenue guidance for FY25, now projecting a growth of 3-4% in constant currency (CC), up from the earlier forecast of 1-3%. This optimistic outlook reflects confidence in sustained growth momentum and market demand resilience amid evolving global economic conditions.
Following the announcement, Infosys' stock witnessed a nearly 2% rise on the Bombay Stock Exchange (BSE) at the close of trading, echoing the positive sentiment seen across the IT sector. This uptrend was further buoyed by strong quarterly results from peers like Tata Consultancy Services and HCLTech, indicating a broader rally in IT stocks.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, emphasized the pivotal role of Infosys' Q1 results in influencing the movement of IT stocks. The company's performance has provided clarity and confidence to investors, potentially sustaining the sector's bullish sentiment into the upcoming trading sessions.
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, highlighted several key metrics from Infosys' Q1 report, including record-high free cash flow of $1,094 million, a year-over-year increase of 56.5%. Infosys also secured its highest-ever number of large deal wins, totaling 34 with a total contract value (TCV) of $4.1 billion, of which 57.6% were net new deals. These metrics underscore Infosys' robust operational execution and market competitiveness in securing strategic contracts.
Tapse expressed optimism about Infosys' outlook, noting that the company has made an excellent start to FY25 with strong growth across various fronts, including operating margin expansion and significant cash generation. He indicated a positive technical outlook for Infosys' stock, suggesting potential upside targets in the range of Rs 1825-1850, contingent upon sustaining the current positive momentum.
Overall, Infosys' stellar Q1 performance and upbeat FY25 guidance have positioned the company favorably in the IT sector landscape. The strong financial metrics, coupled with strategic wins and improved operational efficiencies, reinforce confidence in Infosys' ability to navigate and capitalize on emerging opportunities in the global IT market.
