Infosys has reported a robust performance for the first quarter of FY25, exceeding analyst expectations across key financial metrics. The company recorded a net profit of Rs 6,368 crore, reflecting a significant growth trajectory. Consolidated revenue also saw a notable increase of 3.6%, reaching Rs 39,315 crore, driven by strong demand recovery from clients in the financial services and manufacturing sectors.
The positive financial results prompted Infosys to revise its revenue guidance upwards for FY25, now forecasting an operating revenue growth of 3-4% in constant currency (CC). This outlook underscores the company's confidence in sustaining momentum and capitalizing on market opportunities amidst evolving economic dynamics.
Infosys maintained a robust EBIT (earnings before interest and taxes) margin of 21.1% for the quarter, highlighting its efficient operational management and cost controls. Despite a slight increase in voluntary attrition to 12.7%, compared to 12.6% in the previous quarter, Infosys remains focused on retaining talent and enhancing workforce stability.
Salil Parekh, CEO and MD of Infosys attributed the strong performance to the company's differentiated service offerings and deep client relationships. He emphasized their strategic initiatives in generative AI for enterprises, leveraging cloud-based data solutions through platforms like Topaz and Cobalt, which have garnered significant client traction.
The market responded positively to Infosys' Q1 results, with its shares closing 1.93% higher at Rs 1,759.15 on the Bombay Stock Exchange (BSE). The upbeat earnings report from Infosys, coupled with strong performances by industry peers like Tata Consultancy Services and HCLTech, has contributed to a broader rally in IT stocks, signaling investor confidence in the sector's resilience and growth prospects.
Overall, Infosys' strong start to FY25 underscores its ability to navigate market challenges effectively and capitalize on emerging opportunities, positioning it favorably in the competitive landscape of global IT services.
