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Revenue
₹41,764 Cr
verified against source
Revenue YoY
6.1%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Infosys reported Q3 FY25 revenue growth of 1.7% QoQ and 6.1% YoY in constant currency, with operating margin at 21.3% and free cash flow at an all-time high of $1.26 billion. Large deal TCV was $2.5 billion, with net new increasing to 60% from 40% last quarter. Growth was driven by improving discretionary spending in US financial services and retail, and European financial services. The company raised its FY25 revenue guidance to 4.5%-5% CC, while maintaining margin guidance of 20%-22%. Headcount grew by over 5,000 sequentially. Management highlighted strong pipeline and pricing improvements. Risks include continued softness in European automotive and high-tech/telecom, and potential margin headwinds from wage hikes in Q4 and Q1.
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Guidance to track
- Infosys revised its constant currency revenue growth guidance for FY25 to 4.5%-5%, up from previous 3.75%-4.5%.
- The company kept its operating margin guidance unchanged at 20%-22% for FY25.
- Infosys plans to hire over 15,000 freshers in FY25 and over 20,000 in FY26.
- Compensation increases of 6%-8% for India employees will be implemented in two phases: from Jan 1 and Apr 1, 2025.
Risks flagged
- Management noted that European automotive remains slow, and high-tech/telecom sectors have not shown improvement.
- CFO Jayesh Sanghrajka confirmed that compensation increases will create margin headwinds in Q4 and Q1, though exact impact not quantified.
- Multiple class-action lawsuits have been filed related to the McCamish incident; mediation is underway. Business impact not disclosed.
- Management acknowledged that Q4 typically sees seasonal weakness, which could affect sequential revenue growth.
Key quotes
- Our revenue grew 1.7% quarter on quarter and 6.1% year on year in constant currency terms.
- Large deals were at $2.5 billion. Operating margin at 21.3%. Free cash flow for the quarter was at an all-time high of $1.26 billion.
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