Infosys Q1 FY25 results: IT firm ups revenue growth forecast; here are the key takeaways

IT major Infosys Ltd on Thursday recorded a 7.1 per cent year-on-year (YoY) rise in its first-quarter profit for the ongoing financial year 2024-25 (FY25). Profit during the June 2024 quarter came at Rs 6,368 crore against Rs 5,945 crore in the year-ago period.

In Q1 FY25, revenue grew 3.6 per cent YoY at Rs 39,315 crore compared with Rs 37,933 crore in the corresponding quarter of last year. The company also raised its revenue growth forecast for FY25.

Here are the key takeaways from Infosys' quarterly results:

* Infosys raised its revenue guidance for FY25 to 3-4 per cent, from its prior view of 1-3 per cent.

* Operating margin came in at 21.1 per cent, up 30 basis points over 20.8 per cent in the year-ago quarter.

* Number of large deal wins were highest ever at 34 with a valuation of $4.1 billion, 57.6 per cent being net new.

* Free cash flow (FCF) stood at Rs 9,155 crore, up 59.2 per cent YoY.

* FCF conversion at 143.2 per cent of net profit.

* Total employee count was at Rs 3,15,332, down 3,17,240 compared with March quarter.

* Voluntary Attrition came at 12.7 per cent against 12.6 per cent sequentially and 17.3 per cent in Q1 FY24.

* Basic EPS at Rs 15.38, increase of 7 per cent YoY.

Management view:

"We had an excellent start to FY25 with strong and broad-based growth, operating margin expansion, robust large deals, and highest ever cash generation. This is a testimony to our differentiated service offerings, enormous client trust, and relentless execution," said Salil Parekh, CEO and MD at Infosys.

"With our focused approach for generative AI for enterprises working with their data sets on a cloud foundation, we have strong traction with our clients. This is building on our Topaz and Cobalt capabilities," he added.

"Our relentless drive on cost optimization through Project Maximus, a comprehensive margin expansion program, is reflected in the all-round improvement in key operating metrices leading to 1 per cent growth in operating margin in Q1," said Jayesh Sanghrajka, CFO.

The quarterly earnings were declared post-market hours today. Earlier in the day, Infy shares rose 1.93 per cent to settle at Rs 1,759.15.

"Technically, Infosys is demonstrating a positive technical trend. A breakout above Rs 1,733 indicates potential upside targets in the Rs 1,825-1850 range, with a recommended stop loss set at Rs 1,720 to mitigate risk," said Prashanth Tapse, Senior VP (Research) at Mehta Equities.