Infosys Reports Strong Financial Performance for Q1 FY25

Infosys Ltd has announced its consolidated financial results for the first quarter of fiscal year 2025, showcasing robust growth across various parameters.

Infosys Ltd has reported a strong financial performance for the first quarter of fiscal year 2025. The company achieved a 3.6% quarter-on-quarter revenue growth and a 2.5% year-on-year growth in constant currency terms. The operating margin remained healthy at 21.1%, and earnings per share saw a significant year-on-year increase of 7.0% in rupee terms. Infosys also generated $1.1 billion in free cash flow. The company experienced growth across key business segments and geographies, with North America and Europe contributing significantly to the revenue. Infosys continues to expand its client base and maintain a stable workforce, reflecting its strong market position and operational efficiency.

Key Highlights:

• Revenue Growth: The company reported a quarter-on-quarter (QoQ) revenue growth of 3.6% and a year-on-year (YoY) growth of 2.5% in constant currency (CC) terms, reaching $4.1 billion in large deal total contract value (TCV).
• Operating Margin: Infosys maintained a healthy operating margin of 21.1%, indicating strong operational efficiency.
• Earnings Per Share (EPS): The EPS saw a significant YoY increase of 7.0% in rupee terms.
• Free Cash Flow: The company generated a free cash flow of $1.1 billion, reflecting its strong cash generation capabilities.

Business Segment Performance:

• Financial Services: Contributed 27.5% to the total revenue, slightly down from 28.1% in the same quarter last year.
• Retail: Accounted for 13.8% of the revenue, witnessing a decline from 14.5% YoY.
• Communication: Increased its share to 12.1%, up from 11.7% YoY.
• Energy, Utilities, Resources & Services: Also saw growth, contributing 13.3% compared to 12.9% in the previous year.
• Manufacturing: Grew to 14.7%, from 14.1% last year.
• Hi-Tech and Life Sciences: Maintained steady contributions with minor growth.

Geographic Revenue Distribution:

• North America: Remains the largest market, contributing 58.9% of the total revenue.
• Europe: Showed significant growth, now contributing 28.4% compared to 26.8% last year.
• Rest of the World: Also saw a notable increase, contributing 3.1% to the total revenue.

Client Metrics:

• Total Clients: As of June 30, 2024, Infosys had 1,867 active clients.
• Large Clients: The number of clients contributing over $100 million increased, reflecting deeper engagements with key clients.

Employee Metrics:

• Total Employees: Infosys had a total workforce of 315,332 employees.
• Attrition Rate: The voluntary attrition rate remained stable at 12.7%, indicating employee satisfaction and retention.
• Diversity: Women employees constituted 39.2% of the total workforce.

Financial Position:

• Cash and Investments: The company’s consolidated cash and investments stood at $4.3 billion.
• Dividend: Infosys declared a dividend per share of $0.18, reflecting its commitment to returning value to shareholders.

Infosys Delivers Strong Q1 FY25 Results with Impressive Growth Metrics

Infosys Ltd has kicked off fiscal year 2025 on a high note, reporting robust financial results for the first quarter. The IT giant posted a commendable 3.6% quarter-on-quarter revenue growth and a 2.5% year-on-year growth in constant currency terms, underlining its strong market position and operational efficiency.

The company’s operating margin remained healthy at 21.1%, demonstrating effective cost management and productivity improvements. Additionally, Infosys saw a significant year-on-year increase of 7.0% in earnings per share (EPS) in rupee terms, reflecting its ability to generate value for shareholders consistently. Free cash flow stood at an impressive $1.1 billion, highlighting the company’s solid cash generation capabilities.

Infosys experienced growth across its key business segments. The financial services sector contributed 27.5% to total revenue, while the manufacturing segment saw a rise to 14.7%. Notably, the company’s revenue from the European market increased significantly, now accounting for 28.4% of total revenue compared to 26.8% last year.

The company also expanded its client base, with the number of clients contributing over $100 million increasing, reflecting deeper engagements with key clients. As of June 30, 2024, Infosys had 1,867 active clients, showcasing its broad market reach and trusted partnerships.

Employee metrics remained stable, with a total workforce of 315,332 and a voluntary attrition rate of 12.7%. The percentage of women employees stood at 39.2%, underscoring Infosys’ commitment to diversity and inclusion.

Overall, Infosys’ strong Q1 performance sets a positive tone for the rest of the fiscal year, indicating sustained growth and stability in a competitive market.

Conclusion

Infosys has demonstrated a strong financial performance in the first quarter of FY25, driven by growth across various business segments and geographies. The company continues to focus on expanding its client base and maintaining operational efficiency, positioning itself well for future growth.