Infosys Q3FY25 Results Show 11.4% Net Profit Growth, 7.6% Revenue Increase. Growth Fueled by Focus on Digital and AI, Though Attrition Rate Rose.
Q3 Results: India's largest IT exporter, Infosys, reported an 11.4% year-on-year (YoY) increase in net profit to ₹6,806 crore (approximately US$820 million) for the third quarter of the current fiscal year (Q3FY25). The company raised its revenue guidance to 4.5-5%, indicating b growth. Infosys exceeded Bloomberg's estimates for the quarter.
7.6% Revenue Growth
Infosys's revenue for the December 2024 quarter grew by 7.6% YoY, reaching ₹41,764 crore (approximately US$5 billion). Sequentially (QoQ), revenue increased by 1.9%. The company's Earnings Before Interest and Taxes (EBIT) rose by 3% to ₹8,912 crore (approximately US$1 billion), while its margin reached 21.4%.
Significant Contribution from Digital and AI
Infosys CEO Salil Parekh stated that despite seasonal headwinds, the company's growth was impressive. Increased focus on innovations like digital and generative AI is strengthening performance, and client confidence is driving the company to new heights.
Employee Count and Attrition Rate
The company's employee count reached 323,379 by the end of the third quarter, with 5,591 new hires. However, the attrition rate increased from 12.9% to 13.7%, posing a challenge.
Operating Margin and Future Outlook
Infosys's operating margin for the third quarter was 21.3%, up 0.8% YoY and 0.2% QoQ. The company maintained its operating margin guidance for FY25 at 20-22%.
Total Contract Value Increase
The company's Total Contract Value (TCV) also increased to $2.5 billion, slightly higher than the $2.4 billion in the previous quarter. However, it remains lower than the $4.1 billion achieved in the first quarter.
Infosys shares closed down 1.52% at 1920.05 today.
