Infosys Reports 7.1% YoY Increase in Q1 FY25 Net Profit

18 Jul 2024 , 03:48 PM

Infosys, India’s second-largest IT company, announced a 7.1% year-on-year (YoY) rise in net profit for Q1 FY25, amounting to ₹6,368 Crore. According to a stock exchange filing, the company’s consolidated revenue from operations for the April-June quarter increased by 3.6% YoY, reaching ₹39,315 Crore.

Quarter-on-Quarter Performance

On a quarter-on-quarter (QoQ) basis, Infosys experienced a 20.1% decline in net profit. This decrease was primarily attributed to a tax refund boost in the previous quarter, which had positively impacted the bottom line.

Revenue Growth Guidance

Infosys has raised its revenue growth guidance for the financial year 2024-25 to a range of 3% to 4%. This marks a significant adjustment from previous quarters, where the company revised its annual revenue growth guidance five times over the last five quarters.

• March Quarter: Guidance reduced to 1-3% due to continued weakness in discretionary and digital projects.
• January: Full-year guidance lowered to 1.5-2% for FY25.

Operating Margin

The company’s EBIT (earnings before interest and tax) margin, or operating margin, improved by 30 basis points (bps), reaching 21.1%.