Infosys Q3 results: Profit rises 11.4% to ₹6,806 cr; revenue up 7.6%

Infosys, the country’s second largest software exporter, has logged double digit growth in its profit for the third quarter ended December 2024, driven by uptick in the operating margin and broad-based performance across sectors. The IT major has upgraded its FY25 revenue guidance to 4.5-5.0% in constant currency from an earlier 3.75-4.5%, while operating margin has been pegged at 20%-22%. 

The Bengaluru-based company posted a net profit of ₹6,806 crore in Q3 FY25 as compared to ₹6,106 crore in the year ago period, registering a year-on-year (YoY) growth of 11.4%. On a quarterly basis, the profit was up 4.6% from ₹6,506 crore in the September quarter (Q2 FY25), the IT major says in a exchange filing.

The revenue grew 7.6% to ₹41,764 crore during October-December quarter of the current fiscal as against ₹38,821 crore in the same period last year. Sequentially, the revenue rose 1.9% from ₹40,986 crore in Q2 FY25. In constant currency terms, the revenue jumped 6.1% YoY and 1.7% QoQ to $4,939 million.

During the quarter under review, the IT major's operating margin increased to 21.3%, up 0.8% YoY.

“Our strong revenue growth sequentially in a seasonally weak quarter and broad-based year on year growth, along with robust operating parameters and margins, is a clear reflection of the success of our differentiated digital offerings, market positioning, and key strategic initiatives. We continue to strengthen our enterprise AI capabilities, particularly focusing on generative AI, which is witnessing increasing client traction,” says Salil Parekh, CEO and MD.

“This has led to another quarter of strong large deal wins and improved deal pipeline giving us greater confidence as we look ahead”, he adds.

As per the company, the total contract value (TCV) of large deal wins was $2.5 billion, with 63% net new growing at 57% sequentially. Headcount increased for second consecutive quarter by 5,591. 

The free cash flow for Q3 was “highest-ever” at $1,263 million, growing 90% year on year. “Our sharp focus on cash flow is reflected in free cash conversion to net profits of 157% in Q3 with free cash generation for 9 months of FY25 surpassing that of entire FY24”, says Jayesh Sanghrajka, CFO, Infosys.

On earnings performance, he says, “We had another quarter of strong performance with revenue growth across segments and operating margin expansion, leading to 11.4% EPS growth year on year in rupee terms.  Our structured approach to operating margin expansion yielded more results in Q3, particularly due to benefits from improving realisation and scale benefits.”

Ahead of Q3 results, shares of Infosys closed 1.2% lower at ₹1926.20 apiece on the BSE, with a market capitalisation of ₹7.99 lakh crore.