For the current fiscal year, the IT services company has increased its revenue projection to between 4.5% and 5%.The second-largest exporter of IT services in India, Infosys, reported an 11% year-over-year growth in consolidated net profit to ₹6,806 crore, while its operating revenue increased 8% year-over-year to ₹41,764 crore.
Ahead of the results announcement on January 16, Infosys's shares on the BSE closed 1.5% lower at ₹1,920 per share.
The following are the top five points from Infosys' Q3 results:
Profit margin
Compared to ₹6,106 crore in Q3FY24, the company's net profit for the reviewed quarter was ₹6,806 crore, representing a 11.4% YoY growth. From ₹6,506 crore in the September quarter (Q2FY25), the profit increased sequentially by 4.6%.
Guidance on revenue
For the current fiscal year, the IT services company has increased its revenue projection to between 4.5% and 5%.
The Bengaluru-based business reported strong constant currency revenue growth of 6.1% year over year, with a quarterly increase of 1.7%.
Grants for Stocks
The Board granted Salil Parekh, CEO and MD, annual time-based stock incentives in the form of Restricted Stock Units (RSUs) with a market value of ₹3 crore on the date of grant under the 2015 Stock Incentive Compensation Plan (2015 Plan) in compliance with the terms of his employment agreement, based on the Nomination and Remuneration Committee's recommendations. According to the terms of the employment contract, the RSUs will vest. The quantity of RSUs will be determined by the market price at the close of trade on a day just before the grant date, and the RSUs will be issued with effect from February 1, 2025. RSUs will have an exercise price that is equivalent to the share's par value.
EBIT Infosys has maintained its EBIT margin projection between 20 and 22 percent.
With a total contract value (TCV) of $2.5 billion in the December quarter—slightly more than the $2.4 billion reported in the previous September quarter—the corporation closed a big deal.
Management of the third quarter's outcomes
"The success of our unique digital offerings, market positioning, and important strategic initiatives is evident in our strong revenue growth sequentially in a seasonally weak quarter and broad-based year-over-year growth, as well as robust operating parameters and margins." Our enterprise AI skills are still being strengthened, with a special emphasis on generative AI, which is gaining popularity with clients, stated CEO and MD Salil Parekh.
The business added that it is improving its enterprise AI capabilities, focusing especially on generative AI, which is attracting more and more client interest.
With operating margin expansion and sales growth across all categories, we achieved another excellent quarter that resulted in a 11.4% year-over-year increase in EPS in rupee terms. The benefits of better realization and scale benefits were the main reasons why our methodical approach to operating margin expansion produced better results in Q3, according to CFO Jayesh Sanghrajka.
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