Infosys Q1 profit up 7 pc to Rs 6 368 cr company raises growth outlook for FY25

    Bengaluru, Jul 18 (PTI) IT major Infosys on Thursday reported 7 per cent rise in consolidated net profit at Rs 6,368 crore for June quarter FY25 and raised its growth outlook for the financial year.
     In the year-ago period, the company clocked a profit of Rs 5,945 crore, according to a BSE filing.
     The net profit in April-June fell 20 per cent from Rs 7,969 crore in the preceding March quarter.
     For the current fiscal year, the company raised revenue growth guidance to 3-4 per cent in constant currency terms from 1-3 per cent projected earlier.
     It expects to hire 15,000-20,000 freshers depending on the growth during the year.
     "We had an excellent start to FY25 with strong and broad-based growth, operating margin expansion, robust large deals, and the highest ever cash generation. This is a testimony to our differentiated service offerings, enormous client trust, and relentless execution," said CEO and MD Salil Parekh.
     The company's operating margin during the quarter stood at 21.1 per cent.
     Infosys expects its operating margin to be 20-22 per cent in the current fiscal year.
     "With our focused approach for generative AI for enterprises working with their data sets on a cloud foundation, we have strong traction with our clients. This is building on our Topaz and Cobalt capabilities," Parekh added.
     The company won large deals worth USD 4.1 billion during the quarter.
     "We had very strong performance on large deals in the first quarter which gives us more visibility into the full year," Parekh said.
     Share of the financial services segment, which is the biggest contributor to Infosys' revenue, recorded 0.3 per cent decline on a constant currency basis to 27.5 per cent.
     While the retail segment's share fell 3 per cent to 13.8 per cent, the communication segment's share rose 5.4 per cent at 12.1 per cent and energy, utilities, resources, services grew 6.3 per cent to 13.3 per cent on a constant current basis.
     Parekh said the company is witnessing improvement in financial service revenue in the US.
     While revenue share of Infosys from North America fell by 1.2 per cent, in Europe it increased by 9.1 per cent, India 19.9 per cent and the rest of the world 2.3 per cent on a constant currency basis.
     The company's headcount fell by about 6 per cent to 3,15,332 in June 2024 quarter from 3,36,294 a year ago. The headcount fell marginally from 3,17,240 in the previous quarter.
     The company has increased the utilisation level of employees to 83.9 per cent from 78.9 per cent on a year-on-year basis.
     "Our utilisation is already at 85 per cent. So we have little headroom now left. So you know, as we start seeing growth...we are looking at hiring 15,000 to 20,000 freshers this year depending on...how we see the growth," Infosys Chief Financial Officer Jayesh Sanghrajka said.

(This story has not been edited by THE WEEK and is auto-generated from PTI)