Infosys profit up 11 per cent to Rs 6.8k crore; revenue guidance increased

During the company’s post-earnings press conference, Salil Parekh, CEO and MD, Infosys said,
Infosys profit up 11 per cent to Rs 6.8k crore; revenue guidance increased
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BENGALURU: IT services company Infosys on Thursday posted a 11.4% growth in net profit at Rs 6,806 crore for the third quarter ending December 2024, beating Street estimates, compared to Rs 6,106 crore in the same quarter last year. The company’s revenue from operations in the third quarter stood at Rs 41,764 crore, a 7.6% increase compared to Rs 38,821 crore in the year-ago period.

The company’s operating margin stood at 21.3%, an increase of 0.8% y-o-y. For FY25, the company has raised its revenue guidance from 3.75%- 4.5% to 4.5%-5.0%, based on its strong performance in this quarter. The company has retained its margin guidance at 20%-22%.

During the company’s post-earnings press conference, Salil Parekh, CEO and MD, Infosys said, “Financial services in the US continues to grow strongly. We have seen a revival in European financial services during Q3. We are seeing an improvement in the retail and consumer product industry in the US with discretionary pressures easing.” He added that the automotive sector in Europe continues to remain slow.

In Gen AI, the company has built 4 small language models for banking, IT operations, cyber security, and broadly for enterprises. “In Gen AI we are also developing over 100 new agents for deployment within our clients,” said the CEO.

“We are having several discussions with clients where they would like to use the small language models that we have built,” he added.

The company’s total contract value (TCV) of large deal wins was at $2.5 billion in the third quarter.

Jayesh Sanghrajka, CFO, Infosys, said, “As we get into the next quarter, we will have headwinds coming from the compensation increase that we have rolled out already. It looks like currency will give us some benefits in terms of margins but we have to see how currency progresses through the quarter.” Our structured approach to operating margin expansion yielded more results in Q3, particularly due to benefits from improving realisation and scale benefits, he added.

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