Thu Jan 16 18:58:34 UTC 2025: ## Infosys Reports Strong Q3 Results, Beats Expectations

**Bengaluru, India** – Infosys, a leading global technology services and consulting company, announced strong third-quarter (Q3) results, exceeding analyst expectations. The company reported revenue of $4,939 million, a 6.1% year-on-year increase in constant currency and 1.7% sequentially. This surpasses the CNBC-TV18 poll estimates of $4,895 million and 0.9% sequential growth, respectively.

Net profit reached ₹6,806 crore (approximately $826 million), slightly below the previous quarter’s ₹6,506 crore but exceeding the predicted ₹6,753 crore. Operating margin remained steady at 21.3%, in line with analyst projections. Free cash flow reached a record high of $1,263 million, a significant 90% year-on-year increase.

Infosys’s strong performance was driven by robust large deal wins, totaling $2.5 billion in total contract value (TCV), with 63% being net new deals. The company also saw a headcount increase for the second consecutive quarter, adding 5,591 employees.

CEO Salil Parekh highlighted a “strong positive momentum on pricing” and a pickup in discretionary spending in certain sectors like BFSI and retail, particularly in Europe and the US. He emphasized Infosys’s responsible approach to generative AI, dismissing concerns of “AI washing.”

CFO Jayesh Sanghrajka noted that hiring remains strong, fueled by anticipated discretionary spending. He also addressed upcoming compensation increases, slated for January 1st and April 1st, which are expected to impact margins in Q4 FY25 and Q1 FY26.

Infosys provided FY25 guidance, projecting revenue growth of 4.5%-5.0% in constant currency and an operating margin of 20%-22%. The company’s Q3 results and positive outlook suggest continued growth despite global economic uncertainties. While the constant currency revenue growth is better than that of TCS (flat), it falls short of HCLTech’s 3.8% growth. Further details can be found on CNBCTV18.com and the company’s social media channels.

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