Thu Jan 16 21:28:40 UTC 2025: ## Infosys Beats Expectations with Strong Q3 Results, Raises FY25 Revenue Guidance

**Bengaluru, India –** Infosys, a leading global IT services company, announced robust third-quarter (Q3FY25) results on Thursday, exceeding market expectations. The company reported a net profit of Rs 6806 crore (approximately $825 million USD), an 11.46% year-on-year (YoY) increase, and revenue from operations of Rs 41,764 crore (approximately $5.05 billion USD), a 7.58% YoY rise. These figures surpassed CNBC TV18’s pre-earnings estimates of Rs 6753 crore and Rs 41,281 crore, respectively.

The strong performance was driven by broad-based growth across segments, with a notable recovery in the Banking, Financial Services, and Insurance (BFSI) sector. Infosys also achieved operating margin expansion, attributed to improved realization and scale benefits. Free cash flow (FCF) reached Rs 10,647 crore, representing a remarkable 156.1% conversion of net profit.

Encouraged by the results, Infosys raised its FY25 revenue growth guidance to 4.5-5% in constant currency terms, up from the previous forecast of 3.75-4.5%. While large deal total contract value (TCV) was slightly lower year-on-year at $2.5 billion, the company expressed confidence in its future prospects, citing a strong deal pipeline and increased discretionary spending in key sectors. The company also added 5,591 employees, marking the second consecutive quarter of net headcount additions.

Despite the positive results, Infosys shares closed 1.5% lower at Rs 1,920.05, likely reflecting broader market sentiment. Attrition rate increased slightly to 13.7% YoY, up from 12.9% in the previous quarter.

CEO and MD Salil Parekh highlighted the company’s strong deal pipeline and its growing capabilities in enterprise AI, particularly generative AI. CFO Jayesh Sanghrajka emphasized the company’s structured approach to margin expansion and its sharp focus on cash flow management.

Analysts offered mixed reactions. While some praised Infosys’s exceeding expectations and raised guidance, others pointed to the seasonal impact of furloughs and cautious client spending as factors influencing future growth. The overall consensus is that the Q3 performance represents a positive step forward for Infosys, but the long-term outlook remains dependent on sustained growth in discretionary spending and continued successful deal closures.

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