Thu Jan 16 21:55:57 UTC 2025: ## Infosys Beats Revenue Expectations, Raises FY25 Growth Guidance

**Bangalore, India** – Infosys, India’s second-largest IT exporter, announced strong Q3 FY25 results, exceeding market expectations for revenue growth while meeting margin targets. The company reported a net profit of Rs 6,806 crore (approximately $825 million USD), an 11.4% year-on-year increase. Revenue rose 7.6% YoY to Rs 41,764 crore (approximately $5 billion USD), surpassing analyst predictions. Operating margins reached 21.3%, up 80 basis points year-on-year.

This robust performance led Infosys to upgrade its FY25 revenue growth guidance to 4.5-5% in constant currency terms, up from the previous forecast of 3.75-4.5%. The company maintained its EBIT margin guidance at 20-22%.

CEO and MD Salil Parekh attributed the strong results to the success of Infosys’s digital offerings and strategic initiatives, highlighting the growing traction of its enterprise AI capabilities, particularly generative AI. He also noted a strong pipeline of large deals.

The company saw significant growth across various sectors, with Manufacturing reporting 10% YoY growth, followed by Energy, Utilities, Resources & Services; Hi-Tech; and Life Sciences. India, Europe, and North America also contributed to strong geographic growth.

While the total contract value (TCV) of large deal wins decreased 22% YoY to $2.5 billion, Infosys remains optimistic about the future, citing an improved deal pipeline.

CFO Jayesh Sanghrajka highlighted the company’s strong cash flow generation, with free cash conversion to net profits reaching 157% in Q3. He emphasized the structured approach to margin expansion, citing improved realization and scale benefits.

Despite the positive results, Infosys’s share price fell slightly on the NSE on Thursday. The company’s voluntary attrition rate remained at 13.7%.

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