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BENGALURU, India, Jan. 16, 2025 /PRNewswire/ -- Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY), a global leader in next-generation digital services and consulting, delivered strong and broad-based performance with $4,939 million in Q3 revenues, growth of 1.7% sequentially and 6.1% year on year in constant currency. Operating margin for Q3 was at 21.3%, increase of 0.2% sequentially. Free cash flow for Q3 was highest ever at $1,263 million, growing 90% year on year. TCV of large deal wins was $2.5 billion, with 63% net new growing at 57% sequentially. Headcount increased for second consecutive quarter.
Revenues for YTD Dec'24 grew at 3.9% year on year in constant currency and in reported terms. Operating margin was at 21.2%, increase of 0.3% year on year.
"Our strong revenue growth sequentially in a seasonally weak quarter and broad-based year on year growth, along with robust operating parameters and margins, is a clear reflection of the success of our differentiated digital offerings, market positioning, and key strategic initiatives. We continue to strengthen our enterprise AI capabilities, particularly focusing on generative AI, which is witnessing increasing client traction," said Salil Parekh, CEO and MD. "This has led to another quarter of strong large deal wins and improved deal pipeline giving us greater confidence as we look ahead," he added.
1.7% QoQ |
21.30 % |
11.4% YoY |
$2.5 Bn |
$1.3 Bn |
6.1% YoY |
Operating |
EPS Increase |
Large Deal |
Free |
CC Growth |
0.8% YoY increase |
(₹ terms) |
TCV |
Cash Flow |
Guidance for FY25:
Key highlights:
For nine months ended December 31, 2024 |
For the quarter ended December 31, 2024 |
Revenues in CC terms grew by 3.9% YoY |
Revenues in CC terms grew by 6.1% YoY and 1.7% QoQ |
Reported revenues at $14,547 million, growth of 3.9% YoY |
Reported revenues at $4,939 million, growth of 5.9% YoY |
Operating margin at 21.2%, growth of 0.3% YoY |
Operating margin at 21.3%, increase of 0.8% YoY and 0.2% QoQ |
Basic EPS at $0.57, growth of 6.1% YoY |
Basic EPS at $0.19, growth of 9.6% YoY |
FCF at $3,196 million, growth of 57.1% YoY; |
FCF at $1,263 million, growth of 89.9% YoY; |
FCF conversion at 136.1% of net profit |
FCF conversion at 156.6% of net profit |
"We had another quarter of strong performance with revenue growth across segments and operating margin expansion, leading to 11.4% EPS growth year on year in rupee terms. Our structured approach to operating margin expansion yielded more results in Q3, particularly due to benefits from improving realization and scale benefits," said Jayesh Sanghrajka, CFO. "Our sharp focus on cash flow is reflected in Free cash conversion to net profits of 157% in Q3 with free cash generation for 9 months of FY25 surpassing that of entire FY24," he added.
1. Client wins & Testimonials
2. Recognitions & Awards
Brand
AI and Cloud Services
Key Digital Services
Industry & Solutions
Read more about our Awards & Recognitions here.
About Infosys
Infosys is a global leader in next-generation digital services and consulting. Over 300,000 of our people work to amplify human potential and create the next opportunity for people, businesses and communities. We enable clients in more than 56 countries to navigate their digital transformation. With over four decades of experience in managing the systems and workings of global enterprises, we expertly steer clients, as they navigate their digital transformation powered by the cloud. We enable them with an AI-powered core, empower the business with agile digital at scale and drive continuous improvement with always-on learning through the transfer of digital skills, expertise, and ideas from our innovation ecosystem. We are deeply committed to being a well-governed, environmentally sustainable organization where diverse talent thrives in an inclusive workplace.
Visit www.infosys.com to see how Infosys (NSE, BSE, NYSE: INFY) can help your enterprise navigate your next.
Safe Harbor
Certain statements in this release concerning our future growth prospects, our future financial or operating performance, the McCamish cybersecurity incident and the related review and notification process are forward-looking statements intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results or outcomes to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the execution of our business strategy, increased competition for talent, our ability to attract and retain personnel, increase in wages, investments to reskill our employees, our ability to effectively implement a hybrid working model, economic uncertainties and geo-political situations, technological disruptions and innovations such as Generative AI, the complex and evolving regulatory landscape including immigration regulation changes, our ESG vision, our capital allocation policy and expectations concerning our market position, future operations, margins, profitability, liquidity, capital resources, our corporate actions including acquisitions, the amount of any additional costs, including indemnities or damages or claims, resulting directly or indirectly from the McCamish cybersecurity incident and the outcome and effect of pending litigation. Important factors that may cause actual results or outcomes to differ from those implied by the forward-looking statements are discussed in more detail in our US Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2024. These filings are available at https://www.sec.gov/. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and our reports to shareholders. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company unless it is required by law.
Infosys Limited and subsidiaries |
||
Extracted from the Condensed Consolidated Balance Sheet under IFRS as at: (Dollars in millions) |
||
December 31, 2024 |
March 31, 2024 |
|
ASSETS |
||
Current assets |
||
Cash and cash equivalents |
2,663 |
1,773 |
Current investments |
933 |
1,548 |
Trade receivables |
3,896 |
3,620 |
Unbilled revenue |
1,318 |
1,531 |
Other current assets |
1,428 |
2,250 |
Total current assets |
10,238 |
10,722 |
Non-current assets |
||
Property, plant and equipment and Right-of-use assets |
2,183 |
2,323 |
Goodwill and other Intangible assets |
1,508 |
1,042 |
Non-current investments |
1,105 |
1,404 |
Unbilled revenue |
301 |
213 |
Other non-current assets |
956 |
819 |
Total non-current assets |
6,053 |
5,801 |
Total assets |
16,291 |
16,523 |
LIABILITIES AND EQUITY |
||
Current liabilities |
||
Trade payables |
429 |
474 |
Unearned revenue |
988 |
880 |
Employee benefit obligations |
336 |
314 |
Other current liabilities and provisions |
3,050 |
2,983 |
Total current liabilities |
4,803 |
4,651 |
Non-current liabilities |
||
Lease liabilities |
667 |
767 |
Other non-current liabilities |
465 |
500 |
Total non-current liabilities |
1,132 |
1,267 |
Total liabilities |
5,935 |
5,918 |
Total equity attributable to equity holders of the company |
10,307 |
10,559 |
Non-controlling interests |
49 |
46 |
Total equity |
10,356 |
10,605 |
Total liabilities and equity |
16,291 |
16,523 |
Extracted from the Condensed Consolidated statement of Comprehensive Income under IFRS for: |
||||
(Dollars in millions except per equity share data) |
||||
3 months ended |
3 months ended |
9 months ended |
9 months ended |
|
Revenues |
4,939 |
4,663 |
14,547 |
13,997 |
Cost of sales |
3,444 |
3,274 |
10,103 |
9,755 |
Gross profit |
1,495 |
1,389 |
4,444 |
4,242 |
Operating expenses: |
||||
Selling and marketing expenses |
218 |
204 |
671 |
633 |
Administrative expenses |
224 |
229 |
693 |
692 |
Total operating expenses |
442 |
433 |
1,364 |
1,325 |
Operating profit |
1,053 |
956 |
3,080 |
2,917 |
Other income, net (3) |
90 |
79 |
249 |
196 |
Profit before income taxes |
1,143 |
1,035 |
3,329 |
3,113 |
Income tax expense |
337 |
301 |
981 |
904 |
Net profit (before minority interest) |
806 |
734 |
2,348 |
2,209 |
Net profit (after minority interest) |
804 |
733 |
2,345 |
2,208 |
Basic EPS ($) |
0.19 |
0.18 |
0.57 |
0.53 |
Diluted EPS ($) |
0.19 |
0.18 |
0.56 |
0.53 |
NOTES:
IFRS-INR Press Release : https://www.infosys.com/investors/reports-filings/quarterly-results/2024-2025/q3/documents/ifrs-inr-press-release.pdf
Fact sheet: https://www.infosys.com/investors/reports-filings/quarterly-results/2024-2025/q3/documents/fact-sheet.pdf
