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Infosys: Strong growth of 6.1% YoY in CC, 80 bps YoY operating margin expansion

16 gennaio 2025 | 13.32

LETTURA: 12 minuti

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 Margin	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 December 31, 2024	3 months ended December 31, 2023	9 months ended December 31, 2024	9 months ended December 31, 2023
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