About the company:
Infosys Limited is a global leader in IT services, consulting, and digital transformation solutions. Headquartered in Bangalore, India, the company was founded in 1981 and is one of the largest IT firms in the world. Infosys provides services in cloud computing, artificial intelligence, cybersecurity, enterprise applications, and business process management to clients across various industries. Known for its innovation and focus on digital transformation, Infosys has a strong global presence with offices in over 50 countries. It is listed on the NSE, BSE, and NYSE and is a key player in India’s IT sector.
Guidance Revision
Revenue Growth: Revised to 4.5%-5% (earlier 1-3%)
Operating Margin Guidance: Unchanged at 20%-22%
Business Performance
Financial Services: Growth in the U.S. and Europe, driven by capital markets, mortgages, payments
Retail & Consumer Products: Improving demand in the U.S., discretionary spending rising
Manufacturing: Double-digit growth, but Europe automotive remains weak
Hi-Tech & Telecom: Still weak, discretionary spending limited
Communication Sector: Facing growth challenges, cost pressures
Energy & Resources: Geopolitical risks affecting supply chains, but data center power demand rising
AI & Digital Transformation
Infosys Topaz AI Suite:
Built 4 small language models (banking, IT, cybersecurity, enterprise)
Developing 100+ AI agents for client businesses
AI-driven deals growing; “model-as-a-service” being explored
Cloud Business (Cobalt): Growing well, but AI (Topaz) seen as a key future driver
Deal Wins & Hiring Trends
Deal Pipeline Strong: Mega and large deal pipeline growing
Hiring:
15,000+ freshers in FY25, 20,000+ planned for FY26
Attrition at 13.7% (one of the lowest in recent years)
Compensation hikes: 6-8% in India, low single digits abroad
Management Commentary & Outlook
US and Europe demand improving in Financial Services & Retail
AI & digital transformation investments increasing
Margins expected to stay stable despite wage hikes
Short-term headwinds: Furloughs, some industry slowdowns
Here’s a comparison of Infosys’ financial performance over the last three quarters (Q3, Q2, and Q1 of FY25):
| Financial Metric | Q3 FY25 (Dec 2024) | Q2 FY25 (Sep 2024) | Q1 FY25 (Jun 2024) |
|---|---|---|---|
| Revenue Growth (QoQ) | 1.7% | 2.3% | 1.4% |
| Revenue Growth (YoY) | 6.1% | 5.5% | 4.2% |
| Operating Margin | 21.3% | 21.1% | 20.8% |
| Net Profit Growth (YoY) | Not disclosed | 10.2% | 8.6% |
| Large Deal Wins (TCV) | ₹20,750 crore | ₹19,100 crore | ₹17,430 crore |
| Net Employee Additions | 5,600 | 4,200 | Decline |
| Attrition Rate | 13.7% | 13.9% | 14.2% |
| Free Cash Flow | ₹10,460 crore | ₹6,890 crore | ₹9,130 crore |
| Total Headcount | 323,000+ | 317,400 | 313,200 |
Recent updates:
Highlights from last con call:
Financial Highlights
Revenue Growth: 1.7% QoQ, 6.1% YoY (constant currency)
Operating Margin: 21.3% (+20 bps QoQ, +80 bps YoY)
Net Profit: Not explicitly mentioned in transcript, but EPS grew 11.4% YoY
Large Deal Wins: $2.5 billion, 63% net new (up 57% QoQ)
Free Cash Flow: $1.26 billion (highest ever), conversion at 136% of net profit
Headcount: 323,000+ employees, added 5,600 in Q3