IT services major Infosys on Thursday reported 11.46 per cent increase in consolidated net profit at Rs 6,806 crore for December quarter FY25 and raised its guidance on the back of growth in financial services and manufacturing.
The company had logged a profit of Rs 6,106 crore in the corresponding period of the previous fiscal.
Revenue from operations for the quarter under review came in at Rs 41,764 crore, 7.58 per cent higher than Rs 38,821 crore in Q3 FY24.
Financial services and manufacturing contributed 27.8 per cent and 15.5 per cent, respectively to the revenue, followed by retail and energy.
In geographical terms, Infosys saw double-digit year-on-year growth in India and Europe. North America registered an annual growth of nearly 5 per cent.
“Financial services in the US continues to grow strongly in this quarter and over the past few quarters. We have seen a revival in European financial services during Q3.
“We are seeing an improvement in retail and consumer product industry in the US with discretionary pressure easing,” Infosys CEO and MD Salil Parekh said during the company’s earnings call.
For the third consecutive quarter, Infosys raised the 2024-25 fiscal year revenue guidance. It now anticipates revenue growth of 4.5 to 5 per cent in FY25, up from 3.75-4.50 per cent it had given in the previous quarter.
Operating margin guidance remained unchanged at 20-22 per cent.
“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,” Parekh said.
The company added 5,591 employees during the quarter, bringing the total headcount to 323,379.
Infosys CFO Jayesh Sanghrajka said the firm is on track to meet its hiring commitment and will hire over 15,000 staff in the current fiscal year.
“We are expecting 20,000 plus fresher hiring for FY26,” he said.
On whether a new US regime will affect the company, Sanghrajka said the company’s dependence on H1B visas has reduced.
“Over the years, our dependence on H1B visas has reduced significantly.
“First and foremost, our onsite mix has reduced significantly–we used to be in the 30 per cent range…we are now at the 24 per cent range.
“Within that, our near shore has increased significantly.
“Within the US-onsite population that we have, our H1 independent folks are now at 60 plus percentage.
“We have now built a pretty resilient model from that perspective.
“We are therefore, much more confident from where we are versus where we used to be earlier,” he said.
Earlier this week, HCLTech, a peer of Infosys, also stated that it has minimal dependence on the H1B visa.
Shares of Infosys settled at Rs 1,926.20 apiece on the BSE on Thursday, 1.21 per cent lower than the previous close.
