Infosys Q3 Results FY25: Net Profit Jumps 11.46% YoY to ₹6,806 Crore
Infosys, India’s second-largest IT services provider, announced its financial results for the third quarter of FY25 on January 16, 2025. The company reported an 11.46% year-on-year increase in consolidated net profit, which rose to ₹6,806 crore from ₹6,106 crore in the same quarter last year. Sequentially, the net profit showed a 4.61% rise from the previous quarter.
Revenue Performance
The company’s revenue from operations for the quarter stood at ₹41,764 crore, registering a 7.58% growth year-on-year compared to ₹38,821 crore in Q3 FY24. Sequentially, the revenue rose by 1.89% from ₹40,986 crore reported in Q2 FY25. This robust revenue performance highlights Infy’s ability to adapt to market demands and sustain growth amid global economic challenges.
Market Reaction
Ahead of the earnings announcement, Infy shares closed at ₹1,920 per share on the National Stock Exchange (NSE), reflecting a 1.52% decline from the previous day’s close. Despite the dip, the company’s market capitalization remained strong at approximately ₹8,03,900 crore.
Q2 FY25 Highlights
In the previous quarter, Infosys posted a consolidated net profit of ₹6,506 crore, marking a 5% year-on-year increase. Revenue from operations for Q2 FY25 was ₹40,986 crore, reflecting a 5% rise from the same period last year. The company had also declared an interim dividend of ₹21 per share, which was paid out in November 2024.
Analysts’ Projections vs. Actual Results
For Q3 FY25, market analysts had projected revenue growth of 5% to 6% year-on-year, estimating it to range between ₹41,150 crore and ₹41,250 crore. Net profit was expected to grow by 9% to 10%, reaching around ₹6,680 crore to ₹6,770 crore. Infosys’s actual results surpassed these expectations, underlining its strong performance during the quarter.
Key Operational Updates
Infosys continues to leverage its expertise in digital transformation, cloud computing, and automation to meet global client demands. The company has consistently expanded its portfolio with innovative solutions and services, ensuring it remains a key player in the IT sector. It also focuses on enhancing operational efficiencies, which have contributed significantly to its bottom-line growth.
Board of Directors
The Infosys Board of Directors, led by Chairman Nandan Nilekani, plays a crucial role in shaping the company’s strategic direction. CEO and Managing Director Salil Parekh has been instrumental in driving the company’s growth initiatives, supported by a team of experienced independent directors and senior executives.
Subsidiary Contributions
Infosys’s subsidiaries, including EdgeVerve Systems, Infosys BPM, and Infosys Consulting, have contributed significantly to its revenue and profitability. These entities focus on specialized services such as business process management, software development, and consulting, complementing Infosys’s core operations.
Stock Performance
During the trading session on January 16, Infosys shares traded in the range of ₹1,941 to ₹1,966. Despite a slight dip in share price ahead of the results, the stock remains a key performer in the IT sector, reflecting investor confidence in the company’s long-term growth potential.
Future Outlook
Infosys continues to focus on expanding its presence in emerging technologies and strengthening its global delivery capabilities. The company is well-positioned to capitalize on opportunities in digital transformation and IT modernization across various industries. Its strong financials and strategic initiatives indicate a positive outlook for the coming quarters.
Investor Engagement
Following the results announcement, Infosys management has scheduled an investor and analyst call to discuss the financial performance and future plans. This engagement aims to provide transparency and foster investor confidence.
Conclusion
Infosys’s Q3 FY25 results showcase its resilience and adaptability in a competitive market. The double-digit growth in net profit and consistent revenue increase reflect its robust business model and strategic focus. As the company continues to innovate and expand, it remains a key player in the global IT services industry.
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