In its Q2 FY25 earnings announcement, Infosys Ltd., the technology services bellwether, delivered strong financial results and revised its revenue growth guidance upwards, signaling confidence in continued business momentum.
Upgraded Revenue Guidance: Infosys now expects constant currency revenue growth between 3.75% and 4.5% for FY25, a significant bump from its earlier range of 3% to 4%. This is the second revision since the company started the year with an initial forecast of 1% to 3%.
Market expectations had anticipated this upgrade. Analysts at Kotak Institutional Equities and Citi predicted a guidance increase, with Citi forecasting a range of 4% to 4.5%.
Revenue in Focus: During the September quarter, Infosys achieved constant currency revenue growth of 3.1%, slightly surpassing estimates. In US dollar terms, the company’s revenue stood at $4,894 million, marking a 3.8% growth from the previous quarter. In rupee terms, revenue came in at ₹40,986 crore, aligning with estimates.
Profit Margins Steady: EBIT for the quarter stood at ₹8,649 crore, showing a sequential growth of 4.4%, though slightly below expectations. The EBIT margin of 21.1% remained steady, reflecting robust operational efficiency.
Infosys has maintained its EBIT margin guidance for FY25 at 20% to 22%, demonstrating its continued focus on profitability amidst global uncertainties.
Market Reaction: Shares of Infosys responded positively, rising 2.8% ahead of the results announcement, reflecting investor optimism around the company’s performance and outlook.
Overall, the results reflect strong execution by Infosys, with a focus on driving growth and maintaining profitability in a challenging environment. Investors and analysts alike are likely to keep a close watch on how the company sustains this momentum in the upcoming quarters.