Infosys Q3 profit up 11.4 pc on demand pick-up, co raises sales forecast for 3rd time in FY25

Bengaluru, Jan 16 (PTI) Infosys Ltd, India's second-largest IT services firm, on Thursday reported 11.46 per cent rise in third quarter net profit on pick-up in demand, which also prompted the company to raise its annual sales forecast for a third time this fiscal year.

Net profit rose to Rs 6,806 crore in October-December - the third quarter of April 2024 to March 2025 fiscal (FY25), from Rs 6,106 crore a year back, the company said in a statement.

Revenue rose 7.6 per cent to Rs 41,764 crore.

Infosys raised its full-year revenue growth forecast to 4.5-5 per cent from 3.75-4.5 per cent earlier.

"What we are seeing is a clear change in the discretionary activity in financial services, in retail and consumer products, which gives us good confidence," chief executive Salil Parekh told reporters.

The banking, financial services and insurance (BFSI), which accounts for nearly a third of Infosys revenue, notched a 6.1 per cent revenue growth in the quarter, helped by a pick-up in demand in the US.

This came despite December quarter typically being a seasonally weak quarter for the IT industry due to furloughs and fewer working days.

Parekh said clients in the US, Infosys' biggest market, expect the economy to do well, giving confidence to the company.

The company added 5,591 employees during the quarter, bringing the total headcount to 3,23,379.

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." Commenting on the results, Parekh said:"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. This has led to another quarter of strong large deal wins and improved deal pipeline giving us greater confidence as we look ahead." Sanghrajka said a structured approach to operating margin expansion yielded more results in Q3, particularly due to benefits from improving realization and scale benefits. "Our sharp focus on cash flow is reflected in free cash conversion to net profits of 157 per cent in Q3 with free cash generation for 9 months of FY25 surpassing that of entire FY24." Shares of Infosys settled at Rs 1,926.20 apiece on the BSE on Thursday, 1.21 per cent lower than the previous close. PTI ANK ANZ ANU

Source: PTI