Infosys Q1 FY 25 results
: Infosys announced its financial results for the first quarter of the fiscal year 2024-25 on Thursday. The company reported a consolidated
Profit After Tax
(PAT) of Rs 6,368 crore for the quarter that ended on June 30, 2024. This is a 7.1% growth compared to the PAT of Rs 5,945 crore reported in the corresponding quarter of the previous year.
The company’s revenue from operations for the quarter amounted to Rs 39,315 crore, showing a 3.6% increase from Rs 37,933 crore in the same quarter of the prior financial year.
Despite the year-on-year growth, the consolidated net profit experienced a 20.1% decline on a sequential basis compared to the Rs 7,975 crore reported in the fourth quarter of the fiscal year 2024.
In terms of quarter-on-quarter performance, Infosys’ revenue witnessed a 3.7% increase compared to the Rs 37,923 crore reported in the January-March quarter.
The company’s filing also provided guidance for the current financial year, stating that an operating margin of 20-22% is anticipated. Infosys has revised its revenue growth forecast for the financial year 2025 to 3%-4%, an increase from its previous projection of 1%-3%.
According to Reuters, the majority of analysts had anticipated that Infosys would maintain its prior revenue forecast, as they consider top line numbers to be an indicator of demand for IT services. The company’s results followed positive performances from its larger competitors, Tata Consultancy Services and HCLTech, raising optimism for the $254 billion sector, which has been grappling with slow demand following a post-pandemic surge.
In recent quarters, IT clients have reduced their spending on non-essential projects due to economic uncertainty and higher interest rates. However, analysts anticipate a change in this trend once the US Federal Reserve lowers interest rates and the outcome of the country’s election is determined.
