Infosys gains 3% after Q4 results; Check earnings, outlook, analysts' call

Shares of Infosys rose over 3 per cent on Monday after the information technology (IT) major reported a 3 per cent sequential increase in its net profit for the fourth quarter of the previous financial year (FY25). 

 

Infosys' stock rose as much as 3.04 per cent during the day to ₹1,462.7 per share, the biggest intraday gain since January 29 this year. The stock pared gains to trade 1.9 per cent higher at ₹1,448 apiece, compared to a 0.72 per cent advance in Nifty50 as of 9:45 AM. 

 

Infosys Shares extended gains to their second day on Monday. The stock has fallen 23 per cent this year, compared to a 1.5 per cent advance in the benchmark Nifty50. Infosys has a total market capitalisation of ₹6.01 trillion. 

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Infosys Q4FY25 results: Key numbers here:

 

Infosys' revenue fell 2 per cent to ₹40,925 crore sequentially, missing estimates tracked by Business Standard. In the third quarter, Infosys posted a revenue of ₹41,764 crore. 

 

On the profit front, Infosys reported a 3 per cent increase to ₹7,033 crore in the March quarter, compared to ₹6,806 crore in the previous three months. Margins in the quarter in review dipped sequentially to 21 per cent, from 21.3 per cent last quarter. 

 

For the full year, the net profit and revenue were up 1.8 per cent and 6.1 per cent, respectively. 

 

Infosys growth outlook 

 

Infosys said it expected revenue growth for this financial year to be flat at 3 per cent on a constant currency basis, even as clients across verticals pulled back on discretionary spending.

 

“The environment is uncertain and clients are already seeing pressure on their budgets,” Chief Executive Officer Salil Parekh said at a press conference. “While we have not seen any project cancellations, we are giving this guidance while keeping in mind how things might unfold.”

 

Infosys revenue breakdown

 

Infosys’ revenue from financial services was up 12.6 per cent year-on-year (Y-o-Y) on a constant currency basis, while manufacturing was up 14 per cent. Retail was down 2.6 per cent in the comparable period.

 

Business from North America declined 0.4 per cent, but Europe came as a shot in the arm, growing 15 per cent. Overall, India's business grew 43.7 per cent Y-o-Y. Operating margins for the fourth quarter were 21 per cent, an increase of 0.9 per cent Y-o-Y. 

 

Result analysis: Nuvama on Infosys Q4FY25

 

The brokerage expects the demand environment to remain challenging for the next one to two quarters due to macro uncertainty. "We remain positive on the sector from a medium-to-long term perspective, as technology debt continues to be very high for enterprises, which will warrant revival in spending as macro improves," it said in a note. 

 

Result analysis: Centrum on Infosys Q4FY25

 

The near-term demand outlook remains mixed, with weakness expected across sectors like communications, High-tech and Retail due to macro and tariff concerns, Centrum Research said in a note. Manufacturing is going to see cautious spending, and financial services are expected to grow in the AI and regulatory space, it said. "Discretionary spending remains under pressure, but medium-term visibility is stable." 

 

About Infosys

 

Infosys Limited is a multinational information technology company founded in Pune on July 2, 1981, and its headquarters are located in Bangalore. This company provides services like outsourcing, business consulting and information technology. 

 

The company provides various software development services and independent validation services to companies in different domains like finance, manufacturing, insurance and other domains.