PR Newswire
Infosys: Strong growth of 6.1% YoY in CC, 80 bps YoY operating margin expansion
PR Newswire
14 min read

In This Article:

  • Large deal TCV of $2.5 billion including 63% net new; Headcount increased by 5,591

  • FY25 revenue guidance revised to 4.5%-5.0%

BENGALURU, India, Jan. 16, 2025 /PRNewswire/ -- Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY), a global leader in next-generation digital services and consulting, delivered strong and broad-based performance with $4,939 million in Q3 revenues, growth of 1.7% sequentially and 6.1% year on year in constant currency. Operating margin for Q3 was at 21.3%, increase of 0.2% sequentially. Free cash flow for Q3 was highest ever at $1,263 million, growing 90% year on year. TCV of large deal wins was $2.5 billion, with 63% net new growing at 57% sequentially. Headcount increased for second consecutive quarter.

Infosys_Logo
Infosys_Logo

Revenues for YTD Dec'24 grew at 3.9% year on year in constant currency and in reported terms. Operating margin was at 21.2%, increase of 0.3% year on year.

"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," said Salil Parekh, CEO and MD. "This has led to another quarter of strong large deal wins and improved deal pipeline giving us greater confidence as we look ahead," he added.





1.7% QoQ

21.30 %

11.4% YoY

$2.5 Bn 

$1.3 Bn 

6.1% YoY 

Operating
Margin

EPS Increase 

Large Deal

Free 

 CC Growth

0.8% YoY increase

(₹ terms)

TCV

Cash Flow






Guidance for FY25:

  • Revenue growth of 4.5%-5.0% in constant currency

  • Operating margin of 20%-22%

Key highlights:

For nine months ended December 31, 2024

For the quarter ended December 31, 2024



Revenues in CC terms grew by 3.9% YoY 

Revenues in CC terms grew by 6.1% YoY and 1.7% QoQ



Reported revenues at $14,547 million, growth of 3.9% YoY 

Reported revenues at $4,939 million, growth of 5.9% YoY 



Operating margin at 21.2%, growth of 0.3% YoY 

Operating margin at 21.3%, increase of 0.8% YoY and 0.2% QoQ 



Basic EPS at $0.57, growth of 6.1% YoY 

Basic EPS at $0.19, growth of 9.6% YoY 



FCF at $3,196 million, growth of 57.1% YoY; 

FCF at $1,263 million, growth of 89.9% YoY; 

FCF conversion at 136.1% of net profit

FCF conversion at 156.6% of net profit

"We had another quarter of strong performance with revenue growth across segments and operating margin expansion, leading to 11.4% EPS growth year on year in rupee terms. Our structured approach to operating margin expansion yielded more results in Q3, particularly due to benefits from improving realization and scale benefits," said Jayesh Sanghrajka, CFO. "Our sharp focus on cash flow is reflected in Free cash conversion to net profits of 157% in Q3 with free cash generation for 9 months of FY25 surpassing that of entire FY24," he added.

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