Infosys Q1 net profit jumps 7.1% at ₹6,386 cr

Infosys, the country’s second-biggest IT company, saw a 7.1 percent rise in net profit at ₹6,368 crore for the quarter ended June of the current financial year, against the same period of the previous fiscal of 2023-24. In a regulatory filing, the company stated that its revenue from operations had increased by 3.6 percent to ₹39,315 crore in the first quarter.

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The IT major has also revised its revenue growth guidance upwards to 3-4% for the financial year 2024-25. Besides, Infosys has retained its EBIT (earnings before interest and tax) margin guidance at 20-22% for the current fiscal.

On a high note, Infosys sealed 34 large deals during the quarter — highest-ever with a total contract value of $4.1 billion. Of these, as much as 57.6 percent were net new.

“We have had an excellent start to FY25 with strong and broad-based growth, operating margin expansion, robust large deals, and the highest ever cash generation. This attests to our differentiated service offerings, enormous client trust, and relentless execution,” said Salil Parekh, chief executive officer of Infosys. “Focused on the enterprise, the generative AI approach is finding strong traction with clients. This builds on our Topaz and Cobalt capabilities.”

While the company headcount has also declined for the sixth consecutive quarter, shedding 1,908 employees in Q1 to bring its total headcount to 315,332.

Geographically, Infosys performed mixed. The company’s business in India increased slightly by 0.9 percent, contributing 3.1 percent to total revenues. North American revenues declined by 0.7 percent and contributed 58.9 percent to total revenues. contribution of Europe fell marginally by 0.2 percent from 28.6 percent to 28.4 percent.

In general, Infosys has expressed resilience and strategic growth despite a challenging economic environment by harnessing strong client relationships and new innovative solutions as the drivers of performance.