Infosys Q4 Results: FY25 revenue growth seen between 1% and 3%; Deal wins at $4.5 billion

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Infosys Ltd. expects revenue growth for the financial year 2025 to be between 1% and 3%. A CNBC-TV18 poll of analysts had expected the company to guide for revenue growth to be between 2% and 6% for the current financial year.

For the financial year 2025, Infosys guided for EBIT margin to be in the range of 20% to 22%.

The technology services giant reported a US Dollar revenue decline of 2.1% in constant currency terms. This was lower than the 0.3% decline that the CNBC-TV18 poll had projected. In constant currency terms, revenue declined by 2.2% sequentially, better than the 0.5% decline projected in the analyst survey.

Infosys reported US Dollar revenue of $4,564 million, compared to a CNBC-TV18 poll of $4,650 million.

This is the second consecutive quarterly decline in revenue for Infosys, after the 1% drop in the December quarter.

In Rupee terms, revenue for the quarter stood at ₹37,923 crore, which was lower by 2.3% sequentially, and lower than the ₹38,640 crore estimate.

EBIT margin narrowed by 40 basis points to 20.1% from 20.5% in the December quarter and 60 basis points lower than the CNBC-TV18 poll of 20.7%.

Net profit for the quarter stood at ₹7,975 crore, which was higher by 30% compared to the December quarter, and also higher than the CNBC-TV18 poll estimate of ₹6,180 crore. The profit was aided by an other income component, which stood at ₹2,789 crore, compared to a ₹789 crore figure in the October-December period. This includes the ₹1,916 crore refund it received from the income tax department.

The attrition rate during the quarter stood at 12.6% from 12.9% during the December quarter.

Infosys’ management said that the large deals the company won in financial year 2024, will help them in the new financial year.

For the BFSI segment, MD & CEO Salil Parekh said that he sees the segment doing better in the current financial year compared to the previous one. The BFSI segment contributed 26.4% to Infosys’ topline in the March quarter. Parekh also mentioned that the manufacturing segment may see lower growth this year. The manufacturing segment had a 14% contributing to the March quarter revenue.

Shares of Infosys had ended 1% higher on Thursday at ₹1,429 ahead of the company’s results. The stock has declined nearly 9% over the last month. US-listed shares of Infosys are down 7.5% in pre-open trading.

Track Infosys Q4 results live updates here 

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow