Profit declined 20.4% compared to the previous quarter
MUMBAI: Infosys, the country’s second-largest player in the IT services sector, reported a profit after tax of Rs6,368 crore for the first quarter ended June of FY25, marking a 7 per cent year-on-year increase. However, the profit declined by 20.4 per cent compared to the previous quarter ending in March, yet it exceeded market expectations.
During this period, the company’s revenue rose by 3.6 per cent year-on-year to Rs 39,315 crore, with a sequential growth of 3.7 per cent, surpassing market estimates. The company’s margin for the quarter improved to 21.1 per cent.
With the exception of the US and BFSI sectors, all other business segments performed well. Europe saw a 9.1 per cent year-on-year growth, India recorded a 19.9 per cent increase, and ROW grew by 2.3 per cent. However, the US reported a decline of 1.2 per cent, and BFSI remained flat with 0.3 per cent growth, remaining subdued.
The company remains concerned about falling headcount, marking the sixth consecutive quarter of reduction. In Q1 FY23, the headcount decreased by 1,908 employees. The attrition rate marginally increased to 12.7% from 12.6% in the previous quarter.
“We had an excellent start to FY25 with strong and broad-based growth, expansion in operating margins, robust large deals, and the highest-ever cash generation. This is a testament to our differentiated service offerings, strong client trust, and relentless execution,” said Salil Parekh, Managing Director and Chief Executive Officer of Infosys.
