Infosys Q1 results: Net profit rises 9% annually, EBIT advances 6%; company raises revenue growth guidance to 1%-3%

The Bengaluru-based company has raised its revenue growth guidance for the current financial year to 1%-3% from the earlier guidance of 0%-3% and maintained its operating margin guidance of 20%-22%.

The company's revenue in April-June period rose 7.5% YoY to ₹42,279 crore from ₹39,315 crore seen in the year-ago period. Its revenue in constant currency (CC) terms came in at $4,941 million in Q1, up 3.8% annually and 2.6% sequentially.

During the quarter, Infosys secured large deals worth $3.8 billion, with 55% being net new deals.

"Our performance in Q1 demonstrates the strength of our enterprise AI capabilities, the success in client consolidation decisions, and the dedication of our over 300,000 employees”, said Salil Parekh, CEO and MD. “Our large deal wins of $3.8 billion reflect our distinct competitive positioning and deep client relationships”, he added.

Infosys EBIT rose 6.2% annually to ₹ 8,803 crore as against ₹8,288 crore.

“Q1 performance is a clear reflection of our unwavering focus on multiple fronts, resulting in strong growth at 2.6% QoQ, resilient margins at 20.8% and EPS increase of 8.6% YoY. We continue to leverage Project Maximus to make investments in strategic priorities to drive profitable growth and enhance shareholder value," said Jayesh Sanghrajka, CFO.

Key deal wins

During the quarter, Infosys announced the extension of its strategic collaboration with Select Portfolio Servicing, Inc. (SPS) to help drive greater operational efficiency and service quality through a fully managed services offering encompassing hybrid cloud solutions, application portfolio, IT operations, IaaS, SaaS, security operations, and quality assurance.

Infosys extended its strategic collaboration with AIB to accelerate its digital transformation initiatives.

The Bengaluru-based company announced a strategic collaboration with E.ON to enable AI-powered digital workplace transformation across Europe.

Infosys Finacle announced a strategic collaboration with Bank of Sydney (BoS) to power its digital transformation with Infosys Finacle Digital Banking Suite.

Infosys revenue mix

In the first quarter of the current fiscal, Infosys earned 27.9% revenue from financial services vertical, manufacturing contributed 16.1%, energy, utilities, resources, and services segment added 13.6%, retail added 13.4% and communication contributed 12% to the revenue mix.

As far as geographies are concerned, Infosys earned 56.5% revenue from North America, 31.5% from Europe, 9.1% from the rest of the world, and 2.9% from the Indian market.

The company had a total of 1,861 active clients, with top 25 clients adding 35.2% towards the company's revenue.

Infosys had a total workforce of 3,23,788 employees with 39.1% being women employees.

Infosys shares ended 0.76% lower at ₹1,558.90 ahead of its earnings announcement.