Infosys: Growth of 4.2% in CC, operating margin expansion of 0.5% in FY25

Canada NewsWire

BENGALURU, India, April 17, 2025

- Highest ever Free Cash Flow at $4.1 billion for FY25

- FY26 revenue guidance at 0%-3% and operating margin at 20%-22%

BENGALURU, India, April 17, 2025 /CNW/ -- Infosys (NSE: INFY), (BSE: INFY), $(INFY)$, a global leader in next-generation digital services and consulting, delivered $19,277 million in FY25 revenues, growth of 4.2% in constant currency. Operating margin was at 21.1%, expansion of 0.5% year on year. Free cash flow was the highest ever at $4,088 million, an increase of 41.8% year on year. TCV of large deal wins was $11.6 billion for the year, with 56% net new.

Q4 revenues were $4,730 million, an increase of 4.8% year on year in constant currency and 3.6% in reported terms. Operating margin was at 21.0%, an increase of 0.9% year on year.

"We have built a resilient organization with sharp focus on client-centricity and responsiveness to the market, thanks to the trust of our clients and dedication of our employees. Our performance for the year has been robust in terms of revenues, expansion in operating margins and highest ever free cash generation", said Salil Parekh, CEO and MD. "Our depth in AI, cloud and digital and strength in cost efficiency, automation, and consolidation position us well for the needs of our clients", he added.

 
4.2% FY         21.1% FY              8.3% FY        $11.6 Bn FY  $4.1 Bn FY 
 4.8% Q4         21.0% Q4              10.1% Q4       $2.6 Bn Q4   $0.9 Bn Q4 
 YoY CC Growth   Operating Margin      EPS Increase   Large Deal   Free 
                 0.5% Increase in FY   ( terms)*      TCV          Cash Flow 
 

Guidance for FY26:

   -- Revenue growth of 0%-3% in constant currency 
 
   -- Operating margin of 20%-22% 

Key highlights:

 
 For the quarter ended March 31,        For the year ended March 31, 
 2025Revenues in CC terms grew by 4.8%  2025Revenues in CC terms grew by 4.2% 
 YoY and declined                       YoYReported revenues at $19,277 
 by 3.5% QoQReported revenues at        million, growth of 3.9% 
 $4,730 million, growth of 3.6%         YoYOperating margin at 21.1%, growth 
 YoYOperating margin at 21.0%,          of 0.5% YoYBasic EPS at $0.76, decline 
 increase of 0.9% YoY and               of 0.3% YoYFCF at $4,088 million, 
 decline of 0.3% QoQBasic EPS at        growth of 41.8% YoY;FCF conversion at 
 $0.20, decline of 15.2% YoYFCF at      129.3% of net profit 
 $892 million, growth of 5.2% YoY;FCF 
 conversion at 109.6% of net profit 
 

"FY25 operating margins expanded by 0.5% which reflects our relentless focus on identifying opportunities for efficiency and executing Project Maximus with discipline, after navigating through multiple headwinds in a challenging macro environment. We delivered the highest ever free cash flows in the history of the company in FY25," said Jayesh Sanghrajka, CFO. The Board has proposed a final dividend of `22, which along with the interim dividend, is an increase of 13.2% over last year," he added.

*EPS Increase post normalization of Income Tax refunds

1. Client wins & Testimonials

   -- Infosys announced the expansion of its long-standing strategic 
      collaboration with Citizens to Propel AI-led Transformation. Michael 
      Ruttledge, Chief Information Officer, Citizens Financial Group, said, 
      "Infosys has been a key strategic collaborator in Citizens' next-gen 
      transformation program for the last five years. Together, we have not 
      only modernized our technology landscape with domain-centric, cloud 
      native platforms but also built a foundation for future growth aligned 
      with Citizens' north star technology vision without losing focus on 
      resiliency and stability." 
 
   -- Infosys announced the expansion of its collaboration with Siemens AG to 
      accelerate Siemens AG digital learning initiatives with generative AI. 
      Jenny Lin, Global Head of Learning & Growth at Siemens AG, said, "A 
      thriving learning and growth environment is essential for Siemens to 
      maintain our competitive edge and foster innovation. By providing our 
      people with the tools, resources, and support they need to continuously 
      develop their skills, we empower our people to meet the challenges of the 
      future. Infosys' expertise in digital transformation and AI is very 
      valuable in creating a more engaging and effective learning experience 
      for everyone. By leveraging GenAI on Siemens' digital learning platform 
      we can foster a culture of lifelong learning and empower our teams to 
      reach their full potential." 
 
   -- Infosys announced a strategic, long-term collaboration with Lufthansa 
      Group (LHG) and Lufthansa Systems GmbH (LSY) to accelerate digital 
      transformation and drive innovation in the aviation industry. Thomas 
      Wittmann -- CEO, Lufthansa Systems, said, "At Lufthansa Systems, we 
      champion a modular approach to solutions and collaborations, ensuring 
      adaptability and tailoring to the unique needs of each airline. This 
      principle extends perfectly to our collaboration with Infosys. By 
      combining our deep aviation expertise with Infosys's global technology 
      prowess and establishing a dedicated Global Capability Center $(GCC)$, we 
      are not only enhancing our one-stop-shop offerings but also accelerating 
      the pace of digital innovation across the aviation industry. This 
      collaboration empowers us to deliver cutting-edge solutions with greater 
      agility and scale, ultimately benefiting our airline customers with more 
      efficient, innovative, and cost-effective technologies." 
 
   -- Infosys announced a successful collaboration with LKQ Europe to adopt a 
      unified, cloud-based digital platform to streamline its HR processes 
      across 18 countries, leveraging Infosys Cobalt. David Brookfield, Vice 
      President, Human Resources, LKQ Europe, said, "Our collaboration with 
      Infosys is a crucial step in helping us harmonize and simplify our wider 
      business processes -- ultimately enabling faster delivery and better 
      service for our end customers. Through the platform, we will unify our HR 
      processes across locations to drive efficiency and enhance regulatory 
      compliance. Looking ahead, we believe this platform will empower our 
      workforce and foster a more cohesive organizational culture, enabling us 
      to continue leading the automotive aftermarket industry." 
 
   -- Infosys announced the launch of its open-source Responsible AI Toolkit 
      designed to help enterprises innovate responsibly while addressing the 
      challenges and risks associated with ethical AI adoption. Sunil Abraham, 
      Public Policy Director - Data Economy and Emerging Tech, Meta, said, "We 
      congratulate Infosys on launching an openly available Responsible AI 
      Toolkit, which will contribute to advancing safe and responsible AI 
      through open innovation. Open-source code and open datasets is essential 
      to empower a broad spectrum of AI innovators, builders, and adopters with 
      the information and tools needed to harness the advancements in ways that 
      prioritize safety, diversity, economic opportunity and benefits to all." 
 
   -- Infosys announced a strategic collaboration with Ontex Group N.V. to 
      drive their ERP transformation. Jeroen Dejonckheere, VP Business 
      Transformation, Ontex, said "We are excited to collaborate with Infosys 
      on our business transformation journey for modernising our ERP systems to 
      SAP S/4HANA. We also look forward to leveraging Infosys Topaz and embrace 
      the power of AI for our enterprise growth. This will be a significant 
      step forward for us to deliver exceptional experiences for our employees, 
      suppliers, and customers." 

2. Recognitions & Awards

Brand

   -- Recognized as one of the World's Most Ethical Companies in 2025 for the 
      fifth consecutive year by Ethisphere 
 
   -- Recognized as the Global Top Employer 2025 for the fifth consecutive year 
      by the Top Employers Institute 
 
   -- Recognized as a Top 3 IT services brand and the fastest growing IT 
      services brand globally in the Brand Finance Global 500 2025 report 
 
   -- Featured in 2025 LinkedIn's Top Companies list in India, US, and Canada 

AI and Cloud Services

   -- Positioned as a leader in The Forrester Wave$(TM)$: Application 
      Modernization and Multicloud Managed Services, Q1 2025 
 
   -- Rated as a leader in IDC MarketScape: EMEA Industry Cloud Professional 
      Services 2024-2025 Vendor Assessment 
 
   -- Recognized as leader in ISG Intelligent Automation - Services 2024 
      Provider lens(TM) study in US and Europe 
 
   -- Recognized as leader in ISG Advanced Analytics and AI Services 2024 
      Provider lens(TM) study in US and Europe 
 
   -- Recognized as leader in ISG Oracle Cloud and Technology Ecosystem 2024 
      Provider lens(TM) study in US, APAC and Europe 

Key Digital Services

   -- Positioned as a leader in The Forrester Wave(TM): Modern Application 
      Development Services, Q1 2025 
 
   -- Rated as a leader in Custom Application Development Services PEAK 
      Matrix$(R)$ Assessment 2025 by Everest Group 
 
   -- Rated as a leader in Application Management Services PEAK Matrix(R) 
      Assessment 2025 by Everest Group 
 
   -- Rated as a leader in SAP Business Application Services PEAK Matrix(R) 
      Assessment 2025 by Everest Group 
 
   -- Rated as a leader in IDC MarketScape: Worldwide SAP Implementation 
      Services 2025 Vendor Assessment 
 
   -- Rated as a leader in IDC MarketScape: Worldwide IIoT Engineering and 
      Managed Services 
 
   -- Rated as a leader in IDC MarketScape: Worldwide IIoT Consulting and 
      Integration Services 
 
   -- Recognized as a leader in HFS Horizons: Salesforce Services, 2025 
 
   -- Recognized as a leader in HFS Horizons: Generative Enterprise Services, 
      2025 
 
   -- Recognized as a leader in Cognitive & Self-Healing IT Infrastructure 
      Management Solutions 2025 by NelsonHall 
 
   -- Positioned as a leader in Constellation ShortList(TM): Cybersecurity 
      Services 
 
   -- Positioned as a leader in Constellation ShortList(TM): Innovation 
      Services and Engineering 
 
   -- Positioned as a leader in Constellation ShortList(TM): Microsoft 
      End-to-End Service Providers 
 
   -- Positioned as a leader in Constellation ShortList(TM): QA Tools for 
      NextGen Apps 
 
   -- Recognized as leader in ISG Mainframe Services 2025 Provider lens(TM) 
      study in US, Europe, and US Public Services 
 
   -- Positioned as a leader in CapioIT APAC Salesforce SI and Solutions 
      Providers Ecosystem Capture Share Report, 2025 

Industry & Solutions

   -- Recognized as a leader in HFS Horizons: Telecom Service Providers, 2025 
 
   -- Recognized as a leader in Core Banking Services 2025 by NelsonHall 
 
   -- Recognized as leader in ISG Oil & Gas Industry - Services and Solutions 
      2024 Provider lens(TM) study in Europe and North America 
 
   -- Recognized as leader in ISG Healthcare Digital Services 2024 ISG Provider 
      lens(TM) study in US 
 
   -- Recognized as leader in ISG Insurance Services 2024 Provider lens(TM) 
      study in North America, ANZ and Europe 
 
   -- Recognized as leader in ISG Telecom, Media & Entertainment Industry 
      Services 2024 Provider lens(TM) study in EMEA 
 
   -- Recognized as leader in ISG Manufacturing Industry Services 2024 Provider 
      lens(TM) study in North America and Europe 
 
   -- Recognized as leader in ISG Sustainability and ESG 2024 Provider lens(TM) 
      study in Australia, US and Europe 
 
   -- Recognized as leader in ISG Power & Utilities Services 2024 Provider 
      lens(TM) study in North America, Europe and APAC 
 
   -- Infosys Finacle received the Technology & Innovation Award under the Best 
      Solution for Trade & Supply Chain category at the TMI Awards for 
      Innovation & Excellence -- 2024 
 
   -- Infosys Finacle alongside its clients Newcastle Permanent (NP), Union 
      Bank of Philippines, and Axis Bank received recognition at the Retail 
      Banker International Asia Trailblazer Awards 2025 for Best Partnership 
      for Customer Experience (with NP), Best Open Banking Initiative (with 
      Union Bank of Philippines), and Best Strategic Partnership (with Axis 
      Bank) 
 
   -- Infosys Finacle alongside its clients Zand Bank, Emirates NBD, Union Bank 
      of Philippines, and Arab National Bank received recognition at the Global 
      Business Magazine Winners 2025 for Best Digital-First Bank UAE 2025 (Zand 
      Bank), Best Cloud-Based Core Banking Implementation Saudi Arabia 2025 
      (Emirates NBD), Best Customer Experience Innovation Philippines 2025 
      (Union Bank of Philippines), and Outstanding Digital Banking 
      Transformation Saudi Arabia 2025 (Arab National Bank) 
 
   -- Infosys Finacle recognized as a leader in the 2025 Gartner(R) Magic 
      Quadrant(TM) for Retail Core Banking Systems, Europe 
 
   -- Infosys BPM received the SSON North America Impact Awards 2025 with 
      T-Mobile in the 'Customer Centricity' category 

Read more about our Awards & Recognitions here.

About Infosys

Infosys is a global leader in next-generation digital services and consulting. Over 300,000 of our people work to amplify human potential and create the next opportunity for people, businesses and communities. We enable clients in more than 56 countries to navigate their digital transformation. With over four decades of experience in managing the systems and workings of global enterprises, we expertly steer clients, as they navigate their digital transformation powered by the cloud. We enable them with an AI-powered core, empower the business with agile digital at scale and drive continuous improvement with always-on learning through the transfer of digital skills, expertise, and ideas from our innovation ecosystem. We are deeply committed to being a well-governed, environmentally sustainable organization where diverse talent thrives in an inclusive workplace.

Visit www.infosys.com to see how Infosys (NSE, BSE, NYSE: INFY) can help your enterprise navigate your next.

Safe Harbor

Certain statements in this release concerning our future growth prospects, our future financial or operating performance, the McCamish cybersecurity incident are forward looking statements intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results or outcomes to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the execution of our business strategy, increased competition for talent, our ability to attract and retain personnel, increase in wages, investments to reskill our employees, our ability to effectively implement a hybrid working model, economic uncertainties and geo-political situations, technological disruptions and innovations such as Generative AI, the complex and evolving regulatory landscape including immigration regulation changes, our ESG vision, our capital allocation policy and expectations concerning our market position, future operations, margins, profitability, liquidity, capital resources, our corporate actions including acquisitions, the amount of any additional costs, including indemnities or damages or claims, resulting directly or indirectly from the McCamish cybersecurity incident and the outcome and effect of related litigation. Important factors that may cause actual results or outcomes to differ from those implied by the forward-looking statements are discussed in more detail in our US Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2024. These filings are available at https://www.sec.gov/. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and our reports to shareholders. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company unless it is required by law.

 
Infosys Limited and subsidiaries 
 Extracted from the Condensed Consolidated Balance 
 Sheet under IFRS as at: (Dollars in millions) 
                                                March 31, 2025  March 31, 2024 
ASSETS 
Current assets 
Cash and cash equivalents                                2,861           1,773 
Current investments                                      1,460           1,548 
Trade receivables                                        3,645           3,620 
Unbilled revenue                                         1,503           1,531 
Other current assets                                     1,890           2,250 
Total current assets                                    11,359          10,722 
Non-current assets 
Property, plant and equipment and Right-of-use 
 assets                                                  2,235           2,323 
Goodwill and other Intangible assets                     1,505           1,042 
Non-current investments                                  1,294           1,404 
Unbilled revenue                                           261             213 
Other non-current assets                                   765             819 
Total non-current assets                                 6,060           5,801 
Total assets                                            17,419          16,523 
LIABILITIES AND EQUITY 
Current liabilities 
Trade payables                                             487             474 
Unearned revenue                                           994             880 
Employee benefit obligations                               340             314 
Other current liabilities and provisions                 3,191           2,983 
Total current liabilities                                5,012           4,651 
Non-current liabilities 
Lease liabilities                                          675             767 
Other non-current liabilities                              477             500 
Total non-current liabilities                            1,152           1,267 
Total liabilities                                        6,164           5,918 
Total equity attributable to equity holders of 
 the 
 company                                                11,205          10,559 
Non-controlling interests                                   50              46 
Total equity                                            11,255          10,605 
Total liabilities and equity                            17,419          16,523 
 
 
Extracted from the Condensed Consolidated statement 
 of Comprehensive Income under IFRS for 
 (Dollars in millions except per equity share data) 
 

                   3 months       3 months       3 months       Year ended 
                   ended          ended          ended          March 31, 2024 
                   March 31,      March 31,      March 31, 
                   2025           2024           2024 
 
Revenues                   4,730          4,564         19,277          18,562 
Cost of sales              3,302          3,219         13,405          12,975 
Gross profit               1,428          1,345          5,872           5,587 
Operating 
expenses: 
  Selling and 
   marketing 
   expenses                  226            209            898             842 
  Administrative 
   expenses                  210            219            903             911 
Total operating 
 expenses                    436            428          1,801           1,753 
Operating profit             992            917          4,071           3,834 
Other income, net 
 (3) (4)                     125            315            376             512 
Profit before 
 income taxes              1,117          1,232          4,447           4,346 
Income tax 
 expense (4)                 303            273          1,285           1,177 
Net profit 
 (before minority 
 interest)                   814            959          3,162           3,169 
Net profit (after 
 minority 
 interest)                   813            958          3,158           3,167 
Basic EPS ($) (4)            0.2           0.23           0.76            0.77 
Diluted EPS ($) 
 (4)                         0.2           0.23           0.76            0.76 
 

NOTES:

   1. The above information is extracted from the audited condensed 
      consolidated Balance sheet and Statement of Comprehensive Income for the 
      quarter and year ended March 31, 2025, which have been taken on record at 
      the Board meeting held on April 17, 2025. 
 
   2. A Fact Sheet providing the operating metrics of the Company can be 
      downloaded from www.infosys.com. 
 
   3. Other income is net of Finance Cost. 
 
   4. Includes interest income (pre-tax) of $38Mn with reversal of net tax 
      provisions amounting to $12Mn in FY'25 and interest income (pre-tax) of 
      $232Mn with reversal of net tax provisions amounting to $5Mn in FY'24 on 
      account of orders received under sections 250 & 254 of the Income Tax Act, 
      1961, from the Income Tax Authorities in India for certain assessment 
      years. This has resulted in a positive impact on the consolidated Basic 
      and Diluted EPS by approximately $0.01 for the quarter and year ended 
      March 31, 2025 and $0.06 for the quarter and year ended March 31, 2024. 
 
   5. As the quarter and year ended figures are taken from the source and 
      rounded to the nearest digits, the quarter figures in this statement 
      added up to the figures reported for the previous quarter might not 
      always add up to the year ended figures reported in this statement. 

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/CONTACT:

Investor Relations: Sandeep Mahindroo , +91 80 3980 1018, Sandeep_Mahindroo@infosys.com; Media Relations: Rishi Basu, +91 80 4156 3998, Rajarshi.Basu@infosys.com, Harini Babu,+1 469 996 3516,Harini_Babu@infosys.com

Copyright CNW Group 2025 
 

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April 17, 2025 09:51 ET (13:51 GMT)