Infosys, a leading player in the information technology sector, reported a significant decline in its consolidated net profit for the quarter ending March 2025, marking an 11.74% decrease year-on-year (YoY) to ₹7,033 crore, compared to ₹7,969 crore during the same period last year. Despite this drop, the company saw a sequential increase of 3.33% in net profit from the previous quarter.
On April 17, 2025, Infosys announced its financial results for the fourth quarter and the fiscal year ended March 31, 2025, amidst a challenging macroeconomic environment. The company's revenue from operations rose by 7.91% YoY to ₹40,925 crore, although it experienced a sequential decline of 2% from the prior quarter.
In a statement, Salil Parekh, CEO and Managing Director of Infosys, highlighted the company’s resilience and focus on client-centricity. "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," he said.
Infosys’ Chief Financial Officer, Jayesh Sanghrajka, also commented on the company’s financial health, noting that operating margins expanded by 0.5% during FY25. He stated, "We delivered the highest ever free cash flows in the history of the company in FY25. The Board has proposed a final dividend of ₹22, which along with the interim dividend, is an increase of 13.2% over last year." The Board has set the record date for the dividend and the Annual General Meeting as May 30, 2025, with the dividend payout scheduled for June 30, 2025.
As of March 31, 2024, Infosys employed 323,578 individuals, reflecting a 1.99% increase from 317,240 in the previous year. Sequentially, the employee count rose by 0.06%, indicating the company's commitment to maintaining a robust workforce.
In a significant strategic move, Infosys announced its intention to acquire MRE Consulting Ltd., a firm specializing in technology and business consulting services. This acquisition is expected to enhance Infosys’ capabilities in trading and risk management, particularly in the energy sector.
In the context of the broader market, Infosys shares have faced considerable volatility. As of April 17, 2025, the stock was down 25% for the year, reflecting investor concerns over the revival of client demand amid macroeconomic challenges. The shares opened at ₹1,404.85, dipping to an intraday low of ₹1,378.60 before closing at ₹1,428.10, up ₹15.10 or 1.07%.
Analysts had projected a challenging quarter for Infosys, with expectations of a 15-18% YoY decline in net profit due to rising wage costs and a projected revenue decline of 0.4% to ₹41,617 crore compared to the previous quarter. In dollar terms, revenue is anticipated to dip 1.6% to $4,861 million from $4,939 million quarter-on-quarter.
Market analysts have been closely monitoring Infosys’ performance, particularly in light of recent developments in U.S. trade policy. The imposition of tariffs by the U.S. government has raised concerns about the impact on businesses operating in key markets, including Infosys. The company’s shares, along with those of other IT firms, have been adversely affected by these macroeconomic factors.
Looking forward, analysts from Nomura India expect Infosys to provide guidance for 2-5% YoY sales growth in constant currency terms, with stable EBIT margins of 20-22%. Other firms, such as IDBI Capital and Choice Broking, have also projected declines in net profit for the upcoming quarter, reflecting the cautious sentiment surrounding the IT sector.
Motilal Oswal anticipates that Infosys will issue a revenue growth guidance range of 2.5% to 5% for FY26, with operating margins expected to remain within the 20% to 22% range. The company’s performance will be further evaluated during a 60-minute conference call scheduled for later in the day, where senior management will discuss results and address questions from investors and analysts.
As the financial landscape continues to evolve, Infosys remains focused on leveraging its strengths in artificial intelligence, cloud, and digital services to meet client needs. The company’s commitment to efficiency and innovation is expected to play a crucial role in navigating the challenges ahead.
In summary, while Infosys has faced a decline in net profits and shares, its strategic initiatives, including acquisitions and a focus on operational efficiency, position the company to adapt to a fluctuating market. Investors will be keenly awaiting further insights from the company’s management regarding future performance and strategies in the upcoming fiscal year.
