Results - Analysis

18-Apr-2025, 05:13
On consolidated basis

Quarter ended March 2025 compared with Quarter ended December 2024.

Net sales (including other operating income) of Infosys has declined 2.01% to Rs 40925 crore.  

Operating profit margin has declined from 24.22% to 24.13%, leading to 2.38% decline in operating profit to Rs 9,874.00 crore.  Employee cost increased from 51.33% to 53.79%.   Other expenses fell from 24.45% to 22.08%.   Selling and administration expenses fell from 2.53% to 2.37%.   Software technology development services cost fell from 18.94% to 17.53%.   

Other income rose 38.53% to Rs 1190 crore.  PBIDT rose 0.82% to Rs 11064 crore.  Provision for interest rose 0.99% to Rs 102 crore.  Loan funds rose to Rs 8,227.00 crore as of 31 March 2025 from Rs 8,221.00 crore as of 31 December 2024.  Sundry debtors were lower at Rs 31,158.00 crore as of 31 March 2025 compared to Rs 33,358.00 crore as of 31 December 2024.  Cash and bank balance rose to Rs 24,455.00 crore as of 31 March 2025 from Rs 22,804.00 crore as of 31 December 2024.  Investments rose to Rs 23,541.00 crore as of 31 March 2025 from Rs 17,443.00 crore as of 31 December 2024 .  

PBDT rose 0.82% to Rs 10962 crore.  Provision for depreciation rose 7.98% to Rs 1299 crore.  Fixed assets increased to Rs 18,903.00 crore as of 31 March 2025 from Rs 18,692.00 crore as of 31 December 2024.  Intangible assets declined from Rs 12,918.00 crore to Rs 12,872.00 crore.  

Profit before tax down 0.07% to Rs 9,663.00 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 2625 crore, compared to Rs 2848 crore.  Effective tax rate was 27.17% compared to 29.45%.

Minority interest decreased 68.75% to Rs 5.00 crore.  Net profit attributable to owners of the company increased 3.34% to Rs 7,033.00 crore.  

Equity capital increased from Rs 2,072.00 crore as of 31 December 2024 to Rs 2,073.00 crore as of 31 March 2025.  Per share face Value remained same at Rs 5.00.  

Promoters' stake was 13.05% as of 31 March 2025 ,compared to 13.05% as of 31 December 2024 .  

Quarter ended March 2025 compared with Quarter ended March 2024.

Net sales (including other operating income) of Infosys has increased 7.92% to Rs 40925 crore.  

Operating profit margin has jumped from 23.16% to 24.13%, leading to 12.41% rise in operating profit to Rs 9,874.00 crore.  Employee cost increased from 53.77% to 53.79%.   Other expenses fell from 23.06% to 22.08%.   Selling and administration expenses fell from 2.92% to 2.37%.   Software technology development services cost fell from 17.55% to 17.53%.   

Other income fell 56.39% to Rs 1190 crore.  PBIDT fell 3.90% to Rs 11064 crore.  Provision for interest fell 7.27% to Rs 102 crore.  Loan funds declined from Rs 8,359.00 crore as of 31 March 2024 to Rs 8,227.00 crore as of 31 March 2025.  Sundry debtors were higher at Rs 31,158.00 crore as of 31 March 2025 compared to Rs 30,193.00 crore as of 31 March 2024.  Cash and bank balance rose to Rs 24,455.00 crore as of 31 March 2025 from Rs 14,786.00 crore as of 31 March 2024.  Investments declined from Rs 24,623.00 crore as of 31 March 2024 to Rs 23,541.00 crore as of 31 March 2025.  

PBDT fell 3.87% to Rs 10962 crore.  Provision for depreciation rose 11.69% to Rs 1299 crore.  Fixed assets declined from Rs 19,215.00 crore as of 31 March 2024 to Rs 18,903.00 crore as of 31 March 2025.  Intangible assets increased from Rs 8,700.00 crore to Rs 12,872.00 crore.  

Profit before tax down 5.63% to Rs 9,663.00 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 2625 crore, compared to Rs 2265 crore.  Effective tax rate was 27.17% compared to 22.12%.

Minority interest decreased 16.67% to Rs 5.00 crore.  Net profit attributable to owners of the company decreased 11.75% to Rs 7,033.00 crore.  

Equity capital increased from Rs 2,071.00 crore as of 31 March 2024 to Rs 2,073.00 crore as of 31 March 2025.  Per share face Value remained same at Rs 5.00.  

Promoters' stake was 13.05% as of 31 March 2025 ,compared to 13.14% as of 31 March 2024 .  

Full year results analysis.

Net sales (including other operating income) of Infosys has increased 6.06% to Rs 162990 crore.  

Operating profit margin has jumped from 23.70% to 24.07%, leading to 7.72% rise in operating profit to Rs 39,236.00 crore.  Employee cost decreased from 53.76% to 52.73%.   Other expenses rose from 22.53% to 23.19%.   Selling and administration expenses fell from 2.71% to 2.56%.   Software technology development services cost rose from 16.75% to 17.70%.   

Other income fell 23.58% to Rs 3600 crore.  PBIDT rose 4.13% to Rs 42836 crore.  Provision for interest fell 11.49% to Rs 416 crore.  Loan funds declined from Rs 8,359.00 crore as of 31 March 2024 to Rs 8,227.00 crore as of 31 March 2025.  Sundry debtors were higher at Rs 31,158.00 crore as of 31 March 2025 compared to Rs 30,193.00 crore as of 31 March 2024.  Cash and bank balance rose to Rs 24,455.00 crore as of 31 March 2025 from Rs 14,786.00 crore as of 31 March 2024.  Investments declined from Rs 24,623.00 crore as of 31 March 2024 to Rs 23,541.00 crore as of 31 March 2025.  

PBDT rose 4.31% to Rs 42420 crore.  Provision for depreciation rose 2.86% to Rs 4812 crore.  Fixed assets declined from Rs 19,215.00 crore as of 31 March 2024 to Rs 18,903.00 crore as of 31 March 2025.  Intangible assets increased from Rs 8,700.00 crore to Rs 12,872.00 crore.  

Profit before tax grew 4.50% to Rs 37,608.00 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 10858 crore, compared to Rs 9740 crore.  Effective tax rate was 28.87% compared to 27.06%.

Minority interest increased 146.67% to Rs 37.00 crore.  Net profit attributable to owners of the company increased 1.83% to Rs 26,713.00 crore.  

Equity capital increased from Rs 2,071.00 crore as of 31 March 2024 to Rs 2,073.00 crore as of 31 March 2025.  Per share face Value remained same at Rs 5.00.  

Promoters' stake was 13.05% as of 31 March 2025 ,compared to 13.14% as of 31 March 2024 .  

Cash flow from operating activities increased to Rs 35,694.00 crore for year ended March 2025 from Rs 25,210.00 crore for year ended March 2024.  Cash flow used in acquiring fixed assets during the year ended March 2025 stood at Rs 2,237.00 crore, compared to Rs 2,201.00 crore during the year ended March 2024.  

Guidance for FY25:

 

Revenue growth guidance for FY2026 in the range of 0-3% in constant currency terms.

EBIT margin guidance for the FY2026 in the range of 20-22%.

 

 

Deals: The company signed 24 large deals to the tune of TCV US $2.6 billion in Q4FY2025 with 63.4% being net new.

For FY2025, the company signed 96 deals of which 56.5% were net new.

 

Dividend: The board has recommended final dividend of Rs 22 for FY2025.

 

Management commentary:

Commenting on the performance Mr Salil Parekh, CEO & MD said: 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 added 'Our depth in AI, cloud and digital and strength in cost efficiency, automation, and consolidation position us well for the needs of our clients'.

Mr Jayesh Sanghrajka 'CFO said: 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,'

He further added The Board has proposed a final dividend of `22, which along with the interim dividend, is an increase of 13.2% over last year.

Infosys : Consolidated Results

Quarter ended Year ended Particulars 202503 202403 Var.(%) 202503 202403 Var.(%) Net Sales (including other operating income) 40,925.00 37,923.00 7.92 162,990.00 153,670.00 6.06 OPM (%) 24.13 23.16 96 bps 24.07 23.70 37 bps OP 9,874.00 8,784.00 12.41 39,236.00 36,425.00 7.72 Other Inc. 1,190.00 2,729.00 -56.39 3,600.00 4,711.00 -23.58 PBIDT 11,064.00 11,513.00 -3.90 42,836.00 41,136.00 4.13 Interest 102.00 110.00 -7.27 416.00 470.00 -11.49 PBDT 10,962.00 11,403.00 -3.87 42,420.00 40,666.00 4.31 Depreciation 1299 1163 11.69 4812 4678 2.86 PBT 9,663.00 10,240.00 -5.63 37608 35988 4.50 Share of Profit/(Loss) from Associates 0 0 - 0 0 - PBT before EO 9663 10240 -5.63 37608 35988 4.50 EO Income 0 0 - 0 0 - PBT after EO 9663 10240 -5.63 37608 35988 4.50 Taxation 2625 2265 15.89 10858 9740 11.48 PAT 7038 7975 -11.75 26750 26248 1.91 Minority Interest (MI) 5 6 -16.67 37 15 146.67 Net profit 7033 7969 -11.75 26713 26233 1.83 P/(L) from discontinued operations net of tax 0 0 - 0 0 - Net profit after discontinued operations 7033 7969 -11.75 26713 26233 1.83 EPS (Rs)* 16.93 19.19 -11.75 64.32 63.16 1.83 * EPS is on current equity of Rs 2,076.63 crore, Face value of Rs 5, Excluding extraordinary items. # EPS is not annualised bps : Basis points EO : Extraordinary items Figures in Rs crore Source: Capitaline Corporate Database

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