Infosys Optimistic About FY25 Revenue Growth

BENGALURU: In a significant update, Infosys has revised its revenue forecast upwards for the fourth consecutive quarter, projecting a growth of 4.5-5% for the 2024-25 financial year. This adjustment reflects a brighter demand outlook, particularly in the banking and financial services sector, alongside easing pressures on discretionary spending as clients increase their investments.

Despite the positive revision, the market's reaction was lukewarm, with Infosys's stock price dropping nearly 6% in early trading on the NYSE. The company had previously adjusted its forecast to 3.75% to 4.5% growth in constant currency for the September quarter, marking an improvement from the June quarter's guidance of 3% to 4%.

CEO Salil Parekh on Revenue Growth

Infosys CEO Salil Parekh highlighted the strong performance in the US financial services sector and the revival in European financial services as key drivers behind the optimistic outlook. "The improvement in the retail and consumer sectors in the US, coupled with our delivery performance this quarter, underpins our decision to increase the guidance," Parekh stated during the earnings press conference.

Infosys's revenue saw a 6.1% year-on-year growth in constant currency in the December quarter, with a sequential growth of 1.7%. Comparatively, TCS and HCL reported year-on-year revenue growths of 4.5% and 4.1%, respectively. The company also added 5,591 employees in Q3, bringing the total employee count to 323,379.