Indian tech giant Infosys Ltd announced a 4.7% increase in net profit for the quarter ended September 2024, along with a revised revenue guidance for FY25 on the back of successful mega deals. The company also declared an interim dividend and saw a rise in stock prices following the results announcement. CEO Salil Parekh credited their growth to industry expertise and market-leading capabilities, while CFO Jayesh Sanghrajka highlighted their focus on accelerating revenue growth and margin performance.
Infosys Reports 4.7% Net Profit Growth, Announces Revised Revenue Guidance
Background
Infosys, an Indian multinational IT services and consulting company, has consistently reported robust financial performance over the past few years. In recent quarters, the company has benefited from the increased demand for digital transformation and cloud services due to the COVID-19 pandemic.
Financial Performance
For the quarter ended September 2024, Infosys reported a 4.7% increase in net profit to $684 million. This growth was primarily driven by strong performance in its digital services segment. The company also announced a revised revenue guidance for the fiscal year 2025, raising it to $17.2-17.5 billion.
Management Comments
Infosys CEO Salil Parekh attributed the company's growth to its deep industry expertise and market-leading capabilities. He highlighted the success of its mega deals, which contributed significantly to the revenue growth.
CFO Jayesh Sanghrajka emphasized the company's focus on accelerating revenue growth and improving margins. He stated that Infosys is investing in strategic initiatives to strengthen its offerings and expand its client base.
Market Reaction
The announcement of Infosys' financial results was met with a positive market reaction. The company's stock price rose by over 2% in after-hours trading. Investors were encouraged by the company's strong growth prospects and its commitment to shareholder returns.
Top 5 FAQs and Answers
1. What is the main reason for Infosys' growth? Answer: Infosys' growth is driven by its strong digital services segment, expertise in emerging technologies, and successful mega deals.
2. What is Infosys' revised revenue guidance for FY25? Answer: Infosys has revised its revenue guidance for FY25 to $17.2-17.5 billion.
3. What is Infosys' focus for the future? Answer: Infosys is focused on accelerating revenue growth, improving margins, and investing in strategic initiatives to strengthen its offerings.
4. How much interim dividend has Infosys announced? Answer: Infosys has declared an interim dividend of ₹16.50 per share.
5. Why has Infosys' stock price risen? Answer: Infosys' stock price has risen due to investors' positive reaction to the company's strong financial performance and revised revenue guidance.
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