BENGALURU: Infosys revised its revenue forecast upwards for the fourth straight quarter to 4.5-5% for the 2024-25 financial year. This signals a better demand outlook in its mainstay business – banking and financial services – and pressures on discretionary spending easing, with clients opening up their wallets. However, the street didn’t cheer Infosys’s Q3 scorecard – its stock price dropped nearly 6% in early trade on the NYSE.
Infosys revised its forecast to 3.75% to 4.5% growth in constant currency in the September quarter, an improvement from the June quarter’s guidance of 3% to 4%.
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It raised the revenue projection from the 1% to 3% it called out in the March quarter. Infosys’s revenue grew 6.1% year-on-year in constant currency (which discounts the impact of currency fluctuations) in the December quarter, and 1.7% sequentially. In comparison, TCS’s revenue grew 4.5% year-on-year, while HCL’s registered a topline growth of 4.1% during the same period.
“Financial services in the US continue to grow strongly this quarter. Over the past few quarters, we saw a revival in the European financial services business. During the Dec quarter, we are seeing an improvement in the retail and consumer sectors in the US, with discretionary pressures easing. This, coupled with how we delivered in the quarter, was the reason why we increased the guidance,” Infosys CEO Salil Parekh said in the earnings press conference. Infosys’s margin grew a mere 0.8% year-on-year to 21.3% while it remained flat sequentially. Infosys added 5,591 employees in Q3, taking the employee count to 323,379