In a significant financial update, Infosys, the renowned IT powerhouse, has reported impressive large deal wins totaling $2.6 billion in the final quarter of the fiscal year 2024-25. This remarkable achievement contributed to an annual total contract value of $11.6 billion, with a notable 56% of these contracts being newly secured agreements.
Strong Performance Amid Challenges
Salil Parekh, the CEO and Managing Director of Infosys, highlighted the company’s robust operational strategy, stating, "Our organization has become resilient, focusing intently on client needs and market agility. This success is a testament to the trust our clients place in us and the hard work of our dedicated employees." He noted that the company has seen substantial growth in revenue, operating margins, and a record high in free cash flow.
Updated Revenue Projections for FY26
Looking ahead, Infosys has adjusted its revenue growth forecast for FY26 to a range of 0%-3% in constant currency, a decrease from the earlier estimate of 4.5% to 5% projected during the previous quarter. The operating margin guidance has also been revised to 20%-22% for the current financial year.
"Our updated guidance reflects some uncertainties at the lower end," the management team explained during a recent earnings conference. "We aim to be transparent with our clients regarding what we can foresee."
Fiscal Year 2025 Highlights
For the fiscal year 2025, Infosys reported a revenue of $19,277 million, marking a 4.2% increase when adjusted for constant currency. The operating margin stood at 21.1%, showing a 0.5% year-on-year improvement. Additionally, the company achieved its highest-ever free cash flow of $4,088 million, which represents an impressive 41.8% growth compared to the previous year.
Jayesh Sanghrajka, the Chief Financial Officer, emphasized the significance of these results: "The slight expansion in our operating margins reflects our continuous commitment to enhancing efficiency and executing Project Maximus diligently, even amidst various macroeconomic challenges. We have achieved unprecedented free cash flows in FY25."
Shareholder Returns
In line with its strong financial performance, the Board of Infosys has proposed a final dividend of Rs 22, which, when combined with the interim dividend, amounts to a 13.2% increase from the previous year. This decision underscores the company’s commitment to delivering value to its shareholders.
Overall, Infosys continues to navigate the complexities of the current market landscape while maintaining a strong focus on growth and client satisfaction. The company’s strategic initiatives and fiscal discipline are paving the way for sustained success in the coming years.
