Infosys has announced its financial results for the third quarter of FY25, showcasing a mixed performance amid changing market dynamics. Here’s a closer look at the company’s financial metrics and operational highlights:
Infosys Revenue and Profit Metrics
- Sales: Infosys reported revenue of ₹349,150 million for the quarter ending December 2024, reflecting a 7.46% year-on-year growth from ₹324,910 million in Q3 FY24. This increase underscores steady demand across its key markets.
- PAT (Profit After Tax): Net profit stood at ₹63,580 million, witnessing a slight decline of 2.96% compared to ₹65,520 million in the previous year’s corresponding quarter.
- PBIDT (Profit Before Interest, Depreciation, and Tax): The PBIDT for this quarter declined marginally by 1.45% to ₹95,550 million, down from ₹96,960 million.
Expenses and Margins
- Interest Costs: Interest expenses dropped sharply by 39.02%, amounting to ₹500 million compared to ₹820 million in the same quarter last year.
- Depreciation: Depreciation costs decreased by 10.43% to ₹6,610 million from ₹7,380 million in Q3 FY24.
- Tax Expenses: The company’s tax outgo rose by 6.97%, reaching ₹24,860 million against ₹23,240 million in the year-ago period.
- PBIDTM (%): Operating margins dropped to 27.37%, marking a decline of 8.30% from 29.84% in the previous year’s quarter.
Key Observations
- The Other Income segment saw a steep decline of 36.73%, coming in at ₹10,010 million as compared to ₹15,820 million last year. This impacted overall profitability.
- Despite revenue growth, PBT (Profit Before Tax) saw a marginal decline of 0.36%, standing at ₹88,440 million against ₹88,760 million.
- Deferred tax adjustments significantly impacted the bottom line, with a 421.51% drop, reflecting a credit of ₹2,990 million compared to a debit of ₹930 million in Q3 FY24.
Outlook and Focus Areas
Infosys continues to focus on strengthening its capabilities in enterprise AI, digital transformation, and cloud services to drive long-term growth. While the quarterly performance reflects some pressure on margins, the company remains optimistic about its ongoing strategic initiatives and client engagements.
The Bottom Line
Infosys’ Q3 FY25 results highlight a balanced mix of revenue growth and operational challenges. As the company gears up for the next phase of growth, its focus on innovation and operational efficiency will play a pivotal role in sustaining its competitive edge in the global IT services market.
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