IT major Infosys Ltd on Thursday revised its FY25 revenue guidance to 4.5- 5.0 per cent in constant currency from an earlier 3.75-4.5 per cent. It, however, maintained an operating margin of 20- 22 per cent.
Earlier, brokerage firms had estimated that Infosys will revise or upgrade its FY25 revenue growth guidance to 4.25–4.75 per cent in constant currency (CC) YoY from 3.75-4.5 per cent. They largely saw margin guidance to be maintained at 20–22 per cent.
Another poll had projected FY25 revenue guidance to be upgraded to 4.0-4.75 per cent YoY growth, with EBIT margin guidance remaining intact at 20-22 per cent.
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This is the eighth adjustment in growth guidance in nine quarters. This comes amid a challenging demand environment, although opportunities in generative AI and cost-optimization initiatives may provide catalysts for recovery.
Earlier in October as well, Infosys had revised its constant currency revenue growth guidance between 3.75 per cent to 4.5 per cent. This was higher than its earlier guidance of 3 per cent to 4 per cent. The IT major had raised its guidance in the June quarter from the 1 per cent to 3 per cent range it started the year with.
During the same time, Infosys had maintained its margin guidance for the full year. It said that the company expected EBIT margins for financial year 2025 to be between 20 per cent to 22 per cent.
The IT major also released its fiscal third quarter earnings report with profit at Rs 6806 crore, posting a growth of 11.46 per cent on-year, surpassing estimates. It posted revenue from operations at Rs 41,764 crore, up 7.58 per cent in comparison to Rs 38,821 crore posted during the third quarter of FY24.
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