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Infosys, a leading technology company in India, reported a decrease in its fourth-quarter net profit, experiencing a decline of almost 12% to ₹7,033 crore. This figure contrasts with the ₹7,969 crore recorded in the corresponding period of the previous year. Despite this dip in net profit, the company's revenues for the quarter showed an increase, reaching ₹40,925 crore, a 7.9% rise compared to the ₹37,923 crore reported in the same quarter of the preceding year. For the entire fiscal year ending March 31, 2025, Infosys reported a revenue growth of 4.2% in constant currency (CC) terms, with reported revenues reaching ₹162,990 crore, marking a growth of 6.1% year-on-year. The company's operating margin stood at 21.1%, reflecting a growth of 0.5% year-on-year. The full fiscal year also saw a marginal increase in profits, amounting to ₹26,713 crore, representing a growth of 1.8%. These figures highlight the complex financial landscape in which Infosys operates, showcasing both challenges and opportunities for growth and stability within the competitive technology sector. The company's performance reflects a balance between revenue generation and profit management, underlining the strategic decisions and operational efficiencies implemented during the period to navigate market dynamics and maintain a strong competitive position. The results also indicate the impact of various macroeconomic factors and industry trends on the company's financial health, influencing its ability to sustain profitability and drive growth across different business segments.
During the fiscal year 2025, Infosys secured large deals amounting to $11.6 billion, with 56% attributed to net new clients. The fourth quarter alone accounted for $2.6 billion of these deals, underscoring the company's continued success in attracting and retaining clients. Salil Parekh, the CEO and MD of Infosys, emphasized the company's resilience and its sharp focus on client-centricity and responsiveness to market demands. Parekh highlighted the robustness of Infosys' performance throughout the year, citing strong revenues, expansion in operating margins, and the highest-ever free cash generation. He further emphasized the company's depth in areas such as artificial intelligence (AI), cloud computing, and digital technologies, as well as its strengths in cost efficiency, automation, and consolidation, which position it favorably to meet the evolving needs of its clients worldwide. Jayesh Sanghrajka, the CFO of Infosys, noted that the company navigated through multiple headwinds in a challenging macroeconomic environment and achieved the highest-ever free cash flows, amounting to $4.1 billion in fiscal year 2025. These statements collectively portray a picture of a company that is both adaptable and strategic, capable of overcoming challenges and capitalizing on opportunities to drive growth and maintain a competitive edge. The focus on client satisfaction, technological innovation, and operational efficiency underscores the core values and strategic priorities that underpin Infosys' success in the global technology market.
Despite the overall positive outlook, Infosys acknowledged the presence of an uncertain market environment due to ongoing macroeconomic challenges. This uncertainty has already impacted certain sectors, including consumer products. While expressing confidence in the company's ability to secure deal wins, Mr. Parekh emphasized the need to consider different market scenarios when formulating guidance. The company has provided revenue guidance for fiscal year 2026, projecting a growth rate of 0-3% in constant currency terms, with an operating margin target of 20-22%. In addition to these financial projections, Infosys has recommended a final dividend of ₹22 per equity share for fiscal year 2025. Mr. Sanghrajka elaborated that the proposed final dividend, when combined with the interim dividend, represents an increase of 13.2% over the previous year. This decision reflects the company's commitment to rewarding its shareholders and sharing its success with them. Despite facing choppy market conditions, Infosys plans to hire 20,000 freshers during fiscal year 2026, demonstrating its continued investment in talent development and its commitment to nurturing the next generation of technology professionals. In the previous fiscal year, Infosys hired 15,000 freshers, highlighting its ongoing efforts to expand its workforce and support its growth initiatives.
Infosys reported an attrition rate of 14% in the fourth quarter, indicating the ongoing challenges of talent retention in the competitive technology industry. Mr. Sanghrajka confirmed that wage hikes were on track, with increments already given in January for some employees and the remaining increments scheduled for April. This demonstrates Infosys' commitment to providing competitive compensation and benefits to its employees. In response to media queries regarding the firing of hundreds of trainees at its Mysore campus, company executives explained that they were simply following established processes that have been in place for years. These candidates were given multiple opportunities to improve their performance, and those who were unable to meet the required learning standards were supported with opportunities outside of Infosys. Furthermore, Infosys disclosed that it vested employee stock options (ESOPs) valued at approximately ₹50 crore to its CEO and MD, Salil Parekh, during fiscal year 2025, as per regulatory filings. This sum comprises annual performance-based stock incentives, including equity ESG grants in the form of Restricted Stock Units (RSUs). Finally, Infosys announced its decision to make two small acquisitions, one in the United States and another in Australia, as per regulatory filings. The company signed a definitive agreement to acquire MRE Consulting Ltd., a technology and business consulting service provider headquartered in Houston, Texas, for up to $36 million in cash. Additionally, Infosys entered into a definitive agreement to acquire The Missing Link, an Australian cybersecurity services specialist firm, for up to AUD 98 million.
These strategic acquisitions are intended to strengthen Infosys' capabilities and expand its presence in key markets. MRE Consulting brings a team of over 200 professionals with industry knowledge, consulting expertise, and deep technology experience in Energy/Commodity Trading and Risk Management (E/CTRM) platforms and ecosystems to Infosys. The acquisition is expected to close during the first quarter of fiscal year 2026. The acquisition of The Missing Link is expected to bolster Infosys' cybersecurity capabilities and enhance its presence in the fast-growing Australian market. This strategic investment reaffirms Infosys' commitment to helping global clients navigate their digital transformation journeys. Biswajit Maity, Senior Principal Analyst at Gartner, commented that Infosys reported 4.2% YoY growth in Q4 (CC), reflecting muted growth amid global economic challenges. Maity noted that Infosys, like its peers, faced headwinds from reduced client spending and geopolitical uncertainties. Despite these challenges, Maity expressed a positive outlook for Infosys, highlighting the company's resilience and its ability to adapt to changing market conditions. In conclusion, Infosys' recent performance reflects a complex interplay of factors, including macroeconomic challenges, strategic decisions, and investments in talent and technology. The company's focus on client satisfaction, innovation, and operational efficiency positions it well to navigate the evolving landscape of the global technology market and drive sustainable growth in the years to come.