Q1 2025 Infosys Ltd Earnings Call Transcript
Key Points
- Infosys Ltd (INFY) reported a strong Q1 FY25 performance with 3.6% sequential revenue growth and 2.5% year-on-year growth in constant currency terms.
- The Financial Services segment saw a notable 7.9% growth, indicating improved client spending in North America.
- The company secured 34 large deals with a total contract value of $4.1 billion, reflecting strong client trust and market leadership.
- Operating margins expanded by 1% sequentially, driven by improved operating metrics and pricing strategies.
- Free cash flow reached an all-time high of $1.1 billion, showcasing robust cash generation capabilities.
- Despite the overall positive performance, discretionary spending remains under pressure, particularly in the retail sector.
- The company faces ongoing challenges in the high-tech vertical, which continues to show softness.
- There is uncertainty about the sustainability of the recovery in the Financial Services segment, especially given mixed macroeconomic signals.
- The impact of wage hikes and the ramp-up of large deals could pose headwinds to maintaining or improving operating margins.
- The guidance for the full financial year was revised to a modest 3% to 4% growth in constant currency, indicating cautious optimism amid market uncertainties.
Ladies and gentlemen, good day and welcome to Infosys earnings conference call. (Operator Instructions)
Please note that this conference is being recorded. I now hand the conference over to Mr. Sandeep Mahindroo, thank you, and over to you sir.
Thanks, Niraj. Hello, everyone, and welcome to Infosys earnings call for Q1 FY25. Joining us on this call is CEO and MD Mr. Salil Parekh; CFO Mr. Jayesh Sanghrajka and other members of the leadership team.
Will start the call with some remarks on the performance of the company, subsequent to which the call will be opened up for questions. Please note that anything we say which refers to our outlook for the future is a forward-looking statement, which must be read in conjunction with the risk that the company faces a full statement and explanation of these risks is available in our filings with the SEC, which can be found on www.sec.gov. I
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