Zinger Key Points
- Infosys Q1 revenue rose 2.5% in CC terms to $4.71B, beating estimates.
- Infosys' EPS hit $0.18, aligning with estimates. FCF reached $1.09B, up 56.5% YoY, with $1.97B in cash and equivalents.
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Infosys Ltd (NYSE: INFY) reported first-quarter revenue growth of 2.5% in constant currency terms year-on-year to $4.71 billion, beating the analyst consensus estimate of $4.65 billion. The stock price gained after the print.
Revenues in constant currency terms increased by 3.6% quarter over quarter. EPS of $0.18 is in line with the Street analyst estimate and up from $0.17 a year ago.
Infosys said the number of large deal wins was highest ever at 34, with TCV of $4.1 billion, 57.6% being net new. The operating margin improved by 30 bps to 21.1%.
Infosys held $1.97 billion in cash and equivalents as of June-end. It generated a free cash flow of $1.09 billion, which grew 56.5% year-over-year at a conversion of 143.2% of net profit.
Jayesh Sanghrajka, CFO, said, “We had the highest ever FCF generation at $1.1 bn and ROE increased to 33.6% due to higher payouts to investors.”
FY25 Revenue Outlook: Infosys expects revenue growth of 3.0%-4.0% (prior 1.0% – 3.0%) in constant currency vs. consensus $19.04 billion. The company reiterated its operating margin outlook of 20% – 22%.
Price Action: INFY shares traded higher by 4.92% at $21.54 in the premarket on the last check Thursday.
Image: Shutterstock/ IgorGolovniov
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