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Infosys is a prominent Computers - Software & Consulting company, represented by the stock ticker INFY. With a substantial market capitalization of Rs. 700,072.7 Crores, Infosys Limited, alongside its subsidiaries, specializes in offering a variety of consulting, technology, outsourcing, and next-generation digital services across North America, Europe, India, and globally.
The company provides a diverse range of services including:
Additionally, Infosys offers solutions tied to Oracle, SAP, and Salesforce, focusing on the API economy and microservices, as well as its “Topaz†AI-first services.
Infosys boasts a suite of products and platforms such as:
The company serves a wide array of industries, including:
Founded in 1981 and headquartered in Bengaluru, India, Infosys was originally known as Infosys Technologies Limited before rebranding in June 2011.
With a trailing revenue of Rs. 165,126 Crores, Infosys is a profitable venture that reported a profit of Rs. 27,687 Crores over the last four quarters. The company has demonstrated impressive revenue growth of 40.1% over the past three years and distributes dividends to its investors, boasting a dividend yield of 2.91% per year, with a recent payout of Rs. 49 per share.
Updated Apr 27, 2025
Infosys faced a disappointing Q4 earnings report, prompting analysts to lower their price targets due to reduced revenue visibility.
The company reported a 12% year-on-year decline in net profit, highlighting significant challenges in maintaining profitability.
Infosys has cut its revenue growth guidance for FY26 to a cautious 0-3%, indicating concerns about macroeconomic conditions impacting client spending.
Infosys has announced a definitive agreement to acquire MRE Consulting, enhancing its capabilities in trading and risk management within the energy sector.
Infosys reported a 4.2% revenue growth in constant currency terms for FY25 and achieved a record free cash flow of $4.1 billion.
Infosys has granted stock options worth approximately Rs. 50 crore to CEO Salil Parekh, reflecting strong performance incentives.
This information is AI-generated and may contain inaccuracies. Please verify from multiple sources.
Summary of Infosys's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Jan 25
The management provided an optimistic outlook, revising FY25 revenue growth guidance upward to 4.5%-5% in constant currency (from prior guidance) while maintaining operating margin guidance of 20%-22%. Key points include:
Growth Drivers: Strong Q3 performance (1.7% QoQ revenue growth) driven by Financial Services (revival in Europe, sustained US growth) and Retail/CPG in the US. Manufacturing saw double-digit YoY growth, though Europe's automotive sector lagged.
Generative AI Momentum: Deployed 4 small language models (banking, IT ops, cybersecurity, enterprise) and over 100 AI agents for clients, driving efficiency (e.g., audit automation, research acceleration).
Deal Pipeline: Large deals at $2.5B (63% net new), with a stronger pipeline for Q4. Vendor consolidation and cost-takeout deals dominated, alongside discretionary recovery in select sectors.
Operational Resilience: Headcount grew by 5,591 (total 323,000 employees), with attrition stable at 13.7%. Utilization (ex-trainees) at 86%. Fresher hiring targets: 15,000+ in FY25, 20,000+ in FY26.
Margins & Cash Flow: Margin expansion (21.3% in Q3) aided by currency benefits, pricing (3.6% YoY improvement), and cost optimization. Free cash flow hit a record $1.26B in Q3.
Outlook: Cautious optimism for FY25 with discretionary spending recovery in Retail/CPG and Financial Services. Q4 may see seasonal softness (lower working days, third-party cost reversals). Wage hikes (6-8% in India, low single-digit overseas) to impact margins in Q4/FY26. Management emphasized agility in hiring and deal execution to navigate macroeconomic uncertainties.
Last updated: Jan 25
Major Questions and Summarized Answers:
1. Ritu Singh (CNBC TV18):
Question: Why did Q3 revenue exceed expectations, and what is the implied Q4 growth? How will wage hikes and hiring impact margins?
Answer: Q3 growth (1.7% QoQ) was driven by improved discretionary spending in Financial Services (US/Europe) and Retail (US). Revised FY25 guidance (4.5%-5% CC) factors Q4 seasonality. Wage hikes (6%-8% in India) will pressure margins, but strong hiring (5,591 added) aligns with demand. Large deals ($2.5B, 63% net new) indicate a robust pipeline.
2. Haripriya Sureban (NDTV Profit):
Question: Is discretionary spending revival sentiment-driven or budget-backed? How will the US election impact H1B visas and margins?
Answer: Budget discussions (calendar-year clients) will clarify spending trends. Reduced H1B reliance (24% onsite mix) minimizes visa risks. Margins (21.3%) benefited from currency tailwinds (40 bps) and cost optimization, offsetting furloughs. Long-term margin focus includes pricing and operational efficiency.
3. Beena Parmar (Economic Times):
Question: What is the fresher hiring outlook, and which sectors will drive growth? Comment on deal cycles and legal lawsuit impact.
Answer: Fresher hiring: 15,000+ in FY25, 20,000+ in FY26. Growth sectors: Financial Services (US/Europe), Retail (US). Deal cycles stable; legal issues (McCamish) under mediation, no material business impact.
4. Veena Mani (Times of India):
Question: Why did top 5 client contribution drop? How does Infosys counter "AI washing," and what is headcount growth's link to AI?
Answer: Top client decline (12.7% vs 13.7% QoQ) due to furloughs. Gen AI projects (e.g., banking SLMs, audit agents) show tangible ROI. Headcount growth supports demand, not directly tied to AI. Wage hikes: 6%-8% India, low single-digit overseas.
5. Reshab Shaw (Moneycontrol):
Question: Are deal cycles shortening? Update on Mysore campus leopard issue and employee culture concerns.
Answer: Deal cycles stable; discretionary projects move faster. Mysore campus reopening pending Forest Department clearance. Employee policies ensure fairness; no systemic culture issues.
6. Hritam Mukherjee (Reuters):
Question: What is the McCamish cyber incident's financial impact? How will Trump's presidency affect the US economy?
Answer: McCamish litigation in mediation; no top-line impact. US economy stable post-election; interest rate cuts and AI/cloud demand bolster optimism.
7. Jas Bardia (Mint):
Question: Are clients shifting to smaller deals? Explain top client revenue decline and pricing pressure.
Answer: Small deals stable; large deal pipeline strengthened. Top client dip from furloughs/currency. Pricing stable, aided by value-based selling (3.6% YTD realization growth).
8. Sanjana B (Hindu BusinessLine):
Question: Why did Manufacturing outpace BFSI? Compare Cobalt and Topaz margins. Are clients favoring smaller deals?
Answer: Manufacturing growth from vendor consolidation; Europe automotive lags. Margin specifics undisclosed, but Topaz drives efficiency. Small deals steady; large deals dominate pipeline.
9. Rukmini Rao (Fortune India):
Question: Why are $1M/$50M clients growing fastest? Explain DSO increase and M&A plans.
Answer: Client expansion strategies focus on scaling engagements. DSO (74 days) improved with cash flow focus ($1.26B FCF). M&A remains cautious; no "adventurous" plans.
10. Ankur Rudra (JP Morgan "“ Earnings Call):
Question: Any one-time items in revenue/margins? How will AI affect volumes?
Answer: No one-offs; Q3 third-party costs seasonal. AI agents/SLMs expand opportunities (e.g., telco client models), driving growth, not volume erosion.
11. Jonathan Lee (Guggenheim):
Question: What drives European BFSI strength?
Answer: Large deals (cloud, vendor consolidation) and post-election certainty in spending.
12. Keith Bachman (BMO):
Question: How does AI reduce cost-to-serve? Impact on SAP pricing?
Answer: AI aids internal efficiency (e.g., software development); benefits shared with clients. SAP demand strong (S/4HANA migration); pricing reflects value, not deflation.
13. Sumeet Jain (CLSA):
Question: What fueled 3.6% realization growth?
Answer: Value-based selling (project Maximus) and lean automation drove pricing benefits.
14. Abhinav Ganeshan (SBI):
Question: Will third-party costs stabilize?
Answer: Third-party costs depend on large deal structures; discretionary revival may reduce reliance.
Size: It is among the top 200 market size companies of india.
Profitability: Very strong Profitability. One year profit margin are 17%.
Smart Money: Smart money has been increasing their position in the stock.
Balance Sheet: Strong Balance Sheet.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Technicals: Bullish SharesGuru indicator.
Dividend: Dividend paying stock. Dividend yield of 3.31%.
Momentum: Stock is suffering a negative price momentum. Stock is down -7.5% in last 30 days.
Comprehensive comparison against sector averages
INFY metrics compared to IT
| Category | INFY | IT |
|---|---|---|
| PE | 22.20 | 25.53 |
| PS | 3.72 | 3.95 |
| Growth | 6 % | 4.3 % |
INFY vs IT (2021 - 2025)
Understand Infosys ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| LIFE INSURANCE CORPORATION OF INDIA - ULIF00220091 | 10.45% |
| SBI MUTUAL FUND | 4.73% |
| ICICI PRUDENTIAL MUTUAL FUND | 3.05% |
| SUDHA GOPALAKRISHNAN | 2.57% |
| HDFC MUTUAL FUND | 1.98% |
| National Pension System Trust | 1.93% |
| UTI MUTUAL FUND | 1.89% |
| ROHAN MURTY | 1.64% |
| NIPPON LIFE INDIA TRUSTEE | 1.47% |
| SBI LIFE INSURANCE CO. LTD | 1.36% |
| VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND | 1.34% |
| VANGUARD EMERGING MARKETS STOCK INDEX FUND | 1.21% |
| GOVERNMENT PENSION FUND GLOBAL | 1.21% |
| KOTAK EQUITY ARBITRAGE FUND | 1.16% |
| NANDAN M NILEKANI | 1.1% |
| AKSHATA MURTY | 1.05% |
| ASHA DINESH | 1.04% |
| SUDHA N MURTY | 0.93% |
| ROHINI NILEKANI | 0.92% |
| DINESH KRISHNASWAMY | 0.87% |
Distribution across major stakeholders
Distribution across major institutional holders
Analysis of Infosys's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
| Description | Share | Value |
|---|---|---|
| Financial Services (1) | 27.7% | 11.6 kCr |
| Manufacturing | 15.5% | 6.5 kCr |
| Retail (2) | 13.8% | 5.7 kCr |
| Energy, Utilities, Resources and Services | 13.5% | 5.6 kCr |
| Communication (3) | 11.2% | 4.7 kCr |
| Hi-Tech | 7.9% | 3.3 kCr |
| Life Sciences (4) | 7.7% | 3.2 kCr |
| All other segments (5) | 2.8% | 1.2 kCr |
| Total | 41.8 kCr |
Detailed comparison of Infosys against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
|---|---|---|---|---|---|---|---|---|---|
| TCS | Tata Consultancy ServicesComputers - Software & Consulting | 12.48 LCr | 2.56 LCr | -5.17% | -10.49% | 25.46 | 4.87 | +5.31% | +8.82% |
| HCLTECH | HCL TechComputers - Software & Consulting | 4.28 LCr | 1.18 LCr | -3.38% | +4.92% | 25.07 | 3.64 | +7.49% | +8.85% |
| WIPRO | WiproComputers - Software & Consulting | 2.52 LCr | 92.14 kCr | -9.91% | +4.51% | 20.2 | 2.74 | -1.32% | +10.05% |
| TECHM | Tech MahindraComputers - Software & Consulting | 1.43 LCr | 53.53 kCr | +3.23% | +22.83% | 37.9 | 2.67 | -0.30% | +32.11% |
| LTIM | LTIMindtreeComputers - Software & Consulting | 1.33 LCr | 38.08 kCr | -2.63% | -2.94% | 29.14 | 3.5 | +6.13% | -0.52% |
Valuation | |
|---|---|
| Market Cap | 6.15 LCr |
| Price/Earnings (Trailing) | 22.2 |
| Price/Sales (Trailing) | 3.72 |
| EV/EBITDA | 14.2 |
| Price/Free Cashflow | 34.73 |
| MarketCap/EBT | 16.09 |
Fundamentals | |
|---|---|
| Revenue (TTM) | 1.65 LCr |
| Rev. Growth (Yr) | 7.61% |
| Rev. Growth (Qtr) | 2.22% |
| Earnings (TTM) | 27.69 kCr |
| Earnings Growth (Yr) | 11.6% |
| Earnings Growth (Qtr) | 4.7% |
Profitability | |
|---|---|
| Operating Margin | 23.12% |
| EBT Margin | 23.12% |
| Return on Equity | 30.48% |
| Return on Assets | 19.52% |
| Free Cashflow Yield | 2.88% |
Investor Care | |
|---|---|
| Dividend Yield | 3.31% |
| Dividend/Share (TTM) | 49 |
| Shares Dilution (1Y) | 0.04% |
| Diluted EPS (TTM) | 66.64 |
Financial Health | |
|---|---|
| Current Ratio | 2.19 |
| Debt/Equity | 0.00 |
| Debt/Cashflow | 0.00 |