Infosys Q4 FY25 Results: Profit Drops But Margins & Cash Flow Boost Confidence

India’s 2nd-largest IT giant, Infosys, has announced its Q4 FY25 (March 2025 quarter) results. While net profit fell, strong operating margins, free cash flow, and steady revenue growth have kept investors hopeful. According to its Result, we can predict IT sector performance in India.

Here’s a simple breakdown of the key highlights:

Key Highlights of Infosys Q4 FY25 Results

  1. Revenue Growth: ₹40,925 crore (up 7.9% YoY from ₹37,923 crore).
  2. Net Profit Decline: ₹7,033 crore (down 11.7% YoY).
  3. EPS (Earnings Per Share): Dropped to ₹16.98 from ₹19.25 last quarter.

Profit vs. Revenue: Mixed Signals

  • Good News: Yearly revenue hit ₹1.63 lakh crore, showing stable growth.
  • Bad News: Profit after tax (PAT) dipped due to higher costs and global uncertainties.

Operating Efficiency Improves!

  • Operating Profit: Jumped 12.5% YoY to ₹8,575 crore.
  • Margin Boost: Operating margin rose to 21% (vs. 19.6% last year) thanks to cost control and better efficiency.

Cash Flow Wins Hearts

  • Free Cash Flow (FCF): Surged 10% YoY to ₹7,737 crore – a sign Infosys is generating more cash to fund growth and dividends.

Regional Growth: Europe & India Shine, USA Lags

  • Europe: Revenue up 12.9% (strong client deals).
  • India: Fastest growth at 39% (govt/digital projects).
  • North America: Fell -0.8% (tech spending slowdown).

Sector-Wise Performance

  • Top Performers:
    • Retail (+12.1%)
    • Manufacturing (+11.4%)
    • Financial Services (+4.8%)
  • Weak Spots:
    • Communication (-3.8%)
    • Hi-Tech (-1.3%)

Infosys Employee Updates

  • Workforce: 3.23 lakh employees.
  • Women: 39% of staff.
  • Attrition Rate: 14.1% (slightly up, but hiring remains stable).

Infosys FY25 Annual Snapshot

  • Total Revenue: ₹1.63 lakh crore.
  • Net Profit: ₹26,713 crore.
  • Dividend Per Share: ₹43 (up 13.2%) – great for shareholders

Infosys Stock Performance

Market Cap₹ 5,89,556 Cr.
Current Price₹ 1,420
Year High/Low₹ 2,007 / ₹ 1,307
Stock P/E Ratio22.1
Dividend Yield2.68%
ROCE37.8%
ROE29.0%
Infosys Stock Performance as of 17th April 2025

Should Investors Buy Infosys Shares?

  • Long-Term Investors: Strong margins, cash flow, and global diversity make Infosys reliable.
  • Short-Term Traders: Watch out for weak US demand and EPS drop.
  • Dividend Lovers: Consistent payout growth is a plus!

Conclusion

Infosys’s Q4 FY25 results are a mix of highs and lows. While profits dipped, better margins, cash flow, and India/Europe growth show consistent. For long-term investors, Infosys remains a safe Investment in the IT stocks India.

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Disclaimer: Investing in the stock market is subject to market risks. Please do your research or consult your financial advisor before making any decisions. The information provided in this article aims to educate and inform investors and traders.

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