Infosys: Strong growth of 6.1% YoY in CC, 80 bps YoY operating margin expansion

Core Insights - Infosys reported Q3 revenues of $4,939 million, reflecting a sequential growth of 1.7% and a year-on-year growth of 6.1% in constant currency [1][5] - The operating margin for Q3 was 21.3%, an increase of 0.2% sequentially [1][5] - Free cash flow reached a record high of$ 1,263 million, growing 90% year on year [1][5] - Total Contract Value (TCV) of large deal wins was $2.5 billion, with 63% being net new deals, growing at 57% sequentially [1][7] Financial Performance - Year-to-date revenues as of December 2024 grew by 3.9% year on year in constant currency and reported terms [2] - Operating margin for the nine months ended December 31, 2024, was 21.2%, an increase of 0.3% year on year [2] - Basic EPS for Q3 was$ 0.19, reflecting a growth of 9.6% year on year [5] Strategic Initiatives - The CEO highlighted strong revenue growth and robust operating parameters as a result of differentiated digital offerings and strategic initiatives, particularly in enterprise AI and generative AI [3] - Infosys announced several strategic collaborations, including partnerships with StarHub, Old National Bank, and RheinEnergie, aimed at enhancing operational capabilities and driving technological innovations [9] Guidance and Outlook - The company revised its revenue growth guidance for FY25 to 4.5%-5.0% in constant currency [7][8] - Operating margin guidance for FY25 is set between 20%-22% [8] Awards and Recognitions - Infosys received multiple awards, including recognition in the India Workplace Equality Index and various accolades at The Asset ESG Corporate Awards 2024 [12]