Earnings

Infosys Reports Substantial 20% Drop in Q1 Profit Amidst Revised FY25 Revenue Outlook

Published July 18, 2024

Infosys, a global leader in next-generation digital services and consulting, reported a significant decline in its consolidated net profit for the first quarter of the fiscal year 2025. The company's profit after tax (PAT) tumbled by 20.08% to Rs 6,374 crore during the quarter, a sharp decrease from Rs 7,975 crore recorded in the previous quarter of FY24. This stark drop has led the firm to recalibrate its revenue guidance for the fiscal year 2025, now expecting growth to hover around 3%-4%.

Financial Performance Breakdown

The slump in Infosys's net profit can primarily be attributed to various internal and external factors impacting the industry. Despite the downturn, Infosys has been striving to maintain its position in the highly competitive IT services space, which is reflected in their efforts to revise and manage revenue expectations amidst a challenging global economic landscape.

Market and Investor Impact

With the announcement, stakeholders are poised to closely monitor INFY and its performance. In light of these developments, investors may reassess their positions, while potential investors could consider the implications of the newly set revenue targets on the company's growth trajectory and market valuation over the coming months.

Infosys, Profit, Revenue, Guidance