The operating margin expansion of 0.5% in FY25
FinTech BizNews Service
Mumbai, April 17, 2025: Infosys (NSE, BSE, NYSE: INFY), a global leader in next-generation digital services and consulting, delivered $19,277 million in FY25 revenues, growth of 4.2% in constant currency. Operating margin was at 21.1%, expansion of 0.5% year on year. Free cash flow was the highest ever at $4,088 million, an increase of 41.8% year on year. TCV of large deal wins was $11.6 billion for the year, with 56% net new. Q4 revenues were $4,730 million, an increase of 4.8% year on year in constant currency and 3.6% in reported terms. Operating margin was at 21.0%, an increase of 0.9% year on year.
"We have built a resilient organization with sharp focus on client-centricity and responsiveness to the market, thanks to the trust of our clients and dedication of our employees. Our performance for the year has been robust in terms of revenues, expansion in operating margins and highest ever free cash generation”, said Salil Parekh, CEO and MD. “Our depth in AI, cloud and digital and strength in cost efficiency, automation, and consolidation position us well for the needs of our clients”, he added.
Guidance for FY26:
• Revenue growth of 0%-3% in constant currency
• Operating margin of 20%-22%
"FY25 operating margins expanded by 0.5% which reflects our relentless focus on identifying opportunities for efficiency and executing Project Maximus with discipline, after navigating through multiple headwinds in a challenging macro environment. We delivered the highest ever free cash flows in the history of the company in FY25,” said Jayesh Sanghrajka, CFO.
The Board has proposed a final dividend of Rs22, which along with the interim dividend, is an increase of 13.2% over last year." he added.
• Revenues in CC terms grew by 4.8% YoY and declined by 3.5% QoQ
• Reported revenues at Rs40,925 crore, growth of 7.9% YoY
• Operating margin at 21.0%, increase of 0.9% YoY and decline of 0.3% QoQ
• Basic EPS at Rs16.98, decline of 11.8% YoY
• FCF at Rs7,737 crore, growth of 10.0% YoY; FCF conversion at 109.9% of net profit For the year ended March 31, 2025
• Revenues in CC terms grew by 4.2% YoY
• Reported revenues at Rs162,990 crore, growth of 6.1% YoY
• Operating margin at 21.1%, growth of 0.5% YoY
• Basic EPS at Rs64.50, growth of 1.8% YoY
• FCF at Rs34,549 crore, growth of 44.8% YoY; FCF conversion at 129.2% of net profit
Client wins & Testimonials
• Infosys announced the expansion of its long-standing strategic collaboration with Citizens to Propel AI-led Transformation. Michael Ruttledge, Chief Information Officer, Citizens Financial Group, said, “Infosys has been a key strategic collaborator in Citizens’ next-gen transformation program for the last five years. Together, we have not only modernized our technology landscape with domain-centric, cloud native platforms but also built a foundation for future growth aligned with Citizens’ north star technology vision without losing focus on resiliency and stability.”
• Infosys announced the expansion of its collaboration with Siemens AG to accelerate Siemens AG digital learning initiatives with generative AI. Jenny Lin, Global Head of Learning & Growth at Siemens AG, said, “A thriving learning and growth environment is essential for Siemens to maintain our competitive edge and foster innovation. By providing our people with the tools, resources, and support they need to continuously develop their skills, we empower our people to meet the challenges of the future. Infosys' expertise in digital transformation and AI is very valuable in creating a more engaging and effective learning experience for everyone. By leveraging GenAI on Siemens’ digital learning platform we can foster a culture of lifelong learning and empower our teams to reach their full potential.”
• Infosys announced a strategic, long-term collaboration with Lufthansa Group (LHG) and Lufthansa Systems GmbH (LSY) to accelerate digital transformation and drive innovation in the aviation industry. Thomas Wittmann – CEO, Lufthansa Systems, said, "At Lufthansa Systems, we champion a modular approach to solutions and collaborations, ensuring adaptability and tailoring to the unique needs of each airline. This principle extends perfectly to our collaboration with Infosys. By combining our deep aviation expertise with Infosys's global technology prowess and establishing a dedicated Global Capability Center (GCC), we are not only enhancing our one-stop-shop offerings but also accelerating the pace of digital innovation across the aviation industry. This collaboration empowers us to deliver cutting-edge solutions with greater agility and scale, ultimately benefiting our airline customers with more efficient, innovative, and cost-effective technologies."
• Infosys announced a successful collaboration with LKQ Europe to adopt a unified, cloud-based digital platform to streamline its HR processes across 18 countries, leveraging Infosys Cobalt. David Brookfield, Vice President, Human Resources, LKQ Europe, said, “Our collaboration with Infosys is a crucial step in helping us harmonize and simplify our wider business processes – ultimately enabling faster delivery and better service for our end customers. Through the platform, we will unify our HR processes across locations to drive efficiency and enhance regulatory compliance. Looking ahead, we believe this platform will empower our workforce and foster a more cohesive organizational culture, enabling us to continue leading the automotive aftermarket industry.”
• Infosys announced the launch of its open-source Responsible AI Toolkit designed to help enterprises innovate responsibly while addressing the challenges and risks associated with ethical AI adoption. Sunil Abraham, Public Policy Director - Data Economy and Emerging Tech, Meta, said, “We congratulate Infosys on launching an openly available Responsible AI Toolkit, which will contribute to advancing safe and responsible AI through open innovation. Open-source code and open datasets is essential to empower a broad spectrum of AI innovators, builders, and adopters with the information and tools needed to harness the advancements in ways that prioritize safety, diversity, economic opportunity and benefits to all.”
• Infosys announced a strategic collaboration with Ontex Group N.V. to drive their ERP transformation. Jeroen Dejonckheere, VP Business Transformation, Ontex, said "We are excited to collaborate with Infosys on our business transformation journey for modernising our ERP systems to SAP S/4HANA. We also look forward to leveraging Infosys Topaz and embrace the power of AI for our enterprise growth. This will be a significant step forward for us to deliver exceptional experiences for our employees, suppliers, and customers.”
