Infosys Q4 net profit declines 11.8% YoY, FY25 free cash flow hits record high; key takeaways

The company’s revenue for the quarter rose 7.9% year-on-year to ₹40,925 crore, while operating margin improved by 90 basis points YoY to 21.0%, Infosys said in a regulatory filing.

Infosys posted revenues of ₹1,62,990 crore for FY2024-25, a growth of 6.1% over the previous year.

Operating margin for the year stood at 21.1%, an expansion of 50 basis points year-on-year.

“FY25 operating margins expanded by 0.5% which reflects our relentless focus on identifying opportunities for efficiency and executing Project Maximus with discipline... We delivered the highest ever free cash flows in the history of the company in FY25,” said Jayesh Sanghrajka, CFO.

Shares of Infosys ended on Thursday in green ahead of the earnings announcement.

Here are the key highlights from Infosys Q4 results announcement:

• For the full FY25, profits saw a marginal increase of 1.8% to ₹26,713 crore.

• The company generated ₹34,549 crore in free cash flow for the year, a 44.8% increase year-on-year.

• FCF conversion stood at 129.2% of net profit. For Q4, FCF was ₹7,737 crore, up 10% YoY.

• Basic earnings per share (EPS) for FY25 stood at ₹64.50, a growth of 1.8% YoY. For Q4, EPS declined 11.8% to ₹16.98.

• The company reported large deal total contract value (TCV) worth $11.6 billion for the full year, with 56% being net new.

• The board proposed a final dividend of ₹22 per equity share, taking the total dividend for FY25 to ₹39 per share, a 13.2% increase over the previous year.

• Infosys has given a revenue growth guidance of 0-3% in constant currency terms and an operating margin guidance of 20-22% for FY26.

• Infosys's employee count at the end of FY25 was 323,578.