Infosys Q4 Results: Profit Drops 12%, Revenue Up; Dividend Declared
Infosys
Infosys Q4 FY25 Results: Profit Declines by 12%, Revenue Grows 8%, Final Dividend of ₹22 Announced
Infosys, one of India’s leading IT services and consulting firms, has revealed its financial results for the fourth quarter of the financial year 2024-25, offering a mixed performance with a drop in profit but growth in revenue.
The company reported a 12% year-on-year (YoY) decline in its consolidated net profit for the quarter, along with an 8% increase in revenue, as the company continues to navigate a challenging global economic landscape.
Quarterly Performance Overview
For the January-March 2025 period, Infosys posted a net profit of ₹7,038 crore, down from ₹7,975 crore in the same period of the previous fiscal year.
The decrease in profit was attributed to a combination of factors, including increased expenses, ongoing global economic uncertainties, and fluctuations in demand for IT services.
The profit attributable to the company’s owners was ₹7,033 crore in Q4 FY25, compared to ₹7,969 crore during the same quarter in FY24.
Despite the decline in profit, Infosys’ revenue showed a positive trend. The company’s consolidated revenue from operations grew by 8% YoY, rising to ₹40,925 crore, up from ₹37,923 crore in Q4 FY24.
This revenue growth reflects the company’s strong presence in key global markets and its diversified service offerings, which have continued to find demand in various sectors, including financial services, retail, and manufacturing.
Expense Growth and Margin Trends
In terms of expenses, Infosys reported a 6.7% YoY increase, with total expenses for Q4 FY25 amounting to ₹32,452 crore, compared to ₹30,412 crore in the corresponding quarter of the previous fiscal year.
The rise in expenses can be attributed to investments made in talent acquisition, technology infrastructure, and other operational costs aimed at maintaining competitiveness in the global market.
The company’s operating margin stood at 21% for the quarter, a slight decline of 0.3% from the 21.3% operating margin reported in Q3 FY25 (October-December 2024).
On a YoY basis, however, the operating margin showed a positive increase of 0.9%, compared to 20.1% in Q4 FY24.
This indicates that while expenses have been increasing, Infosys has managed to maintain healthy profitability levels by improving operational efficiencies and cost management.
Guidance for FY26
Looking ahead, Infosys has issued a conservative guidance for the upcoming financial year 2025-26. The company expects its revenue to grow by a modest 0-3% in constant currency terms.
This projection is based on the prevailing global market conditions, with factors such as fluctuating demand for IT services, geopolitical tensions, and economic slowdowns in key markets contributing to the cautious outlook.
In terms of operating margin, Infosys anticipates a range of 20-22% for the year, which suggests that the company plans to focus on maintaining operational efficiency and controlling costs while balancing investments in growth opportunities.
The company has emphasized its ongoing efforts to maintain high-quality delivery to its clients and build long-term relationships with key customers, which should help stabilize revenue streams despite the uncertain external environment.
Dividend Announcement: Shareholder Returns
As part of its commitment to returning value to shareholders, Infosys declared a final dividend of ₹22 per share for the financial year 2024-25.
This dividend follows an interim dividend of ₹21 per share that was announced earlier in the year. Last year, Infosys had paid out a combination of dividends, including an interim dividend of ₹18 per share, a special dividend of ₹8 per share, and a final dividend of ₹20 per share, further demonstrating the company’s shareholder-friendly approach.
The total dividend payout for FY25 amounts to ₹22 per share for the final dividend, taking the total dividend for the year to ₹43 per share, which is consistent with the company’s long-term policy of delivering stable and attractive returns to its investors.
Full-Year Financial Performance: FY25
For the full financial year 2024-25, Infosys posted a consolidated net profit of ₹26,750 crore, a 1.9% increase compared to ₹26,248 crore in FY24.
The profit attributable to the company’s owners also showed a slight increase, reaching ₹26,713 crore, compared to ₹26,233 crore in the previous fiscal year.
This growth in profit, albeit modest, indicates that Infosys was able to generate healthy returns even amidst the challenges faced in the latter part of the year.
In terms of revenue, Infosys recorded a total of ₹1,62,990 crore in FY25, an increase of 6.1% compared to ₹1,53,670 crore in FY24.
This steady growth in revenue was largely driven by the company’s ability to maintain its position in key international markets, despite global economic uncertainties.
The company’s performance highlights its resilience and adaptability in the face of changing market dynamics.
Stock Market Performance: A Mixed Outlook
As of April 17, 2025, Infosys’ shares closed at ₹1,420.20, reflecting a gain of 0.51% on the Bombay Stock Exchange (BSE).
This uptick in share price, though modest, comes amid a turbulent year for the company’s stock. Over the course of 2025, Infosys’ shares have fallen by approximately 24%, indicating significant pressure in the stock market.
Over the last month alone, the stock price has decreased by 10%, contributing to investor concerns about the company’s near-term prospects.
Despite these short-term fluctuations, Infosys’ market capitalization currently stands at ₹5.89 lakh crore, underscoring its position as one of the largest and most valuable IT companies in India.
The stock’s decline in recent months can be attributed to a combination of broader market trends, investor sentiment, and the company’s mixed quarterly performance, as well as broader uncertainties surrounding the global economy.
Promoter holdings in Infosys, as of December 2024, stood at 14.43%, indicating stability in the company’s ownership structure.
The company’s long-term prospects remain largely positive due to its strong fundamentals, wide client base, and ongoing investments in innovation and digital transformation.
Final Remarks: Navigating Challenges and Opportunities
Infosys’ Q4 FY25 results reflect the company’s ability to adapt and perform in a volatile global environment.
While the decline in profit is a concern, the revenue growth and the company’s strategic focus on operational efficiency are positive signs.
The guidance for FY26, though conservative, indicates that Infosys is positioning itself for sustainable growth in the coming year.
The final dividend announcement reflects Infosys’ ongoing commitment to its shareholders, reinforcing its reputation as a reliable dividend-paying company.
Moving forward, the company will need to manage rising costs, fluctuating demand for IT services, and external market pressures, but its strong financial base and diverse client portfolio should help it navigate these challenges successfully.
As always, investor sentiment and market dynamics will play a crucial role in shaping the future trajectory of Infosys’ stock performance.
