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Informist, Thursday, Jan. 16, 2025

By Anand JC

NEW DELHI – Infosys Ltd. will hire more than 15,000 freshers in 2024-25 (Apr-Mar) and increase hiring beyond 20,000 freshers in the next financial year, the company's Chief Financial Officer Jayesh Sanghrajka said at a post-earnings press conference Thursday. The company expects to see some headwinds to growth in Jan-Mar and Apr-Jun, given higher employee compensation, Sanghrajka said while addressing media queries on the Oct-Dec results disclosure of Infosys.

The December quarter was strong for Infosys in terms of hiring, Chief Executive Officer Salil Parekh said. The company hired more than 5,000 employees in the final quarter of 2024, he said. Parekh expects Infosys's hiring momentum to continue, given the higher discretionary spending in some sectors. On attrition trends, Sanghrajka said the situation does not look challenging, and the numbers will remain range-bound.

Parekh expressed confidence over the company's performance in the US in the next few quarters, given economists' view that the US economy will do better. "The US market has done incredibly well in the past few quarters with the way it has been managed after COVID-19," he said. "The US will remain a very good and strong market for us."

Just over 58% of Infosys's revenue comes from North America, while Europe, India, and the rest of the world contribute 30%, 9%, and 3%, respectively. Momentum in the financial services sector has been strong, especially in the US, Sanghrajka said. The same sector is showing a revival in Europe as well, where the company is seeing double-digit growth on the back of multiple large deals.

The Bengaluru-based company revised its revenue guidance upwards for FY25 to 4.5-5.0% in constant currency terms. Parekh said a stronger large-deal pipeline played a role in the guidance being raised. Elaborating, he said the company is seeing a change in discretionary activities in financial services and consumer products, which gives it confidence about order execution and clients' traction from these projects.

The company said it has been able to expand its margin in part because of strong growth in pricing momentum. "If you look at our margin expansion nine months over nine months, it has expanded by 30 basis points despite the fact that we had multiple headwinds," Sanghrajka said, referring to Apr-Dec.

The company's free cash flow increased to $1,263 million as of Dec. 31, from $665 million a year ago. Despite this surge, Parekh said it was "highly unlikely" that the company would be adventurous when it comes to signing large deals.

Infosys reported the December quarter earnings after market hours Thursday. The information technology bellwether's shares closed at INR 1,928.45 on the National Stock Exchange, down 1.1%.  End

Edited by Rajeev Pai

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