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Informist, Thursday, Apr. 17, 2025

By Arya S. Biju

MUMBAI – Infosys Ltd. is on track to hire over 20,000 freshers in the financial year 2025-26 (Apr-Mar), Chief Financial Officer Jayesh Sanghrajka said at a post-earnings press conference Thursday. The information technology major also confirmed that it is on track with wage increments, with a large portion having been rolled out in January and the balance to be done in April.

On the layoff of trainees at its Mysuru campus for failing internal assessments, the company said it has a rigorous way of training and assessing individuals, and it has been following the process for 20 years. "After three attempts, we have found other opportunities for them (the trainees who were fired) and also supported them outside of Infosys in some training that can be offered," Chief Executive Officer Salil Parekh said.

Asked about plans to reduce the company's reliance on the US market, the Infosys management said it remains positive on its current markets and on how technology will change in the long term. However, it expects to see uneven activity in the short-to-medium term. Given the positive long-term view, the company has announced an acquisition in the US in the energy and consulting sector, Parekh said. The company also said it is looking to expand in other geographies.

Infosys witnessed strong business growth in Europe in FY25 with 15% on-year growth in revenue in constant currency terms. However, the company said it will be watchful of the slowdown in automotive operations in Europe.

Further, the company said it has factored in the current tariff-led macroeconomic uncertainty in the lower end of its revenue guidance for FY26. Earlier in the day, the company guided for revenue growth of 0-3% in constant currency terms. Infosys had also guided for an operating margin of 20-22% for FY26, keeping it in the same band for the ninth quarter in a row.

Despite multiple headwinds, the company's operating margin had improved by 50 basis points in FY25. However, the metric had fallen by 30 bps on quarter in Jan-Mar. This was mainly on the back of an impact of 140 bps from the wage hike implemented in January, and a 40 bps impact on account of amortisation of intangibles for acquisitions, the management said. These headwinds were offset by an 80 bps impact from lower post-sale customer service, a 20 bps impact from currency tailwinds, and a 30 bps impact on account of its margin improvement plan, Project Maximus, the management said.

On budgets, the company said clients have started seeing some initial pressure, but Infosys has not seen any changes yet. The company also sees clients' focus changing towards cost takeout and consolidation deals. On large deals and generative artificial intelligence, the company said many large deal discussions now include some generative AI. For FY25, the company had a large deal total contract value of $11.6 billion, the company said in a press release.

Infosys announced its March quarter earnings after market hours Thursday. It reported a consolidated net profit of INR 70.33 billion, up 3.3% on quarter and higher than the average of analysts' estimates of INR 66.67 billion. Its consolidated revenue fell 2% on quarter to INR 409.25 billion. Thursday, shares of the company closed at INR 1,419.50 on the national stock exchange, up 0.5%.  End

Edited by Rajeev Pai

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