The figure is in-line with the range projected by analysts. While some had projected the figure to be between 3% to 5%, some had projected a 2% to 5% range. A section of analysts also expected the company to be conservative, guiding for topline to grow between 1% to 4% for the new financial year.
Infosys sees EBIT margins to be between 20% to 22% for financial year 2027.
Revenue growth in constant currency terms is a negative 1.3% for the March quarter. A CNBC-TV18 poll had pegged the figure to be negative 0.6% on a sequential basis.
For the March quarter, Infosys reported net profit of ₹8,501 crore, higher than the CNBC-TV18 poll of ₹7,670 crore.
Revenue during the March quarter in US Dollar terms stood at $5,040 crore. A CNBC-TV18 poll had pegged the figure to be $5,087.8 million.
Revenue in rupee terms stood at ₹46,402 crore, in-line with the poll figure of ₹46,329 crore.
Earnings Before Interest and Tax (EBIT) for the quarter stood at ₹9,743 crore, marginally lower than the CNBC-TV18 poll of ₹9,855 crore. EBIT margin for the quarter stood at 21%, 30 basis points lower than the poll estimate of 21.3%.
On a sequential basis, rupee revenue grew by 2%, but was down 1.2% in US Dollar terms. EBIT increased by 2.8%, while margins saw an expansion of 20 basis points from the previous quarter.
While refusing to comment on the CEO tenure, Salil Parekh told CNBC-TV18 that the financial services vertical is accelerating, while energy and utility is doing well.
Parekh also said that revenue from AI is growing and it is higher in Q4 as a percentage of revenue, compared to the 5.5% share disclosed in the third quarter.
The board has also recommended a final dividend of ₹25 per share, which is subject to shareholder approval.
“Manufacturing is facing a challenging environment; we are seeing headwinds from a particular client account which will wind down by the end of the year,” CFO Jayesh Sanghrajka said.
Shares of Infosys ended 3% lower on Thursday, at the lowest point of the day, ahead of the results announcement. The US-listed shares, or ADRs are down 5% after the earnings announcement.
This is breaking news and will be updated with more details.
