Infosys net worth reflects its strong global presence and financial health. In 2024, the company demonstrated significant growth driven by cost optimization and margin expansion.
Let’s take a closer look at how Infosys achieved this and the key factors that contributed to its financial success. Ando Money provides insights for readers curious about Infosys’ finance.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Infosys |
| Full Name | Infosys Limited |
| Website | www.infosys.com |
| Industry | IT Services, Consulting |
| Traded As | NSE: INFY, BSE: 500209, NYSE: INFY |
| ISIN | INE009A01021 |
| Founded | 1981 |
| Founders | N. R. Narayana Murthy, others |
| Country/Territory | India |
| Headquarters | Bengaluru, Karnataka, India |
| Chief Executive Officer | Salil Parekh |
| Number of Employees | Over 300,000 |
| Market Cap | $95.34 billion |
| Total Assets | $17.27 billion |
| Total Equity | $10.003 billion |
| Revenue | $4.714 billion (Q1 FY25) |
| Net Income | $763 million (Q1 FY25) |
What is the Net Worth/Market Cap Of Infosys in 2024?
As of October 2024, Infosys holds a market cap of $95.34 billion, making it one of the significant players in the global IT industry.
This puts it on par with several key competitors. In comparison, other major firms in the Indian IT sector and beyond also demonstrate impressive valuations. Some of the closely related entities include:
- Tata Consultancy Services (TCS)
- Wipro
- Cognizant
- Accenture
- Tech Mahindra
- Capgemini
- HCL Technologies
- IBM
- Oracle
- DXC Technology
With Infosys’ market value, it continues to compete with the biggest brands globally. You can explore other highly valued firms by checking this list of richest companies.
Infosys Financial Performance Overview
Key Factors Contributing to Revenue Growth
Infosys has significantly leveraged its digital services and consulting expertise to drive revenue. The company’s expansion into emerging markets has opened new opportunities, contributing to a robust financial standing.
A major highlight of 2024 was Infosys’ 34 large deal wins, totaling $4.1 billion, with 57.6% of these being net new deals.
This exceptional performance is also attributed to its investment in cloud solutions and AI-powered enterprise services, further enhancing its client base and service delivery.
Infosys also focused on targeted acquisitions, such as its purchase of in-tech, a German engineering R&D service provider, adding expertise in automotive, smart industry, and e-mobility sectors.
Cost Optimization and Margin Expansion
One of the key reasons behind Infosys’ operating margin of 21.1% in Q1 FY25 is the company’s aggressive cost optimization strategies under Project Maximus.
This program is dedicated to margin expansion, successfully boosting the margins by 1% sequentially.
Additionally, administrative and marketing costs have been carefully managed, ensuring operating expenses remain controlled.
This focus on operational efficiency has also helped Infosys remain competitive while scaling its service offerings.
The introduction of generative AI into its operations further amplified efficiency, contributing to increased margins and higher free cash flow.
Free Cash Flow and Cash Management
Infosys hit a new milestone with a free cash flow (FCF) of $1.1 billion, representing a 56.5% growth year on year.
This record cash flow was attributed to strong operational performance and efficient cash management. Infosys’ free cash flow conversion rate was an impressive 143.2% of net profit, reflecting the company’s ability to generate liquidity and maintain financial health.
Moreover, Infosys continued its strategy of returning value to shareholders through dividend payments, further solidifying investor confidence.
The company’s earmarked bank balance for final and special dividends stood at $1.394 billion as of Q1 FY25.
Revenue Breakdown by Service Segments
In terms of service segmentation, Infosys’ digital services remain the top revenue generator, followed by its engineering R&D services.
Its consulting services have also played a pivotal role, driving revenue growth through client engagement across a wide range of industries, including finance, healthcare, and technology.
Infosys’ strategic focus on automation and AI further solidifies its position as a leader in IT consulting.
Impact of Global Partnerships and Collaborations
Infosys has cultivated strong global partnerships, such as its multi-year collaboration with Telstra, and established key strategic alliances with major firms like ABB, La-Z-Boy, and Formula E.
These partnerships have not only boosted Infosys’ client engagement but also contributed to its revenue growth, especially in areas like cloud transformation and AI solutions.
Technology Innovation Driving Financial Performance
Infosys’ commitment to technological innovation is evident in its flagship Topaz and Cobalt platforms.
These AI and cloud-based solutions are key drivers of financial performance, allowing the company to deliver scalable, agile services to its clients.
The use of automation tools has reduced operational costs while enhancing productivity, directly impacting the bottom line.
Insights from Quarterly Financial Results
For Q1 FY25, Infosys reported a revenue of $4.714 billion, a sequential growth of 3.6%, and a year-on-year growth of 2.5%.
The company’s net profit reached $763 million, and basic EPS stood at $0.18, a 5.4% increase compared to the previous year.
These figures reflect Infosys’ steady financial performance and its ability to navigate challenges in the global economy.
Challenges and Future Outlook
Looking forward, Infosys faces challenges from competitive pressures and economic uncertainties.
However, the company is well-positioned to continue its growth trajectory, driven by strong technological capabilities and a strategic focus on emerging technologies.
The company’s projections for FY25 suggest continued growth in both revenue and margins, with expected revenue growth of 3%-4% and an operating margin of 20%-22%.
FAQs About Infosys
How Does Infosys Manage Its Free Cash Flow?
It achieved a record free cash flow of $1.1 billion in Q1 FY25, driven by strong operational performance and efficient cash management practices.
The company’s FCF conversion reached 143.2% of net profit, further solidifying its financial standing.
What Key Acquisitions Has Infosys Made Recently?
The company completed the acquisition of in-tech, a German engineering R&D services provider, in 2024. This acquisition brought in expertise in automotive, e-mobility, and smart industry sectors.
How Has Infosys Improved Its Operating Margins?
Its operating margin reached 21.1% in Q1 FY25, largely due to its Project Maximus cost optimization program. This initiative resulted in a 1% sequential margin expansion.
What Role Does AI Play in Infosys’ Business Model?
The company has integrated AI into its services, particularly through its Topaz and Cobalt platforms. These AI solutions help automate processes, improve client engagement, and drive revenue growth.
What Are Infosys’ Key Service Segments?
Infosys operates across several service segments, including digital services, engineering R&D, and consulting. Its digital services, powered by AI and automation, drive the majority of its revenue.
Conclusion
Infosys continues to demonstrate strong financial performance through innovation and cost management. Leave your comments and explore more insightful articles on Ando Money’s website.
