Can Infosys maintain its momentum after reporting strong June 2025 quarter growth?
Infosys
reported strong sequential revenue growth for the June 2025 quarter driven by lower base in the previous quarter, higher pricing, and improved utilisation. In comparison, its peers including
Tata Consulting Services
,
HCL Technologies
, and
Wipro
failed to report a meaningful sequential top-line growth.
Infosys also revised the FY26 constant currency (CC) revenue guidance to 1-3% growth from earlier 0-3% growth citing a higher traction in new deal wins during the June quarter. For Infosys, revenue grew by 4.5% sequentially to $4,941 million in the June quarter after falling by 4.2% in the previous quarter. Analysts on average had anticipated 2.8% growth.
Explore courses from Top Institutes in
Please select course:
Select a Course Category
Data Science
healthcare
Degree
Healthcare
Data Analytics
Artificial Intelligence
Finance
Project Management
Leadership
Others
PGDM
Management
Design Thinking
Public Policy
MCA
CXO
Product Management
Digital Marketing
MBA
Data Science
Technology
Cybersecurity
others
Operations Management
Skills you'll gain:
Data Analysis & Interpretation
Programming Proficiency
Problem-Solving Skills
Machine Learning & Artificial Intelligence
Duration:
24 Months
Vellore Institute of Technology
VIT MSc in Data Science
Starts on
Aug 14, 2024
Get Details
Skills you'll gain:
Strategic Data-Analysis, including Data Mining & Preparation
Predictive Modeling & Advanced Clustering Techniques
Machine Learning Concepts & Regression Analysis
Cutting-edge applications of AI, like NLP & Generative AI
Duration:
8 Months
IIM Kozhikode
Professional Certificate in Data Science and Artificial Intelligence
Starts on
Jun 26, 2024
Get Details
The June quarter sequential growth may not help much in predicting the trend in coming quarters since it is benefitted by the low base in the previous quarter. A year-on-year comparison shows that revenue rose by 4.8%, the second fastest growth in nine quarters after the 5.9% increase seen in the December 2024 quarter. Given a sustained momentum in the
European market
and strong order booking in the June quarter, the country's second largest software exporter is expected to show improved traction in the coming quarters.
The company continued to show improving year-on-year business growth-12.3% in the June quarter, coming on the back of 13% growth in FY25 - in the European market, which contributes nearly one-third to its revenues. It reported flat trend in the US, its largest market, which forms over 56% of revenue. In addition, the
total contract value
(TCV) of large deal wins for the June quarter amounted to $3.8 billion, the highest since the previous year's June quarter when the TCV was $4.1 billion. The operating margin (EBIT margin) fell by 20 basis points sequentially to 20.8%. While phase-wise salary increase in the quarter and currency headwinds impacted the margin, better pricing and utilisation, and absence of acquisition related impairments compared with the prior quarter provided cushion.
Agencies
Despite revising the lower end of the revenue guidance upwards, the company has retained the target margin band at 20-22% for FY26 indicating that there may not be any significant margin levers in the short term.
Like the majority of peers,
Infosys
also reported higher employee attrition, which rose to 14.4% in the June quarter from 14.1% a quarter ago and 12.7% a year ago. The company's headcount increased by 8,456 year-on-year to 323,788, the highest addition among peers. The company management has stated that it would continue to execute hiring for the current fiscal year as planned. Infosys has gained nearly 11% on bourses since announcing its March quarter numbers on April 17, beating the 10% gain in the BSE Infotech index and the returns earned by peers. The stock is expected to stay on investors' radar given the sustained traction in new deals.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
4 minutes ago
- Business Standard
Is Donald Trump winning on economic policy, or just shifting the rules?
Six months into his second term, it is fair to say that US President Donald Trump has swept the board when it comes to economic policy — at least by the standards he set for himself. In fact, he has imposed his will to a degree no other post-World War II President, with the possible exception of Ronald Reagan, has been able to achieve. For starters, Mr Trump got his One Big Beautiful Bill Act passed, despite a razor-thin majority in the House of Representatives and credible projections that his signature tax and spending package will add more than $3 trillion to the federal deficit over the coming decade. And the southern US border is now more tightly controlled than it has been in decades. On tariffs in particular, Mr Trump got what he wanted. Europe and Japan effectively capitulated — agreeing to eliminate their own trade barriers while accepting a 15 per cent US tariff on their exports. Given these humiliating terms, it was more than a little absurd to see European Commission President Ursula von der Leyen hail the deal as a success simply because Mr Trump backed down from his initial threat of a 30 per cent tariff. Both the European Union and Japan also committed to invest hundreds of billions of dollars in the US economy, with Mr Trump exerting significant influence over where that money would be directed. His self-styled 'Tariff Man' persona clearly rattled world leaders, many of whom failed to recognise that his threats were unsustainable in the long run. In retrospect, they would have been better off calling his bluff. While European policymakers were busy mitigating the impact of American tariff threats, Mr Trump pushed through legislation aimed at bringing cryptocurrencies into the mainstream financial system with minimal oversight. Astonishingly, despite the Trump family's multi-billion-dollar crypto holdings, Congress has shown little interest in investigating the President's glaring conflict of interest. To be sure, the GENIUS Act does contain some worthwhile ideas. One provision, for example, requires that stablecoins — cryptocurrencies pegged to a traditional currency or commodity, usually the US dollar — be backed by safe, liquid assets. But overall, instead of laying out clear guidelines for taming the crypto Wild West, the GENIUS Act amounts to little more than a regulatory skeleton. As several critics have noted, Mr Trump's stablecoin framework bears striking similarities to the free-banking era of the 1800s, when the US did not have a central bank. At the time, private banks issued their own dollar-backed currencies, often with disastrous consequences such as fraud, instability, and frequent bank runs. That said, some criticisms may be overstated, as today's leading issuers are generally more transparent and better capitalised than their nineteenth-century counterparts. Fortunately, the US economy has remained resilient amid the uncertainty and chaos unleashed by Mr Trump's tariff war. Although growth appears to be slowing, and the July jobs report was soft — a hard reality that Mr Trump's firing of the technocrat in charge of producing the data will not change — second-quarter data show that the country is not yet in a recession. Likewise, higher tariffs have not yet triggered a surge in domestic inflation, and the US is on track to collect $300 billion in tariff revenue in 2025. So far, importers have been reluctant to pass those costs on to consumers, but that could change if the current tariff war ever winds down. Some analysts have even argued that the apparent success of Mr Trump's heterodox policies proves that conventional economic models are wrong. I doubt that, though the jury is still out. This short-term optimism, however, overlooks long-term consequences. While some of former President Joe Biden's policies were damaging, numerous economists have warned that Mr Trump's actions could prove devastating to American institutions and the global economic order. Most critically, the rule of law would be severely weakened if the expanded presidential powers Mr Trump has claimed are allowed to become permanent. A big test is coming if the Supreme Court ultimately decides that he lacks authority to impose tariffs without Congress's approval. If they stand, Mr Trump's sweeping tariffs may have long-term effects on US growth. The rest of the world is unlikely to tolerate Mr Trump's protectionist policies indefinitely. If he starts to look weak for any reason, expect foreign governments to retaliate with sweeping tariffs of their own. The Big Beautiful Bill could compound the damage, triggering a cycle of higher interest rates, rising inflation, and financial repression. Still, we should give Mr Trump his due and acknowledge that his second presidency is off to a far stronger start than almost anyone — aside from Mr Trump himself and his most fervent acolytes — could imagine six months ago. We should not be surprised by whatever comes next — and that might be the scariest part. ©Project Syndicate, 2025
Time of India
an hour ago
- Time of India
India pushes UN body for level playing field at European airports
India is pushing global aviation watchdog International Civil Aviation Organisation (ICAO) to frame regulations for providing equitable access to slots at key European airports. It said that these airports have framed slot allocation practices which are discriminatory and disadvantage airlines from developing countries. Productivity Tool Zero to Hero in Microsoft Excel: Complete Excel guide By Metla Sudha Sekhar View Program Finance Introduction to Technical Analysis & Candlestick Theory By Dinesh Nagpal View Program Finance Financial Literacy i e Lets Crack the Billionaire Code By CA Rahul Gupta View Program Digital Marketing Digital Marketing Masterclass by Neil Patel By Neil Patel View Program Finance Technical Analysis Demystified- A Complete Guide to Trading By Kunal Patel View Program Productivity Tool Excel Essentials to Expert: Your Complete Guide By Study at home View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program Airport slots is a time period granted by the airport operator within which an airline should take off and land. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Undo According to the working paper presented by India, which will be debated at ICAO's triennial assembly at Montreal in September, the current system of grandfather rights, which allows an incumbent airline to keep a slot in perpetuity, while putting additional measures like night curfew, restricts market access and denying equal opportunity for airlines from developing countries like India to expand in large European markets. 'The assembly's action on these matters is essential for preserving the integrity of the international civil aviation system and ensuring that all states can realize the benefits of their participation in international air services,' the working paper reviewed by ET said. Live Events At congested airports like London Heathrow, Amsterdam, Paris slots are allocated twice a year- summer and winter season, according to the guidelines set by International Air Transport Association under which airlines can hold a slot if they use it 80% of time each season. 'This often means that carriers from large source markets like India are unable to deploy new capacity at commercially viable timings, while countries operating such hubs continue to seek increased access to the Indian market without offering reciprocal benefits,' India said in the working paper reviewed by ET. The government's decision to raise this at an international level comes as Indian carriers like IndiGo and Air India have charted aggressive expansion plans for overseas foray. IndiGo's flights to Amsterdam are facing uncertainty as its request for slots for winter is yet to be approved, as the Dutch government is preparing to impose a cap on flight movements to reduce noise pollution. 'While developing economies such as India are investing heavily in expansion of airport infrastructure, creating opportunities for all carriers, developed economies, like Amsterdam, are actively reducing existing capacity creating an unequal playing field that inherently favours legacy carriers from developed nations,' India noted in the working paper. This, the government said, prevents Indian carriers from fully utilising the international flying rights which are allocated on a bilateral reciprocal basis by governments to their respective airlines. 'As a case, despite comprehensive bilateral agreement between India and the UK Indian carriers' access has been reduced to secondary airports in London like Gatwick and Stansted Airports while UK carriers maintain access to Heathrow,' the paper said. At London Heathrow, while a new agreement in 2023, allowed airlines from both countries to increase flights from 56 to 70 per week, Air India operates 31 weekly flights to the airport and is forced to expand at Gatwick. IndiGo is likely to lease a slot from a UK based airline at a premium price. Airports Coordination Limited, the agency which allocates slots at Heathrow, told ET that since the airport has reached its full capacity, airlines will have to wait for another to lose their historic rights or to purchase and lease slots. 'Access to slots is independent of bilateral entitlements,' a spokesperson said. Indian airline executives have called for action against carriers from such countries. ''Despite having liberal air service agreement, it is only the foreign carriers which are getting the benefit of this. The government should curtail flights for them so that there is level playing field between the two countries,' an airline official said.
Scroll.in
an hour ago
- Scroll.in
As US tariffs kick in, Trump may have won many battles but lost the war
Last week, US President Donald Trump issued an executive order updating the 'reciprocal' tariff rates that had been paused since April. Nearly all US trading partners are now staring down tariffs of between 10% and 50%. After a range of baseline and sector-specific tariffs came into effect earlier this year, many economists had predicted economic chaos. So far, the inflationary impact has been less than many predicted. However, there are worrying signs that could all soon change, as economic pain flows through to the US consumer. Decoding the deals Trump's latest adjustments weren't random acts of economic warfare. They revealed a hierarchy, and a pattern has emerged. Countries running goods trade deficits with the US (that is, buying more than they sell to the US), which also have security relationships with the US, get 10%. This includes Australia. Japan and South Korea, which both have security relationships with the US, were hit with 15% tariffs, likely due to their large trade surpluses with the US. But the rest of Asia? That's where Trump is really turning the screws. Asian nations now face average tariffs of 22.1%. Countries that negotiated with Trump, such as Thailand, Malaysia, Indonesia, Pakistan and the Philippines, all got 19%, the 'discount rate' for Asian countries willing to make concessions. India faces a 25% rate, plus potential penalties for trading with Russia. Is Trump winning the trade war? In the current trade war, it is unsurprising that despite threats to do so, no countries have actually imposed retaliatory tariffs on US products, with the exception of China and Canada. Doing so would drive up their consumer prices, reduce economic activity, and invite Trump to escalate, possibly limiting access to the lucrative US market. Instead, nations that negotiated 'deals' with the Trump administration have essentially accepted elevated reciprocal tariff rates to maintain a measure of access to the US market. For many of these countries, this was despite making major concessions, such as dropping their own tariffs on US exports, promising to reform certain domestic regulations, and purchasing various US goods. Protests over the weekend, including in India and South Korea, suggested many of these tariff negotiations were not popular. Even the European Union has struck a deal accepting US tariff rates that once would have seemed unthinkable – 15%. Trump's confusing Russia-Ukraine war strategy has worried European leaders. Rather than risk US strategic withdrawal, they appear to have simply folded on tariffs. Some deals are still pending. Notably, Taiwan, which received a higher reciprocal tariff (20%) than Japan and South Korea, claims it is still negotiating. Through the narrow prism of deal making, it is hard not to escape the conclusion that Trump has gotten his way with everyone – except China and Canada. He has imposed elevated US tariffs on many countries, but also negotiated to secure increased export market access for US firms and promised purchases of planes, agriculture and energy. Why economic chaos hasn't arrived – yet Imposing tariffs on goods coming into the US effectively creates a tax on US consumers and manufacturers. It drives up the prices of both finished goods (products) and intermediate goods (components) used in manufacturing. Yet the Yale Budget Lab estimates the tariffs will cause consumer prices to rise by 1.8% this year. This muted inflationary impact is likely a result of exports to the US being 'front-loaded' before the tariffs took effect. Many US importers rushed to stockpile goods in the country ahead of the deadline. It may also reflect some companies choosing to ' eat the tariffs ' by not passing the full cost to their customers, hoping they can ride things out until Trump ' chickens out ' and the tariffs are removed or reduced. Who really pays Despite Trump's repeated claims that tariffs are a tax paid by foreign countries, research consistently shows that US companies and consumers bear the tariff burden. Already this year, General Motors reported that tariffs cost it US$1.1 billion in the second quarter of 2025. A new 50% tariff on semi-finished copper products took effect on August 1. That announcement in July sent copper prices soaring by 13% in a single day. This affects everything from electrical wiring to plumbing, with costs ultimately passed to US consumers. The average US tariff rate now sits at 18.3%, the highest level since 1934. This represents a staggering increase from just 2.4% when Trump took office in January. This trade-weighted average means that, on typical imported goods, Americans will pay nearly one-fifth more in taxes. Alarm bells The US Federal Reserve is concerned about these potential price impacts, and last week opted to maintain interest rates at their current levels, despite Trump's pressure on Chairman Jerome Powell. And on August 1, economic data released in the US showed significant slowing in job creation, some worrying signs in economic growth, and early signs of business investment paralysis due to the economic uncertainty unleashed by Trump's ever-changing tariff rates. Trump responded to the report by firing the US Bureau of Labour Statistics commissioner, a shock move that led to widespread concerns official US data could soon become politicised. But the worst economic impacts could still be yet to come. The domestic consequences of Trump's tariff policies are likely to amount to a massive economic own goal.
