Infosys Share Price

Infosys Limited

Infosys Limited is a globally recognised technology services firm that offers a wide range of IT-enabled business solutions. Established in 1981, Infosys has grown to become India's second-largest software exporter, providing consulting, technology, outsourcing, and digital services worldwide.

Company history and milestones

Infosys was founded by seven engineers in Pune, India, with an initial capital of USD 250. The company was incorporated as Infosys Consultants Pvt. Ltd. and later became a public limited company in 1992. In 1999, Infosys became the first Indian company to be listed on NASDAQ, marking a significant milestone in its journey.

Over the years, Infosys has expanded its global footprint through strategic acquisitions and partnerships. Notable acquisitions include Expert Information Services Pty Ltd in Australia (2004), McCamish Systems LLC in the US (2009), and Panaya Inc. (2015). These acquisitions have enabled Infosys to enhance its service offerings and enter new markets.

Strategic initiatives and innovations

Infosys has been at the forefront of digital transformation, helping clients navigate their journey to a digital future. The company's strategy focuses on being a navigator for clients by offering end-to-end services in consulting, software application development, enterprise system implementation, and more.

One of Infosys' flagship products is Finacle, a universal banking solution that serves large- and medium-sized banks globally. The company has also developed innovative platforms such as Flypp for mobile service providers and Infosys Mana for machine learning and automation.

In recent years, Infosys has made significant investments in emerging technologies like artificial intelligence (AI), cloud computing, and blockchain. The launch of Infosys CobaltTM, an integrated cloud offering, demonstrates the company's commitment to leveraging cloud assets and ecosystem alliances to drive business transformation.

Global presence and subsidiaries

Infosys operates across 191 locations in 46 countries, with a network of 24 direct subsidiaries and 62 step-down subsidiaries as of March 2021. This extensive global presence enables Infosys to deliver localized solutions while maintaining a strong international footprint.

The company's subsidiaries include Infosys BPO (now Infosys BPM), which provides business process management services, and EdgeVerve Systems, which offers software products like Finacle.

Stock performance and market perception

Infosys is listed on several stock exchanges including the Bombay Stock Exchange (BSE), National Stock Exchange of India (NSE), and New York Stock Exchange (NYSE). Over the years, the company's stock performance has reflected its robust financial health and consistent growth trajectory.

In comparison to TCS and Wipro, Infosys emphasises its commitment to sustainability and corporate governance. The company has been recognised for its investor relations practices and transparency in financial reporting.

Corporate Social Responsibility (CSR) initiatives

Infosys is committed to sustainable development through various CSR initiatives. The company focuses on education, healthcare, rural development, and environmental sustainability. Its flagship CSR programme, Infosys Foundation, supports numerous projects aimed at improving community welfare.

Financial performance

Q1 FY25 financial highlights

• Revenue and profit: Infosys reported a consolidated revenue of ₹39,315 crore for the quarter ending June 30, 2024, marking a 3.6% increase from ₹37,933 crore in the same quarter of the previous year. The Profit After Tax (PAT) stood at ₹6,368 crore, reflecting a 7.1% growth year-on-year from ₹5,945 crore in the same quarter of the previous year.
• Sequential performance: Despite the year-on-year growth, Infosys experienced a 20.1% decline in net profit sequentially from ₹7,975 crore reported in the fourth quarter of FY24.
• Operating margins: The company maintained an operating margin of 21.1%, which is an increase of 30 basis points over the previous year's margin.
• Free cash flow and return on equity: Infosys achieved free cash flow (FCF) of ₹9,155 crore, up 59.2% year-on-year. The FCF conversion was 143.2% of net profit.

Strategic initiatives and market position

Infosys raised its revenue growth forecast for FY25 to 3%-4%, up from its previous projection of 1%-3%. This revision reflects optimism about demand recovery in IT services as global economic conditions stabilise. The company's strategic focus on generative AI and cloud solutions has been crucial in securing large deals and expanding its client base.

Infosys' performance aligns with industry trends, where companies are navigating economic uncertainties while leveraging technological advancements to drive growth.

Challenges and opportunities

While Infosys has shown resilience, it faces challenges such as economic uncertainty and fluctuating client spending due to high interest rates. Analysts expect these trends to reverse once macroeconomic conditions improve, particularly with potential interest rate cuts by central banks.

The company's focus on innovation and digital transformation presents significant opportunities for growth. Its investments in AI, cloud computing, and other emerging technologies position Infosys well to capitalize on future demand shifts.

Outlook overview

Infosys Limited continues to demonstrate strong financial performance amidst challenging market conditions. Its strategic initiatives in AI and cloud solutions have bolstered its market position and set a positive trajectory for future growth. As global economic conditions stabilise, Infosys is well-equipped to leverage emerging opportunities and maintain its leadership in the IT services sector.