Infosys Q1 Results: Recovery In US Financial Services Market In Sight, Says CEO

• Seeing early signs of improvement in US BFSI especially with regard to mortgage and payments

• Discretionary tech spending by clients remains weak

• ⁠Retail vertical continues to face challenges

• Sequential improvement in margin was led by better realization and continued focus on operational efficiency

• Yet to take a call on timing of wage hike for the FY25.

• 3-4% revenue growth guidance for FY25 takes into fact that H1FY25 would be better than H2FY25.

• Margin levers include improving employee pyramid, better realization and near shoring

• Seeing strong interest among clients with regard to adoption of Gen AI based solutions

"On Europe, so what we are seeing is different things in different places. In the Nordic countries we've had good traction over the last few quarters and even a little bit before in how we've engaged with clients and we've seen some good expansion of our large programs. We've seen some of that in continental Europe broadly," the CFO said.

"We've seen a different type of a positive traction in Germany, where we are seeing some of our local Europe competitors are having more constraints and where we are benefiting from those constraints as we are expanding," he added.

"We are seeing some recovery in US financial services, specifically in the areas like. Mortgages, capital markets, and card payments, you know, and the larger clients there. So we are seeing some volumes coming in and some recovery, some early signs of recovery in those areas."

Infosys Q1FY25 earnings call has started. CEO and MD Salil Parekh, CFO Jayesh Sanghrajka and Sandeep Mahindroo, Head of Investor Relations, are speaking to analysts.