After feeling good about its work with generative AI in the previous quarter, Infosys has yet again emphasised on its dedication to generative AI at its latest Q1 FY25 results, but not revealed the numbers.
“We continue to see strong traction from our clients for generative AI programs delivered through Topaz. Enterprises are focusing on leveraging their own datasets for use in generative AI and large language models, which are creating a significant impact for them,” said Salil Parekh, CEO and MD.
“We are not at this stage disclosing and quantifying externally our revenue from it. The work we are doing is quite incredible. The focus is really on what enterprises are doing for generative AI,” said Parekh. “We are not combining generative AI revenue with other revenue,” he added that Infosys’ approach towards generative AI for clients has the leadership in the market.
“In any of our offerings that we are deploying [generative AI], we make sure that we get the full benefit of it,” said Parekh, while adding that this is what is driving Infosys to be an AI-first company.
“We had that view when we became digital first, cloud first, and now AI first. That positions us very differently with our clients,” he added.
Meanwhile, TCS has doubled up on its AI game. The IT giant announced that it is doubling its AI pipeline to $1.5 billion this quarter, from the $900 million pipeline reported in the previous one.
In the last result, Infosys said that it was managing over 225 generative AI programs for its clients. A key aspect of executing these complex transformations is talent.
TCS is now also working on around 270 AI projects worldwide. Moreover, in Q1 FY25, it applied for 154 patents and was granted 277, as revealed by TCS chief K Krithivasan. Regardless, Krithivasan said that TCS is still only experimenting with generative AI, admitting that deriving business value would take time.
Regardless, Infosys had another strong quarter of large deal wins with 34 large deals at a total contract value of $4.1 billion. The acquisition of in-tech is also now complete, which was announced during the last call.
Infosys, under the leadership of Parekh, announced a 7.1 percent YoY increase in net profit, reaching Rs 6,368 crore for the June quarter, compared to Rs 5,945 crore in the same period last year.
“We had an excellent start to FY25 with strong and broad-based growth, operating margin expansion, robust large deals, and highest ever cash generation. This is a testimony to our differentiated service offerings, enormous client trust, and relentless execution”, said Parekh.
The company's revenue for the quarter saw a 3.6 percent YoY growth, amounting to INR 39,315 crore, up from INR 37,933 crore in the corresponding quarter of the previous year. Analysts had anticipated a net profit rise of up to 10 percent with a modest single-digit revenue growth.
“With our focused approach for generative AI for enterprises working with their data sets on a cloud foundation, we have strong traction with our clients. This is building on our Topaz and Cobalt capabilities” Parekh added.
Infosys' total employee count was 3,15,332, a decrease from 3,17,240 in the March quarter. The voluntary attrition rate stood at 12.7 percent, compared to 12.6 percent in March and 17.3 percent in the same quarter last year.
“Our utilisation is already at 85%. We have little headroom now left. As we start seeing growth, we are looking at hiring 15-20,000 freshers this year,” said Jayesh Sanghrajka, CFO of Infosys.
Infosys co-founder Nandan Nilekani had earlier revealed that the company’s early investment in generative AI (through the Infosys Topaz platform) has positioned it as a leader in AI services, with recognition from seven out of eight leading analysts.
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