Company: INFY
Filing Date: 2025-07-01
Form Type: 20-F
Source: 0000950170-25-091925
Chunk: 87

Company: Infosys Ltd
Filing Date: 2025-07-01
Form: 20-F
Item: Item 5
Chunk 87
---
2   )            (0.3   )            (0.2   )
Profit before income taxes                                  23.1                23.4                22.6    
Income tax expense                                           6.7                 6.3                 6.2    
Net margin                                                  16.4                17.1                16.4    
Non-controlling interests                                      —                   —                   —    
Net margin attributable to owners of the company            16.4                17.1                16.4    

Results for Fiscal 2025 compared to Fiscal 2024

During fiscal 2025, the company continued running Project Maximus, a comprehensive margin expansion program structured across 5 pillars:
•Value Based Selling - A focused strategy to identify opportunities to align pricing to the value clients received for the services we provide to them.
•Efficient Pyramid - Bringing in efficiencies to reduce effort costs by improving utilization, reducing sub-contractors, improving role mix, location mix, etc.
•Lean, Automation & Gen AI - Strategic initiative to combine productivity and process improvement using automation technologies including Generative AI to enhance efficiency.
•Improving critical portfolios - A targeted approach to improve margins on large client engagements and service lines.
•Reducing indirect costs - Optimization of General and Administrative expenses.

Revenues

Our revenues are generated principally from services provided either on a time-and-material, unit of work, fixed-price, or fixed-timeframe basis. Many of our client contracts, including those that are on a fixed-price, fixed-timeframe basis can be terminated by clients with or without cause and with short notice periods of 0 to 90 days. Generally, we collect revenues as milestones in the contracts are completed, therefore terminated contracts are only subject to collection for portions of the contract completed through the time of termination. In order to manage and anticipate the risk of early or abrupt contract terminations, we monitor the progress of contracts and change orders according to their characteristics and the circumstances in which they occur. This includes a review of our ability and our client's ability to perform on the contract, a review of extraordinary conditions that may lead to a contract termination and a review of the historical client performance considerations. Since we also bear the risk of cost overruns and inflation with respect to fixed-price, fixed-timeframe projects, our operating results could be adversely affected by inaccurate estimates of contract completion costs and dates, including wage inflation rates and currency exchange rates that may affect cost projections. Although we revise our project completion estimates from time to time