12:50 PM EDT, 04/18/2024 (MT Newswires) -- Infosys ( INFY ) reported a surprise gain in fiscal fourth-quarter earnings on Thursday despite virtually flat revenue while announcing an acquisition of a German automotive services provider.

GAAP earnings per share increased to $0.23 for the three months ended March 31 from $0.18 a year ago, outperforming expectations in a Capital IQ survey that earnings would hold steady year over year. Revenue marginally improved to $4.56 billion from $4.55 billion but missed the Street's $4.62 billion view.

Free cash flow soared 19% from fiscal 2023's fourth quarter to $848 million, which Chief Financial Officer Jayesh Sanghrajka said was the highest in the last 11 quarters, driven by an improving working capital cycle.

In 2024, the Indian technology services company achieved its highest-ever large deal value and continued to expand its capabilities in generative artificial intelligence, Chief Executive Salil Parekh said in a statement.

For fiscal 2025, Infosys ( INFY ) is guiding for constant currency revenue growth of 1% to 3%. In fiscal 2024, the company's revenue expanded by 1.4% in constant currency to $18.56 billion. The market view is for revenue of $19.57 billion in the ongoing year.

The company sees operating margin in the 20% to 22% range, compared with the 20.7% margin it reported in the year that just ended. "Operating margin expansion in the medium-term and improving cash generation continue to remain our priorities," Sanghrajka said.

The Indian technology services company separately announced Thursday an agreement to buy in-tech, an engineering research and development services provider focused on the German automotive industry, including connected and autonomous cars. The deal is expected to close during the first half of fiscal 2025, subject to regulatory approvals.

"The automotive industry today is going through a pivotal change, with connected, autonomous, and electric vehicles, and most importantly software-defined vehicles," Infosys Global Head of Manufacturing Jasmeet Singh said in a statement. "Electronics and software will drive value for next generation vehicles."

"This strategic partnership with Infosys ( INFY ) represents a decisive turning point for us: It opens up unprecedented growth opportunities, and also adds tremendous value to our offering for our clients," in-tech CEO Tobias Wagner said.