Infosys Q2 Results: Infosys announced its July-September quarter results for fiscal 2024-25 (Q2FY25) on Thursday, October 17, reporting a rise of 4.7 per cent in net profit at ₹6,506 crore.
India’s second largest information technology (IT) services provider’s revenue from operations in the second quarter of current fiscal rose five per cent to ₹40,958 crore.
Infosys also declared an interim dividend of ₹21 per share. The IT giant increased its revenue guidance for FY25 to 3.75-4.5 per cent from 3-4 per cent. The headcount jumps by 2,456 employees in the September quarter, for the first time in seven quarters.
Net profit of ₹6,506 crore in July-September was up 4.7 per cent when compared to ₹6,212 crore earnings in the same period last year. It was 2.2 per cent higher quarter-on-year.
Infosys for the second consecutive quarter raised the 2024-25 fiscal year revenue guidance. It now anticipates a growth of 3.75 to 4.50 per cent in revenue in the fiscal year April 2024 to March 2025, up from 3-4 per cent band it had given in the previous quarter.
The company had in July raised the revenue guidance for the fiscal from 1-3 per cent anticipated previously.
The EBIT (earnings before interest and tax) margin or the operating margin for the Bengaluru-based company was flat at 21.1 percent. Infosys’ margin performance was expected to be driven by cost optimisation efforts, lower onsite costs, improved utilisation rates, and better operational efficiencies.
Salil Parekh, CEO and MD, said the company had strong growth of 3.1 percent quarter-on-quarter in constant current in Q2. “The growth was broad based with good momentum in financial services. This stems from our strength in industry expertise, market leading capabilities in cloud with Cobalt and generative AI with Topaz, resulting in growing client preference to partner with us”, Parekh said.
He further said the company’s large deals at $2.4 billion in Q2 reflects its differentiated position. “I am grateful to our employees for their unwavering commitment to our client as we further strengthen our market leadership.” In constant currency terms, the topline grew by 3.3 percent YoY.
Chief Financial Officer Jayesh Sanghrajka said in a statement that the company will continue to focus on accelerating revenue growth with a sharp focus on margin performance. He added that margins for the quarter were driven by continued benefits from value-based pricing and utilisation despite higher employee payouts.
“Our focus on cash generation resulted in another quarter of over 100% Free Cash Flow conversion to net profits” said Sanghrajka.
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