Infosys Q2 Results: Revenue Up 4.3%; FY25 Forecast Increased
Infosys posted a net profit increase of 2.2% to Rs 6,506 crore, while operating margins expanded to 21.2%.
Infosys Ltd. on Thursday raised its revenue forecast in constant currency terms for the financial year-ending March 2025 to 3.75-4.5%, up from its earlier projection of 3-4% for the period. The margin guidance for the fiscal was retained at 20-22%.
The IT major's results showed a 4.3% increase in revenue over the previous three months to Rs 40,986 crore for the quarter ended September, according to an exchange filing. That compared with the Rs 40,820 crore estimate by analysts tracked by Bloomberg.
Infosys Q2 Results: Key Highlights (QoQ)
Revenue up 4.3% to Rs 40,986 crore (Bloomberg estimate: Rs 40,820 crore).
Net profit up 2.2% to Rs 6,506 crore (estimate: Rs 6,831 crore).
EBIT up 4.7% to Rs 8,689 crore (estimate: Rs 8,699 crore).
Margin expanded to 21.2% versus 21.1% (estimate: 21.30%).
Revenue growth in constant currency terms rose 3.3% on a year-on-year basis and 3.1% sequentially. Revenue growth for the first half of fiscal 2025 rose 2.9% year on year.
"The growth was broad-based with good momentum in financial services," said Infosys Chief Executive Salil Parekh.
The company's free cash flows for the quarter stood at $839 million, registering a year-on-year growth of 25.2%.
“We continue to focus on accelerating revenue growth with a sharp focus on margin performance. Operating margins for the quarter were at 21.1%, driven by continued benefits from value-based pricing and utilisation despite higher employee payouts," the company's Chief Financial Officer, Jayesh Sanghrajka, said. "Our focus on cash generation resulted in another quarter of over 100% free cash flow conversion to net profits."
Besides, the large deal total contract value came in at $2.4 billion, with 41% being net new. This compares with $4.1 billion, its highest ever recorded last quarter. The number of active clients stood at 1,870, with 86 added during the quarter.
Total employee count at the end of the second quarter is 317,788, with an addition of 2,456 employees in the quarter. Attrition marginally inched up to 12.9% from 12.7% last quarter. The utilisation rate stood flat at 85.9%.
The board also announced an interim dividend of Rs 21 per share, a 16.7% increase from last year.
On Thursday, Infosys shares rose 2.9% to Rs 1,974.55 apiece, even as the benchmark Sensex ended the day 0.6% lower. The quarterly results were declared after market hours.
