IT major Infosys on Thursday posted a 4.7 per cent rise in its net profit to Rs 6,506 crore for the second quarter ended September 2024. It is below market expectations. Its revenue during July-September 2024 increased 5.1 per cent to Rs 40,986 crore, compared with Rs 38,994 crore in the year-ago period.
Infosys’ net profit had stood at Rs 6,212 crore in the corresponding period last year, it said in a BSE filing.
The company also declared an interim dividend of Rs 21 per equity share, fixed October 29, 2024 as a record date and November 8, 2024 as a payout date.
Shares of Infosys on Thursday jumped 2.5 per cent to Rs 1,968.1 crore apiece on the BSE.
The large deals’ TCV (total contract value) was at $2.4 billion.
Infosys Q2 Results: Infosys Guidance for FY25
Infosys has also revised upward its revenue growth guidance to 3.75-4.5% for the financial year 2024-25, as compared 3-4% earlier.
The company expects its operating margin of 20-22 per cent.
Infosys Q2 Results: Infosys Volantary Attrition
Infosys posted an increase in volantary attrition (last twelve months for IT services) to 12.9 per cent in the September 2024 quarter, from 12.7 per cent in the previous June 2024 quarter. However, it is lower than the 14.6 per cent attrition recorded a year ago (September 2023 quarter).
Salil Parekh, CEO and MD of Infosys, said, “We had strong growth of 3.1% 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.”
Our large deals at $2.4 billion in Q2 reflect our differentiated position. I am grateful to our employees for their unwavering commitment to our
client as we further strengthen our market leadership, he added.
Jayesh Sanghrajka, CFO of Infosys, said, “We continue to focus on accelerating revenue growth with a sharp focus on margin performance. Operating margins for the quarter was at 21.1%, 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 per cent free cash flow conversion to net profits.”
The board announced an interim dividend of Rs 21 per share, which is 16.7 per cent increase from last year, he added.
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