DBT Bureau
Bengaluru, 17 October 2024
Infosys posted a net profit of Rs 6,506 crore, an increase of 4.7% year-on-year basis in the second quarter ended September. Its revenue increased 5.1% YoY to Rs 40,986 crore during this period.
In dollar term, revenue was at $4.89 billion, an increase of 3.1% sequentially in constant currency. Its operating margin was at 21.1%, 10 basis points lower than the past quarter.
“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”, said Salil Parekh, CEO and MD.
“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.
The IT major revised its revenue growth guidance upwards to 3.75-4.5% in constant currency term. However, it maintained its operating margin guidance of 20-22% for FY25.
“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 utilization despite higher employee payouts. Our focus on cash generation resulted in another quarter of over 100% Free Cash Flow conversion to net profits” said Jayesh Sanghrajka, CFO.
“The Board announced an interim dividend of Rs 21 per share, 16.7% increase from last year” he added.
After consecutive quarters of decline, the company reported increase its overall headcount in the second quarter. Its total headcount grew 2,456 to 317,788 by the end of second quarter. “We plan to hire around 15,000 to 20,000 freshers in the current financial year. We don’t provide quarter specific onboarding of freshers but these many freshers will be hired this fiscal year,” Sanghrajka said.
