Infosys Q2 profit ups 3.2% YoY to ₹6,212 crore

Information Technology (IT) services company Infosys Ltd on Thursday reported a mere 3.2% year-on-year rise in its consolidated net profit (attributable to owners of the company) for the fiscal's second quarter ended September (Q2FY24) to ₹6,212 crore. Infosys had reported a profit of ₹6,021 crore in the year-ago period. Sequentially, the consolidated net profit was up 4.5%. Infosys shares ended at ₹1,464.55 apiece, down nearly 2% on BSE.

Infosys consolidated revenue from operations stood at ₹38,994 crore during the quarter ended September from ₹36,538 crore in Q2FY23. Sequentially, up 2.8% from ₹37,933 crore in Q4FY23.

Infosys revenue growth guidance has been trimmed to 1%-2.5% from 1%-3.5%, as per company's filing. 

The company's consolidated total income for the quarter ended September surged 6.7% year-on-year to ₹39,626 crore, and sequentially rose by 2.9%.

According to an Infosys exchange statement, the leading IT company reported Q2 revenues of $4,718 million, representing 2.5% year-over-year growth and 2.3% sequential growth in constant currency. With a net new of 48%, the large deal TCV for the quarter was $7.7 billion. The operating margin for the quarter was 21.2%, a sequential rise of 40 basis points. Attrition dropped even lower, to 14.6%. Infosys has retained operating margin guidance at 20%-22%.

“We had our highest large deals value at $7.7 billion in Q2 spread across all verticals and geographies. This, in an uncertain macro-environment, is a testament to our ability to pivot and stay relevant to the evolving client needs, by delivering the benefits of transformation as well as productivity and cost savings at scale. 

Strong H1 performance with significant large deal wins, builds a solid foundation for the future. The growing adoption of our Generative AI offering, Topaz, is helping us deliver consistent value and expand market share," said Salil Parekh, CEO and MD.

For the quarter ended September, Infosys operating margin came in at 21.2%, down 0.3% on year, and sequentially was up by 0.4%.  For the six months ended September, operating margin stood at 21.0%, a 0.2% on year growth, as per the exchange filing.

“Our Q2 operating margin of 21.2% demonstrates the early benefits of recently unveiled margin improvement plan and is a clear reflection of our ability to continuously identify opportunities for improving operational efficiencies,” said Nilanjan Roy, CFO. 

“In line with our capital allocation policy, the board has announced an interim dividend of ₹18 per share, an increase of 9.1% over last year,” he added.