Infosys Q2 profit surges 5% to ₹6,506 cr, revenue up 5.1%; announces ₹21/share dividend

IT major Infosys recorded 5% year-on-year growth in its net profit at ₹6,506 crore in the second quarter (Q2 FY25) against ₹6,212 crore a year ago, thanks to broad-based growth with a good momentum in financial services.

India's second-largest IT services company recorded 5.1% YoY growth in the second quarter revenue at ₹40,986 crore. Infosys says its revenues in constant currency (CC) terms grew 3.3% YoY and 3.1% QoQ.

In its guidance for FY25, Infosys expects upward revenue growth of 3.75%-4.50% in constant currency, while the operating margin of 20%-22%. Earlier, the company had expected 3-4% revenue in FY25.

The Bengaluru-headquartered company's operating margin for the said quarter stood at 21.1%, a decline of 0.1% YoY and flat QoQ. The basis earning per share stood at ₹15.71, a growth of 4.7% year-on-year.

“We had strong growth of 3.1% quarter-on-quarter in constant current in Q2. 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,” says Salil Parekh, CEO and MD. “Our large deals at $2.4 billion in Q2 reflect our differentiated position.”

In employee metrics, Infosys recorded a net addition of 2,456 employees in Q2 FY25. Its workforce increased to 3.17 lakh in Q2 against 3.15 lakh in Q1. Voluntary attrition on an LTM basis surged to 12.9% from 12.7% in the previous quarter, while women's strength eased marginally to 39% from 39.2% in the previous quarter. In terms of clients, the active client number surged marginally to 1870 from 1867 in the previous quarter. The 100 million USD club client number increased to 41 in Q2 from 40 in Q1.

"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,” says Jayesh Sanghrajka, CFO.

Interim dividend of ₹21 apiece

Infosys has declared an interim dividend of ₹21 per equity share and fixed October 29, 2024, as a record date and November 8, 2024, as a payout date. “The Board announced an interim dividend of ₹ 21 per share, a 16.7% increase from last year," says Sanghrajka. Additionally, Infosys says that based on the recommendation of the nomination and remuneration committee, its board approved the grant of 22,880 RSUs to six eligible employees, which will vest over two to four years.