Infosys Q2 profit up 3.3% at ₹6,212 cr; trims FY24 revenue guidance

The country's second-largest IT services company Infosys Ltd today reported net profit of ₹6,212 crore in the July-September quarter of 2023-24, a growth of 3.32% over the same period last year when its net profit was ₹6,021 crore.

The company's consolidated revenue for the said quarter grew 6.7% to ₹38,994 crore against ₹36,538 crore revenue during the year-ago period.

In dollar terms, Infosys delivered $4,718 million in Q2 revenues, with year-on-year growth of 2.5% and sequential growth of 2.3% constant currency.

Infosys' operating margin for the said quarter stood at 21%, a decline of 0.3% YoY and an increase of 0.4% QoQ.

The basic earning per share (EPS) stood at ₹15.01, growth of 4.6% YoY. The total contract value (TCV) of the large deals was $7.7 billion.

The operating margin for the quarter increased 40 bps sequentially to 21.2%. Infosys says its attrition rate declined to 14.6% during the said quarter.

In its revenue guidance, the company says it has revised the same to 1.0%-2.5%, while the guidance on operating margin has been retained at 20%-22%. In the previous quarter, the Bengaluru-based company had trimmed its FY24 revenue guidance to 1.0%-3.5% from 4-7% earlier.

“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”, says Salil Parekh, CEO and MD.

He adds that "strong H1 performance with significant large deal wins", builds a solid foundation for the future.

On the latest AI boom, the Infosys CEO says the growing adoption of "our generative AI offering, Topaz" is helping the company deliver consistent value and expand market share”.

The company CFO Nilanjan Roy says the Q2 operating margin of 21.2% shows the early benefits of the recently unveiled margin improvement plan and is a clear reflection of its ability to continuously identify opportunities for improving operational efficiencies.

The Infosys board has also announced an interim dividend of ₹18 per share, an increase of 9.1% over last year. The Infosys stock closed 1.95% down at ₹1,464.55 today on the Bombay Stock Exchange.

Notably, Infosys rival and India’s largest IT services company Tata Consultancy Services on Tuesday reported an 8.7% rise in net profit at ₹11,342 crore against ₹10,431 crore in the year-ago period. Its revenue stood at ₹59,692 crore, up 10% against ₹55,309 crore in the same period last year.