IT major Infosys logs 4.7 pc increase in Q2 net profit at Rs 6,506 crore

IT major Infosys on Thursday reported a 4.7 per cent increase in net profit (year-on-year) in the July-September period (Q2 FY25) to Rs 6,506 crore from Rs 6,212 crore in the year-ago quarter.The IT bellwether's revenue clocked a growth of over 4 per cent (quarter-on-quarter) at Rs 40,986 crore from Rs 38,994 crore in the same quarter last fiscal.

Infosys has also raised its full-year revenue growth guidance to 3.75-4.5 per cent.

The company declared an interim dividend of Rs 21 per share (a 16.7 per cent increase from last year) and fixed November 8 as the payout date. The H1 FY25 revenues grew at 2.9 per cent (year-over-year) in constant currency. Operating margin for H1 was at 21.1 per cent.

"We had strong growth of 3.1 per cent quarter-on-quarter in constant current in Q2. The growth was broad-based with good momentum in financial services," Infosys CEO and MD Salil Parekh said.

Free cash flow for Q2 was at $839 million, growing 25.2 per cent (year-on-year). The total contract value (TCV) of large deal wins was $2.4 billion, 41 per cent being net new.

"We continue to focus on accelerating revenue growth with a sharp focus on margin performance. Operating margins for the quarter was at 21.1 per cent, driven by continued benefits from value-based pricing and utilisation despite higher employee payouts," CFP Jayesh Sanghrajka said.

"Our focus on cash generation resulted in another quarter of over 100 per cent free cash flow conversion to net profits," Sanghrajka added.In the quarter, Infosys announced that it has entered into a long-term collaboration with Metro Bank to enhance some of its IT and support functions, while digitally transforming the bank’s business operations. The company also announced a strategic collaboration with Proximus to help unlock new business opportunities.