Infosys Q2 Results Highlights: Net profit rises 2.1% QoQ to ₹6,506 crore, dividend announced

• Revenue from operations: ₹40,986 crore, up 5.1% YoY, up 4.2% QoQ
• Net profit: ₹6,506 crore, up 4.7% YoY, up 2.16% QoQ
• EBIT: ₹8,649 crore, up 4.4% QoQ
• Margin: 21.1% vs 21% in Q1 FY25
• Interim dividend: ₹21 per share; record date: October 29; payout date: November 8

The company's headcount stood at 3,17,788, an increase of 2,456 employees from the previous quarter.

The company has approved merger of WongDoody Inc (wholly owned subsidiary) and Blue Acorn iCi Inc, Outbox Systems Inc., d.b.a Simplus and Kaleidoscope Animations Inc (step-down subsidiaries) with Infosys Nova Holdings LLC (wholly owned subsidiary).

The company has also approved acquisition of Blitz 24-893 SE.

• Positioned as a leader in 2024 Gartner Magic Quadrant for Public Cloud IT Transformation Services.
• Rated as a leader in End-to-End Cloud Infrastructure Management Services NEAT 2024 by NelsonHall.
• Recognised as a leader in Constellation Shortlist 2024: Artificial Intelligence and Machine Learning Best-of-Breed Platforms.
• Recognised as a leader in Constellation Shortlist 2024: AI-Driven Cognitive Applications.
• Recognised as a leader in Constellation Shortlist 2024: AI Services: Global.
• Recognised as a leader in Constellation Shortlist 2024: Public Cloud Transformation Services: Global.

• Revenues in constant currency (CC) terms grew by 3.3% YoY and 3.1% QoQ
• Reported revenues at ₹40,986 crore, growth of 5.1% YoY
• Operating margin at 21.1%, decline of 0.1% YoY and flat QoQ
• Basic EPS at `15.71, growth of 4.7% YoY
• FCF at ₹7,010 crore, growth of 26.6% YoY; FCF conversion at 107.6% of net profit

• 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.
• Infosys announced a strategic collaboration with Proximus to help unlock new business opportunities.
• Infosys announced its collaboration with TDC Net to help them transform from a traditional infrastructure company to a leading customer-centric technology company.
• Infosys announced the extension of its existing collaboration with Posti to help it enhance customer experience and operational efficiency while continuing to innovate, scale, and grow its IT operations.
• Infosys announced a strategic collaboration with Sally Beauty Holdings, Inc. (SBH) to drive enterprise-scale IT transformation and implement best practices in IT operations to bring efficiencies through the optimization of IT service delivery.
• Infosys announced a strategic collaboration with Polestar to create a base for Polestar’s development of in-car infotainment, Software and Electrical/ Electronics (SW&EE) engineering, user experience (UX), and cloud-powered digital services.
• Infosys announced a successful collaboration with the Life Insurance Corporation of India (LIC) to spearhead its digital transformation initiative called DIVE.

• Revenue growth of 3.75%-4.50% in constant currency
• Operating margin of 20%-22%

"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.

Jayesh Sanghrajka, CFO of Infosys, said, "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."

"The Board announced an interim dividend of ₹21 per share, 16.7% increase from last year," he added.

• Current price: ₹1,962.4 (+2.2%)
• Previous close: ₹1,920.1
• Open: ₹1,935.2
• High: ₹1,978
• Low: ₹1,930.1

• EdgeVerve Systems
• Infosys BPM
• Infosys Consulting
• Infosys Public Services

• Nandan Nilekani, Co-founder and Chairman of the Board
• Salil Parekh, Chief Executive Officer and Managing Director
• D Sundaram, Lead Independent Director
• Chitra Nayak, Independent Director
• Michael Gibbs, Independent Director
• Bobby Parikh, Independent Director
• Govind Iyer, Independent Director
• Nitin Paranjpe, Independent Director
• Helene Auriol Potier, Independent Director

In Q1 FY25, Infosys posted a 7.1% YoY increase in net profit to ₹6,368 crore. The revenue grew 3.6% YoY to ₹39,315 crore.

• Traded volume (Lakhs): 25.27
• Traded value: ₹490.80 crore
• Total market capitalisation: ₹8,05,184.31 crore
• Free float m-cap: ₹6,97,457.02 crore

• Current price: ₹1,941.2 (+1.1%)
• Previous close: ₹1,920.1
• Open: ₹1,935.2
• High: ₹1,958.3
• Low: ₹1,930.1

According to experts, Infosys revenue is forecasted to be in the range of ₹40,506 crore to ₹41,024 crore for Q2 FY25, an increase of 3%-5% year-on-year (YoY).

The net profit is likely to rise 9% to 11% YoY in the range of ₹6,431 crore to ₹7,154 crore.