Infosys Q2 Results: PAT rises 4.5% to Rs 6,212 crore sequentially; IT major trims revenue guidance

Infosys Q2 Results: Infosys on Thursday reported a consolidated net profit of Rs 6,212 crore for the quarter ended September 30, marking an increase of 4.5 per cent on a sequential basis and falling short of Street expectations. The country's second largest IT company lowered the upper end of its full-year revenue growth forecast by 100 basis points (bps). The Bengaluru-based software exporter's board gave nod to an interim dividend of Rs 18 with a record date of October 25. 

The IT firm's revenue grew 2.8 per cent to Rs 38,994 crore for the second quarter of the current financial year, according to a regulatory filing. The revenue was in tandem with analysts' estimates.

According to Zee Business research, Infosys was estimated to post a quarterly net profit of Rs 6,300 crore and revenue of Rs 38,400 crore. 

The company said its quarterly revenue grew 2.3 per cent in constant currency terms to $4,718 million. 

The company registered an increase of 4.9 per cent in its earnings before interest and taxes (EBIT) to Rs 8,274 crore for the quarter under review compared with the previous three months. Its margin—a key measure of profitability—improved by 40 basis points on a quarter-on-quarter to 21.2 per cent. 

Zee Business analysts had pegged its EBIT at Rs 8,050 crore and margin at 21 per cent. 

“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," said Salil Parekh, CEO and MD, Infosys.

“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," the CEO added.

The Bengaluru-based IT firm revised its revenue growth guidance to 1-2.5 per cent for the 2023-24 financial year in constant currency terms from 1-3.5 per cent. However, it maintained its operating margin forecast at 20-22 per cent. 

“Our Q2 operating margin 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, Infosys. 

Attrition at the company eased to 14.6 per cent in the fiscal second quarter from 17.3 per cent in the previous three months, according to a statement. 

The company's board declared an interim dividend of Rs 18 per share with a payment date of November 6. This translates into a 360 per cent payout given the face value of Rs 5 per share. 

Infosys shares declined by Rs 29.1, or two per cent, to end at Rs 1,464.6 apiece on BSE ahead of the earnings announcement.