Infosys Q2 results: Net profit grows 2.2% QoQ; margin guidance at 20-22% for FY25

Bengaluru-headquartered IT services major Infosys released its September quarter results on Thursday. For the review period, the company's revenue in constant currency (CC) terms grew by 3.3 per cent YoY and
3.1 per cent QoQ. Zee Business Research estimated revenue to clinch a growth of 3 per cent.

The operating margin at the software services firm has been recorded at 21.1 per cent. This is largely in-line with the previous quarter's margin which was also at 21.1 per cent.

Zee Business Research anticipated margin to decline by 20 bps to 20.9 per cent amid capex towards large deals.

Net profit at the company for the September quarter grew to Rs 6,506 crore, logging a 2.2 per cent growth sequentially and 4.7 per cent on-year. Zee Business research estimates consolidated PAT at the company to notch higher by 5.5 per cent sequentially to Rs 6,720 crore.

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

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

Voluntary attrition at the company during the September quarter has increased to 12.9 per cent as against 12.7 per cent in the earlier quarter.

Guidance for FY25

The company has guided for revenue growth of 3.75-4.50 per cent in constant currency, while the operating margin is pegged at between 20-22 per cent.

Infosys dividend 2024

The company has also declared a dividend of Rs 21/- per equity share and in respect of the same has fixed October 29, 2024 as a record date and November 8, 2024 as a payout date.

Infosys share price performance

Ahead of the results, Infosys shares ended 2.58 per cent higher at Rs 1,969.5 apiece on the BSE.

(This is a developing story)