Infosys secured highest ever large deal TCV (Total contract value) at $ 3.15 bn. Management strongly believes that employees are a critical part of a company's success and hence the board of the company decided to give 100% variable pay along with a special incentive for Q2.

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Key Highlights of the results - :
1) Revenues were $3,312 mn, growth of 3.2% YoY and 6.1% QoQ
2) Operating profit was $840 mn, growth of 20.7% YoY and 18.7% QoQ
3) Basic EPS was $0.15, growth of 14.9% YoY and 17.0% QoQ
4) Q2 revenues grew sequentially by 4.0% in constant currency
5) Q2 revenues grew YoY by 3.2% in USD; grew by 2.2% in constant currency
6) Q2 Digital revenues at $1,568 mn (47.3% of total revenues), YoY growth of 25.4% in constant currency
7) Q2 operating margin at 25.4%, increase of 370 basis points year-on-year
8) Q2 free cash flow at $674 million; YoY growth of 69.8%
9) Q2 net profit at $653 million, YoY growth of 14.7%
10) Q2 voluntary attrition for IT services declined to 7.8% from 18.3% in Q2 20
11) H1 revenues grew by 1.9% in constant currency
12) H1 operating margin at 24.1%
13) Declared interim dividend of Rs 12 per share
14) FY 21 revenue growth guidance revised upward to 2%-3% in constant currency
15) FY 21 operating margin guidance revised upward to 23%-24%

Salil Parekh, CEO and MD says their second quarter performance is a clear reflection of our ability to help clients on their digital transformation journeys. Company’s digital and cloud capabilities combined with intense client relevance is helping the company achieve differentiated results in the market as is visible in 2.2% YoY overall revenue growth and 25.4% growth from digital offerings, which now are at 47.3% of revenues. Increase in revenue and margin outlook for FY 21 is due to the continued trust clients have in the company. Mr. Parekh added he is extremely proud of their team for achieving these results in challenging business conditions globally.

Pravin Rao, COO said that the strength and resilience of Infosys was fully visible in Q2 with operating metrics witnessing a healthy increase, broad-based growth, highest ever large deal TCV at $ 3.15 bn and attrition reducing to single digits. Employees have been a critical part of our success. As recognition of their stellar performance, the company is giving 100% variable pay along with a special incentive for Q2. Additionally, they are rolling out salary increases and promotions across all levels effective Jan 1st.

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Nilanjan Roy, CFO said their relentless efforts on cost optimization and strengthening operational efficiencies helped by certain cost deferrals led to 270 bps sequential improvement in operating margin to 25.4% and a 300 bps improvement in H1 margins. Free Cash Flows grew significantly in H1 driven by our consistent focus on liquidity and cash management. Consequently, we are increasing our interim dividend per share by 50% to Rs 12.

(Authored by Rahul Kamdar)