 |
|
Infosys, the Indian IT giant, reported a solid second quarter of fiscal year 2025, demonstrating continued growth despite missing analyst expectations. The company's net profit for the July-September period reached Rs 6,506 crore, marking a 2.2 percent increase quarter-on-quarter compared to the previous quarter's Rs 6,368 crore. While this represents positive growth, it fell short of the Rs 6,769 crore anticipated by a Moneycontrol poll of 11 brokerages.
The company's revenue performance painted a more optimistic picture. Infosys recorded a healthy 4.2 percent quarter-on-quarter growth, reaching Rs 40,986 crore, exceeding the projected Rs 40,857 crore. The growth was driven by a combination of factors including the ramp-up of large deals, increasing traction in Generative AI deals, and cost optimization efforts.
A significant highlight of the earnings announcement was the company's revised full-year revenue growth guidance. Infosys increased its projection to 3.75-4.5 percent, a substantial upgrade from the 3-4 percent range announced in July. This upward revision reflects the company's confidence in its growth trajectory, supported by strong client demand and its strategic focus on emerging technologies like Generative AI and Cloud.
The company also declared an interim dividend of Rs 21 per share, demonstrating its commitment to shareholder value. The record date for the dividend is October 29, and the payout date is set for November 8. This follows the previous fiscal year's dividends, which included a final dividend of Rs 20, a special dividend of Rs 8, and an interim dividend of Rs 18.
Infosys' performance in the second quarter was marked by a stable operating margin of 21.1 percent, demonstrating the company's ability to manage costs effectively. This achievement was attributed to various initiatives, including cost optimization efforts, lower onsite costs, improved utilization rates, and enhanced operational efficiencies. The company also reported a total contract value (TCV) of $2.4 billion for large deals, reflecting its strong market position and ability to secure significant client engagements.
Salil Parekh, CEO and MD of Infosys, highlighted the company's strong growth of 3.1 percent quarter-on-quarter in constant currency, driven by a broad-based momentum, particularly in the financial services sector. He attributed this success to the company's industry expertise, market-leading cloud capabilities with Cobalt, and generative AI capabilities with Topaz, which have resulted in growing client preference for partnering with Infosys.
Parekh also emphasized the significance of the company's large deals, stating that the $2.4 billion TCV in the second quarter underscores its differentiated position in the market. He expressed gratitude to the company's employees for their unwavering commitment to client service and their role in strengthening Infosys' market leadership.