Infosys Ltd’s Q2 FY25 performances witnessed a rise of 2.2% quarter-on-quarter in net profit to Rs 6,506 crore. It is above the previous quarter’s Rs 6,368 crore, but less than analysts’ expectations. Revenue for the July-September quarter rose 4.2% on-quarter to Rs 40,986 crore.
Infosys Ltd. revised its full year revenue growth at 3.75-4.5% during Q2 FY25 which is higher than its earlier estimated 3-4% for the year announced in July, and hence boosted large deals, growing traction in Generative AI, and by cost optimizations.
Infosys Ltd has posted Q2 FY25 results, with the company declaring an interim dividend of Rs 21 per share for the quarter ended September 2022, to be paid on November 8, with a record date of October 29. This is in addition to a final dividend declared for FY24 at Rs 20 per share, along with a special dividend at Rs 8 and an interim dividend of Rs 18.
Infosys Ltd’s Q2 FY25 performances witnessed an operating margin at 21.1% due to cost optimization
Infosys Ltd’s Q2 FY25 performamces were seen with an operating margin at 21.1%, which is up substantially due to cost optimizations and lower onsite costs and better utilization rates. It held onto the 20-22% operating margin guidance for the fiscal year. The CEO, Salil Parekh, mentioned a quarter-on-quarter growth in constant currency at 3.1% and that financial services have picked up considerably as part of its growth.
Infosys Ltd Q2 FY25 review was characterized by big-ticket TCV of $2.4 billion which went on to talk about the company’s strong market position. North America declined by 2.6% on a YoY basis. Revenue in Europe saw a YoY growth by more than 15%. Infosys CFO Jayesh Sanghrajka said,
“We will be able to accelerate the revenue growth going forward and maintain our margin performance.”
He further said that the margins got some support from value-based pricing and higher realizations while utilization was, of course, helpful despite employee payouts.
The company delivered more than 100% free cash flow conversion to net profits. In short, although Infosys Ltd’s Q2 FY25 performances were strong, missed net profit expectations, regional revenue variations pose challenges, and opportunities for the technology services industry.