- Revenues rise 5.1% on strong deal ramp-ups, advancements in GenAI initiatives and ongoing cost optimisation efforts.
Infosys, one of India’s leading IT companies, reported a modest 2.2 per cent rise in net profit for the second quarter of FY25, amounting to Rs6,506 crore.
The figure, however, fell below the expectations of analysts, reflecting challenges in profit expansion despite positive trends in revenue.
The company’s revenue demonstrated a healthy growth trajectory, increasing by 5.1 per cent year-on-year (YoY) to reach Rs40,986 crore for the July-September period, surpassing forecasts and indicating resilience in its core operations.
The company attributed its performance to several strategic initiatives, including strong deal ramp-ups, advancements in generative AI initiatives, and ongoing cost optimisation efforts.
These factors have enabled Infosys to revise its full-year revenue growth guidance upward to a range of 3.75-4.5 per cent, an improvement from the previous projection of 3-4 per cent announced in July.
Strong growth in large deals
Notably, the recent acquisition of In-Tech, a research and development services provider, has likely enhanced the company’s capabilities and contributed to its revenue growth.
Significantly, the total contract value (TCV) from large deals reached $2.4 billion for the quarter, reflecting a robust momentum in securing high-value contracts. Although Infosys maintained a steady operating margin of 21.1 per cent, this stability suggests a slight strain on profitability amid the growth in revenue.
Salil Parekh, CEO and Managing Director of Infosys, highlighted the company’s solid growth of 3.1 per cent quarter-on-quarter (QoQ) in constant currency for Q2. He noted that the growth was broad-based, with notable momentum in the financial services sector.
“The performance is attributed to Infosys’s industry expertise and market-leading capabilities in cloud services through its Cobalt platform and generative AI initiatives via its Topaz offering, which enhance client engagement and preference for partnerships.”
Furthermore, Infosys announced an interim dividend of Rs21 per share, reinforcing its commitment to returning value to shareholders. The record date for this dividend is set for October 29, with a payout scheduled for November 8.
The dividend announcement follows the company’s previous fiscal year’s distributions, which included a final dividend of Rs20, a special dividend of Rs8, and an interim dividend of Rs18.