Infosys Q2 Results: PAT Rises 5% to Rs 6,506 Cr, Revenue Hits Rs 40,986 Cr – Everything Investors Need to know
Infosys, one of India’s leading IT services companies, has reported its Q2 results for the fiscal year 2024-25 on October 17, 2024. The company announced a profit after tax (PAT) of Rs 6,506 crore, reflecting a 5% increase from Rs 6,212 crore in the same quarter last year. Additionally, the company’s revenue surged to Rs 40,986 crore, marking a 5.1% year-on-year growth from Rs 38,994 crore.
Main Points
Financial Performance Highlights
- Profit After Tax (PAT): Rs 6,506 crore (up 5% YoY)
- Revenue: Rs 40,986 crore (up 5.1% YoY)
- Operating Margin: Maintained at 21.1%, consistent with the previous quarter.
- Free Cash Flow: Reported at $839 million, a significant increase of 25.2% YoY.
- Total Contract Value (TCV): Infosys secured large deal wins worth $2.4 billion, with 41% classified as net new contracts.
Dividend Declaration
In addition to its financial results, Infosys declared an interim dividend of Rs 21 per equity share. The record date for this dividend is set for October 29, 2024, and the payout date is scheduled for November 8, 2024.
Growth Insights
CEO Salil Parekh highlighted that the company experienced strong growth of 3.1% quarter-on-quarter in constant currency terms during Q2. The growth was broad-based, particularly in the financial services sector. He noted that Infosys’s strength in industry expertise and capabilities in cloud services and generative AI contributed to this momentum.
Guidance for FY25
Infosys has revised its revenue growth guidance for FY25 to between 3.75% and 4.5% in constant currency terms, up from the previous estimate of 3%-4%. The operating margin guidance remains stable at between 20% and 22%.
Market Reaction
Following the announcement of these results, Infosys shares saw a positive response in the market, closing at Rs 1,969.50—an increase of 2.58% on the Bombay Stock Exchange (BSE). Year-to-date, Infosys shares have appreciated by approximately 27%, outperforming the benchmark Nifty 50 index, which has risen by about 14%.
Employment Trends
The company reported an increase in voluntary attrition rates to 12.9%, up from 12.7% in the previous quarter. This reflects ongoing challenges in retaining talent within the competitive IT sector.
Sector Performance
The results indicate that Infosys continues to benefit from strong demand across various sectors, particularly financial services. The company’s ability to secure significant contracts and maintain steady margins demonstrates its resilience amid economic fluctuations.
Conclusion
Infosys’s Q2 results showcase a solid performance with consistent revenue growth and profitability. The company’s strategic focus on large deals and innovative solutions positions it well for future growth.
