After TCS, IT major Infosys on Thursday reported a 3.2 per cent rise in its net profit to Rs 6,212 crore for the second quarter ended September 2023. Its revenue during July-September 2023 increased 6.7 per cent to Rs 38,994 crore, compared with Rs 36,538 crore a year ago.
Infosys’ net profit had stood at Rs 6,021 crore in the corresponding period last year.
On a quarterly basis, the company’s net profit rose 4.5 per cent and its revenue increased 2.8 per cent during the September 2023 quarter, according to a BSE filing.
The company also declared an interim dividend of Rs 18 per equity share. It has fixed October 25, 2023, as the record date for interim dividend and November 6, 2023, as the payout date.
Its operating margin for the quarter increased by 40 bps sequentially to 21.2 per cent. Infosys’ large deal TCV for the quarter stood at $7.7 billion, with net new of 48 per cent.
Infosys’ total employees strength declined to 3,28,764 as on September 2023 from 3,36,294 in the previous quarter, a decline of 7,530 in headcount.
Infosys’ IT services attrition on a twelve-month basis declined further to 14.6 per cent.
On the outlook, Infosys revised its FY24 revenue growth expectation to 1 per cent-2.5 per cent, compared with 1 per cent-3.5 per cent estimated earlier. Its operating margin guidance retained at 20 per cent-22 per cent.
Salil Parekh, CEO and MD of Infosys, said, “We had our highest large deals value at $7.7 billion in Q2 spread across all verticals and geographies. This, in an uncertain macro-environment, is a testament to our ability to pivot and stay relevant to the evolving client needs, by delivering the benefits of transformation as well as productivity and cost savings at scale.”
He added that strong H1 performance with significant large deal wins, builds a solid foundation for the future. The growing adoption of the company’s generative AI offering, Topaz, is helping it deliver consistent value and expand market share.
Nilanjan Roy, chief financial officer of Infosys, said, “Our Q2 operating margin of 21.2% demonstrates the early benefits of recently unveiled margin improvement plan and is a clear reflection of our ability to continuously identify opportunities for improving operational efficiencies.”
He added that in line with the company’s capital allocation policy, the board has announced an interim dividend of Rs 18 per share, an increase of 9.1 per cent over last year.
During the first half of the financial year 2023-24, Infosys’ net profit rose 6.8 per cent to Rs 12,157 crore, compared with Rs 11,388 crore a year ago. The company’s revenue during April-September 2023 stood at Rs 76,927 crore, 8.3 per cent higher than Rs 71,008 crore in the year-ago period.
Shares of Infosys on Thursday declined by Rs 27.80 or 1.86 per cent to close at Rs 1,465.85 apiece on the BSE.
Kick-starting Q2 earnings season, Tata Consultancy Services (TCS) on Wednesday posted an 8.73 per cent growth in its net profit to Rs 11,342 crore for the September 2023 quarter. Its revenue during July-September 2023 rose 7.92 per cent to Rs 59,692 crore, compared with Rs 55,309 crore a year ago. The company also declared its interim dividend of Rs 9 per share.
Comments
0 comment