Infosys Ltd reported the net profit at 6,506 crore for Q2 FY25, which saw a quarter-on-quarter hike of 2.2% from 6,368 crore but was below market expectations. It said revenues of the July-September quarter increased sequentially by 4.2pc and came in at 40,986 crore.
In a welcome development, Infosys has upped the full-year revenue growth forecast to 3.75-4.5%, after adjusting it to a 3-4% level in July. PhillipCapital, Emkay Global, and Nuvama analysts had predicted this upward revision.
A survey of 11 brokerages had estimated the corporation to have clocked 6,769 crore in net profit for the period, but revenue is seen crossing ₹40,857 crore facilitated by large deals expansion, increased focus on Generative AI and cost control measures.
It also declared an interim dividend of 21 per equity share. The record date for an interim dividend is October 29, while the payment date is November 8. For FY24, the company has earlier announced a final dividend of 20, a special dividend of 8, and an interim dividend of 18.
Infosys's operational performance included an operating margin for the quarter of 21.1%, with a total value for large deals of $2.4 billion. EBIT margins were steady at 21.1% and driven by cost optimization, onsite expense reduction, and higher utilization rates.
CFO Eaten Parekh said that growth was also up 3.1% from the quarter in constant currency terms. "We see good momentum across sectors, and not just financial services", he noted. He said this growth came from industry expertise and Cobalt, Infosys's cloud platform; and through the capabilities of Generative AI in Topaz, making Infosys a preferred partner for clients.
Parekh also thanked the employees for their dedication and said, "This $2.4 billion in large deals speaks to our strength in the market".