Infosys Q2 FY24: Records Highest-ever Large And Mega Deal Wins With TCV Of $7.7 Bn

Infosys on Thursday reported a remarkable milestone in its second quarter of fiscal year 2024, securing its highest-ever large and mega deal wins. The Total Contract Value (TCV) of these deals amounted to USD 7.7 billion, with a remarkable 48 per cent net new growth.

In a statement, Salil Parekh, CEO and MD at Infosys, said, “We had our highest large deals value at USD 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.”

The financial services segment, which contributes significantly to Infosys’ overall revenue, saw a decline of 7.3 per cent YoY in constant currency terms. Meanwhile, the communications sector reported a 4.3 per cent decline in constant currency revenue.

On the positive side, the retail, manufacturing and lifesciences verticals all experienced robust growth, ranging from 9 per cent to 18.4 per cent in constant currency revenue.

According to Parekh, Infosys has observed that its substantial wins in significant deals over the last two quarters have enabled it to gain market share in terms of cost-effectiveness and efficiency. 

“As the economic environment changed, we pivoted from delivering transformation projects to also delivering productivity benefits and cost savings at scale. These large and mega deal winds help us build a strong foundation for our future.” - Salil Parekh, CEO and MD at Infosys

Discussing revised guidance during the Q2 FY24 results press conference, Parekh explained that discretionary programs and transformation projects have notably decreased. Decision-making processes remain sluggish, resulting in constrained volumes for the current quarter. 

While large and mega deal wins are positioning Infosys favourably for the future, the ramp-ups, mainly expected towards the latter part of the year, may see delays.

Revised Guidance: The company now anticipates revenue growth in the range of 1.0 per cent to 2.5 per cent in constant currency terms, narrowing the previous guidance range of 1.0 per cent to 3.5 per cent. 

From a regional perspective, North America saw modest one per cent growth in the Q2 FY24, while Europe demonstrated strong growth at 5.4 per cent.

In its Q2 FY24 report, Infosys disclosed a 3 per cent year-on-year (YoY) increase in consolidated net profit for the quarter concluding in September, reaching Rs 6,212 crore. The consolidated revenue also showed growth, growing nearly 7 per cent YoY to Rs 38,994 crore.

Also Read: Infosys Q2 FY24: Net Profit Rises 3.2%, Guidance Revised