IT company Infosys reported a 2.2 per cent rise in its net profit for the second quarter of FY25, reaching Rs 6,506 crore, falling short of analysts' expectations.
Despite the miss on profits, the company's revenue saw a healthy 5.1 per cent year-on-year (YoY) growth, climbing to Rs 40,986 crore for the July-September period, slightly above the forecasts.
Driven by strong deal ramp-ups, traction in generative AI initiatives, and continued cost optimisation efforts, Infosys raised its full-year revenue growth guidance to 3.75-4.5 per cent, a revision from the 3-4 per cent increase announced in July.
The company’s recent acquisition of R&D services provider In-Tech is believed to have contributed to this performance.
The total contract value (TCV) from large deals stood at USD 2.4 billion for the quarter, indicating continued momentum in securing high-value contracts. However, Infosys’ operating margin remained steady at 21.1 per cent, showing a slight strain on profitability despite the revenue growth.
“We had strong growth of 3.1 per cent quarter-on-quarter (QoQ) in constant current in Q2. The growth was broad based with good momentum in financial services. This stems from our strength in industry expertise, market leading capabilities in cloud with Cobalt and generative AI with Topaz, resulting in growing client preference to partner with us”, said Salil Parekh, CEO and MD, Infosys.
Infosys also announced an interim dividend of Rs 21 per share, with a record date set for 29 October and a payout scheduled for 8 November. This comes after the IT major declared a final dividend of Rs 20, a special dividend of Rs 8, and an interim dividend of Rs 18 in the previous fiscal year.
