Country’s second-largest IT firm Infosys Ltd reported 3 per cent year-on-year (YoY) rise in net profit after (minority interest) at Rs 6,212 crore for the September quarter compared with Rs 6,026 crore in the corresponding quarter last year. The IT major was expected to report a 2-6 per cent year-on-year (YoY) rise in profit on a 5-6 per cent surge in sales.
The firm's board approved an interim dividend of Rs 18 per equity share. It has fixed October 25, 2023 as record date for interim dividend and November 6, 2023 as the payout date.
Revenue in the September quarter rose 6.7% to Rs 38,994 crore in Q2 against Rs 36,538 crore in the corresponding quarter of the last year.
Infosys reported a 3.6% rise in revenue in dollar terms to $4,718 million in Q2 against $4,555 million in the September quarter. On a sequential basis, revenue grew 2.2% from $4617 million.
Profit in dollar terms came at $751 million in the last quarter, up 0.3% against $748 million in the September 2022 quarter.
Operating profit climbed 5.1% to Rs 8274 crore in Q2 against Rs 7873 crore in the September quarter of the previous fiscal. Operating profit margin slipped 0.3% to 21.2 in the last quarter against 21.5 in the September 2022 quarter.
Large deal total contract value (TCV) in Q2 came at $7.7 billion, with net new of 48%. Operating margin for the quarter increased by 40 bps sequentially to 21.2%. Attrition declined further to 14.6%.
The IT firm revised its FY24 revenue guidance to 1.0%-2.5% in the last quarter from the FY24 revenue guidance to 1-3.5 per cent projected in the June quarter. Infosys retained its operating margin guidance at 20%-22%.
Salil Parekh, CEO and MD 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”.
"Strong H1 performance with significant large deal wins, builds a solid foundation for the future. The growing adoption of our Generative AI offering, Topaz, is helping us deliver consistent value and expand market share", he added.
Nilanjan Roy, CFO at the IT firm 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".
"In line with our capital allocation policy, the Board has announced an interim dividend of Rs 18 per share, an increase of 9.1% over last year", he added.
The earnings were announced after market hours today. Shares of Infosys ended 1.95% lower at Rs 1464.55 on Thursday against the previous close of Rs 1493.65 on BSE. Market cap of the firm stood at Rs 6.07 lakh crore.