Infosys Q2 net profit rises 11 per cent to Rs 6,021 crore

BENGALURU: India’s second-largest IT services firm Infosys on Thursday said its consolidated net profit surged by 11.1 per cent year-on-year to Rs 6,021 crore for the second quarter of the current financial year as compared to Rs 5,421 core recorded in the corresponding period of the previous year.

The company’s revenue from operations jumped by 23.4 per cent to Rs 36,538 crore for the quarter ended September 30, 2022 as compared to Rs 29,602 crore recorded in the corresponding quarter of the previous year.

Sequentially, Infosys revenue grew 6 per cent while net profits increased by 12.3 per cent during the quarter under review year-on-year.

“Our strong large deal wins and steady all-round growth in Q2 reflect the deep relevance and differentiation of our digital and cloud solutions for clients as they navigate their business transformation,” Infosys chief executive officer and managing director Salil Parekh said in a statement.

“While concerns around the economic outlook persist, our demand pipeline is strong as clients remain confident in our ability to deliver the value they seek, both on the growth and efficiency of their businesses. This is reflected in our revised revenue guidance of 15-16 per cent for FY 23,” Parekh said.

As per the regulatory filing by Infosys to the stock exchanges, the company’s year-on-year growth was in double digits across all business segments in constant currency terms.

Digital comprised 61.8 per cent of overall revenues and grew at 31.2 per cent in constant currency. Operating margin for the quarter increased sequentially by 140 bps to 21.5 per cent. Large deal TCV for the quarter was robust at $2.7 billion, highest in last 7 quarters. FY 23 revenue guidance is revised to 15-16 per cent; operating margin guidance is also revised to 21-22 per cent.

“Operating margins in Q2 expanded sequentially by 150 bps, helped by our operational rigor. While supply side challenges are gradually abating as reflected in the reducing attrition rates, they continue to exert pressure on our cost structure,” said Nilanjan Roy, Chief Financial Officer, Infosys.

“In line with the capital allocation policy, the Board has announced an interim dividend of Rs 16.50 per share, an increase of 10 per cent over FY 22 interim dividend and an open market share buyback of Rs 9,300 crore,” Roy added.

Infosys board of directors at its meeting held here on Thursday approved the buyback of equity shares, from the open market route through the Indian stock exchanges, amounting to Rs 9,300 crore (maximum buyback size, excluding buyback tax) at a price not exceeding Rs 1,850 per share (maximum buyback price), subject to shareholders’ approval.

The board also approved an interim dividend of Rs 16.50 per share vs. FY 22 interim dividend of Rs15. The total amount of the interim dividend will be approximately Rs 6,940 crore.