Infosys Q2 Results: Profit rises 5% YoY to Rs 6,506 crore; co revises FY25 revenue guidance to 3.75-4.5%

India's second-largest software exporter, Infosys, reported a 5% growth in its consolidated net profit, reaching Rs 6,506 crore in the second quarter, compared to Rs 6,212 crore a year ago.

The company has revised its FY25 revenue guidance to 3.75%–4.5%. The upward revision of revenue guidance for the fiscal comes on the back of ramp-up of mega deals. Earlier, the company had given a revenue growth guidance of 3-4% for FY25.

Revenue from operations in the second quarter increased 5% year-on-year (YoY) to Rs 40,986 crore.

"We had strong growth of 3.1% quarter-on-quarter in constant current in Q2. The growth was broad-based with good momentum in financial services," said Salil Parekh, CEO and MD, Infosys.

Revenue for the quarter grew 3.3% YoY in constant currency terms and 3.1% QoQ. Operating margins, meanwhile, saw a marginal decline of 0.1% YoY and were flat QoQ.

Operating margins for the quarter were supported by continued benefits from value-based pricing and utilization, despite higher employee payouts.

Along with the quarterly results, the company also announced an interim dividend of Rs 21 per share and set October 29 as the record date for this dividend.

The company recorded a large deal TCV (total contract value) of $2.4 billion, with 41% coming from net new business.

Free cash flow for the second quarter reached $839 million, growing 25.2% YoY.

"Our focus on cash generation resulted in another quarter of over 100% free cash flow conversion to net profits," said Jayesh Sanghrajka, CFO of Infosys.

In the first half, revenues grew by 2.9% year on year in constant currency, while operating margins for the same period stood at 21.1%, reflecting a growth of 0.1% year on year.

Segment-wise, the financial services sector recorded revenue growth of 2.8% YoY and 2.3% in constant currency terms. The manufacturing and energy/utilities segments reported revenue growth (in constant currency) of 12.3% and 10.9%, respectively, in the September quarter. Meanwhile, the retail and life sciences segments lagged, experiencing a decline in revenues during the quarter.

The total number of employees at the Bengaluru-headquartered company rose to 317,000 at the end of the September quarter, while voluntary attrition increased to 12.9%, compared to the preceding June quarter.

Ahead of the results announcement, Infosys shares closed nearly 3% higher at Rs 1,974.55 on the NSE.