By- {Sandeep Bishnoi} | Oct 18, 2024 | Category: News
Key Highlights:
- Infosys Q2 net profit rises by 4.7% to Rs 6,506 crore.
- Revenue grows by 5.1% to Rs 40,986 crore.
- Rs 21 per share interim dividend declared, payout on November 8, 2024.
- Revenue guidance for FY25 increased to 3.75-4.5%.
- Voluntary attrition rises to 12.9% in Q2 2024.
Infosys, one of India’s top IT companies, reported a 4.7% increase in net profit, reaching Rs 6,506 crore for the second quarter ending September 2024. Despite this growth, the profit figures were slightly below market expectations.
Revenue Growth:
During the July-September 2024 period, Infosys saw a 5.1% rise in revenue, bringing the total to Rs 40,986 crore, compared to Rs 38,994 crore in the same quarter last year.
Dividend Announcement:
Infosys declared an interim dividend of Rs 21 per share, with a record date of October 29, 2024, and the payout scheduled for November 8, 2024. This is a significant increase of 16.7% compared to last year’s dividend.
Market Performance:
Following the announcement, Infosys’ stock price rose by 2.5% to Rs 1,968.1 per share on the BSE.
Large Deals and Guidance:
The total contract value (TCV) of large deals signed during the quarter was $2.4 billion. The company also revised its FY25 revenue growth guidance to 3.75-4.5%, up from its earlier estimate of 3-4%. Infosys expects an operating margin of 20-22% for the year.
Attrition Rate:
Infosys reported a slight rise in voluntary attrition to 12.9% for IT services in the September 2024 quarter, compared to 12.7% in the previous quarter. However, this is lower than the 14.6% recorded a year ago.
Management’s Statement:
Salil Parekh, CEO and MD, highlighted strong growth of 3.1% quarter-on-quarter, driven by financial services and expertise in cloud and AI solutions. He expressed gratitude to employees and emphasized the company’s growing market leadership.
Jayesh Sanghrajka, CFO, focused on the company’s commitment to revenue growth and maintaining healthy margins. He added that Infosys had converted over 100% of its free cash flow to net profits for the quarter.
