IT major Infosys on Thursday posted profit for the quarter ended September 2023 at Rs 6,212 crore, up 3.2 per cent as against Rs 6,021 crore during the same period last year, missing estimates. The IT giant posted revenue from operations at Rs 38,994 crore, up 6.7 per cent in comparison to Rs 36,538 crore during the second quarter of FY23. According to a poll by CNBC TV18, Infosys is expected to post Q2 revenue at Rs 38,425 crore and the quarter profit at Rs 6,225 crore.
While the total income during the second quarter of FY24 was at Rs 39,626 crore, total expenses during the period was at Rs 30,858 crore. Infosys also declared an interim dividend of Rs 18 per equity share and has fixed October 25, 2023 as the record date for interim dividend and November 6, 2023 as payout date.
Infosys also appointed HUL’s Nitin Paranjpe as the independent director of the company. “Nitin Paranjpe has no relationship with any member of the Board of directors and meets all the criteria for being appointed as an independent director under applicable laws including circulars issued by the stock exchanges from time to time,” Infosys said in a regulatory filing.
Infosys said that it delivered $4,718 million in Q2 revenues with year-on-year growth of 2.5 per cent and sequential growth of 2.3 per cent in constant currency. Large deal TCV for the quarter was $7.7 billion, with net new of 48 per cent. Operating margin for the quarter increased by 40 bps sequentially to 21.2 per cent. “Our Q2 operating margin of 21.2 per cent demonstrates the early benefits of the recently unveiled margin improvement plan and is a clear reflection of our ability to continuously identify opportunities for improving operational efficiencies”, said Nilanjan Roy, CFO.
Infosys revised the FY24 revenue guidance to 1.0-2.5 per cent and operating margin guidance was retained at 20-22 per cent.
“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,” said Salil Parekh, CEO and MD.
“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.
Infosys also said that it has approved a five-year extension of its successful joint venture collaboration with Temasek.
Infosys’ attrition rate
Infosys said that its headcount shrinked by 7,530 in the second quarter, which is the third consecutive quarter of decline. Its total headcount as on September 30, 2023 was at 3,28,764 with the percentage of women employees at 39.4 per cent. Attrition, it said, for the quarter continued to decline and came in at 14.6 per cent, from last quarter’s 17.3 per cent on a last-twelve-month basis.