Infosys Q2 Results: Net profit jumps 20.5% YoY, revenue guidance increased

In its Q2 results, Infosys revised its revenue growth guidance upward to 2-3 per cent in constant currency terms for FY21.

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NEW DELHI: Infosys on Wednesday reported 20.50 per cent year-on-year (YoY) rise in net profit at Rs 4,845 crore for the quarter ended September 30. The figure stood at Rs 4,019 crore in the corresponding quarter last year.

Analysts in an ET Now poll had projected the figure at Rs 4,478 crore.

The company also revised its revenue growth guidance upward to 2-3 per cent in constant currency terms for FY21. Infosys also revised its FY21 operating margin guidance upward to 23-24 per cent. “Increase in revenue and margin outlook for FY 21 is due to the continued trust clients have in us," Infosys CEO and MD Salil Parekh said.


In dollar terms, the company's revenue increased by 3.2 per cent YoY and 6.1 per cent QoQ to $3,312 million. Operating profit stood at $840 million, up 20.7 per cent YoY and 18.7 per cent QoQ. Basic EPS increased 14.90 per cent YoY and 17 per cent QoQ to $0.15.

Consolidated revenue of the IT major grew 8.60 per cent YoY to Rs 24,570 crore.

Infosys has also declared an interim dividend of Rs 12 per share.
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Infosys Q2 Results
Infosys CFO Nilanjan Roy said free cash flows grew significantly in H1 driven by consistent focus on liquidity and cash management. "Consequently, we are increasing our interim dividend per share by 50 per cent to Rs 12,” Roy added.

“Our relentless efforts on cost optimisation and strengthening operational efficiencies helped by certain cost deferrals led to 270 basis points sequential improvement in operating margin to 25.4 per cent and a 300 basis points improvement in H1 margins,” he said.

Infosys said voluntary attrition for IT services declined to 7.80 percent from 11.70 percent in the preceding quarter ended June 30. The figure stood at 18.30 per cent as of September 30 last year.

“The strength and resilience of Infosys was fully visible in Q2 with operating metrics witnessing a healthy increase, broad-based growth, highest ever large deal TCV at $3.15 billion and attrition reducing to single digits,” said Pravin Rao, COO, Infosys.

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“Employees have been critical part of our success. As a recognition of their stellar performance, we are giving 100% variable pay along with a special incentive for Q2. Additionally, we are rolling out salary increases and promotions across all levels effective January 1,” he said.
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Infosys announced its results post market hours. Earlier during the day, the scrip closed 1.89 per cent down at Rs 1,136. On the other hand, the benchmark BSE Sensex settled 0.42 per cent up at 40,794.
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