Infosys Q2 FY24 Results: Guidance Updates; Net Profit Up 3.2%

One of the world's largest IT companies, Infosys, released its financial results for the second quarter of the fiscal year 2024 on Thursday. The company's net profit increased 3.2% year over year (YoY), reaching a total of Rs 6,212 crore. Its net profit for Q2 FY23 was Rs 6,021 crore.

The top IT business posted Q2 revenues of USD 4,718 million, or 2.5% year-over-year growth and 2.3% sequential growth in constant currency, according to an Infosys exchange statement. The large transaction TCV for the quarter was USD 7.7 billion with a net new of 48%. Operating margin increased sequentially by 40 basis points to 21.2% for the quarter. Attrition dropped even further to 14.6%.
In addition, Infosys reduced its guidance for revenue growth from 1-3.5% to 1-2.5%. The unexpected component was the modification to the FY24 revenue projection. It now anticipates revenue growth in FY24 of between 1% and 2.5% in constant currency.

However, it adhered to the annual operating margin projection range of 20% to 22%. Infosys significantly reduced its FY24 revenue expectation from 4%-7% to 1%-3.5% in its Q1FY24 results.
On the BSE, Infosys shares ended the day at $1,464.55, down about 2%.

Additionally, Infosys announced an interim dividend of 18 rupees per equity share.
The dividend's payment date has been scheduled for 6 November 2023, with the date of recording for this dividend slated for 25 October 2023.

Following Q2FY24 earnings, Salil Parekh, CEO, and MD, in an exchange filing stated, "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."

Written by Aysuhi Singh