Infosys Q2 Net Profit Rises To Rs 6,506 Crore; Dividend Declared

The company has increased its full-year revenue growth guidance to 3.75-4.5%, building on the surprise hike to 3-4% announced in July.

Infosys Ltd reported a net profit of ₹6,506 crore for Q2 FY25, marking a 2.2% quarter-on-quarter increase from ₹6,368 crore, though this fell short of market expectations. The Indian IT giant’s revenue for the July-September period grew by 4.2% quarter-on-quarter, reaching ₹40,986 crore.

The revised full-year revenue growth guidance of 3.75-4.5% comes as analysts from firms such as PhillipCapital, Emkay Global, and Nuvama had anticipated this adjustment.

A Moneycontrol survey of 11 brokerages had predicted that Infosys’ net profit for the fiscal second quarter would rise to ₹6,769 crore, with revenue expected to increase to ₹40,857 crore. Growth was anticipated to be driven by the ramp-up of large contracts, heightened interest in Generative AI projects, and cost optimization initiatives.

Infosys declared an interim dividend of ₹21 per share, with October 29 set as the record date and November 8 as the payout date. In the previous fiscal year, the company declared a final dividend of ₹20, a special dividend of ₹8, and an interim dividend of ₹18.

The IT major reported an operating margin of 21.1% for the fiscal second quarter, with a total contract value (TCV) from large deals amounting to $2.4 billion. The EBIT (earnings before interest and tax) margin remained stable at 21.1%, supported by cost optimization efforts, reduced onsite expenses, improved utilization rates, and enhanced operational efficiencies.

Salil Parekh, CEO and Managing Director, noted a strong growth of 3.1% quarter-on-quarter in constant currency for Q2. “The growth was broad-based, particularly in financial services, which reflects our industry expertise and market-leading capabilities in cloud solutions with Cobalt and generative AI with Topaz, leading to an increasing preference from clients to partner with us,” Parekh stated.

He also highlighted that the $2.4 billion in large deals during Q2 underscores the company’s unique position in the market. “I am thankful to our employees for their unwavering commitment to our clients as we continue to strengthen our market leadership.”

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