Infosys, one of India's leading IT services companies, reported a 6% increase in net profit for the second quarter of the current financial year, reaching ₹7,823 crore. This growth answers the question of how the company performed financially in Q2, showing steady progress despite some cautious outlook adjustments.
- Net profit rose 6% annually to ₹7,823 crore.
- Revenue from operations increased 11% annually to ₹49,244 crore.
- Revenue growth guidance for the year was lowered to 1%-2%.
- Operating margin remained stable at 21.0%.
- AI-related revenue grew 29% quarter-on-quarter, making up 10.5% of total revenue.
- Total contract value (TCV) of large deals was $5.2 billion, with 62% net new.
- Interim dividend declared at ₹26 per share.
How did Infosys perform financially in Q2?
Infosys reported a consolidated net profit of ₹7,823 crore in the second quarter, marking a 6% increase compared to ₹7,364 crore in the same period last year. Sequentially, net profit rose slightly by 0.7% from ₹7,769 crore in the previous quarter. The company's revenue from operations also showed strong growth, rising 11% annually to ₹49,244 crore and 2.14% sequentially from ₹48,211 crore.
What was the revenue growth in dollar and constant currency terms?
In dollar terms, Infosys' revenue increased by 1.5% sequentially to $5,145 million. When adjusted for constant currency, the revenue growth was 1.2%, reflecting steady global demand for the company's IT services.
How significant is Infosys' artificial intelligence revenue?
Artificial intelligence (AI) revenue accounted for 10.5% of Infosys' total revenue during the quarter. This segment experienced a substantial 29% growth quarter-on-quarter, highlighting the company's expanding role in AI-related services. CEO Salil Parekh emphasized that AI revenue growth reflects Infosys' strong market position and client trust as enterprises adopt AI at scale.
What were Infosys' large deal wins in Q2?
Infosys secured large deals with a total contract value of $5.2 billion, of which 62% were net new contracts. Among these was a mega deal exceeding $2 billion. These wins reinforce Infosys' reputation as a trusted partner for complex transformation programs.
What is the company's outlook for the financial year?
Infosys revised its revenue growth guidance for the current financial year downward to a range of 1% to 2%, from the earlier 1.5% to 3%. Despite this, the company maintained its operating margin guidance between 20.5% and 22%. The board also declared an interim dividend of ₹26 per share, reflecting confidence in the company's financial health.
Frequently Asked Questions
Q: What was Infosys' net profit growth in Q2?
A: Infosys' net profit increased by 6% annually to ₹7,823 crore in the second quarter.
Q: How much did Infosys' revenue grow in Q2?
A: Revenue from operations grew 11% annually to ₹49,244 crore and 2.14% sequentially.
Q: What portion of revenue came from AI services?
A: AI-related revenue made up 10.5% of total revenue and grew 29% quarter-on-quarter.
Q: Did Infosys change its revenue growth forecast?
A: Yes, the company lowered its revenue growth guidance for the year to 1%-2% from 1.5%-3%.
Q: What dividend did Infosys declare?
A: Infosys declared an interim dividend of ₹26 per share.
