Infosys Q2 Net Profits Soar By 3%

CIOTechOutlook Team | Thursday, 12 October 2023, 11:52 IST

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Infosys increased its consolidated net profit by 3% year on year (YoY) to Rs 6,212 crore in the third quarter ended September. Consolidated income increased by roughly 7% year on year to Rs 38,994 crore. According to an ETNow survey, net profit and sales were estimated to be Rs 6,170 crore and Rs 38,350 crore, respectively. The board of directors has proposed an interim dividend of Rs 18 per share. In a surprising move, the software giant revised its FY24 outlook yet again. In constant currency terms, Infosys expects revenue to climb 1.0-2.5% in FY24, compared to 1.0-3.5% previously.
 
While Infosys cut the upper end of its revenue growth guidance, the company retained its operating margin target of 20-22%. The tweak in the guidance disappointed the Street as the American Depository Receipts (ADR) of Infosys plunged about 5% in pre-open trade on New York Stock Exchange. In the domestic market, the stock ended nearly 2% down at Rs 1,465.50 on the National Stock Exchange, and could further bleed in trade, as per economic times.
 
“We had our highest large deals value at $7.7 billion in Q2, spread across all verticals and geographies,” said Salil Parekh, CEO and MD of Infosys. “Strong H1 performance with significant large deal wins, builds a solid foundation for the future,” Parekh said.
 
The operating margin grew by 40 basis points sequentially to 21.2% for the quarter.
 
“Our Q2 operating margin of 21.2% demonstrates the early benefits of recently unveiled margin improvement plan and is a clear reflection of our ability to continuously identify opportunities for improving operational efficiencies,” said CFO Nilanjan Roy.
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