Infosys Q2 net profit rises 12% YoY, firm raises FY22 revenue guidance

IT services major managed to meet Street expectations even as the company raised its revenue guidance for FY22 to 16.5 per cent to 17.5 per cent.

For the September quarter, the company reported net profit at Rs 5,428 crore, up 12 per cent year on year and sequentially grew by 4.3 per cent. Revenue for the quarter was up 20 per cent at Rs 29,602 crore.

“Our stellar performance and robust growth outlook continue to demonstrate our strategic focus and the strength of our digital offerings. As we witness a strong market opportunity with global enterprises rapidly accelerating their digital journeys, our sustained investments in expanding capabilities, including the differentiated cloud play, CobaltTM, has uniquely positioned us to continue serving our clients effectively, gain market share and emerge as the preferred cloud and digital transformation partner in the market.”, said Salil Parekh, CEO and MD.

The company said that the growth was broad based and across geographies. Large deal TCV for the quarter was at $2.15 billion. This is lower than the $2.6 billion it signed last quarter.

Revenue, on constant currency basis, came in at 6.3 per cent sequentially.

“Our operating margins for Q2 were resilient; the impact of enhanced employee value proposition initiatives was offset by strong operating parameters, cost optimization and operating leverage. We will continue to invest in our employees to remain a preferred employer-of-choice and seamlessly fulfill client demand”, said Nilanjan Roy, Chief Financial Officer.

“Cash generation remained robust. We have executed the capital allocation policy with the successful closure of share buyback and step up in interim dividend to ’15 per share”, he added.

Attrition, however, continued to rise and came in at 20 per cent for the quarter.

“In order to harness the full potential of the market opportunity, we are expanding our college graduates hiring program to 45,000 for the year. Simultaneously, we continue to strengthen employee value proposition including health and wellness measures, reskilling programs, appropriate compensation interventions and enhanced career growth opportunities”, said Pravin Rao, Chief Operating Officer.

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