India’s second-largest IT services company Infosys, on October 13 reported a consolidated net profit of Rs 6,021 for the quarter ended September 30, 2022, up 11.1 percent from Rs 5,421 core reported in the same quarter of the previous year.
Revenue from operations stood at Rs 36,538 crore, clocking a 23.4 percent growth over Rs 29,602 crore in the Q2FY22, the company said in a stock exchange filing.
Sequentially, revenue grew 6 percent while net profits rose 12.3 percent over the previous quarter.
Numbers were in-line with projections. A poll of analysts had projected a 24 percent year-on-year (YoY) growth in revenue and 11 percent in net profit.
The company also said it will be buying back shares worth Rs 9,300 crore, in order to reward its shareholders. The company has set the maximum buyback price at Rs 1,850, a premium of 30 percent over the last closing price.
Revenues in constant currency terms grew by 18.8 percent year on year (YoY) and 4 percent quarter on quarter (QoQ). Digital revenues for the quarter were at 61.8 percent of total revenues, growing 31.2 percent YoY in constant currency.
The large deal total contract value (TCV) for the quarter was $2.7 billion – the highest in the last seven quarters. The company also raised the FY23 revenue guidance to 15-16 percent from 14-16 percent earlier. The operating margin guidance has also been revised upwards to 21-22 percent.
“Our strong large deal wins and steady all-round growth in Q2 reflect the deep relevance and differentiation of our digital and cloud solutions for clients as they navigate their business transformation”, said Salil Parekh, CEO and MD, Infosys.
“While concerns around the economic outlook persist, our demand pipeline is strong as clients remain confident in our ability to deliver the value they seek, both on the growth and efficiency of their businesses.”
The company said its operating margin came in at 21.5 percent, registering a decline of 2.1 percent YoY and increase of 1.4 percent QoQ.
“Operating margins in Q2 expanded sequentially by 150 bps, helped by our operational rigour. While supply-side challenges are gradually abating as reflected in the reducing attrition rates, they continue to exert pressure on our cost structure,” said Nilanjan Roy, Chief Financial Officer, Infosys.
The Board of Infosys also announced an interim dividend of Rs 16.50 per share, an increase of 10 percent over the FY22 interim dividend. The total amount of the interim dividend will be about Rs 6,940 crore.
