INFY.N

Infosys Reports Q2 Financial Results for FY2025

authorIntellectia.AI

2024-10-172mins

Infosys Ltd. (NSE: INFY, BSE: INFY, NYSE: INFY), a global leader in digital services and consulting, announced its financial results for the second quarter of fiscal year 2025, ended September 30, 2024.

Key Financial Metrics:

Metric Q2 FY2025 YoY Change QoQ Change Consensus Estimate Actual vs. Estimate
Total Revenue $4,894 million +3.3% +3.1% $4.84 billion Beat
Free Cash Flow $839 million +25.2% Not specified Not specified Not specified
Operating Margin 21.1% Not specified Not specified Not specified Not specified

Infosys demonstrated a robust performance this quarter, showcasing a sequential revenue growth of 3.1% and a year-over-year increase of 3.3% in constant currency. The operating margin remained strong at 21.1%, reflecting effective value-based pricing and resource utilization.

Revenue Performance by Segment:

Segment Revenue Contribution Compared to Guidance
Financial Services Not specified Strong growth observed

Infosys experienced widespread growth across its business units, particularly in the financial services domain, underlining its industry expertise and cloud capabilities with offerings such as Cobalt and Topaz.

Key Developments & Highlights:

  • Large deal wins amounted to $2.4 billion, with 41% being net new.
  • Entered strategic collaborations with Metro Bank, Proximus, TDC Net, Posti, Sally Beauty Holdings, Polestar, and the Life Insurance Corporation of India.
  • Recognized for diversity and workplace excellence by various organizations, including the Great Place to Work® Institute.

Executive Commentary:

Salil Parekh, CEO and MD, expressed satisfaction with the quarter's growth, emphasizing Infosys’ strong position in financial services and large deal acquisitions, driven by market-leading capabilities in cloud and AI technologies. CFO Jayesh Sanghrajka highlighted consistent free cash flow and operational margins, driven by strategic pricing and employee utilization.

Shareholder Returns:

  • An interim dividend of `21 per share was declared, marking a 16.7% increase from the previous year.

Forward Guidance:

Infosys revised its FY2025 revenue growth guidance to 3.75%-4.50% in constant currency, while maintaining margin guidance in the range of 20%-22%.

Stock Price Movement:

Following the earnings release, Infosys' stock experienced a decrease of approximately 3.12%.

In conclusion, Infosys delivered a stable performance in Q2 FY2025 with continued focus on digital transformation and market leadership, supported by strategic client collaborations and robust financial metrics.

Note: The EPS and some other metrics were not specified, which might be important for investors.

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