Infosys Reports Q2 Financial Results for FY2025
Intellectia.AI
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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