New Delhi, Oct 23 IT company Infosys on Friday reported a 6.2 per cent increase in consolidated net profit to Rs 7,823 crore for the second quarter ended September 30.
The company registered net profit of Rs 7,364 crore a year ago, according to a regulatory filing.
Its consolidated revenue from operations grew 10.2 per cent to Rs 49,244 crore in the reported quarter from Rs 44,490 crore in the year-ago period.
Infosys CEO and MD Salil Parekh said the company registered strong large contracts of USD 5.2 billion, including a mega deal of over USD 2 billion.
“Our AI revenue was 10.5 per cent and grew 29 per cent quarter-on-quarter. As enterprises move to AI adoption at scale, the strong growth in AI revenues is a recognition of our differentiated market positioning and client confidence,” he said.
The company’s operating margin was stable at 21 per cent on a year-on-year basis.
“Based on our Q2 performance and revised outlook for the rest of the year, our revenue growth guidance is 1 per cent to 2 per cent year-over-year in constant currency terms. Operating margin guidance remains at 20 per cent to 22 per cent for the year,” Parekh said.
The company recorded 4,000 net increase in headcount, which is very strong, he added.
“We have 8,000 college graduates we hired in the quarter. For the full year, the target remains clear at approximately 20,000 like last year. We have already done more than half in the first half of the year. So, we think this dynamic will continue in the way we scale,” Parekh said.
The growth in business from AI and one mega deal at over USD 2 billion will contribute to the company’s growth also into the next financial year, he added.
Talking about the impact on employee cost due to changes in US rules, Parekh said the majority of the employees that the company has in the US have been hired locally, and it will increase over a period time.
Infosys CFO Jayesh Sanghrajka said that the company delivered operating margins of 21 per cent in the second quarter amidst heightened volatility.
“Focus on cost and operational efficiency measures while making the required investments has led to stable margins. Free cash flow of USD 928 million, representing 113.3 per cent of net profit, underscores the financial strength of the business.
“The Board has announced an interim dividend of Rs 26 per share, an increase of 13 per cent from last year,” Sanghrajka said.
(PTI News)
