Thu Oct 17 11:10:00 UTC 2024: ## Infosys Beats Revenue Expectations, Raises Full-Year Guidance

**Bengaluru, India** – Infosys, India’s leading IT services company, reported a strong performance in the second quarter of fiscal year 2025, exceeding revenue expectations and raising its full-year revenue growth guidance.

The company’s net profit increased by 2.2% quarter-on-quarter to Rs 6,506 crore, while revenue grew by 4.2% to Rs 40,986 crore. This positive performance was driven by the ramp-up of large deals, increased traction in Generative AI deals, and cost optimizations.

Analysts had anticipated a strong quarter for Infosys, with projections for net profit to reach Rs 6,769 crore and revenue to hit Rs 40,857 crore.

Encouraged by the robust performance, Infosys upgraded its full-year revenue growth guidance to 3.75-4.5%, exceeding the previous guidance of 3-4% announced in July. The company also declared an interim dividend of Rs 21 per share, payable on November 8.

“We had strong growth of 3.1 percent quarter-on-quarter in constant currency in Q2,” said Salil Parekh, CEO and MD of Infosys. “The growth was broad based with good momentum in financial services. This stems from our strength in industry expertise, market leading capabilities in cloud with Cobalt and generative AI with Topaz, resulting in growing client preference to partner with us.”

Parekh highlighted the company’s large deals, totaling $2.4 billion in Q2, as a testament to its differentiated position in the market.

The company maintained its operating margin guidance of 20-22%. Chief Financial Officer Jayesh Sanghrajka emphasized the focus on accelerating revenue growth while maintaining strong margin performance. He attributed the strong margins to value-based pricing, utilization, and continued focus on cash generation, resulting in over 100% Free Cash Flow conversion to net profits.

Despite a 2.6% year-on-year decline in revenue contribution from North America, which accounts for 57.4% of total revenue, the European region delivered over 15% growth, contributing about 30% to the total revenue share.

Infosys’ strong performance in the second quarter underscores its continued growth trajectory and its position as a leading player in the global IT services market.

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