Fri Oct 18 10:14:35 UTC 2024: ## Infosys Beats Revenue Expectations, Raises Full-Year Guidance

**Bengaluru, India:** Infosys Ltd., India’s IT bellwether, reported a healthy growth in its second quarter of fiscal year 2025, exceeding revenue expectations but falling short on profit estimates. The company’s net profit climbed 2.2% quarter-on-quarter to Rs 6,506 crore, while revenue surged 4.2% to Rs 40,986 crore.

The strong performance prompted Infosys to raise its full-year revenue growth guidance to 3.75-4.5%, exceeding the 3-4% hike announced in July. This positive outlook was anticipated by analysts, who cited factors like the ramp-up of large deals, growing traction in Generative AI, and cost optimization measures.

“The growth was broad-based with good momentum in financial services,” said Salil Parekh, CEO and MD of Infosys. He attributed this success to the company’s strength in industry expertise, market-leading cloud capabilities, and growing client preference for partnering with Infosys.

The company also declared an interim dividend of Rs 21 per share, with a record date of October 29 and payout date of November 8. This follows previous dividends for fiscal year 2024, including a final dividend of Rs 20, a special dividend of Rs 8, and an interim dividend of Rs 18.

Despite exceeding revenue expectations, Infosys’ Q2 net profit fell short of analyst estimates, with a Moneycontrol poll projecting Rs 6,769 crore. However, the company’s operating margin remained stable at 21.1%, driven by cost optimization efforts and improved operational efficiencies.

Infosys maintained its operating margin guidance of 20-22%, indicating a continued focus on profitability. Chief Financial Officer Jayesh Sanghrajka stated that the company will prioritize revenue growth while maintaining strong margin performance, benefiting from value-based pricing and high utilization rates.

Despite the strong performance, Infosys faces headwinds from a slight decline in its North American market share, accounting for 57.4% of total revenue. However, the European market experienced over 15% growth, contributing about 30% to the company’s revenue.

Overall, Infosys delivered a positive performance in Q2, exceeding revenue expectations and raising its full-year guidance, demonstrating its resilience and continued growth trajectory in the IT sector.

Read More