Fri Oct 18 04:49:35 UTC 2024: ## Infosys Beats Expectations with Strong Q2 Growth, Raises FY25 Revenue Guidance

**Bangalore, India:** Infosys, India’s second-largest IT services firm, reported strong Q2 FY25 results, surpassing analysts’ expectations and raising its revenue growth guidance for the full year.

The company’s revenue grew by 3.1% quarter-on-quarter (QoQ) in constant currency, driven by robust growth in financial services, particularly in the US. Infosys also added over 2,400 employees in the quarter, bringing its total headcount to 317,788.

**Key Highlights:**

* **Revenue:** ₹40,986 crore, up 4.3% QoQ.
* **Net Profit:** ₹6,506 crore, up 2.2% QoQ.
* **EBIT:** ₹8,649 crore, up 4.4% QoQ.
* **Margin:** 21.1%, in line with the previous quarter.
* **FY25 Revenue Guidance Raised:** 3.75%-4.5% in constant currency, up from the previous guidance of 3%-4%.
* **FY25 Margin Guidance Maintained:** 20%-22%.

**Factors Driving Growth:**

* Strong deal pipeline, particularly in financial services, with a double-digit increase in deals below $15 million.
* Significant traction in financial services, contributing to good growth in Q1 and Q2.
* Continued strength in capital markets, cards and payments businesses.
* Successful execution of Project Maximus, offsetting the impact of acquisition-related amortization and other costs.
* Increasing client preference for Infosys’ expertise in cloud (Cobalt) and generative AI (Topaz).

**Challenges:**

* Discretionary spending remains constrained in retail and hi-tech sectors.
* Some slowdown in the automotive sector in Europe.

**Outlook:**

* Infosys expects to onboard 15,000-20,000 freshers in FY25.
* The company remains confident about its growth prospects, citing strong financial services performance and a large deal pipeline.

**Analyst Views:**

* Domestic brokerage firm Kotak Institutional Equities expects Infosys to raise its FY25 revenue growth guidance further to 4%-5%.
* Citi expects a guidance raise to 4%-4.5%.
* Analysts expect a robust total contract value (TCV) for deals in Q2, highlighting a recovery in the US financial sector.

Infosys’ strong Q2 performance and revised guidance suggest a positive outlook for the company, driven by its expertise in key growth areas like financial services, cloud, and AI. The company is well-positioned to capitalize on emerging opportunities and maintain its market leadership.

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