Infosys, one of India’s leading IT companies, has reported a marginal year-on-year increase in its consolidated profit and revenue for the second quarter of fiscal year 2024 (FY24). However, the biggest surprise came with its revised revenue estimates for FY24, as the company now expects a growth of 1-2.5% in constant currency terms. This adjustment is a significant downward revision compared to the previous guidance given in Q1FY24, where Infosys had projected a revenue growth of 4-7%.
Despite this revision, there is a sense of optimism within the company, particularly regarding its deal wins. Infosys announced that it had secured its highest-ever value of large deals in Q2FY24, totaling $7.7 billion across various verticals and geographies. This achievement is seen as a testament to the company’s ability to adapt and meet evolving client needs by delivering transformational benefits, enhanced productivity, and cost savings at scale.
Infosys’ CEO and Managing Director, Salil Parekh, expressed confidence in the company’s performance and highlighted the solid foundation built during the first half of the fiscal year. In addition, he emphasized the growing adoption of Infosys’ Generative AI offering, Topaz, as a contributing factor to delivering consistent value and expanding market share.
Key highlights from Infosys’ Q2 scorecard include:
1. Q2 revenue stood at INR 38,994 crore, reflecting a 6.7% YoY increase. In constant currency terms, the revenue grew by 2.5% YoY and 2.3% QoQ.
2. The company reported a consolidated net profit of INR 6,212 crore for Q2FY24, representing a 3.2% YoY rise. Compared to the previous quarter, the consolidated net profit increased by 4.5%.
Despite the revised revenue guidance for FY24, Infosys’ operating margin guidance of 20-22% remains unchanged. The company’s strong performance, coupled with its deal wins, positions it well for future growth.
Overall, Infosys’ Q2FY24 results demonstrate a steady performance in terms of revenue and profit. Although the revised revenue estimates for FY24 indicate a more conservative outlook, the company’s ability to secure substantial deals reflects its resilience and adaptability in an uncertain macro-environment. With the growing adoption of its Generative AI offering and a solid foundation established in the first half of the fiscal year, Infosys is poised to deliver consistent value and expand its market share.
