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Infosys posted a 4.7% rise in net profit for Q2 FY25, hitting Rs 6,506 crore, up from Rs 6,212 crore a year ago. Revenue grew 2.9% year-on-year, reaching Rs 40,986 crore. The company raised its full-year revenue growth forecast to 3.75-4.5% and announced a 16.7% interim dividend increase to Rs 21 per share, payable on November 8.
Strong performance was driven by strategic collaborations with Metro Bank, Proximus, TDC Net, and Posti. Infosys CFO Jayesh Sanghrajka stressed a focus on revenue growth and margins, while CEO Salil Parekh highlighted broad-based growth across sectors.
The company’s net profit for the quarter reached ₹6,506 crore, up from ₹6,212 crore in the same period last year. Meanwhile, its revenue for the quarter stood at ₹40,986 crore, marking a 2.9% year-on-year growth. Quarter-on-quarter, the company saw over 4% growth, with revenue climbing from ₹38,994 crore in the previous quarter.
The company has raised its full-year revenue growth guidance to 3.75-4.5%, showing optimism for the coming months. This increase in guidance comes as Infosys continues to leverage new strategic partnerships and strengthen its service offerings across key sectors.
Infosys also declared an interim dividend of ₹21 per share, reflecting a 16.7% hike compared to last year’s dividend. The payout is scheduled for November 8, underscoring Infosys’ strong financial position and commitment to rewarding its shareholders.
Broad-Based Growth and Margin Focus
During the first half of FY25, Infosys reported a year-over-year revenue growth of 2.9% in constant currency, with an operating margin of 21.1% for the second quarter. Infosys CEO Salil Parekh attributed this success to the company’s broad-based growth across various sectors and geographies, noting that the company saw 3.1% quarter-on-quarter growth in constant currency terms.
“We achieved strong growth in financial services, which was a key contributor to our performance this quarter,” Parekh said. This growth, along with steady client wins, has helped Infosys maintain momentum despite a challenging global economic environment.
Chief Financial Officer Jayesh Sanghrajka highlighted the company’s focus on accelerating revenue growth while maintaining a sharp focus on margin performance. “Our operating margin for the quarter was at 21.1%, driven by value-based pricing and efficient utilization of resources,” Sanghrajka said. He also pointed to the company’s strong cash generation, with free cash flow growing 25.2% year-on-year to reach $839 million. For the second consecutive quarter, Infosys achieved over 100% free cash flow conversion to net profits.
Infosys’ employee headcount rose by 2,456 in the quarter, bringing the total to 3,17,788. The company also approved the merger of WongDoody Inc., Blue Acorn iCi Inc., Outbox Systems Inc. (d.b.a. Simplus), and Kaleidoscope Animations Inc. into Infosys Nova Holdings LLC, further strengthening its business capabilities.
Strategic Collaborations and Future Outlook
Infosys continues to drive growth through strategic collaborations with key global players. The company entered a long-term collaboration with Metro Bank to enhance its IT and support functions, while also transforming the bank’s business operations. Metro Bank CEO Daniel Frumkin said the partnership would help the bank become more profitable and scalable in the long run.
The company also announced a collaboration with Proximus, a Belgian telecommunications provider, to explore new business opportunities. Proximus’ Chief Digital and IT Officer, Antonietta Mastroianni, welcomed the renewed partnership, highlighting its potential to unlock new opportunities.
Another key collaboration came with TDC Net, Denmark’s largest telecom infrastructure company. Infosys is set to help TDC Net transform into a more customer-centric technology company. TDC Net’s Chief Technology and Information Officer, Campbell Fraser, expressed confidence in Infosys’ ability to support their digital transformation.
Infosys also renewed its collaboration with Finland’s postal service, Posti, extending their partnership for another seven years to enhance customer experience and operational efficiency. Petteri Naulapää, Posti’s CIO and SVP, praised the ongoing collaboration and its role in driving innovation.
With these strategic partnerships and a strong financial outlook, Infosys is well-positioned for continued growth in the second half of the fiscal year.
