Infosys reported a 3 percent year-on-year (YoY) rise in net profit at Rs 6,212 crore in the second quarter of FY24.
This figured above poll estimates of Rs 6,156 crore.
Revenue growth guidance
India’s second-largest IT company did narrow its revenue growth guidance for the full year at the upper end and has now guided for revenue growth of 1-2.5 percent for the full year.
All this comes after it sharply slashed the guidance last quarter to 1-3.5 percent from 4-7 percent.
Consolidated revenue for the quarter came in at Rs 38,994 crore up 7 percent.
Revenues for the quarter were above analyst estimates of Rs 37,694 crore.
It revised its FY24 revenue guidance to 1 percent from 2.5 percent.
“We had our highest large deals value at $7.7 billion in Q2 spread across all verticals and geographies.
This, in an uncertain macro-environment, is a testament to our ability to pivot and stay relevant to the evolving client needs, by delivering the benefits of transformation as well as productivity and cost savings at scale,” said Salil Parekh, CEO and MD.
“Strong H1 performance with significant large deal wins, builds a solid foundation for the future. The growing adoption of our Generative AI offering, Topaz, is helping us deliver consistent value and expand market share,” he added.
Contract value
Chief Financial Officer Nilanjan Roy said the operating margin demonstrates ‘the early benefits of recently unveiled margin improvement plan and is a clear reflection of our ability to continuously identify opportunities for improving operational efficiencies.”
The total contract value of its large deals, and reported a TCV of $7.7 billion, which is a huge uptick from last quarter’s $2.3 billion.
There are three large deals this quarter: an agreement with an existing client to provide AI and automation-led development, modernisation and maintenance services, where the spend would be $2 billion over five years, a $1.5 billion deal with Liberty Global over five years and an MoU that was signed for $1.5 billion where the spend is over 15 years.
