Mumbai: Infosys, India’s second-largest software exporter, reported a 4.7% year-on-year (YoY) increase in net profit to Rs 6,506 crore for Q2FY25, although this fell short of estimates, media reports said.
Compared to the previous quarter, net profit rose by 2.2%, while revenue for the quarter reached Rs 40,986 crore, marking a 5.1% YoY increase and a 4.2% sequential rise, reported Business Standsrd.
Infosys' board announced an interim dividend of Rs 21 per share, up 16.7% from last year.
Additionally, the company is on track to onboard 15,000-20,000 freshers in the current fiscal year.
The earnings conference opened with a tribute to Tata Sons Chairman Emeritus Ratan Tata, who passed away last week. CEO Salil Parekh remarked, "We had a strong performance in Q2, with robust and broad-based growth, stable operating margins, strong large deals, and increased employee headcount."
Parekh highlighted growth in the banking, financial services, and insurance (BFSI) sectors during Q2 but noted that the automotive sector in Europe remained sluggish.
He added that apart from BFSI, other industries are not yet changing their discretionary spending.
Geographically, Infosys saw mixed results. Revenue from North America, its largest market, declined by 2.6%, while Europe grew 16.7%, and the rest of the world saw a 4.8% YoY increase, according to the report.
In terms of verticals, BFSI was up 2.8%, manufacturing rose 13.5%, and energy and utilities increased 10.7%, while retail fell by 9.2%.
However, the total contract value (TCV) for Q2 was $2.4 billion, significantly lower than Q1’s $4.1 billion.
The company also announced that salary hikes will be phased, starting in January with full implementation by April. "We are planning a wage hike in Q4, some of which will be effective in January and the rest in April," said Chief Financial Officer Jayesh Sanghrajka.
Regarding generative AI (GenAI), Parekh stated that Infosys is focusing on three areas: building an enterprise-wide GenAI platform, developing small language models for various industries, and launching multi-agent solutions beyond simple assistant roles. "We see a huge opportunity and have built a deep approach for GenAI," Parekh added.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
