Infosys Q2 Results: Revenue at Rs 38,994 cr, growth 6.7% YoY

Strong H1 performance with significant large deal wins, builds a solid foundation for Infosys.

Infosys delivered $4,718 million in Q2 revenues with year-on-year growth of 2.5% and sequential growth of 2.3% in constant currency. Large deal TCV for the quarter was $7.7 billion, with a net new of 48%. Operating margin for the quarter increased by 40 bps sequentially to 21.2%. Attrition declined further to 14.6%. FY24 revenue guidance revised to 1.0%-2.5% and operating margin guidance retained at 20%-22%.

“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 of Infosys.

“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.

Key highlights: For the quarter ended September 30, 2023

Revenues in CC terms grew by 2.5% YoY and
2.3% QoQ
Reported revenues at ₹38,994 crore, growth of
6.7% YoY
Operating margin at 21.2%, decline of 0.3%
YoY and increase of 0.4% QoQ
Basic EPS at ₹15.01, growth of 4.6% YoY
FCF at ₹5,536 crore, growth of 16.5% YoY;
FCF conversion at 89.1% of net profit

For six months ended September 30, 2023
Revenues in CC terms grew by 3.3% YoY
Reported revenues at ₹76,927 crore, growth of
8.3% YoY
Operating margin at 21.0%, growth of 0.2%
YoY
Basic EPS at ₹29.38, growth of 8.3% YoY
FCF at ₹11,285 crore, growth of 14.5% YoY;
FCF conversion at 92.8% of net profit

“Our Q2 operating margin of 21.2% 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”, said Nilanjan Roy, CFO.

“In line with our capital allocation policy, the Board has announced an interim dividend of ` 18 per share, an increase of 9.1% over last year”, he
added.