technology

Infosys Q2 net profit jumps 11.8% YoY to Rs 5,421 crore


IT services provider Infosys reported better-than-expected profit and revenue in the fiscal second quarter, on broad-based growth across geographies and segments.

The Bengaluru-based company also revised its revenue guidance to 16.5-17.5% for FY22 from 14-16% as stated during Q1.

India’s second largest software services exporter reported a 11.8% increase in net profit to Rs 5,421 crore, while revenue was up 20.5% at Rs 29,602 crore. It announced an interim dividend of Rs 15 per share. The company has put in place a new organisational structure that will be implemented following chief operating officer Pravin Rao’s retirement in December. This will be announced internally in a few weeks, said CEO Salil Parekh.

“The main reason we see tremendous market share gain is because we are continuously making sure to enhance our capability. We are reskilling our people and changing our delivery focus, and clients see that these changes are relevant,” Parekh said.

Growth in North America came in at 23.1%, with the largest segment — financial services — up 20.5% year on year in constant currency terms. It registered a Total Contract Value of $2.15 billion in the quarter ended September 30, down from $2.6 billion in the first quarter. Operating margins were at 23.6%.

“Our operating margins for Q2 were resilient; the impact of enhanced employee value proposition initiatives was offset by strong operating parameters, cost optimisation and operating leverage,” said Nilanjan Roy, chief financial officer, Infosys.

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Digital revenue stood at 56.1% of total revenue, up 42.4% on a constant currency basis.

On glitches in the new Income Tax portal which the company has developed, Parekh said there has been steady progress and over 19 million I-T returns have been filed. Several statutory forms are now available, and 200,000-300,000 returns are being filed daily. Parekh said 96% of the returns from previous years have “already been processed and over 1 crore current year returns have been processed which was part of the benefit of this system.”



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