Infosys Q2 results: Consolidated net profit rises 12% to Rs 5,421 cr

Infosys, the country's second largest software exporter, on Wednesday reported 12% growth in consolidated net profit at Rs 5,421 crore for the second quarter ended September 30, 2021, compared to Rs 4,845 crore in the same quarter last year. 

The revenue rose 20% to Rs 29,602 crore as against Rs 24,570 crore a year ago. The company's board approved dividend of Rs 15 per share. 

"Our stellar performance and robust growth outlook continue to demonstrate our strategic focus and the strength of our digital offerings. As we witness a strong market opportunity with global enterprises rapidly accelerating their digital journeys, our sustained investments in expanding capabilities, including the differentiated cloud play, Infosys CobaltTM, has uniquely positioned us to continue serving our clients effectively, gain market share and emerge as the preferred cloud and digital transformation partner in the market.”, said Salil Parekh, CEO and MD. “Given this continued momentum we have further increased our revenue growth guidance to 16.5%-17.5%," he added.

On Wednesday, Infosys' scrip on NSE closed 1.1% higher at Rs 1,705. The company forecast revenue to rise between 16.5% and 17.5% in the financial year to March 2022, compared to its July prediction of 14% to 16% growth. It maintained its margin forecast for fiscal 2022 at 22% to 24%.

India's $194-billion IT services sector has been a big pandemic winner, thanks to the pandemic-induced surge in demand for services such as cloud computing, digital payment infrastructure and cybersecurity.

Bengaluru-based Infosys said large deal signings stood at $2.15 billion in the quarter ended Sept. 30, compared with $2.6 billion in the June quarter and $3.15 billion a year earlier.

“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. We will continue to invest in our employees to remain a preferred employer-of-choice and seamlessly fulfill client demand”, said Nilanjan Roy, Chief Financial Officer. 

“Cash generation remained robust. We have executed the capital allocation policy with the successful closure of share buyback and step up in interim dividend to Rs 15 per share," he added. 

Attrition, however, continued to rise and came in at 20% for the September quarter. 

“In order to harness the full potential of the market opportunity, we are expanding our college graduates hiring program to 45,000 for the year. Simultaneously, we continue to strengthen employee value proposition including health and wellness measures, reskilling programs, appropriate compensation interventions and enhanced career growth opportunities," said Pravin Rao, Chief Operating Officer.