India’s second largest IT company, Infosys, revealed its Q2 2023 financial results on October 12, exceeding expectations. The net profit saw a 3% rise, totaling Rs 6,212 crore—higher than the estimated Rs 6,156 crore from a Moneycontrol poll. Additionally, the consolidated revenue surged by 7% to Rs 38,994 crore in the September quarter, outperforming the projected Rs 37,694 crore. In constant currency terms, the revenue grew by 2.5% year-on-year, surpassing estimates.
A Closer Look at Infosys’ Q2 Performance
However, Infosys revised its revenue growth forecast for the full fiscal year to 1-2.5%, down from the earlier projection of 1-3.5%, signaling adjustments to market conditions. Furthermore, the company declared an interim dividend of Rs 18 per share for the financial year 2024.
The company also celebrated a record-breaking value of large deals in the September quarter, amounting to $7.7 billion, a testament to its adaptability and relevance in a fluctuating economic environment. Infosys observed growth across all verticals and geographies.
Infosys Updates Fiscal Year Growth Forecast
Infosys displayed an increase in its operating profit margin (EBIT) by 0.40% to 21.2% in the September quarter, attributed to the rupee’s weakness. Despite this, the company maintained its operating margin estimate at 20 to 22%. Notably, Infosys did not increase employee salaries this year.
The announcement of Infosys’ results occurred after the stock market closed, leading to a 2.82% decline in Infosys shares, closing at Rs 1,452.30. However, over the last month, shares increased by 3.07%, despite a decline of approximately 4.70% since the start of the year.