Infosys Q2 results: Net profit rises 21% to ₹4,845 crore, beats estimates1 min read . Updated: 14 Oct 2020, 05:15 PM IST
- Consolidated revenue from operations increased to ₹24,570 crore in Q2FY21
- Infosys today revised FY21 revenue growth guidance revised upward to 2%-3% in constant currency
Infosys, India's second largest software services provider on Wednesday reported 20.5 per cent year-on-year (YoY) increase in the net profit fro the September quarter. The company posted ₹4,019 crore profit for the corresponding quarter last year. Consolidated revenue from operations increased to ₹24,570 crore in Q2FY21, up by 8.6% YoY. The operating profit also rose to ₹6,228 crore, growth of 26.8% YoY.
Infosys revised its revenue growth guidance upward to 2-3% in constant currency for financial year 2020-21, from 0-2% earlier. The full year operating margin guidance also revised upward to 23-24%, against 21-23% earlier.
“Our second quarter performance is a clear reflection of our ability to help clients on their digital transformation journeys. Our digital and cloud capabilities combined with intense client relevance are helping us achieve differentiated results in the market as is visible in 2.2% year on year overall revenue growth and 25.4% growth from digital offerings, which now are at 47.3% of revenues", said Salil Parekh, CEO and MD.
“Increase in revenue and margin outlook for FY 21 is due to the continued trust clients have in us," Parekh added.
Infosys on Wednesday declared an interim dividend of ₹12 per equity share and fixed October 26, 2020 as record date for interim dividend and November 11, 2020 as payment date.
Commenting on the Q2 performance, Nilanjan Roy, CFO said, “Our relentless efforts on cost optimization and strengthening operational efficiencies helped by certain cost deferrals led to 270 bps sequential improvement in operating margin to 25.4% and a 300 bps improvement in H1 margins."
"The strength and resilience of Infosys was fully visible in Q2 with operating metrics witnessing a healthy increase, broad-based growth, highest ever large deal TCV at $3.15 bn and attrition reducing to single digits," said Pravin Rao, COO.
"As a recognition of employees’ stellar performance, we are giving 100 percent variable pay along with a special incentive for Q2. Additionally, we are rolling out salary increases and promotions across all levels effective January 1," he added.
Voluntary attrition (annualized - IT services) rate declined significantly to 7.8% in September quarter, from 11.7% in June quarter and 18.3% in year-ago period.