Infosys Q2 Results 2022-23: Net Profit At Rs 6,021 Crores, Meets Estimates

Infosys Ltd has reported Q2 performance with year-on-year growth at 18.8% and sequential growth at 4.0% in constant currency. The net profits for the quarter ending June 20, 2022 at Rs 6020 crores was largely in line with estimates. Year on year growth was in double digits across all business segments in constant currency terms. Digital comprised 61.8% of overall revenues and grew at 31.2% in constant currency. Operating margin for the quarter increased sequentially by 150 bps to 21.5%.

Large deal TCV for the quarter was robust at $2.7 bn, highest in last 7 quarters. FY 23 revenue guidance is revised to 15%-16%; operating margin guidance is also revised to 21%-22%.

"Our strong large deal wins and steady all-round growth in Q2 reflect the deep relevance and differentiation of our digital and cloud solutions for clients as they navigate their business transformation", said Salil Parekh, CEO and MD. "While concerns around the economic outlook persist, our demand pipeline is strong as clients remain confident in our ability to deliver the value they seek, both on the growth and efficiency of their businesses. This is reflected in our revised revenue guidance of 15%-16% for FY 23", he added.

"Operating margins in Q2 expanded sequentially by 150 bps, helped by our operational rigor. While supply side challenges are gradually abating as reflected in the reducing attrition rates, they continue to exert pressure on our cost structure.", said Nilanjan Roy, Chief Financial Officer. "In line with the capital allocation policy, the Board has announced an interim dividend of Rs 16.50 per share, an increase of 10% over FY 22 interim dividend and an open market share buyback of Rs 9,300 crores", he added.