Infosys (INFY) Q2 24/25 (Media) earnings summary

Executive summary

• Q2 delivered broad-based revenue growth of 3.1% quarter-on-quarter and 3.3% year-on-year in constant currency, with reported revenues of $4,894 million (₹40,986 crore) and operating margin stable at 21.1%.

• Free cash flow for Q2 was $839 million (₹7,010 crore), up 25.2% year-on-year, with free cash flow conversion exceeding 100% of net profit.

• Large deal TCV reached $2.4 billion, with 41% net new, though down from $4.1 billion last quarter.

• Generative AI initiatives advanced, including enterprise platforms, a proprietary small language model, and multi-agent solutions, with active client deployments.

• Interim dividend of ₹21 per share announced, a 16.7% increase from last year.

Financial highlights

• Q2 revenue grew 3.1% sequentially and 3.3% year-on-year in constant currency, 3.7% YoY in USD, and 5.1% YoY in INR.

• Q2 net profit was $777 million (₹6,506 crore), up from $751 million (₹6,212 crore) YoY.

• Basic EPS for Q2 was $0.19 (₹15.71), up 3.4% (USD) and 4.7% (INR) YoY.

• Net headcount increased for the first time in seven quarters; on track to onboard 15,000–20,000 freshers in FY 2025.

• In-tech acquisition contributed 80 basis points to revenue this quarter.

Outlook and guidance

• FY25 revenue growth guidance revised upward to 3.75%–4.5% in constant currency.

• Operating margin guidance maintained at 20%–22% for the full year.

• Wage hikes to be implemented in a phased manner starting January and April, with margin guidance factoring in these increases.

• Management aspires to increase margins in the medium term.