Infosys (INFY) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 delivered robust, broad-based growth with revenue up 3.1% sequentially and 5.1% year-over-year in constant currency, reaching $4.9 billion or ₹40,986 crore.

• Operating margin remained stable at 21.1%, supported by improved utilization and cost optimization initiatives.

• Large deal wins totaled $2.4 billion, with a strong pipeline, especially in deals below $50 million, which saw double-digit sequential growth; 41% of TCV was net new.

• Free cash flow for Q2 was $839 million (₹7,010 crore), and H1 free cash flow rose 41% year-over-year to $1.9 billion.

• Net profit for Q2 FY25 was ₹6,516 crore, up from ₹6,215 crore in Q2 FY24; employee headcount increased by 2,500 after six quarters of decline.

Financial highlights

• Q2 revenue reached $4.9 billion (₹40,986 crore), up 3.1% sequentially and 5.1% year-over-year in constant currency.

• Operating margin held at 21.1%, with a 10 basis point year-over-year increase.

• EPS grew 4.7% in INR and 3.4% in USD year-over-year; basic EPS for Q2 FY25 was ₹15.71.

• Free cash flow conversion exceeded 100% for the second consecutive quarter, reaching 107.6% of net profit for Q2.

• Interim dividend of ₹21 per share (INR 21), up 16.7% year-over-year, was declared.

Outlook and guidance

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

• Operating margin guidance maintained at 20%-22%.

• ETR expected to remain in the 29%-30% range for FY25.

• H2 expected to be seasonally weaker due to furloughs and fewer working days.