Infosys registered revenue of Rs29,602cr in the quarter under review, increasing by 20.5% from Rs24,570cr witnessed in the corresponding period of the previous year. Revenue in Q2FY22 was up 6.1% from Rs27,896cr of the preceding quarter.
Infosys delivered a strong Q2 performance with YoY growth increasing to 19.4% and sequential growth accelerating to 6.3% in constant currency.
"Our stellar performance and robust growth outlook continue to demonstrate our strategic focus and the strength of our digital offerings. As we witness a strong market opportunity with global enterprises rapidly accelerating their digital journeys, our sustained investments in expanding capabilities, including the differentiated cloud play, Infosys Cobalt, has uniquely positioned us to continue serving our client effectively, gain market share and emerge as the preferred cloud and digital transformation partner in the market.”, said Salil Parekh, CEO and MD. “Given this continued momentum we have further increased our revenue growth guidance to 16.5%-17.5%”, he added.
The company witnessed broad-based growth across geographies and segments with the largest geography, North America growing at 23.1% and the largest segment, Financial Services growing at 20.5%, YoY in constant currency.
Also, large deal momentum continued with TCV of $2.15 billion in the second quarter of FY22.
The company's operating margin for the quarter was resilient at 23.6%.
“Our operating margins for Q2 were resilient; the impact of enhanced employee value proposition initiatives was offset by strong operating parameters, cost optimization and operating leverage. We will continue to invest in our employees to remain a preferred employer-of-choice and seamlessly fulfil client demand”, said Nilanjan Roy, Chief Financial Officer. “Cash generation remained robust. We have executed the capital allocation policy with the successful closure of share buyback and step up in interim dividend to Rs15 per share”, he added.
The Board has announced an interim dividend of Rs15 per share for FY22.
The company has completed the open market share buyback on September 8 at an average price of Rs1,649 per share (compared to the maximum Buyback Price of Rs1,750 per share). Consequently, the share capital of the company has been reduced by 1.31%. With this, the company has returned ~82% of the free cash flow for FY20 and FY21 through dividends and buyback.
The company has raised its revenue guidance for FY22 to 16.5%-17.5% from the previous 14-16%. Infosys retained margin guidance at 22%-24%.
At around 11.26 am, Infosys was trading at Rs1738.50 per piece up 1.7% on Sensex. The stock has touched an intraday high of Rs1784.05 per piece - resulting in a more than 4% rise so far today.