Infosys Q2 PAT rises over 12% YoY; board OKs interim dividend, share buyback

13 Oct 2022 , 04:47 PM

Operating profit improved by 13.9% to Rs 7,873 crore in Q2 FY23 from Rs 6,914 crore in Q1 FY23. Operating profit margin was 21.5% in Q2 FY23 as against 20.1% in Q1 FY23. As compared with Q2 FY22, the companys net profit and revenues have grown by 11.1% and 23.4%, respectively. In dollar terms, the company reported revenues of $4,555 million (up 2.5% QoQ and up 13.9% YoY) for the quarter ended 30 September 2022. In constant currency terms, the companys revenue has grown by 4% QoQ and by 18.8% YoY. The company said that year-on-year (YoY) 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. Large deal TCV for the quarter was robust at $2.7 billion, highest in last 7 quarters. The company has revised its FY23 revenue guidance to 15%-16%. The operating margin guidance has also been revised to 21%-22%. Free cash flow (FCF) as on 30 September 2022 was Rs 4,752 crore, a decline of 9.9% YoY. FCF conversion was at 78.9% of net profit. The companys board has approved a proposal to buyback equity shares, from the open market route through the Indian stock exchanges, amounting to Rs 9,300 crore (maximum buyback size, excluding buyback tax) at a price not exceeding Rs 1,850 per share (maximum buyback price), subject to shareholders approval. The board has also approved an interim dividend of Rs 16.50 per share, an increase of 10% over FY 22 interim dividend of Rs 15 per share. The total dividend payout would amount to Rs 6,940 crore. The company had 1,779 active clients as of 30 September 2022 as compared with 1,778 active clients as of 30 June 2022 and 1,714 as on 30 September 2021. Total headcount as on 30 September 2022 was 3,45,218. Last twelve months IT services attrition rate stood at 27.1% as on 30 September 2022 as against 28.4% as at 30 June 2022 and 20.1% as at 30 September 2021. Salil Parekh, CEO and MD, said: ?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. 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 FY23.? Nilanjan Roy, chief financial officer, stated: ?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.? Infosys is a global leader in next-generation digital services and consulting. The scrip shed 0.64% to end at Rs 1419.75 on the BSE today. Powered by Capital Market – Live News