NEW DELHI: Infosys, the nation’s second-largest IT services company, reported 20.5 percent growth in its consolidated net profit for the second quarter ended September 30 (2Q) on Wednesday.
The company posted a net profit of Rs 4,845 million in the period considered compared to a profit of Rs 4,019 million recorded in the same period last year.
In terms of quarterly growth, Infosys reported a 14.45 percent increase in its net profit from Rs 4,233 crore recorded in the previous quarter.
The IT director revised his forecast for annual revenue growth to between 2% and 3% in constant currency, from a previous expectation of constant at 2%.
Infosys also said that it will implement salary increases, promotions at all levels starting on January 1.
Commenting on the results, Infosys Chief Executive Officer (CEO) Salil Parekh said: “Our performance in the second quarter is a clear reflection of our ability to assist clients on their digital transformation journeys.”
“Our digital and cloud capabilities, combined with intense customer relevance, are helping us achieve differentiated results in the marketplace, as seen in overall revenue growth of 2.2% YoY and growth of 25%. 4% of digital offerings, which are now at 47.3 percent of revenues, “he added.
The Bengaluru-based company also said that it is giving a variable payment of 100 percent along with a special incentive for the second quarter.
Revenue from the company’s operations increased 8.5 percent in the second quarter to Rs 24,570 from revenue of Rs 22,629 crore in the same quarter last year.
Infosys Chief Financial Officer (CFO) Nilanjan Roy said free cash flows grew significantly in the first half, driven by his ongoing focus on cash and liquidity management.
“Accordingly, we are increasing our interim dividend per share by 50 percent to Rs 12,” he added.
Infosys shares ended 1.89 percent lower at Rs 1,136.10 on the BSE. Meanwhile, it closed 1.71 percent lower at Rs 1,138 on the NSE.
(With contributions from the agency)
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