Infosys Q2 results: Profit rises 11% to Rs 6,021 cr; board okays Rs 9,300 cr share buyback

Infosys, India's second-largest software exporter, on Thursday reported an 11.10 per cent year-on-year (YoY) rise in consolidated net profit at Rs 6,021 crore in September quarter compared with Rs 5,421 crore in the corresponding quarter last year.

The Bengaluru-based company narrowed its revenue and operating margin guidance for FY23. It announced an interim dividend of Rs 16.50 per share, valuing Rs 6,940 crore. Besides, its board approved a share buyback proposal worth Rs 9,300 crore.

Also Read: Infosys Q2 preview: Profit may rise 10-12%; Rs 8,000-10,000 cr share buyback likely

In an exchange filing, the company said its consolidated revenue for the quarter grew 23.4 per cent YoY to Rs 36,538 crore from Rs 29,602 crore in the corresponding quarter last year.

Operating margin for the quarter came in at 21.5 per cent against 20.1 per cent in June quarter and 23.6 per cent per cent in the year-ago quarter.

Revenues in dollar terms stood at $4,555 million, up 1 3.9 per cent YoY (up 2.5 per cent QoQ). Revenue growth in constant currency (CC) terms rose 18.8 per cent YoY (up 4 per cent sequentially).

Large deal wins for the quarter was robust at $2.7 billion, highest in last seven quarters. The IT major narrowed its FY23 CC revenue guidance to 15-16 per cent from 14-16 per cent earlier. It also narrowed its operating margin guidance for the financial year to 21-22 per cent from 21-23 per cent earlier.

Along with the quarterly results, the IT major announced a Rs 9,300 crore in share buyback. This was in line with Rs 8,000-10,000 crore buyback that analyst projected earlier.

Infosys said its board has approved a proposal to buy back its own fully paid-up equity shares from equity shareholders, other than promoters, for an amount, payable in cash, aggregating up to Rs 9,300 crore for a price not exceeding Rs 1,850.

CEO and MD Salil Parekh said: “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 per cent for FY23.”

In terms of business segments, manufacturing recorded a 34 per cent YoY growth, followed by energy, utilities, resources & services (up 18.6 per cent YoY), communication (up 13.3 per cent), retail (10.6 per cent) and financial services (7.6 per cent).

Earlier, shares of Infosys closed at Rs 1,419.75 on BSE, down 0.64 per cent.