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Updated on: Wednesday, October 13, 2021, 08:32 PM IST

Infosys Q2 profit up 11.9% to Rs 5421 cr, raises revenue outlook on strong deal pipeline

Infosys increased the FY22 revenue growth guidance to 16.5-17.5 per cent. | Photo credit: Reuters

Infosys increased the FY22 revenue growth guidance to 16.5-17.5 per cent. | Photo credit: Reuters

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Infosys said its consolidated net profit grew by 11.9 per cent to Rs 5,421 crore for the September 2021 quarter. It had clocked a net profit of Rs 4,845 crore in the same period last fiscal, according to a regulatory filing.

The Bengaluru-based company saw its revenues rising by 20.5 per cent to Rs 29,602 crore in the quarter under review (Q2FY22) from Rs 24,570 crore in the year-ago period.

The firm raised its forecast for annual revenue growth to 16.5 per cent to 17.5 per cent in the fiscal year to March 2022, from 14 per cent to 16 per cent growth predicted in July.

This is on the back of expectations of winning more contracts from global businesses expanding their digital offerings during the COVID-19 pandemic.

"We feel that the deal pipeline looks strong today and that has given us the confidence, in addition to what we have done in the past, to increase the guidance," Infosys CEO and MD Salil Parekh said at a media briefing that was a combination of physical and virtual modes.

Previously, the company had guided to 14-16 per cent growth in constant currency terms for the fiscal ended March 2022.

"Our stellar performance and robust growth outlook continue to demonstrate our strategic focus and the strength of our digital offerings," Salil Parekh, CEO and MD of Infosys said.

Margin guidance unchanged

Indian IT services sector has seen big gains such as cloud computing, digital payments infrastructure and cyber security since the onset of the pandemic.

Infosys kept margin guidance unchanged at 22-24 per cent.

The company announced an interim dividend of Rs 15 per share for the fiscal 2021-22 (FY22).

Its consolidated revenue from operations rose by 20.5 per cent to Rs 29,602 crore. The software major said it has expanded its fresher hiring programme to 45,000 for the year as it sees strong demand for its services.

This also comes at a time when its attrition has spiked, amidst an unprecedented war for technology talent in India.

Major deals signed

The Bengaluru-based firm said major deal signings stood at $2.15 billion for the quarter ended September 30, compared to $2.6 billion in the June quarter and $3.15 billion a year ago.

Growth was broad-based across geographies and segments with the largest geography, North America growing at 23.1 per cent and the largest segment, Financial Services growing at 20.5 per cent year on year in constant currency.

'Steady progress' on IT portal

Infosys -- which has drawn flak over glitches in the new Income Tax portal -- asserted it is seeing "a steady progress" on the system and that the taxpayers concerns are being progressively addressed.

"As of yesterday we had over 1.9 crore returns that have been filed using the new system. Today the income tax return forms one through seven, are all functional. Most of the statutory or several other statutory forms are available on the system," Parekh said responding to a question.

Over the past month, the Income Tax portal has been further bolstered, he said and added that the system has seen steady increase in usage over the last few weeks.

"Over 18 crore logins have been observed on the portal and approximately 3.8 crore unique users have successfully completed various transactions. The system is seeing somewhere between two and three lakh returns being filed each day," Parekh said.

During Q2, Infosys' digital revenues were at 56.1 per cent of total revenues, and the company posted year-on-year constant currency growth of 42.4 per cent in this space.

Hybrid work model

With over 86 per cent of Infoscions in India having received at least one dose of ''vaccination'', the company is rolling up its sleeves to embrace the hybrid work model.

"We have equipped employees with the resources they need to be productive, cyber secure, stay connected, and maintain a work-life balance. Our talent strategy also factors in expanded hiring pools that include new communities and work locations," UB Pravin Rao, Chief Operating Officer of the company said.

UR Pravin Rao to retire

Incidentally, this will be Rao's last full quarter in the company before he retires and Infosys said it will announce a new structure before he steps down.

Shares up

Shares of the company closed higher by 1.46 per cent at Rs 1,708.75 on BSE ahead of the results which were announced after market hours.

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Published on: Wednesday, October 13, 2021, 05:09 PM IST
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