The financial performance and guidance updates for Infosys in the second quarter of the fiscal year 2024. Here’s a breakdown:
- Net Profit:
- Infosys reported a 3 percent year-on-year rise in net profit at Rs 6,212 crore in the second quarter of FY24.
- The reported figure was slightly above Moneycontrol’s poll estimates of Rs 6,156 crore.
- Revenue Growth Guidance:
- Infosys narrowed its revenue growth guidance for the full year, providing a new range of 1-2.5 percent.
- This adjustment comes after a significant reduction in the guidance last quarter, where it was lowered to 1-3.5 percent from the initial 4-7 percent.
- Consolidated Revenue:
- Consolidated revenue for the quarter was reported at Rs 38,994 crore, reflecting a 7 percent increase.
- The reported revenue exceeded analyst estimates of Rs 37,694 crore.
- Constant Currency Revenue Growth:
- In constant currency terms, the revenue grew by 2.5 percent year-on-year, surpassing estimates.
- Constant currency figures are used to eliminate the impact of fluctuations in exchange rates when assessing financial performance.
- EBIT Margin:
- The EBIT margin (operating margin) increased by 40 basis points to 21.2 percent.
- This improvement is attributed to a weaker rupee and the company’s decision not to implement wage hikes so far.
- Operating Margin Guidance:
- Infosys retained its operating margin guidance in the range of 20-22 percent.
- Revised FY24 Revenue Guidance:
- The company revised its FY24 revenue guidance downward to 1 percent from the previously guided 2.5 percent.
Shares of the company ended the day down by 2.26 percent to Rs 1,46
