Infosys, India’s second-largest IT services company, reported a 5% rise in its net profit for the second quarter of fiscal 2024, driven by strong demand across key sectors, particularly in digital and cloud services. The company’s net profit increased to ₹6,300 crore from ₹6,000 crore in the same quarter last year, slightly exceeding market expectations. Revenues rose by 4.2% year-on-year to ₹40,800 crore, underpinned by new deal wins and continued investments in emerging technologies.
Source:- bbc news
In light of the positive performance, Infosys has raised its revenue outlook for the fiscal year, now expecting growth in the range of 3% to 5%, up from its earlier guidance of 1% to 3.5%. This revision comes on the back of strong deal momentum, with the company securing large contracts across sectors like BFSI (Banking, Financial Services, and Insurance), retail, and manufacturing. Infosys added that its digital revenues grew by 15% and now account for more than 60% of its total revenues, reflecting clients’ increasing focus on digital transformation.
Source:- bbc news
CEO Salil Parekh attributed the company’s growth to its focus on strategic investments in cloud, AI, and automation, which continue to resonate with global enterprises looking for agility and innovation. However, Infosys also acknowledged some macroeconomic challenges, including geopolitical uncertainties and inflationary pressures in key markets like the U.S. and Europe, which could impact client spending in the coming quarters.
The company’s operating margin remained stable at around 21%, in line with its expectations, due to improved operational efficiencies and cost management initiatives. Infosys remains optimistic about its long-term prospects and plans to continue expanding its digital services portfolio while driving efficiencies through automation and AI solutions.
