Infosys (INFY) Q2 24/25 earnings summary

Executive summary

• Q2 revenue grew 3.3% year-on-year in constant currency to $4.9 billion (₹40,986 crore), with broad-based growth across geographies and verticals.

• Operating margin was stable at 21.1%, with robust cash generation and large deal wins totaling $2.4 billion TCV, 41% of which is net new.

• Net profit for Q2 FY25 was ₹6,516 crore, up from ₹6,215 crore in Q2 FY24.

• Employee headcount increased by 2,500 after six quarters of decline; attrition stable at 12.9%.

• Significant progress in generative AI initiatives, including enterprise platforms, small language models, and multi-agent frameworks.

Financial highlights

• Q2 revenue: $4.9 billion (₹40,986 crore), up 3.1% sequentially and 3.3% year-on-year in constant currency.

• Free cash flow for Q2: $839 million (₹7,010 crore), up 26.6% year-on-year; H1 free cash flow up 41% year-on-year to $1.9 billion.

• EPS grew 4.7% in INR and 3.4% in USD year-on-year; Basic EPS for Q2 FY25: ₹15.71.

• Interim dividend of INR 21 per share, up 16.7% year-on-year.

• Consolidated cash and equivalents at $4.6 billion (₹21,799 crore) after $1.4 billion dividend payout.

Outlook and guidance

• FY 2025 revenue growth guidance revised to 3.75%-4.5% in constant currency.

• Operating margin guidance maintained at 20%-22%.

• ETR expected at 29%-30% for FY 2025.

• H2 expected to be seasonally weaker due to furloughs and fewer working days.