- Thursday, October 17, 2024
Infosys said it is on track to onboard 15,000-20,000 freshers in FY25 and many of them have been onboarded in the first half itself
By: Shajil Kumar
INFOSYS Ltd, India’s second-largest IT services exporter, on Thursday reported a near 5 per cent rise in its second quarter net profit and raised revenue guidance for the year on broad-based recovery in demand particularly from its key financial industry clients.
Consolidated net profit of ₹65.06 billion (£594.75m) in July-September – the second quarter of current 2024-25 fiscal year – was 4.7 per cent higher than the year-ago earnings and 2.2 per cent more than the net profit in the preceding quarter, according to a company statement.
Infosys ADRs, however, slid over two per cent in pre-market session on US bourses as the company’s Q2 results trailed market expectations.
Technology services bellwether for the second consecutive quarter raised its revenue guidance for the full fiscal. It now expects constant currency revenue growth between 3.75 per cent and 4.5 per cent for the financial year April 2024 to March 2025, higher than its earlier guidance of 3 per cent to 4 per cent.
Infosys CEO and MD Salil Parekh termed it a “huge upward movement” in growth guidance. The upward revision comes on the back of a ramp-up of mega deals.
The company had raised its guidance in the June quarter from the 1-3 per cent range it started the year with.
Infosys said it is on track to onboard 15,000-20,000 freshers in FY25 and many of them have been onboarded in the first half itself. The company emphasised it will onboard all the freshers it had committed to, in the past.
Notably, Infosys, after six consecutive quarters of drop in employee strength, added about 2,500 employees on a net basis in the September quarter. Attrition rate stood at 12.9 per cent versus 12.7 per cent quarter on quarter, and 14.6 per cent in the year-ago period.
For the full year, Infosys however maintained its margin guidance. It expects operating margins for the fiscal to be between 20 per cent and 22 per cent.
Revenue from operations increased over 5 per cent year on year to ₹409.86 bn (£3.75bn).
“We had strong growth of 3.1 per cent quarter-on-quarter in constant currency in Q2. The growth was broad based with good momentum in financial services,” Parekh said. “Our large deals at $2.4 billion (£1.84bn) in Q2 reflect our differentiated position.” (PTI)
