Result Summary
- Infosys reported revenues of USD4.89bn, up 3.8%/3.7% QoQ/YoY (CC 3.1%/3.3% QoQ/YoY), better than our expectations of 2.5% CC QoQ. (Q2FY25 revenues – TCS: US$7.67bn, +1.1% CC QoQ; HCLT: US$3.45bn, +1.6% CC QoQ).
- EBITM was flat QoQ at 21.1%, below our expectations of 21.5%. (TCS IT services EBITM fell 60bps QoQ to 24.1%, HCLT EBITM expanded 150bps QoQ to 18.6%).
- Net profits grew 2.2% QoQ/4.8% YoY to Rs65.16bn, below our estimates of Rs66.97bn.
- FY25 outlook: Infosys raised its FY25 revenue growth and now expects it to be 3.75-4.50% YoY CC (earlier 3-4% CC organic guidance) implying a -0.7% to +0.2% CQGR over Q3-Q4FY25. It expects 20-22% EBITM for FY25 (retained).
- TCV of deal intake stood at USD2.4bn vs USD4.1bn in Q1FY25.
- Declared interim dividend of Rs21/share.
Growth by Verticals (all in CC terms)
- Financial Services: 2.3%YoY (V/s 0.3% YoY in Jun’24)
- Manufacturing: 12.3%YoY ( V/s 6.0% YoY in Jun’24)
- Retail: -9.6%YoY ( V/s -3.0% YoY in Jun’24)
- ECS: 10.9% YoY( V/s 6.3% YoY in Jun’24)
- Communication: 7% YoY( V/s 5.4% YoY in Jun’24)
- Hi Tech: 6% YoY( V/s 2.1% YoY in Jun’24)
- Life sciences: -3.5% YoY( V/s 2.9% YoY in Jun’24)
Growth by Geographies (all in CC terms)
- US: -2.7%YoY (V/s -1.2% YoY in Jun’24)
- Europe: 15.5%YoY (V/s 9.1% YoY in Jun’24)
- ROW: 3.8% YoY(V/s 2.3% YoY in Jun’24)
- India: 16% YoY(V/s 19.9% YoY in Jun’24)
Manpower details
Total Headcount:, 317,788, up 0.8% QoQ /down 3.3 % YoY.
LTM Attrition:12.9%, V/s 12.7% in Jun’24 and 12.6% in Mar’24.
Con call at 6:00pm IST
Diamond pass: https://bit.ly/3WrcfsM
Sep’24 result snapshot:
Source: Company, Emkay Research
Actual vs estimates:
Source: Company, Bloomberg, Emkay Research