Infosys (INFY) is a global leader in next-generation digital services and consulting. Over 300,000 people of the company work to amplify human potential and create the next opportunity for people, businesses and communities. The company enables clients in more than 56 countries to navigate their digital transformation. With over four decades of experience in managing the systems and workings of global enterprises, it expertly steers clients, as they navigate their digital transformation powered by the cloud. The company enables them with an AI-powered core, empower the business with agile digital at scale and drive continuous improvement with always-on learning through the transfer of digital skills, expertise, and ideas from our innovation ecosystem.

Result Analysis:  Infosys Limited (CMP: Rs.1464.55) Result Update: Q2FY24
Stock Details
Market Cap. (Cr.) 607844.50
Equity (Cr.) 2075.19
Face Value 5
52 Wk. high/low 1672 / 1215
BSE Code 500209
Book Value (Rs) 155.25
Sector IT – Software


Key Ratios
Debt-equity: 0.10
ROCE (%): 44.36
ROE (%): 36.42
EPS TTM: 59.46
P/BV: 9.43
P/E TTM: 24.63


Result Highlights:

  • Infosys reported above street estimates results in Q2FY24; revenue increased by 2.6% QoQ to Rs.38,994 cr. and PAT increased by 4.5% QoQ to Rs.6,215 cr. The primary factors contributing to this performance was lower discretionary spending and delays in decision-making.

  • EBIT Margin of the company improved by 30 bps QoQ and stands at 21.2%, led by decrease in employee cost and technical sub-contractors’ cost.

  • Among segments, BFSI had a negative impact on vertical growth, although the retail and manufacturing verticals were resilient. BFSI (major contributing segment in the total revenue) showed the slight growth of 0.4% QoQ while Manufacturing, Retail and Life Sciences grew 4.2%, 7.3% and 10.9% respectively.

  • TCV of the company stands at eight-quarter high at $7.7 bn. vs $2.3 bn. in Q1 with a book to bill ratio of 1.6x.

  • With a net addition of -7,530 employees, company saw negative staff addition for the quarter. The attrition rate dropped from 17.3% to 14.6%. The management has guided for the slow hiring as the majority of the ramp up is hampered by the delay in discretionary spending.

  • Company has trained over 57K personnel in general artificial intelligence (Gen AI) and is currently developing 90 Gen AI programs. It is developing both open source and exclusive Gen AI models for its own internal efficiency enhancement as well as for clients.

  • The management reduced revenue growth guidance range for FY24 to 1%-2.5% (from 1%-3.5%) in CC terms. However, its margin guidance stands at 20%-22%.

  • Infosys has announced an interim dividend of Rs.18 per share.

Management Commentary:

Commenting on the September quarter results, Salil Parekh, CEO and MD said, “We had our highest large deals value at $7.7 billion in Q2 spread across all verticals and geographies. This, in an uncertain macro-environment, is a testament to our ability to pivot and stay relevant to the evolving client needs, by delivering the benefits of transformation as well as productivity and cost savings at scale”,


Infosys posted largely in-lined Q2FY24 results with 2.3% QoQ increase in the revenues in CC terms along with expansion in operating margins by 40 bps. A record-breaking four megadeals were won during the quarter, resulting in the largest deal TCV ever at USD7.7b (48% new).  Despite good results, company trimmed the upper end of its FY24 revenue growth guidance by 100bp to 1.0-2.5% YoY CC, on account of lower volume and low discretionary spending. We remain positive on the Infosys as it is expected to benefit significantly from the increase in IT spending in the medium to long term, regardless of near-term weakness.



Particulars (In Rs. Cr.) Q2FY24 Q1FY24 Q2FY23 QoQ% YoY% H2FY24 H2FY23 YoY%
Revenue from Operations 38,994 37,993 36,538 2.6% 6.7% 76,927 71,008 8.3%
Other Income 632 561 584 12.7% 8.2% 1,193 1,260 -5.3%
Total Income 39,626 38,554 37,122 2.8% 6.7% 78,120 72,268 8.1%
Employee Benefit Expenses 20,796 20,781 19,438 0.1% 7.0% 41,577 37,776 10.1%
Employee benefit Expenses as % of Sales 53.3% 54.7% 53.2% -140 bps 10 bps 54.0% 53.2% 0.8%
Cost of technical sub-contractors 3,074 3,124 3,694 -1.6% -16.8% 6,198 7,603 -18.5%
Cost of Software packages and others 3,387 2,720 2,512 24.5% 34.8% 6,106 4,932 23.8%
Depreciation & Amortisation Expense 1,166 1,173 1,029 -0.6% 13.3% 2,339 1,979 18.2%
Other Expense 2,297 2,244 1,992 2.4% 15.3% 4,542 2,834 60.3%
EBIT 8,274 7,951 7,873 4.1% 5.1% 16,165 15,884 1.8%
EBIT Margin (%) 21.2% 20.9% 21.5% 30 bps -30 bps 21.0% 22.4% -140 bps
PAT 6,215 5,945 6,026 4.5% 3.1% 12,160 11,388 6.8%
PAT Margin (%) 15.9% 15.6% 16.5% 30 bps -60 bps 15.81% 16.04% -20 bps
EPS (in Rs.) 15.01 14.37 14.35 4.5% 4.6% 29.38 27.13 8.3%
Segment Revenue (In Rs. Cr.) Q2FY24 Q1FY24 Q2FY23 QoQ% YoY% Revenue %
Financial Services 10,705 10,661 11,148 0.4% -4.0% 27.5%
Retail 5,913 5,513 5,183 7.3% 14.1% 15.2%
Communication 4,463 4,441 4,501 0.5% -0.8% 11.4%
Energy, Utilities, Resources and Services 4,957 4,889 4,498 1.4% 10.2% 12.7%
Manufacturing 5,574 5,350 4,686 4.2% 19.0% 14.3%
Hi-Tech 3,053 3,056 2,971 -0.1% 2.8% 7.8%
Life-Sciences 3,050 2,749 2,452 10.9% 24.4% 7.8%
Others 1,279 1,274 1,099 0.4% 16.4% 3.3%
Geography Revenue % Q2FY24 Q1FY24 Q2FY23 QoQ YoY
North America 61.1 60.8 62.5 30 bps -140 bps
Europe 26.5 26.8 24.7 -30 bps 180 bps
Rest of the World 9.6 9.7 9.9 -10 bps -30 bps
India 2.8 2.7 2.9 10 bps -10 bps
Source: Company website, EWL Research

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