Infosys Q2FY25 Financial Results
Infosys Limited, a major IT company in India, announced a 2.2% increase in its net profit for the second quarter of the fiscal year 2025, reaching Rs 6,506 crore from Rs 6,368 crore. The company’s revenue for the July-September period grew by 4.2%, totaling Rs 40,986 crore. Infosys has updated its full-term revenue growth guidance to 3.75-4.5%, up from the previous 3-4%.
The company declared an interim dividend of Rs 21 per share, with a record date of October 29 and a payout date of November 8. In the previous fiscal year, Infosys had given a final dividend of Rs 20 per share, a special dividend of Rs 8, and an interim dividend of Rs 18.
CEO’s Statement
Salil Parekh, CEO and MD of Infosys, highlighted the company’s strong growth of 3.1% quarter-on-quarter, driven by momentum in financial services. He attributed this success to Infosys’ expertise in the industry, cloud capabilities with Cobalt, and generative AI with Topaz, which have increased client preference for partnering with Infosys. Parekh also noted that large deals worth USD 2.4 billion in the second quarter demonstrate the company’s strength and leadership.
Employee Incentives
The board of Infosys approved the grant of 22,880 Restricted Stock Units (RSUs) to six eligible employees under the 2015 Stock Incentive Compensation Plan, effective from November 1, 2024. These RSUs will vest over two to four years.
Doubts Revealed
Infosys -: Infosys is a big company in India that provides technology services and consulting. They help other companies with their computer and software needs.
Q2FY25 -: Q2FY25 stands for the second quarter of the financial year 2025. Companies often report their financial results every three months, and this is for the period from July to September 2024.
Net profit -: Net profit is the money a company makes after subtracting all its costs and expenses. It’s like the leftover money after paying for everything needed to run the business.
Revenue -: Revenue is the total money a company earns from selling its products or services before any costs are subtracted. It’s like the total amount of money coming in.
Dividend -: A dividend is a portion of a company’s earnings that is given to its shareholders. It’s like a reward for people who own shares in the company.
Interim dividend -: An interim dividend is a payment made to shareholders before the company’s annual earnings are calculated. It’s like getting a part of the reward earlier in the year.
RSUs -: RSUs stand for Restricted Stock Units. They are a type of reward given to employees, which become actual shares of the company after a certain period.
Vesting -: Vesting is the process by which employees earn the right to own their RSUs over time. It’s like waiting for a gift to become yours after a certain period.
Salil Parekh -: Salil Parekh is the CEO of Infosys. A CEO is the person who is in charge of running the company and making important decisions.
Financial services -: Financial services refer to services related to managing money, like banking, investing, and insurance. Infosys helps companies in these areas with technology solutions.
Large deals -: Large deals are big contracts or agreements that a company makes with other companies to provide services or products. They usually involve a lot of money and are important for the company’s growth.