- Q2 revenue growth was 2.5% year-on-year in constant currency.
- The H1 revenue growth was 3.3% in constant currency.
- The company revised its growth guidance for FY '24 to 1% to 2.5% in constant currency terms due to various factors affecting revenue.
- Infosys signed large deals with a Total Contract Value (TCV) of $7.7 billion in Q2.
- A significant portion, 48%, of these deals were net new.
- The H1 large deal TCV reached $10 billion, exceeding the total large deal signings for FY '23.
- The company emphasized a strong pipeline for future large deals.
- Operating margins for Q2 were at 21.2%, with a sequential increase of 40 basis points.
- Project Maximus, a margin improvement plan, contributed to a 50 basis point improvement from cost optimization.
- Margin expansion is driven by several factors, including cost optimization, utilization improvements, and overhead optimization.
- Infosys reported strong client metrics, with an increase in $50 million clients and $100 million clients.
- The company's ability to provide relevant services to top clients was highlighted.
- The financial services sector faced challenges, with a slowdown in areas like mortgages and investment banking.
- The communication sector experienced growth challenges and near-term uncertainties.
- Manufacturing showed double-digit growth year-on-year in Q2, with opportunities in digital transformation.
- Retail clients focused on budget consolidation, cost, and efficiency.
- While there was strong sequential growth in Q2, there were underlying challenges in volume and discretionary spends.
- Infosys retains its margin guidance band for the year at 20% to 22%.
- The company remains optimistic about the medium and long-term outlook, driven by strong large deal signings and a robust pipeline.
- Infosys remains focused on long-term growth, margin improvement, and client relevance.
- The company is confident about its ability to navigate challenges and capitalize on opportunities in various verticals.
- Infosys has revised its FY 2024 revenue guidance from 4%-7% to 2%-3.5%, reflecting a more cautious outlook.
- The guidance revision is driven by a combination of factors, including a slowdown in discretionary spending by clients and the seasonally weaker Q3 and Q4.
- Infosys has won significant large and mega deals, but the revenue impact from these deals is expected to be more pronounced in FY 2025, with a gradual ramp-up.
- While specific pockets of weakness are observed in certain industries, such as financial services, mortgages, asset management, high-tech, and retail, there isn't a single project or client causing this change.
- Infosys also factors in non-headcount portfolio items in its guidance, which may include third-party bought-out items.
- Wage hikes are planned, effective from November 1, but the impact on margins is not specified.
- The guidance considers the current environment and the seasonal nature of Q3 and Q4 in the revenue outlook.
- Overall, Infosys acknowledges some headwinds but maintains a positive view on the future growth potential, particularly driven by large deal wins.