Infosys Limited American Depositary Shares

Ladies and gentlemen, good day and welcome to Enforcers Limited Q2 FY25 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sandeep Mahindra. Thank you, and over to Mr. Mahindra.

Hello, everyone, and thanks for joining InfoSafe's earnings call for Q2 FY25. Joining us on this call is CEO and MD Mr. Salil Parekh, CFO Mr. Jayasand Rajka, and other members of the leadership team. We'll start the call with some remarks on the performance of the company, subsequent to which the call will be opened up for questions. Please note that anything we say which refers to our outlook for the future is a forward-looking statement that must be read in conjunction with the risks that the company faces. A full statement and explanation of these risks is available in our filing with the SEC, which can be found on www.sec.gov. I would now like to transfer the call to Salil.

Thanks, Sandeep. Good evening and good morning to everyone on the call. We had a strong performance in Q2 with robust and broad-based growth. stable operating margins, strong cash generation, strong large deals, and increased employee headcount. Our revenue grew 3.1% quarter-on-quarter and 3.3% year-on-year in constant currency terms. Financial services grew at 2%, manufacturing double-digit, energy utilities and services at 5.8% all quarter-on-quarter. We saw growth in all geographies quarter-on-quarter basis, Our large deals were at $2.4 billion. Our overall pipeline remains strong. We saw a double-digit quarter-and-quarter increase in our pipeline of deals below $50 million. Our operating margin for Q2 was at 21.1%. Free cash flow for the quarter, $839 million. Employee attrition stable at 12.9%. We will launch our employee compensation increase in two phases. effective Jan 1, 2025 and April 1, 2025. The financial services segment in the U.S. continues to see discretionary spend increase in capital markets, mortgages, cards, and payments. We've seen slowness in the automotive sector in Europe. Apart from these verticals, demand trends remain stable with clients continue to prioritize cost takeout over discretionary initiatives. Our Q2 performance reflects our sustained strength and differentiation in the industry. We are deepening our work in generative AI. We are working with clients to deploy enterprise generative AI platforms, which become the launchpad for client usage of different use cases in generative AI. We are building a small language model, leveraging industry and Infosys data sets. This will be used to build generative AI applications across different industries. We've launched multi-agent capabilities to support clients in deploying agent solutions using generative AI. A generative AI approach is helping clients drive growth and productivity impact across the organization. We are partnering with clients to build a strong data foundation, which is critical for any of these generative AI programs. One example, we are working with a logistic major using Topaz to power their operational efficiency improvements. Concurrently, we are supporting their digital transformation journey to help them deliver exceptional services for their customers. With a strong performance in Q2, In our current outlook, we have revised our revenue growth guidance for the financial year. The new guidance is 3.75% to 4.5% growth in constant currency. Our operating margin guidance for the financial year remains the same at 20% to 22%. With that, let me hand it over to Jayesh.