Infosys Topaz driving strong differentiation and
market leadership in generative AI
BENGALURU, India, Jan. 11,
2024 /CNW/ -- Infosys (NSE: INFY) (BSE: INFY) (NYSE:
INFY), a global leader in next-generation digital services and
consulting, delivered $4,663 million
in Q3 revenues with year-on-year and sequential decline of 1.0% in
constant currency. Large deal TCV for the quarter was $3.2 billion, with 71% being net new. Operating
margin for the quarter was 20.5%, a sequential decline of 70 bps.
Attrition declined further to 12.9%. FY24 revenue guidance revised
to 1.5%-2.0% and operating margin guidance at 20%-22%.
"Our performance in Q3 was resilient. Large deal wins were
strong at $3.2 billion, with 71% of
this as net new, reflecting the relevance and strength of our
portfolio of offerings ranging from generative AI, digital and
cloud to cost, efficiency and automation" said Salil Parekh, CEO and MD. "Our clients are
leveraging our Topaz generative AI capabilities and our Cobalt
cloud capabilities to create long-term value for their businesses",
he added.
-1.0% YoY & QoQ
CC growth
|
|
20.5% Operating margin
|
|
3.0% YTD Increase in EPS (₹ terms)
|
|
$3.2 bn Large deal TCV
(71% net new)
|
Guidance for FY24:
- Revenue growth of 1.5%-2.0% in constant currency
- Operating margin of 20%-22%
1. Key highlights:
For the quarter
ended December 31, 2023
- Revenues in CC terms declined by 1.0% YoY and
QoQ
- Reported revenues at $4,663 million, growth
of 0.1% YoY
- Operating margin at 20.5%, decline of 1.0%
YoY and 0.7% QoQ
- Basic EPS at $0.18, decline of 7.1%
YoY
- FCF at $665 million, growth of 15.5% YoY;
FCF conversion at 90.6% of net profit
|
|
For nine months
ended December 31, 2023
- Revenues in CC terms grew by 1.8% YoY
- Reported revenues at $13,997 million, growth
of 2.5% YoY
- Operating margin at 20.8%, decline of
0.2% YoY
- Basic EPS at $0.18, growth of 1.7% YoY
- Basic EPS at $0.53, flat YoY
- FCF at $2,034 million, growth of 11.7%
YoY;
FCF conversion at 92.1% of net profit
|
"Q3 performance is a demonstration of our strong execution
capabilities reflected in improved operational efficiencies
achieved under 'Project Maximus', despite a challenging
environment," said Nilanjan Roy,
Chief Financial Officer. "Cash generation remained robust with
FCF to net profit conversion for Q3 at 90.6%," he added.
2. Client wins & testimonials
- Infosys entered into a collaboration with smart Europe GmbH for
five years to bring sustainable electric mobility to customers.
Dirk Adelmann, Chief Executive
Officer, smart Europe GmbH, said, "We are pleased to have
Infosys as our partner on this journey. Infosys' strong leadership
commitment backed by its ability to drive end-to-end application
development and maintenance with efficiency and effectiveness, will
help us boost our operational performance and user
experience."
- Infosys announced a strategic long-term collaboration with TK
Elevator (TKE) to help consolidate, harmonize, and modernize their
digital landscape. Susan Poon,
Global CIO at TK Elevator, said, "Technology empowers our
employees and business associates to deliver high-quality services
to customers and users across the value chain. We are delighted to
significantly expand our collaboration with Infosys, which brings
end-to-end digital transformation capabilities, helping us
accelerate our business transformation and to realize our strategic
vision."
- Infosys collaborated with LKQ Europe to help integrate and
standardize their disparate business processes and systems, to
enable synergies and achieve economies of scale. Varun Laroyia,
Chief Executive Officer, LKQ Europe, said, "At LKQ, we are
constantly enhancing our market leading position. This project is
an extension of our original program and focused on building a more
streamlined and impactful organization. With Infosys as our
strategic partner, we are aiming to reduce complexities, increase
efficiency and leverage our strengths. This will allow us to
upgrade our focus on customer-centricity, ensure best in class
customer experiences and further excel our top position."
- Infosys and Spirit AeroSystems inaugurated their dedicated
center for aerospace engineering excellence in Richardson, Texas. The center will enable
Infosys to work more closely with Spirit AeroSystems to develop
cross-functional solutions to pressing business challenges in the
aircraft development lifecycle. Dr. Sean
Black, Senior Vice President, Chief Technology Officer and
Chief Engineer, Spirit AeroSystems, said, "The strategic
collaboration with Infosys in Richardson,
Texas, will leverage the talent pool in the North Texas region and create a dedicated
center for aerospace engineering excellence to cover the complete
aircraft development life cycle for both new derivatives and
in-service aircraft."
- Infosys helped enhance Spotlight Retail Group's customer growth
via an omnichannel digital fulfilment and advanced analytics
platform leveraging Infosys Topaz. Tal
Lall, Group General Manager, Digital and Omnichannel,
Spotlight Retail Group, said, "At Spotlight Retail Group, we
are committed to continuously optimize customer experiences as one
of our key competitive differentiators. One of the ways that we've
done this is through greater investment in personalization, and
this is core to the digital commerce platform built with Infosys
Topaz, leveraging its advanced analytics capabilities. This
platform now provides us with deeper customer insights while
supporting scalability to meet customer demands and onboarding new
brands. We are delighted to have collaborated with Infosys on this
journey."
- Infosys collaborated with Proximus to help modernize their IT
stack, optimize costs and broaden their portfolio of offerings.
Antonietta Mastroianni, Chief
Digital & IT Officer at Proximus, said, "Our affiliates are
an important part of Proximus' multi-brand strategy. They have a
fantastic reputation in Belgium
when it comes to quality service at great prices. In order to
continue to ensure smooth operations and an enhanced portfolio of
offerings to all our customers, it was crucial to achieve deeper
integration in the Proximus IT stack. A complex transition,
involving multiple vendors, applications in an evolving landscape
meant that we needed new operating model and sourcing strategy that
could anticipate and adapt to our requirements. Infosys as a
managing partner for this venture with the out-tasking model
enabled us to successfully complete the program on time and with
great quality of delivery."
- Bank of Commerce selected Infosys Finacle for its core banking
transformation to help replace their legacy platform.
Michelangelo R. Aguilar,
President and CEO, Bank of Commerce, said, "We are pleased to
have chosen Infosys Finacle due to its established presence in
the Philippines, robust solutions
suite, and record of reliable delivery in the market. The
modernization of our core banking system is an integral part of
BankCom's digital transformation journey as a universal bank in
delivering a truly digital banking experience to our clients. It
will enable us to operate better, innovate, and keep pace with
industry best practices, regulatory requirements, and evolving
expectations of the markets we serve, notably the San Miguel Group
and SMC ecosystem."
3. Recognitions & Awards
AI and Cloud Services
- Positioned as a leader in HFS Horizons: Generative Enterprise
Services, 2023
- Recognized as a leader in Constellation ShortList 2023:
AI-Driven Cognitive Applications
- Recognized as a leader in Constellation ShortList 2023:
Artificial Intelligence and Machine Learning Best-of-Breed
Platforms
- Positioned as a leader in Gartner Magic Quadrant for Cloud ERP
Services for Service-Centric Enterprises
- Rated as a leader in Cloud Services in Insurance PEAK Matrix®
Assessment 2023 by Everest Group
- Recognized as a leader in IDC MarketScape: Worldwide Managed
Public Cloud Services 2023 Vendor Assessment
- Recognized as a leader in IDC MarketScape: IDC Asia/Pacific
Cloud Professional Services Vendor Assessment
- Recognized as a leader in IDC MarketScape: Asia/Pacific
Microsoft Business Applications Implementation Services Vendor
Assessment, 2023–2024
- Rated as a leader in NelsonHall's Advanced Digital Workplace
Services NEAT
- Recognized as a leader in Public Cloud ISG Provider Lens™
report in the US, UK and Nordics regions
Key Digital Services
- Recognized as a leader in Constellation ShortList 2023:
Metaverse Design and Services
- Rated as a leader in Healthcare Payer Digital Services PEAK
Matrix® Assessment 2023 by Everest Group
- Recognized as a Leader in the Gartner® Magic
Quadrant™ for Finance and Accounting Business Process Outsourcing
2023
- Rated as a leader in Lending IT Services PEAK Matrix®
Assessment 2023 by Everest Group
- Rated as a leader in Next-generation Quality Engineering (QE)
Services PEAK Matrix® Assessment 2023 by Everest Group
- Recognized as a leader in IDC MarketScape: Worldwide Production
Management Service Providers 2023 Vendor Assessment
- Recognized as a leader in IDC MarketScape: Worldwide Quality
Management Service Providers 2023 Vendor Assessment
- Positioned as a leader in HFS Horizons: Low-Code Services,
2023
- Recognized as a leader in IDC MarketScape: Worldwide Supply
Chain All Other Ecosystems Services 2023 Vendor Assessment
- Recognized as a leader in IDC MarketScape: Worldwide Software
Engineering Services 2023 Vendor Assessment
- Recognized as a leader in Avasant's Tech-enabled Sustainability
Services 2023–2024 RadarView™
- Recognized as a leader in Avasant's Intelligent IT Ops Services
2023-2024 RadarView™
- Recognized as a leader in Avasant's Nordics Digital Services
2023-2024 RadarView™
Industry & Solutions
- Positioned as a leader in HFS Horizons: Retail and CPG Service
Providers, 2023
- Infosys BPM won the 'Best CSR Impact' award, at the Corporate
Social Responsibility Summit and Awards 2023
- Infosys Finacle recognized as Best SaaS Provider Europe 2023 at
the Global Finance Awards
- Infosys Finacle and The National Bank of Greece awarded in the category 'Best Core
Banking Implementation Europe 2023' at the Global Finance
Awards
- Infosys Finacle and Union Bank of India recognized at the 2023 Banking Tech
awards in the Best Embedded Finance Initiative category
- Infosys Finacle and Emirates NBD awarded 'Best Digital
Transformation Implementation' at the MEA Finance Leaders Awards
2023
About Infosys
Infosys is a global leader in next-generation digital services
and consulting. Over 300,000 of our people work to amplify human
potential and create the next opportunity for people, businesses
and communities. We enable 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, we expertly steer clients, as they navigate their
digital transformation powered by the cloud. We enable 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. We are deeply committed to being a
well-governed, environmentally sustainable organization where
diverse talent thrives in an inclusive workplace.
Visit www.infosys.com to see how Infosys (NSE, BSE, NYSE:
INFY) can help your enterprise navigate your next.
Safe Harbor
Certain statements in this release concerning our future growth
prospects, or our future financial or operating performance, are
forward-looking statements intended to qualify for the 'safe
harbor' under the Private Securities Litigation Reform Act of 1995,
which involve a number of risks and uncertainties that could cause
actual results or outcomes to differ materially from those in such
forward-looking statements. The risks and uncertainties relating to
these statements include, but are not limited to, risks and
uncertainties regarding the execution of our business strategy, our
ability to attract and retain personnel, our transition to hybrid
work model, economic uncertainties, technological innovations such
as Generative AI, the complex and evolving regulatory landscape
including immigration regulation changes, our ESG vision, our
capital allocation policy and expectations concerning our market
position, future operations, margins, profitability, liquidity,
capital resources, our corporate actions including acquisitions,
the actual or anticipated findings of the ongoing assessment of the
extent and nature of exfiltrated data in relation to the McCamish
cybersecurity incident and customer reaction to such findings, and
the amount of any additional costs, including indemnities or
damages / claims, resulting from the McCamish cybersecurity
incident. Important factors that may cause actual results or
outcomes to differ from those implied by the forward-looking
statements are discussed in more detail in our US Securities and
Exchange Commission filings including our Annual Report on Form
20-F for the fiscal year ended March 31,
2023. These filings are available at www.sec.gov. Infosys
may, from time to time, make additional written and oral
forward-looking statements, including statements contained in the
Company's filings with the Securities and Exchange Commission and
our reports to shareholders. The Company does not undertake to
update any forward-looking statements that may be made from time to
time by or on behalf of the Company unless it is required by
law.
Infosys Limited and
subsidiaries
|
Extracted from
the Condensed Consolidated Balance Sheet under IFRS as at:
(Dollars in
millions)
|
|
|
December 31,
2023
|
March 31,
2023
|
ASSETS
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
1,640
|
1,481
|
Current
investments
|
958
|
841
|
Trade
receivables
|
3,680
|
3,094
|
Unbilled
revenue
|
1,589
|
1,861
|
Other Current
assets
|
1,425
|
1,349
|
Total current
assets
|
9,292
|
8,626
|
Non-current
assets
|
|
|
Property, plant and
equipment and Right-of-use assets
|
2,375
|
2,516
|
Goodwill and other
Intangible assets
|
1,075
|
1,095
|
Non-current
investments
|
1,354
|
1,530
|
Unbilled
revenue
|
202
|
176
|
Other non-current
assets
|
1,308
|
1,369
|
Total non-current
assets
|
6,314
|
6,686
|
Total
assets
|
15,606
|
15,312
|
LIABILITIES AND
EQUITY
|
|
|
Current
liabilities
|
|
|
Trade
payables
|
460
|
470
|
Unearned
revenue
|
922
|
872
|
Employee benefit
obligations
|
326
|
292
|
Other current
liabilities and provisions
|
2,970
|
3,135
|
Total current
liabilities
|
4,678
|
4,769
|
Non-current
liabilities
|
|
|
Lease
liabilities
|
802
|
859
|
Other non-current
liabilities
|
458
|
460
|
Total non-current
liabilities
|
1,260
|
1,319
|
Total
liabilities
|
5,938
|
6,088
|
Total
equity attributable to equity holders of the
company
|
9,617
|
9,172
|
Non-controlling
interests
|
51
|
52
|
Total
equity
|
9,668
|
9,224
|
Total liabilities
and equity
|
15,606
|
15,312
|
Extracted from
the Condensed Consolidated statement of Comprehensive Income under
IFRS for:
|
(Dollars in millions
except per equity share data)
|
|
3 months ended
December 31,
2023
|
3 months ended
December 31, 2022
|
9 months ended
December 31,
2023
|
9 months ended
December 31,
2022
|
Revenues
|
4,663
|
4,659
|
13,997
|
13,657
|
Cost of
sales
|
3,274
|
3,230
|
9,755
|
9,544
|
Gross
profit
|
1,389
|
1,429
|
4,242
|
4,113
|
Operating
expenses:
|
|
|
|
|
Selling
and marketing expenses
|
204
|
196
|
633
|
574
|
Administrative expenses
|
229
|
232
|
692
|
671
|
Total operating
expenses
|
433
|
428
|
1,325
|
1,245
|
Operating
profit
|
956
|
1,001
|
2,917
|
2,868
|
Other income, net
(3)
|
79
|
84
|
196
|
229
|
Profit before income
taxes
|
1,035
|
1,085
|
3,113
|
3,097
|
Income tax
expense
|
301
|
285
|
904
|
859
|
Net profit (before
minority interest)
|
734
|
800
|
2,209
|
2,238
|
Net profit (after
minority interest)
|
733
|
800
|
2,208
|
2,237
|
Basic EPS
($)
|
0.18
|
0.19
|
0.53
|
0.53
|
Diluted EPS
($)
|
0.18
|
0.19
|
0.53
|
0.53
|
NOTES:
- The above information is extracted from the audited
condensed consolidated Balance sheet and Statement of Comprehensive
Income for the quarter and nine months ended December 31, 2023, which have been taken on
record at the Board meeting held on January
11, 2024.
- A Fact Sheet providing the operating metrics of the Company
can be downloaded from www.infosys.com.
- Other income is net of Finance Cost.
- As the quarter and nine months ended figures are taken from
the source and rounded to the nearest digits, the quarter figures
in this statement added up to the figures reported for the previous
quarters might not always add up to the nine months ended figures
reported in this statement.
IFRS-INR Press
Release: https://www.infosys.com/investors/reports-filings/quarterly-results/2023-2024/q3/documents/ifrs-inr-press-release.pdf
Fact sheet:
https://www.infosys.com/investors/reports-filings/quarterly-results/2023-2024/q3/documents/fact-sheet.pdf
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SOURCE Infosys