BENGALURU, India, Jan. 12, 2022 /CNW/ -- Infosys (NSE: INFY)
(BSE: INFY) (NYSE: INFY), a global leader in next-generation
digital services and consulting, delivered strong Q3 performance
with sequential growth of 7.0% in a seasonally weak quarter and
year-on-year growth of 21.5% in constant currency. Growth remained
broad-based and deal momentum robust, with digital transformation
rapidly scaling across verticals and regions. Large deal wins
accelerated with TCV of $2.53 billion
in Q3. Operating margin for the quarter was healthy at 23.5%, with
Free Cash Flow conversion at 92.6%. Our talent strategy continued
to be a key focus area marked by efforts to further strengthen
employee skilling and well-being while nurturing our workforce to
fulfil client requirements.
"Our strong performance and market share gains are a testament
to the enormous confidence our clients have in us to help them in
their digital transformation. This stems from four years of
sustained strategic focus on areas of relevance for our clients in
digital and cloud, continued re-skilling of our people, and deep
relationships of trust that our clients have with us. This is
reflected in an upgrade in our revenue guidance to 19.5%-20.0% for
FY22. We expect the healthy technology spend to continue with large
enterprises progressing on their digital transformations," said
Salil Parekh, CEO and MD. "I am
immensely proud of the relentless commitment of our employees
during these challenging times and grateful for their extraordinary
efforts in delivering success for our clients", he added.
42.6%
YoY
|
21.5% YoY
7.0% QoQ
|
23.5%
|
13.1%
YoY
|
$2.53
bn
|
CC Digital
growth
|
CC Revenue
growth
|
Operating
margin
|
Increase in EPS
(INR terms)
|
Large deal
signings
|
1. Key highlights:
For the quarter
ended December 31, 2021
|
For nine months
ended December 31, 2021
|
- Revenues in
CC terms grew by 21.5% YoY and 7.0% QoQ
- Reported revenues at $4,250 million, growth of 20.9%
YoY
- Digital revenues at 58.5% of total revenues, YoY CC growth
of 42.6%
- Operating margin at 23.5%, decline of 1.9% YoY and 0.1%
QoQ
- Basic EPS at $0.18, growth of 11.2% YoY
- FCF at $719 million, YoY decline of 6.9%; FCF conversion at
92.6% of net profit
|
- Revenues in
CC terms grew by 19.3% YoY
- Reported revenues at $12,031 million, growth of 20.9%
YoY
- Digital revenues at 56.3% of total revenues, YoY CC growth
of 42.1%
- Operating margin at 23.6%, decline of 1.0% YoY
- Basic EPS at $0.52, growth of 16.1% YoY
- FCF at $2,294 million, YoY growth of 5.5%; FCF conversion
at 103.6% of net profit
|
"Despite the cost escalations driven primarily by supply side
challenges, we delivered another quarter of healthy margins, with
improved cost optimization, continued operating leverage and a
stable pricing environment," said Nilanjan Roy, Chief Financial Officer. "We
continue to prioritize investments in talent acquisition and
development and have further increased our global graduate hiring
program to over 55,000 for FY22 to support our growth ambitions",
he added.
2. Client wins & Testimonials
- Infosys accelerated Daimler's transition to sustainable
mobility by transferring its High Performance Computing (HPC)
workloads used to design vehicles and automated driving
technologies to one of Europe's
greenest data centers, Lefdal Mine Datacenter, in Norway. Infosys provided 'Green Data Center as
a Service', part of Infosys Cobalt, to facilitate Daimler's journey
to net zero. Jan Brecht, Chief
Information Officer, Daimler and Mercedes-Benz, said, "A large
proportion of our IT energy consumption comes from our data centers
which require significant power for computing and cooling. That's
why we're transforming our data centers with the support of our
partner Infosys, bringing particularly the high-performance
computing into one energy efficient solution at Lefdal Mine
Datacenter. Not only will we benefit from natural cooling thanks to
the cold weather, our operations will also be run on 100% green
energy. This initiative marks another important milestone on our
journey to becoming CO2 neutral."
- Infosys integrated its flagship human-centric digital commerce
platform, Infosys Equinox, with Packable IQ (Packable's proprietary
e-commerce platform) to help strengthen Packable's ability to offer
its brand partners an engaging, innovative, and agile Direct to
Consumer platform (D2C): "D2C-in-a-box." Andrew Vagenas, Chief Executive Officer,
Packable, said, "We're thrilled to partner with Infosys. This
exciting partnership marks another milestone in the execution of
Packable's strategy of augmenting our D2C platform ecosystem to
accelerate brand partners' revenues and profitability across
e-commerce channels. As we continue our journey to becoming a
public company, we're diligently looking for partnerships to help
bring the highest-quality services to customers, and this agreement
with Infosys Equinox allows us to do just that."
- Infosys and bp agreed to develop and pilot an energy as a
service (EaaS) solution, which will aim to help businesses improve
the energy efficiency of infrastructure and help meet their
decarbonization goals. Sashi
Mukundan, President, bp India and Senior Vice President, bp Group,
said, "At bp, we set out to provide solutions to enable cities and
hard to abate industries decarbonize. Integrating advances in
energy, mobility and digital technologies and services has huge
potential to accelerate the progress towards a more sustainable and
resilient future. By bringing together our complementary
capabilities, products, and services from bp's different joint
ventures in India, bp and Infosys
can help each other – and our customers – achieve energy and
sustainability goals faster."
- Infosys extended its strategic collaboration with Proximus,
Belgium's leading digital services
and communications solutions provider, to digitally transform,
develop, and maintain their IT applications with leading AI and
automation solutions. Antonietta
Mastroianni, Chief Digital & IT Officer, Proximus,
said, "As we continue on this journey to elevate our digital
initiatives, we were looking for a partner that could understand
and provide strength to our digital vision. IT services companies
play an imperative role during these times of transformation.
Infosys continues to be our strategic partner to drive efficiency
in our IT landscape and support us in our digital transformation
journey. Having shared a bond with Infosys for over 24 years, its
knowledge of the existing landscape and skilled resources will help
ensure the success of our initiative. We are happy to extend this
collaboration with Infosys and are looking forward to a successful
journey together."
- Infosys extended its digital innovation partnership with the
Australian Open (AO) until the end of 2026. Craig Tiley, CEO of Tennis Australia and
Australian Open Tournament Director said, "We are excited to
extend our partnership with Infosys until 2026 as part of our
ongoing journey of innovation. We look forward to working together
to continue to change the way fans, players, coaches and audiences
around the world engage with the Australian Open and our
sport."
- Infosys and ATP recently launched a suite of exciting match
stats and analysis tools designed to bring fans, coaches, and media
closer to the action of men's professional tennis through digital
innovation. Daniele Sano, ATP
Chief Business Officer, said: "As an organisation we are
constantly looking for new ways to make the experience of our sport
more compelling. Tennis is incredibly data-rich, and Infosys has
both technological expertise and passion for tennis to bring it to
life in an intuitive way. We are excited for fans to interact with
these new features and look forward to future digital innovation
together with Infosys."
- Infosys and Financial Times collaborated to enhance immersive
journalism. Infosys will leverage digital innovation to support the
latest creative and engaging data-led storytelling experiences for
FT's readers. James Lamont,
Director of Strategic Partnerships, Financial Times, said: "Our
readers expect the best from the FT, and we are experimenting with
exciting digital ways to bring stories and features to a wider
audience. With Infosys' help, we can use technology better and
faster to deliver editorial features in more enterprising and
eye-catching ways. The expertise Infosys provides to these newsroom
projects will help foster a spirit of innovation and reader service
that supports our mission to delight and inform the FT's
audience."
- Infosys recently became the official digital innovation partner
of Madison Square Garden (MSG)
Sports and MSG Entertainment "Madison
Square Garden welcomes millions of people each year and one
of our most important priorities is finding new ways to deliver a
world-class experience to each and every one of them, down to the
smallest detail – this Infosys partnerships helps us do just that,"
said Andrew Lustgarten, president
and CEO of MSG Sports and president of MSG Entertainment.
"Infosys shares our vision for using data and analytics to improve
the guest experience, and we couldn't be more excited that they are
joining us in such a significant and integrated partnership."
3. Recognitions
- Infosys won Platinum Award at The Asset ESG Corporate Awards
2021, and won awards for Best Initiative in Diversity and Inclusion
and for the Best Investor Relations Team
- Infosys recognized as a Top Employer in the 2021 India
Workplace Equality Index (IWEI), won Silver for LGBT+
Inclusion
- Infosys recognized among Top 50 India's Best Workplace for
Women 2021 by Great Place To Work in the large companies'
category
- Infosys recognized as Exemplars of Inclusion in Working Mother
& AVTAR Most Inclusive Companies Index 2021
- Infosys recognized among Top 10 Working Mother and AVTAR Best
Company for Women in India in
2021
- Accredited as a Disability Confident Recruiter by the
Australian Network on Disability (AND) for 2020-21
- Positioned as a leader in Everest – Insurance Platform IT
Services PEAK Matrix®2022
- Positioned as a leader in Everest Group's Platform IT Services
in BFS PEAK Matrix® Assessment 2022
- Positioned as a leader in Everest Group's Finastra IT Services
PEAK Matrix® Assessment 2022
- Positioned as a leader in Everest Enterprise Blockchain
Services PEAK Matrix® Assessment 2022
- Positioned as a leader in Everest Enterprise Quality Assurance
(QA) Services PEAK Matrix® Assessment 2022
- Ranked as a leader in IDC MarketScape – Worldwide Managed
Multicloud Services 2021 Vendor Assessment
- Ranked as a leader in IDC MarketScape – Asia/Pacific Microsoft
Dynamics 365 Implementation Services 2021
- Ranked as a leader in IDC MarketScape – Worldwide Oil and Gas
Upstream Asset Management Digital Services 2021
- Rated as a leader in HFS OneOffice™ Services Top 10: Data and
Decision
- Rated as a leader in HFS OneOffice™ Services Top 10: Native
Automation
- Rated as a leader in HFS Energy Services Top 10, 2021
- Rated as a leader in HFS Top 10 – Enterprise Blockchain
Services, 2021
- Rated as a leader in HFS Top 10 – Pega Services 2021
- Positioned as a leader in NelsonHall – Digital Manufacturing
NEAT
- Positioned as a leader in NelsonHall – Advanced Digital
Workplace Services 2021
- Infosys positioned as a Leader in "Next-Gen Application
Development and Maintenance Services 2021" ISG Provider Lens Study
in U.S.
- Infosys positioned as a Leader in 'Public Cloud – Services and
Solutions 2021/ Analytics Services 2021 ISG Provider Lens Study
2021' in ISG Provider Lens™ for U.S, U.K., Brazil and Germany Region.
- Infosys rated as a Leader in Avasant Intelligent IT Ops
RadarView™
- Infosys rated as a Leader in Avasant's Blockchain Services
2021-2022 RadarView report
- Infosys was the overall winner for delivery excellence for one
of the largest external CSAT surveys sponsored by ISG - Star of
Excellence Awards
About Infosys
Infosys is a global leader in next-generation digital
services and consulting. We enable clients in more than 50
countries to navigate their digital transformation. With over four
decades of experience in managing the systems and workings of
global enterprises, we expertly steer our clients through their
digital journey. We do it by enabling the enterprise with an
AI-powered core that helps prioritize the execution of change. We
also empower the business with agile digital at scale to deliver
unprecedented levels of performance and customer delight. Our
always-on learning agenda drives their continuous improvement
through building and transferring digital skills, expertise, and
ideas from our innovation ecosystem.
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, financial expectations and plans for navigating the
COVID-19 impact on our employees, clients and stakeholders 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 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 COVID-19 and the effects of government and
other measures seeking to contain its spread, risks related to an
economic downturn or recession in India, the United
States and other countries around the world, changes in
political, business, and economic conditions, fluctuations in
earnings, fluctuations in foreign exchange rates, our ability to
manage growth, intense competition in IT services including those
factors which may affect our cost advantage, wage increases in
India, our ability to attract and
retain highly skilled professionals, time and cost overruns on
fixed-price, fixed-time frame contracts, client concentration,
restrictions on immigration, industry segment concentration, our
ability to manage our international operations, reduced demand for
technology in our key focus areas, disruptions in telecommunication
networks or system failures, our ability to successfully complete
and integrate potential acquisitions, liability for damages on our
service contracts, the success of the companies in which Infosys
has made strategic investments, withdrawal or expiration of
governmental fiscal incentives, political instability and regional
conflicts, legal restrictions on raising capital or acquiring
companies outside India,
unauthorized use of our intellectual property and general economic
conditions affecting our industry and the outcome of pending
litigation and government investigation. Additional risks that
could affect our future operating results are more fully described
in our United States Securities and Exchange Commission filings
including our Annual Report on Form 20-F for the fiscal year ended
March 31, 2021. 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,
2021
|
March 31,
2021
|
ASSETS
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
2,145
|
3,380
|
Current
investments
|
558
|
320
|
Trade
receivables
|
3,036
|
2,639
|
Unbilled
revenue
|
1,325
|
1,030
|
Other Current
assets
|
1,089
|
938
|
Total current
assets
|
8,153
|
8,307
|
Non-current
assets
|
|
|
Property, plant and
equipment and Right-of-use assets
|
2,433
|
2,519
|
Goodwill and other
Intangible assets
|
1,062
|
1,115
|
Non-current
investments
|
1,623
|
1,623
|
Unbilled
revenue
|
126
|
81
|
Other non-current
assets
|
1,276
|
1,180
|
Total non-current
assets
|
6,520
|
6,518
|
Total
assets
|
14,673
|
14,825
|
LIABILITIES AND
EQUITY
|
|
|
Current
liabilities
|
|
|
Trade
payables
|
506
|
362
|
Unearned
revenue
|
833
|
554
|
Employee benefit
obligations
|
298
|
276
|
Other current
liabilities and provisions
|
2,555
|
2,072
|
Total current
liabilities
|
4,192
|
3,264
|
Non-current
liabilities
|
|
|
Lease
liabilities
|
603
|
627
|
Other non-current
liabilities
|
491
|
432
|
Total non-current
liabilities
|
1,094
|
1,059
|
Total
liabilities
|
5,286
|
4,323
|
Total
equity attributable to equity holders of the
company
|
9,335
|
10,442
|
Non-controlling
interests
|
52
|
60
|
Total
equity
|
9,387
|
10,502
|
Total liabilities
and equity
|
14,673
|
14,825
|
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,
2021
|
3 months ended
December 31,
2020
|
9 months ended
December 31,
2021
|
9 months ended
December 31,
2020
|
Revenues
|
4,250
|
3,516
|
12,031
|
9,948
|
Cost of
sales
|
2,856
|
2,275
|
8,041
|
6,471
|
Gross
profit
|
1,394
|
1,241
|
3,990
|
3,477
|
Operating
expenses:
|
|
|
|
|
Selling
and marketing expenses
|
177
|
156
|
513
|
459
|
Administrative expenses
|
219
|
192
|
642
|
577
|
Total operating
expenses
|
396
|
348
|
1,155
|
1,036
|
Operating
profit
|
998
|
893
|
2,835
|
2,441
|
Other income,
net (3)
|
61
|
77
|
203
|
203
|
Profit before income
taxes
|
1,059
|
970
|
3,038
|
2,644
|
Income tax
expense
|
283
|
263
|
823
|
718
|
Net profit (before
minority interest)
|
776
|
707
|
2,215
|
1,926
|
Net profit (after
minority interest)
|
774
|
705
|
2,211
|
1,916
|
Basic EPS
($)
|
0.18
|
0.17
|
0.52
|
0.45
|
Diluted EPS
($)
|
0.18
|
0.17
|
0.52
|
0.45
|
NOTES:
1. 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, 2021 which have been
taken on record at the Board meeting held on January 12, 2022.
2. A Fact Sheet providing the operating metrics
of the Company can be downloaded from
www.infosys.com.
3. Other Income is net of Finance Cost.
IFRS-INR Press
Release : https://www.infosys.com/investors/reports-filings/quarterly-results/2021-2022/q3/documents/ifrs-inr-press-release.pdf
Fact
sheet: https://www.infosys.com/investors/reports-filings/quarterly-results/2021-2022/q3/documents/fact-sheet.pdf
View original
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SOURCE Infosys