- Highest large deal TCV of $2.7 bn
in last 7 quarters; quarterly attrition declined for 3rd quarter in
a row
- Share buyback of ₹9,300 crores ($1.13
bn) and interim dividend of ₹6,940 crores ($0.85 bn) announced
BENGALURU, India, Oct. 13,
2022 /PRNewswire/ -- Infosys (NSE: INFY) (BSE:
INFY) (NYSE: INFY), a global leader in next-generation digital
services and consulting, reported strong Q2 performance with
year-on-year growth at 18.8% and sequential growth at 4.0% in
constant currency. Year-on-year growth was in double digits across
all business segments in constant currency terms. Digital comprised
61.8% of overall revenues and grew at 31.2% in constant currency.
Operating margin for the quarter increased sequentially by 150 bps
to 21.5%. Large deal TCV for the quarter was robust at $2.7 bn, highest in last 7 quarters. FY 23
revenue guidance is revised to 15%-16%; operating margin guidance
is also revised to 21%-22%.
"Our strong large deal wins and steady all-round growth in Q2
reflect the deep relevance and differentiation of our digital and
cloud solutions for clients as they navigate their business
transformation," said Salil
Parekh, CEO and MD. "While concerns around the economic
outlook persist, our demand pipeline is strong as clients remain
confident in our ability to deliver the value they seek, both on
the growth and efficiency of their businesses. This is reflected in
our revised revenue guidance of 15%-16% for FY 23," he added.
31.2% YoY
CC Digital growth
|
18.8% YoY
4.0% QoQ
CC Revenue growth
|
21.5%
Operating margin
(in $ terms)
|
11.5% YoY
Increase in EPS
(₹ terms)
|
$2.7 bn
Large deal TCV
|
1. Key highlights:
For the quarter ended September 30,
2022
- Revenues in CC
terms grew by 18.8% YoY and 4.0% QoQ
- Reported revenues
at $4,555 million, growth of 13.9% YoY
- Digital revenues at
61.8% of total revenues, YoY CC growth of 31.2%
- Operating margin at
21.5%, decline of 2.1% YoY and increase of 1.5% QoQ
- Basic EPS at $0.18,
growth of 2.5% YoY
- FCF at $589
million, decline of 17.3% YoY; FCF conversion at 78.6% of net
profit
|
For six months ended September 30,
2022
- Revenues in CC
terms grew by 20.1% YoY
- Reported revenues
at $8,999 million, growth of 15.7% YoY
- Digital revenues at
61.4% of total revenues, YoY CC growth of 34.5%
- Operating margin at
20.7%, decline of 2.9% YoY
- Basic EPS at $0.34,
growth of 0.8% YoY
- FCF at $1,245
million, decline of 21.0% YoY; FCF conversion at 86.6% of net
profit
|
"Operating margins in Q2 expanded sequentially by 150 bps,
helped by our operational rigor. While supply side challenges are
gradually abating as reflected in the reducing attrition rates,
they continue to exert pressure on our cost structure," said
Nilanjan Roy, Chief Financial
Officer. "In line with the capital allocation policy, the Board
has announced an interim dividend of ₹16.50 per share, an increase
of 10% over FY 22 interim dividend and an open market share buyback
of ₹9,300 crores," he added.
2. Capital allocation
The Board in its meeting held today approved the following:
- Buyback of Equity Shares, from the open market route through
the Indian stock exchanges, amounting to ₹9,300 crore (Maximum
Buyback Size, excluding buyback tax) (app. $1.13 bn*) at a price not exceeding ₹1,850 per
share (Maximum Buyback Price), subject to shareholders'
approval.
- Interim dividend of ₹16.50 per share (app. $0.20 per ADS*) vs. FY 22 interim dividend of
₹15. The total amount of interim dividend will be app. ₹6,940
crores (app. $0.85 bn*).
*USD-INR rate of 82.00
3. Client wins and Testimonials
- Currys plc entered into a strategic collaboration with Infosys
for technology and business process services, to help accelerate
profitable growth of their business across key UK and European
markets. "As part of our ongoing transformation, Infosys will help
us design and deliver a next-generation Group Business Services
capability. This collaboration will give us access to world-class
digital operations across UK, Europe and India, benefitting our colleagues and
customers with best-in-class technology, systems, and processes;
and new sources of competitive advantage for our core business,"
said Bruce Marsh, Group CFO,
Currys plc.
- Infosys Cyber Next platform and Palo Alto Networks strengthened
Bpost's security posture as part of the cloud transformation
journey. Rony Monnaie, CISO, Bpost, said, "While we embarked
on our cloud transformation journey, Infosys drove several
well-considered cybersecurity initiatives to protect our
environment and improve Bpost's overall security posture. Today,
both our employees and customers benefit from the secure foundation
we now have to deliver and track both mail and parcels."
- Spirit AeroSystems entered into a five-year collaboration with
Infosys to co-innovate Aerostructure and Systems Engineering
Services by leveraging Infosys' next-gen technologies. "At Spirit
AeroSystems, we believe our ability to continuously advance our
offering at design and engineering levels is one of our competitive
differentiators. Our longstanding collaboration with Infosys means
we are well-positioned to co-innovate on critical stages of product
development, ensuring we continue to pursue the highest standards
in quality and airworthiness. This strategic agreement further
reinforces our strengths and will leverage mutual synergies to
accelerate the development of world-class, sustainable
aerostructures and services across our commercial and aftermarket
business segments," said, Dr. Sean
Black, Senior Vice President and Chief Engineer, Engineering
and Technology, Spirit AeroSystems.
- Infosys collaborated with Telenor Norway to accelerate their IT
modernization and establish Telenor as a product-based organization
through a co-managed model. Commenting on this collaboration,
Birgitte Engebretsen, CEO,
Telenor Norway, said, "In current times, it is imperative for
an organization like Telenor Norway to stay ahead of the curve and
ensure that our customers are provided with superior service. To do
this, we have to be future-ready. Staying true to our strategy of
'Beyond Connectivity', combined with our powerful collaboration
with Infosys, we are excited to embark on this modernization
journey that will empower us to serve our customers better."
- "Infosys has been our technology partner for more than 5 years.
Infosys has helped us transform not only our technology landscape,
but also how we engage with students and colleagues helping us to
develop new digital solutions and build new data platforms to gain
real value and insights to better inform our decision-making," said
Judi Turnbull, Director for
Information Technology at Open University.
4. Recognitions
- Infosys won the 'Most Outstanding Company in India – IT Services Sector' in Asia's Outstanding Companies Poll 2022.
Asiamoney has designed this poll to acknowledge the listed
companies that have excelled in areas such as financial
performance, management team excellence, investor relations
activities, and CSR initiatives
- Recognized as India's Best
Workplaces™ for Women 2022 by Great Place to Work®
- Recognized as UK's Best Workplaces™ in Tech 2022 by Great Place
to Work®
- Recognized among Mexico's Best
HR leaders of 2022 by Great Place to Work®
- Positioned as a leader in Power & Utilities Industry -
Services and Solutions 2022 by ISG Provider lens study in the
US
- Ranked as a leader in HFS Top 10: Sustainability Services,
2022
- Positioned as a leader in HFS Top 10: Capital Markets Services,
2022
- Positioned as a leader in End-to-End Cloud Infrastructure
Management Services 2022 by NelsonHall
- Ranked as a leader in IDC MarketScape: Asia/Pacific SAP
Implementation Services Vendor Assessment, 2022
- Recognized as a leader in EMEA Service Providers for Energy
Transition and New Business Models for Oil and Gas Companies 2022
Vendor Assessment by IDC
- Positioned as a leader by NelsonHall in Supply Chain
Transformation 2022
- Ranked as a leader by NelsonHall in Mortgage & Loan
Services 2022
- Ranked as a leader in Data and Analytics (D&A) Services
PEAK Matrix® Assessment 2022 by Everest
- Recognized as a leader in System Integration (SI) Capabilities
on Amazon Web Services (AWS) PEAK Matrix® Assessment 2022 by
Everest
- Recognized as a leader in ServiceNow Services PEAK Matrix®
Assessment 2022 by Everest
- Positioned as a leader in System Integration (SI) Capabilities
on Microsoft Azure PEAK Matrix® Assessment 2022 by Everest
- Ranked as a leader in Avasant's Digital Master's 2022
RadarView™
- Positioned as a leader in Avasant's Freight and Logistics
Digital Services 2022-23 RadarView™
- Recognized as a leader in Avasant's Life Sciences Digital
services 2022-23 RadarView™
- Ranked as a leader in Constellation ShortList™ Blockchain
Technology Services
- Positioned as a leader in Constellation ShortList™ Campaign to
Commerce: Best-of-Breed Commerce Platforms
- Ranked as a leader in Constellation ShortList™ Digital
Transformation Services (DTX): Global
- Positioned as a leader in Constellation ShortList™ Public Cloud
Transformation Services: Global
- Ranked as a leader in Constellation ShortList™ AI-Driven
Cognitive Applications
- Recognized as a leader in Constellation ShortList™ Customer
Experience (CX) Operations Services: Global
- Recognized as a leader in Constellation ShortList™ Metaverse
Design and Services
- Infosys BPM recognized as LEADER in Everest Group Financial
Crime & Compliance Operations – Services PEAK Matrix®
Assessment 2022
- Infosys BPM ranked as LEADER in Nelson Hall NEAT: Supply Chain
Transformation 2022
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. With over four decades of experience in managing
the systems and workings of global enterprises, we expertly steer
clients, in more than 50 countries, 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
This Release contains 'forward-looking statements' within the
meaning of Section 27A of the Securities Act of 1933, as amended
(the "Securities Act"), and Section 21E of the Securities Exchange
Act of 1934, as amended (the "Exchange Act"), that involve
substantial risks and uncertainties. Forward-looking statements
generally relate to future events or our future financial or
operating performance and that are based on our current
expectations, assumptions, estimates and projections about the
Company, our industry, economic conditions in the markets in which
we operate, and certain other matters. Generally, these
forward-looking statements can be identified by the use of
forward-looking terminology such as 'may', 'anticipate', 'believe',
'estimate', 'expect', 'continue', 'intend', 'will', 'project',
'seek', 'could', 'would', 'should' and similar expressions. Those
statements include, among other things, statements regarding our
business strategy, our expectations concerning our market position,
future operations, growth, margins, profitability, attrition,
liquidity, and capital resources, our ESG vision, our capital
allocation policy, the effects of COVID-19 on global economic
conditions and our business and operations, wage increases, change
in the regulations including immigration regulation and policies in
the United States, and corporate
actions including timely completion of the proposed buy-back of our
equity shares. These statements are subject to known and unknown
risks, uncertainties and other factors which may cause actual
results or outcomes to differ materially from those implied by the
forward-looking statements. 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, 2022. 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)
|
|
September 30, 2022
|
March 31,
2022
|
ASSETS
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
1,828
|
2,305
|
Current
investments
|
1,448
|
880
|
Trade
receivables
|
3,122
|
2,995
|
Unbilled
revenue
|
1,635
|
1,526
|
Other Current
assets
|
1,178
|
1,159
|
Total current
assets
|
9,211
|
8,865
|
Non-current
assets
|
|
|
Property, plant and
equipment and Right-of-use assets
|
2,339
|
2,429
|
Goodwill and other
Intangible assets
|
1,072
|
1,042
|
Non-current
investments
|
1,557
|
1,801
|
Unbilled
revenue
|
174
|
124
|
Other non-current
assets
|
1,287
|
1,294
|
Total non-current
assets
|
6,429
|
6,690
|
Total
assets
|
15,640
|
15,555
|
LIABILITIES AND
EQUITY
|
|
|
Current
liabilities
|
|
|
Trade
payables
|
512
|
545
|
Unearned
revenue
|
855
|
834
|
Employee benefit
obligations
|
276
|
288
|
Other current
liabilities and provisions
|
2,946
|
2,766
|
Total current
liabilities
|
4,589
|
4,433
|
Non-current
liabilities
|
|
|
Lease
liabilities
|
685
|
607
|
Other non-current
liabilities
|
489
|
521
|
Total non-current
liabilities
|
1,174
|
1,128
|
Total
liabilities
|
5,763
|
5,561
|
Total
equity attributable to equity holders of the
company
|
9,828
|
9,941
|
Non-controlling
interests
|
49
|
53
|
Total
equity
|
9,877
|
9,994
|
Total liabilities
and equity
|
15,640
|
15,555
|
Extracted from the
Condensed Consolidated statement of Comprehensive Income under IFRS
for:
|
(Dollars in millions except per equity share data)
|
|
3 months ended
September 30,
2022
|
3 months ended
September 30,
2021
|
6 months ended
September 30,
2022
|
6 months ended
September 30,
2021
|
Revenues
|
4,555
|
3,998
|
8,999
|
7,780
|
Cost of
sales
|
3,170
|
2,675
|
6,315
|
5,184
|
Gross
profit
|
1,385
|
1,323
|
2,684
|
2,596
|
Operating
expenses:
|
|
|
|
|
Selling
and marketing expenses
|
185
|
167
|
378
|
336
|
Administrative expenses
|
221
|
215
|
439
|
423
|
Total operating
expenses
|
406
|
382
|
817
|
759
|
Operating
profit
|
979
|
941
|
1,867
|
1,837
|
Other income, net
(3)
|
65
|
65
|
145
|
142
|
Profit before income
taxes
|
1,044
|
1,006
|
2,012
|
1,979
|
Income tax
expense
|
295
|
272
|
574
|
540
|
Net profit (before
minority interest)
|
749
|
734
|
1,438
|
1,439
|
Net profit (after
minority interest)
|
748
|
733
|
1,437
|
1,437
|
Basic EPS
($)
|
0.18
|
0.17
|
0.34
|
0.34
|
Diluted EPS
($)
|
0.18
|
0.17
|
0.34
|
0.34
|
NOTES:
- The above information is extracted from the audited
condensed consolidated Balance sheet and Statement of Comprehensive
Income for the quarter and six months ended September 30, 2022, which have been taken on
record at the Board meeting held on October
13, 2022.
- A Fact Sheet providing the operating metrics of the Company
can be downloaded from www.infosys.com.
- Other Income includes Finance Cost.
- As the quarter and six 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
quarter might not always add up to the six months ended figures
reported in this statement.
IFRS INR Press Release:
https://www.infosys.com/investors/reports-filings/quarterly-results/2022-2023/q2/documents/ifrs-inr-press-release.pdf
Fact Sheet:
https://www.infosys.com/investors/reports-filings/quarterly-results/2022-2023/q2/documents/fact-sheet.pdf
Logo:
https://mma.prnewswire.com/media/633365/Infosys_Logo.jpg
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SOURCE Infosys