Strong large deal closures and robust deal
pipeline position us well for future growth
BENGALURU, India, July 20,
2023 /PRNewswire/ -- Infosys (NSE: INFY), (BSE:
INFY), (NYSE:INFY), a global leader in next-generation digital
services and consulting, delivered $4,617
million in Q1 revenues with year on year growth of 4.2% and
sequential growth of 1.0% in constant currency. Large deal TCV for
the quarter was at $2.3 billion, with
net new of 56.1%. Operating margin for the quarter was stable at
20.8%. ROE improved 180 bps to 32.8%. Attrition declined further to
17.3%. FY24 revenue guidance revised to 1.0%-3.5% and operating
margin guidance retained at 20%-22%.
"We had a solid Q1 with a growth of 4.2% and large deals of
$2.3 billion which helps us to set a
strong foundation for future growth. Our generative AI capabilities
are expanding well, with 80 active client projects. Topaz, our
comprehensive AI offering, is resonating well with clients. We see
this being transformative for clients and enhancing our overall
service portfolio,"
said Salil Parekh, CEO and
MD. "We have expanded the margin improvement program with a
holistic set of actions for the short, medium and long-term,
working on five key areas, supported by our leadership
team," he added.
4.2% YoY
1.0% QoQ
CC Revenue growth
|
|
20.8%
Operating margin
|
|
12.4%
YoY
Increase in EPS
(₹ terms)
|
|
$2.3
bn
Large deal TCV
|
Guidance for FY24:
- Revenue growth of 1.0%-3.5% in constant currency
- Operating margin of 20%-22%
1. Key highlights:
For the quarter ended June 30,
2023
- Revenues in
CC terms grew by 4.2% YoY and by 1.0% QoQ
- Reported revenues at $4,617 million, growth of 3.9%
YoY
- Operating margin at 20.8%, growth of 0.8% YoY and decline
of 0.2% QoQ
- Basic EPS at $0.17, growth of 6.6% YoY
- FCF at $699 million, growth of 6.6% YoY; FCF conversion at
96.6% of net profit
|
"Q1 operating margins were resilient in an uncertain macro
environment on the back of our continued focus on cost
optimization. Company's rigorous operational discipline including
improved productivity measures and higher utilization helped
margins for the quarter," said Nilanjan
Roy, CFO. "Free Cash conversion was robust at 96.6% of
net profits. Execution of strong capital allocation policy resulted
in higher payouts to investors and improved ROE to 32.8%," he
added.
2. Client wins & Testimonials
- Danske Bank recently signed a strategic collaboration with
Infosys to accelerate the bank's digital transformation initiatives
with speed and scale. Frans
Woelders, Chief Operating Officer, Danske Bank, said,
"Our Forward '28 strategy sets clear ambitions for Danske Bank to
be a leading bank in a digital age. This is backed by significant
investments in digitalisation and technology, including plans to
further develop our customer-facing digital solutions, and
modernising our technology infrastructure to enable even better
customer experiences and drive operational efficiency. We have a
strong starting point, and we want to further accelerate our
digital and technology transformation. We have conducted a thorough
process to find a partner that can help us achieve that. Infosys
has the tools, experience, and expertise to support us in
accelerating our transformation using cloud and AI technologies.
Given Infosys' global presence and scale, this collaboration will
also give us access to wider talent pools and capabilities."
- bp recently signed an MoU with Infosys to demonstrate their
intent for Infosys to be bp's primary partner for end-to-end
application services. Leigh-Ann
Russell, EVP, Innovation & Engineering, bp, said, "We
are delighted to further develop our relationship with Infosys to
help accelerate our digital transformation and scale growth through
tech-enabled operations. Together, we look forward to delivering
innovative solutions that meet the evolving needs of our customers
and drive growth for the future."
- Infosys and Aramco signed a Memorandum of Understanding (MoU)
to bring new insights to HR data and analytics, scale the use of
automation tools, and enhance employee experience through
artificial intelligence (AI) technologies. Faisal A. Al-Hajji, SVP Human Resources,
Aramco, said, "At Aramco, we are constantly looking to improve
employee experience and make our company the best place to work.
This collaboration will allow us to explore ways to further upgrade
our focus on customer-centricity and transform our digital HR
offerings."
- Infosys recently launched Infosys Topaz - an AI-first set of
services, solutions and platforms using generative AI technologies.
Hemanth Adapa, Product Owner, Predictive Analytics at British
Telecom, said, "As part of our continuous efforts to deliver
value for our clients, at British Telecom, we engaged with Infosys
Topaz to offer AI-powered predictive analytics for various domains
such as network performance, sustainability, and security. This has
been recognized and appreciated by our clients who can now amplify
their mission-critical services with never-before
reliability."
- Infosys and Walmart Commerce Technologies collaborated to
deliver scalable omni-channel solutions to retailers.
Sunil Kumar, Vice President and
General Manager of Walmart Commerce Technologies, said,
"Infosys is a trusted partner to businesses that are navigating
their digital transformation. We are excited to have Infosys help
streamline implementation of the Store Assist app and to serve as a
trusted system integration team for our customers."
- Infosys collaborated with vidaXL as their India IT Partner to
set up their business technology support in a scalable and
cost-effective way. Ted van
Dongen, CIO, vidaXL, said, "vidaXL needed a partner to
help them with their growth strategy, with a professional agile
approach, and a very broad range technology expertise. In Infosys,
vidaXL has found a partner that proved to be dedicated in
delivering this by transitioning 8 agile development teams in less
than 4 months. This collaboration establishes a mechanism to steer
our corporation significantly on every aspect of the technology
stack."
- Infosys extended its collaboration with LexisNexis to provide
end-to-end information services across their range of content,
enterprise, and product applications. Jeff Reihl, Executive Vice President & Chief
Technology Officer, LexisNexis, said, "Our longstanding
association with the highly experienced Infosys team has shown
excellent results. We at LexisNexis aim to deliver the best
content, enterprise, and product application services in the market
and we firmly believe that by leveraging Infosys for its
downstream, discretionary, and strategic programs, will be in our
best interest and we are excited to further expand our relationship
with Infosys."
- Infosys and ATP collaborated to launch a digital Carbon Tracker
to enable ATP players to track and mitigate their carbon emissions
from travel on Tour. Massimo
Calvelli, Chief Executive Officer, ATP, said, "Tennis is
on a mission to Net Zero and like many sports, our travel footprint
is our biggest challenge. ATP's new Carbon Tracker makes it simple
for players to join that journey, mitigating their impact today and
inspiring greener choices tomorrow. This is a story of addressing
difficult problems through innovation, and we would thank our
partners Infosys for their collaboration and commitment to the
project. The potential of this app is massive and we're just
getting started."
- Keytrade Bank selected Infosys Finacle as the preferred partner
for the modernization of its core banking system. Thierry Ternier, CEO, Keytrade Bank, said,
"As the sponsor of the project, I am a strong believer in the
program because it will strengthen the foundations of our company
and make us future-proof to tackle the challenges of a fast-moving
environment. Our ultimate goal is to create value and satisfaction
for our customers and employees. I am convinced that this program
will be a major enabler in reaching those strategic goals. We have
chosen Infosys Finacle as our partner for the program because of
their worldwide expertise, implementation plan, and price
offering."
- Infosys Finacle helped successfully transform XacBank's
technology landscape with Finacle Digital Banking Suite enabling a
robust digital foundation for the bank to achieve its growth
strategy. Tsevegjav Gumenjav, Chief Executive Officer,
XacBank, said, "We are happy at the successful completion of this
much-awaited digital transformation, drawing us closer to our
vision to be the preferred universal bank in Mongolia. In this digital-first era, the
Finacle platform provides us with the right platform to offer
custom offerings for our customers in Mongolia across segments, serving their
financial needs in a secure manner. We look forward to scaling new
heights with world-class banking and contribute to the larger
economic development of Mongolia."
3. Recognitions
- Infosys has been recognized in BrandZ's prestigious Top 100
Most Valuable Global Brands list, ranked at #66
- Recognized as one of India's
Best Employers Among Nation Builders 2023 by the Great Place to
Work™ Institute
- Won PeopleFirst HR Award under two categories, 'Leading
Practices in HR Risk Management' and 'Leading Practices in HR
Business Partnership'
- Recognized as one of the 'Most Honored' companies, receiving
multiple awards at the 2023 All-Asia Executive Team Rankings from
Institutional Investor
- Won the 2023 Microsoft US Partner of the Year Award in the
Dynamics 365 Services category
- Awarded the Nasscom ER&D Spotlight Award in the 'Concept to
Engineering Leadership' category for the Market First Innovation –
Digital transformation of B2B sales with Engineering configurator
as a core
- Recognized as ServiceNow Telco Partner of the Year 2023
- Recognized as HPE Global System Integrator of the Year 2023 and
HPE System Integrator of the Year 2023 for Asia Pacific and Central Europe
- Infosys Finacle won the MEA Finance 'Best Composable Banking
Technology Solution Provider' award at the MEA Finance Banking
Technology Summit 2023
- Infosys BPM won the SS&C Blue Prism Partner Excellence
Awards 2023 across 3 categories: 'Client Business Impact – FSI
(Global)', 'Client Business Impact – FSI (APAC)', and 'Client
Business Impact – Telco (APAC)'
- Recognized as a leader in Low-Code Application Development
Services PEAK Matrix® Assessment 2023 by Everest
- Recognized as a leader in Microsoft Dynamics 365 Services PEAK
Matrix® Assessment 2023 by Everest
- Recognized as a leader in Application Automation Services PEAK
Matrix® Assessment 2023 by Everest
- Recognized as a leader in 5G Engineering Services PEAK Matrix®
Assessment 2023 by Everest
- Recognized as a leader in Wealth and Asset Management PEAK
Matrix® Assessment 2023 by Everest
- Rated as a leader in Adobe Experience Cloud Services NEAT 2023
by NelsonHall
- Rated as a leader in SAP Cloud Migration Services NEAT 2023 by
NelsonHall
- Rated as a leader in Quality Engineering NEAT 2023 by
NelsonHall
- Positioned as a leader in HFS Horizons: ServiceNow Services,
2023
- Positioned as a leader in HFS Horizons: Data modernization
services, 2023
- Positioned as a leader in IDC MarketScape: Worldwide Retail
Commerce Platform Service Providers 2023 Vendor Assessment
- Positioned as a leader in IDC MarketScape Worldwide Artificial
Intelligence Services 2023 Vendor Assessment
- Positioned as a leader in IDC MarketScape: Asia/Pacific Oracle
Application Implementation Services 2023 Vendor Assessment
- Infosys recognized as a leader in Digital Engineering Services
2023 ISG Provider Lens™ study in US and Europe
- Infosys recognized as a leader in Microsoft Cloud Ecosystem
2023 ISG Provider Lens™ study in US, UK, Singapore and Malaysia, Australia and Germany
- Infosys rated as a leader in SAP Ecosystem ISG Provider Lens™
study in US, UK, Nordics, Germany
and Brazil
- Infosys recognized as #1 Top IT Service Providers in the
Nordics in Whitelane Research and PA Consulting Sourcing Study
2023
- Infosys rated as a leader in Avasant's Multisourcing Service
Integration 2022–2023 Radarview™
- Infosys rated as a leader in Avasant's Financial Services
Digital Services 2023–2024 Radarview™
- Infosys rated as a leader in Avasant's Media and Entertainment
Digital Services 2023–2024 Radarview™
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, and our corporate actions including
acquisitions. 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)
|
|
|
June 30,
2023
|
March 31,
2023
|
ASSETS
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
1,501
|
1,481
|
Earmarked bank balance
for dividend(3)
|
885
|
-
|
Current
investments
|
675
|
841
|
Trade
receivables
|
3,191
|
3,094
|
Unbilled
revenue
|
1,783
|
1,861
|
Other Current
assets
|
1,408
|
1,349
|
Total current
assets
|
9,443
|
8,626
|
Non-current
assets
|
|
|
Property, plant and
equipment and Right-of-use assets
|
2,497
|
2,516
|
Goodwill and other
Intangible assets
|
1,082
|
1,095
|
Non-current
investments
|
1,462
|
1,530
|
Unbilled
revenue
|
168
|
176
|
Other non-current
assets
|
1,355
|
1,369
|
Total non-current
assets
|
6,564
|
6,686
|
Total
assets
|
16,007
|
15,312
|
LIABILITIES AND
EQUITY
|
|
|
Current
liabilities
|
|
|
Trade
payables
|
458
|
470
|
Unearned
revenue
|
894
|
872
|
Employee benefit
obligations
|
310
|
292
|
Other current
liabilities and provisions
|
4,005
|
3,135
|
Total current
liabilities
|
5,667
|
4,769
|
Non-current
liabilities
|
|
|
Lease
liabilities
|
812
|
859
|
Other non-current
liabilities
|
407
|
460
|
Total non-current
liabilities
|
1,219
|
1,319
|
Total
liabilities
|
6,886
|
6,088
|
Total
equity attributable to equity holders of the
company
|
9,069
|
9,172
|
Non-controlling
interests
|
52
|
52
|
Total
equity
|
9,121
|
9,224
|
Total liabilities
and equity
|
16,007
|
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 June
30, 2023
|
3 months ended June
30, 2022
|
Revenues
|
4,617
|
4,444
|
Cost of
sales
|
3,211
|
3,144
|
Gross
profit
|
1,406
|
1,300
|
Operating
expenses:
|
|
|
Selling
and marketing expenses
|
217
|
193
|
Administrative expenses
|
228
|
219
|
Total operating
expenses
|
445
|
412
|
Operating
profit
|
961
|
888
|
Other income, net
(4)
|
57
|
80
|
Profit before income
taxes
|
1,018
|
968
|
Income tax
expense
|
294
|
279
|
Net profit (before
minority interest)
|
724
|
689
|
Net profit (after
minority interest)
|
724
|
689
|
Basic EPS
($)
|
0.17
|
0.16
|
Diluted EPS
($)
|
0.17
|
0.16
|
NOTES:
1. The above information is extracted from the
audited condensed consolidated Balance sheet and Statement of
Comprehensive Income for the quarter ended June 30, 2023, which have been taken on record at
the Board meeting held on July 20,
2023.
2. A Fact Sheet providing the
operating metrics of the Company can be downloaded from
www.infosys.com.
3. Represents
bank balance earmarked for final dividend. Payment date for
dividend was July 3, 2023.
4. Other income is net of Finance
Cost.
IFRS-INR Press Release:
https://www.infosys.com/investors/reports-filings/quarterly-results/2023-2024/q1/documents/ifrs-inr-press-release.pdf
Fact sheet:
https://www.infosys.com/investors/reports-filings/quarterly-results/2023-2024/q1/documents/fact-sheet.pdf
Logo:
https://mma.prnewswire.com/media/633365/Infosys_Logo.jpg
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SOURCE Infosys