Q2 growth at 2.3% sequentially with resilient
margins of 21.2%. Revenue guidance revised to 1.0%- 2.5%
BENGALURU, India, Oct. 12,
2023 /PRNewswire/ -- Infosys (NSE: INFY) (BSE: INFY)
(NYSE: INFY), a global leader in next-generation digital services
and consulting, delivered $4,718
million in Q2 revenues with year-on-year growth of 2.5% and
sequential growth of 2.3% in constant currency. Large deal TCV for
the quarter was $7.7 billion, with
net new of 48%. Operating margin for the quarter increased by 40
bps sequentially to 21.2%. Attrition declined further to 14.6%.
FY24 revenue guidance revised to 1.0%-2.5% and operating margin
guidance retained at 20%-22%.
![Infosys Logo Infosys Logo](https://mma.prnewswire.com/media/633365/Infosys_Logo.jpg)
"We had our highest large deals value at $7.7 billion in Q2 spread across all verticals
and geographies. This, in an uncertain macro-environment, is
a testament to our ability to pivot and stay relevant to the
evolving client needs, by delivering the benefits of transformation
as well as productivity and cost savings at scale",
said Salil Parekh, CEO and
MD. "Strong H1 performance with significant large deal
wins, builds a solid foundation for the future. The growing
adoption of our Generative AI offering, Topaz, is helping us
deliver consistent value and expand market share", he added.
2.5% YoY
2.3% QoQ
CC Revenue growth
|
|
21.2%
Operating margin
|
|
$7.7
bn
Large deal TCV
|
|
4.6%
YoY
Increase in EPS
(₹ terms)
|
Guidance for FY24:
- Revenue growth of 1.0%-2.5% in constant currency
- Operating margin of 20.0%-22.0%
1. Key highlights:
For the quarter ended September 30,
2023
- Revenues in CC
terms grew by 2.5% YoY and 2.3% QoQ
- Reported revenues
at $4,718 million, growth of 3.6% YoY
- Operating margin at
21.2%, decline of 0.3% YoY and increase
of 0.4% QoQ
- Basic EPS at $0.18,
growth of 1.7% YoY
- FCF at $670
million, growth of 13.8% YoY;
FCF conversion at 89.2% of net profit
|
|
For six months ended September 30,
2023
- Revenues in
CC terms grew by 3.3% YoY
- Reported revenues
at $9,334 million, growth of 3.7% YoY
- Operating margin at
21.0%, growth of 0.3% YoY
- Basic EPS at $0.36,
growth of 4.0% YoY
- FCF at $1,369
million, growth of 10.0% YoY;
FCF conversion at 92.8% of net profit
|
"Our Q2 operating margin of 21.2% demonstrates the early
benefits of recently unveiled margin improvement plan and is a
clear reflection of our ability to continuously identify
opportunities for improving operational efficiencies",
said Nilanjan Roy, CFO. "In line with our capital
allocation policy, the Board has announced an interim dividend of
` 18 per share, an increase of 9.1% over last year", he
added.
2. Client wins & testimonials
- Infosys extended collaboration with Liberty Global to help
evolve and scale Liberty Global's digital entertainment and
connectivity platforms leveraging Infosys
Topaz. Mike Fries, CEO,
Liberty Global, said,
"Strengthening and expanding our collaboration with Infosys gives
our best-in-class solutions new scale with the ability to reach
many more markets and bring positive experiences to more customers.
And while it produces substantial central cost savings over time,
it also provides excellent opportunities for our talent to grow
their specialist skills and nurture impactful careers with Infosys.
We look forward to working together to accelerate innovation and
make our entertainment solutions even more powerful and engaging as
new generations of digital-first customers continue to demand more
from us all."
- Infosys collaborated with Microsoft to accelerate and
democratize industry-wide adoption of generative
AI. Nicole Dezen, Chief
Partner Officer, Microsoft Corp, said, "We're pleased to expand
our collaboration with Infosys to deliver innovative solutions,
utilizing Azure OpenAI Service and Azure Cognitive Services, that
will help customers develop new business models, and realize new
revenue streams. By harnessing the power of generative AI, Infosys
will help customers accelerate growth and innovation."
- Infosys and NVIDIA collaborated to help enterprises boost
productivity with generative AI. "Generative AI will drive the next
wave of enterprise productivity gains," said, Jensen Huang,
Founder and CEO, NVIDIA. "The NVIDIA AI Enterprise ecosystem is
ramping quickly to provide the platform for generative AI.
Together, NVIDIA and Infosys will create an expert workforce to
help businesses use this platform to build custom applications and
solutions."
- Infosys announced a strategic multi-year collaboration with
STARK Group to drive technological advancements and provide
seamless services to STARK Group's offices across Europe, leveraging Infosys
Topaz. Pernille Geneser, Group CIO, STARK Group,
commented, "We at STARK Group are excited to announce our
collaboration with Infosys as we embark on a transformation journey
to deliver state-of-the-art and future-fit IT services to our
colleagues in the Nordics, Austria, Germany and UK. With Infosys' expertise, we
look forward to enhancing the quality of our offerings and
kickstarting many new innovations."
- Infosys together with Microsoft recently executed a strategic
Enterprise Resource Planning (ERP) transformation program to help
accelerate Talking Rain Beverage Company's journey towards
enhancing their core business capabilities and achieving business
transformation. "By partnering with Microsoft and Infosys, we are
aligning ourselves with leading technology and expertise in the
industry," said, Luke
Fisher, Chief Financial Officer, Talking Rain Beverage
Company. "This collaboration ensures we can continually enhance
our capabilities and drive our business forward. The new ERP system
takes our organization to a whole new level, enabling us to access
real-time data, make smarter decisions and scale effectively for
years to come."
- Rich Products Corporation (RPC) selected Infosys for a key
strategic transformation program to deploy SAP's S/4HANA solution
to simplify and harmonize their business processes, digitally
upskill associates, and improve experience for associates and
customers. Yexi Liu, Global CIO, RPC, said, "We
are looking at this S/4 HANA based transformation to reimagine the
way Rich's operates its business and create unique and distinctive
customer value. Our strong collaboration with Infosys will aim to
help accelerate our business transformation, reduce technical debt
and help shape industry standard business processes to drive
operational excellence."
- Infosys recently launched the Infosys Cobalt Airline Cloud
(ICAC), a first-of-its-kind industry cloud offering designed for
commercial airlines to help them accelerate their digital
transformation journey. Fernando Rocha, CIO, Aeroméxico
Airline, said, "We are excited to collaborate with Infosys to
leverage the solutions, reference architectures and blueprints of
the Infosys Cobalt Airline Cloud. We believe that this platform
will enable us to quickly adapt to changing market dynamics,
enhance customer experiences, and drive profitable growth.
- Guaranty Trust Bank selected Infosys Finacle's Digital Banking
Suite for its multi-country digital banking transformation
program. Segun Agbaje, Group Chief Executive Officer,
Guaranty Trust Holding Company Plc, said, "We are delighted to
be working with Infosys Finacle to create a superior, agile, and
scalable core banking system that supports our vision of delivering
seamless and connected experiences across every customer
touchpoint. As an organization, we have always held that the future
of banking is digital, largely driven by technology and customers'
preference for secure, convenient, and reliable channels. This is
the thinking behind our innovation drive and history of firsts,
offering best-in-class financial services across Africa. Infosys Finacle's digital solutions
will significantly transform our operations and facilitate our push
towards more innovative, responsive banking."
- Infosys Public Services announced the opening of its new
subsidiary in Canada to help
accelerate digital transformation for public sector organizations
across the country and provide them access to top tier IT talent
and innovative solutions for better delivery of government services
to Canadian citizens and businesses. Franco Chirichella,
President and CEO, Innovapost, said, "As one of Innovapost's
key strategic partners, Infosys Public Services Canada has helped
us successfully deliver IT initiatives to meet the demands of the
evolving mail, courier and logistics industry. IPS Canada does a great job of bringing the
breadth and depth of their global and Canadian capabilities to
Innovapost to support us in meeting our business and technical
needs."
- Infosys transformed Bendigo and Adelaide Bank's customer and employee experience
by helping the bank democratize data, improve data governance, and
deliver better banking experience. Nathalie Moss, Practice
Lead, Lending Technology at Bendigo and Adelaide Bank, said, "Our employees are now
able to service customers faster and more easily due to the
centralized document storage and common searchable access approach.
The key to the program led by Infosys is findability. The faster we
can find all relevant customer documents, the more deeply we
understand the customer and the more personalized the service we
offer becomes, every time we interact. Better operational flow
equals more effective and empowered staff and builds on the
award-winning customer experience our Bank consistently
offers."
3. Recognition
- Featured in TIME's World's Best Companies 2023 list - Infosys
was among the top 3 global professional services firms and the only
brand from India in the Top 100
global rankings
- Ranked as one of the Top 3 brands in Kantar BrandZ Most
Valuable Indian Brand Rankings 2023
- Recognized as one of India's
Best WorkplacesTM for Women 2023 (Top 50 Large
Organizations) by the Great Place to
WorkTM Institute
- Ranked among the Top 10 Best Companies for Women in
India (BCWI) in 2023 for the
fourth year in a row, and as the 'Champion of Inclusion' in the
Most Inclusive Companies Index (MICI) for the second year in a row,
by Avtar and Seramount
- Honored with the Mahatma Award under the 'ESG Excellence'
category
- Infosys Crescent campus in Bengaluru, India, has been recognized as one of the '100
Iconic Sustainable Buildings' by The Bureau of Energy Efficiency,
Ministry of Power, Government of India
- Positioned as a leader in the 2023 Magic Quadrant for Public
Cloud IT Transformation Services by Gartner
- Recognized as a leader in Net Zero Consulting Services PEAK
Matrix® Assessment 2023 by Everest
- Recognized as a leader in Cloud Services PEAK Matrix®
Assessment 2023 – North America by
Everest
- Recognized as a leader in Network Transformation and Managed
Services PEAK Matrix® Assessment – System Integrators (SIs) 2023 by
Everest
- Recognized as a leader in Data and Analytics (D&A) Services
PEAK Matrix® Assessment 2023 by Everest
- Recognized as a Leader in the IDC MarketScape: Worldwide
Finance and Accounting Business Process Services in the Cloud
Vendor Assessment 2023
- Positioned as a leader in HFS Horizons: Cards & Payments
Services Providers 2023 report
- Positioned as a leader in HFS Horizons: Travel, Hospitality,
and Logistics Service Providers, 2023 report
- Positioned as a leader in HFS Horizons: Enterprise Blockchain
Services, 2023 report
- Positioned as a leader in Automation in Banking NEAT 2023 by
NelsonHall
- Featured in the Constellation ShortList 2023: Customer
Experience (CX) Operations Services: Global
- Featured in the Constellation ShortList 2023: Digital
Transformation Services (DTX): Global
- Featured in the Constellation ShortList 2023: Public Cloud
Transformation Services: Global
- Featured in the Constellation ShortList 2023: AI Services:
Global
- Recognized as 2023 Google Cloud Industry Solution Services
Partner of the Year - Supply Chain & Logistics and Google Cloud
Specialization Partner of the Year for Application Development
- Received the Salesforce 2023 Partner Innovation Award in the
industry solution awards category
- Infosys Finacle recognized as the Best Real Time Payments
Provider at the MEA Finance Leaders in Payments Conference &
Awards 2023
- Infosys Finacle recognized as the Best SaaS Provider of the
Year (Software) and as Outstanding Wealth Management Solution by a
Vendor at the Global BankTech Awards 2023
- Infosys recognized as a leader in Cyber Security - Solutions
and Services 2023 ISG Provider LensTM study in US,
US Public Sector, Australia, and
Nordics regions
- Infosys recognized as a leader in Private Hybrid Cloud -
Solutions and Services 2023 ISG Provider
LensTM study in US and Australia
- Infosys recognized as a leader in IoT - Services and Solution
2023 ISG Provider LensTM study in US
- Infosys recognized as a Leader in ISG Provider Lens™ Retail
& CPG Services reports – Managed Services in the US and
Europe 2023
- Rated as a leader in Avasant's Digital Masters 2023
RadarView™
- Rated as a leader in Avasant's Canada 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)
|
|
September 30,
2023
|
March 31,
2023
|
ASSETS
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
1,892
|
1,481
|
Current
investments
|
913
|
841
|
Trade
receivables
|
3,403
|
3,094
|
Unbilled
revenue
|
1,692
|
1,861
|
Other Current
assets
|
1,379
|
1,349
|
Total current
assets
|
9,279
|
8,626
|
Non-current
assets
|
|
|
Property, plant and
equipment and Right-of-use assets
|
2,424
|
2,516
|
Goodwill and other
Intangible assets
|
1,058
|
1,095
|
Non-current
investments
|
1,414
|
1,530
|
Unbilled
revenue
|
171
|
176
|
Other non-current
assets
|
1,343
|
1,369
|
Total non-current
assets
|
6,410
|
6,686
|
Total
assets
|
15,689
|
15,312
|
LIABILITIES AND
EQUITY
|
|
|
Current
liabilities
|
|
|
Trade
payables
|
386
|
470
|
Unearned
revenue
|
844
|
872
|
Employee benefit
obligations
|
315
|
292
|
Other current
liabilities and provisions
|
3,134
|
3,135
|
Total current
liabilities
|
4,679
|
4,769
|
Non-current
liabilities
|
|
|
Lease
liabilities
|
798
|
859
|
Other non-current
liabilities
|
441
|
460
|
Total non-current
liabilities
|
1,239
|
1,319
|
Total
liabilities
|
5,918
|
6,088
|
Total
equity attributable to equity holders of the
company
|
9,720
|
9,172
|
Non-controlling
interests
|
51
|
52
|
Total
equity
|
9,771
|
9,224
|
Total liabilities
and equity
|
15,689
|
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
September 30,
2023
|
3 months ended
September 30,
2022
|
6 months ended
September 30,
2023
|
6 months ended
September 30,
2022
|
Revenues
|
4,718
|
4,555
|
9,334
|
8,999
|
Cost of
sales
|
3,271
|
3,170
|
6,481
|
6,315
|
Gross
profit
|
1,447
|
1,385
|
2,853
|
2,684
|
Operating
expenses:
|
|
|
|
|
Selling
and marketing expenses
|
213
|
185
|
429
|
378
|
Administrative expenses
|
234
|
221
|
463
|
439
|
Total operating
expenses
|
447
|
406
|
892
|
817
|
Operating
profit
|
1,000
|
979
|
1,961
|
1,867
|
Other income,
net (3)
|
60
|
65
|
117
|
145
|
Profit before income
taxes
|
1,060
|
1,044
|
2,078
|
2,012
|
Income tax
expense
|
309
|
295
|
603
|
574
|
Net profit (before
minority interest)
|
751
|
749
|
1,475
|
1,438
|
Net profit (after
minority interest)
|
751
|
748
|
1,475
|
1,437
|
Basic EPS
($)
|
0.18
|
0.18
|
0.36
|
0.34
|
Diluted EPS
($)
|
0.18
|
0.18
|
0.36
|
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, 2023, which have been taken on
record at the Board meeting held on October
12, 2023.
- 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 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/2023-2024/q2/documents/ifrs-inr-press-release.pdf
Fact
sheet: https://www.infosys.com/investors/reports-filings/quarterly-results/2023-2024/q2/documents/fact-sheet.pdf
Logo: https://mma.prnewswire.com/media/633365/Infosys_Logo.jpg
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