Revenue growth guidance of 4%-7% and operating
margin guidance of 20%-22% for FY24
BENGALURU, India, April 13,
2023 /PRNewswire/ -- Infosys (NSE: INFY) (BSE:
INFY) (NYSE: INFY), a global leader in next-generation digital
services and consulting, delivered $18.2
billion in FY23 revenues with industry-leading growth of
15.4% in constant currency and operating margins of 21.0%. Growth
was broad-based across industry verticals and geographical regions.
Digital comprised 62.2% of overall revenues and grew at 25.6% in
constant currency.
Q4 year on year growth was 8.8% and sequential decline was 3.2%
in constant currency terms. Operating margin for the quarter was
21.0%. Free cash flow conversion was 95.7% for Q4. Continuing the
recent trend, attrition declined further in Q4.
"Our strong performance in FY23 is a testimony to the continued
focus on digital, cloud and automation capabilities which resonated
with our clients. We have launched exciting programs with our
clients leveraging generative AI platforms," said Salil Parekh, CEO and MD. "As the
environment has changed, we see strong interest from our clients
for efficiency, cost and consolidation opportunities, resulting in
a strong large deal pipeline. We have expanded our internal program
on efficiency and cost to build a path to higher margins in the
medium term. We continue to invest in our people and in supporting
our clients," he added.
15.0% YoY
25.6 % FY
CC Digital growth
|
8.8% YoY
15.4% FY
CC Revenue growth
|
21.0% Q4
21.0 % FY
Operating margin
( $ terms)
|
9.0% YoY
9.7% FY
Increase in EPS
(₹ terms)
|
$2.1 bn Q4
$9.8 bn FY
Large deal TCV
|
Guidance for FY24:
- Revenue growth of 4%-7% in constant currency
- Operating margin of 20%-22%
1. Key highlights:
For the quarter ended March 31,
2023
- Revenues in CC
terms grew by 8.8% YoY and declined by 3.2% QoQ
- Reported revenues
at $4,554 million, growth of 6.4% YoY
- Digital revenues at
62.9% of total revenues,
YoY CC growth of 15.0%
- Operating margin at
21.0%, decline of 0.5%
YoY and QoQ
- Basic EPS at $0.18,
growth of 0.2% YoY
- FCF at $713
million, decline of 6.3% YoY;
FCF conversion at 95.7% of net profit
|
For the year ended March 31,
2023
- Revenues in CC
terms grew by 15.4% YoY
- Reported revenues
at $18,212 million, growth
of 11.7% YoY
- Digital revenues at
62.2% of total revenues,
YoY CC growth of 25.6%
- Operating margin at
21.0%, decline of 2.0% YoY
- Basic EPS at $0.71,
growth of 1.3% YoY
- FCF at $2,534
million, decline of 17.1% YoY;
FCF conversion at 85.0% of net profit
|
"Our continued focus on cost optimization and operational
efficiencies have helped in achieving operating margins of 21.0% in
FY23", said Nilanjan Roy, Chief
Financial Officer. "Free cash generation in Q4, led by robust
collections, was strong. Executing on our capital allocation
policy, we successfully completed the share buyback and have
proposed a final dividend of `17.50 for FY23", he added.
2. Capital Allocation
For FY23, the Board has recommended a final dividend of ₹17.50
per share ($0.21 per ADS*). Together
with the interim dividend of ₹16.50 per share already paid, the
total dividend per share for FY23 will amount to ₹34.00 (app.
$0.41 per ADS*) which is a 9.7%
increase over FY22. With this, the company has announced total
dividend of approx. ₹14,200 crore (approx. $1.7 billion*) for FY23.
The company has completed the open market share buyback on
February 13, at an average price of
approx. ₹1,539 per share (compared to maximum Buyback Price of
₹1,850 per share). Consequently, the share capital of the company
has reduced by 1.44%.
Including the recently concluded buyback and final dividend for
FY23, the company has returned approx. 86% of Free Cash Flow to
shareholders under the current capital allocation policy.
*USD-INR rate of 82.00
3. Client wins & Testimonials
- Infosys and bp collaborated to create 'Energy-as-a-Service'
offering for holistic energy management that can enable energy
savings, cost reduction, decarbonization and supply reliability.
Sashi Mukundan, President, bp
India and Senior Vice President,
bp Group, said, "bp and Infosys have brought together their
complementary capabilities, products, and services to create an
integrated Energy-as-a-Service offering. This strategic
collaboration builds on our energy transition goals where we can
deliver secure, affordable, lower carbon energy the world
increasingly needs, managed by AI/ML based digital platform to
drive energy efficiency. With this engagement, we will aim to
support our customers in achieving their sustainability goals
faster."
- Infosys extended its collaboration with Microsoft to accelerate
industry adoption of cloud. Anant
Maheshwari, President, Microsoft India, said, "This
engagement with Infosys extends our trusted relationship over the
past two decades and will accelerate the innovation and
transformation journeys of businesses worldwide. As we continue to
shape the future of the industry cloud, we are pleased to bring
together our complementary strengths and serve our strategic
customers better through Microsoft Azure-powered solutions with
Infosys Cobalt."
- Infosys rolled out its Private 5G-as-a-Service to accelerate
business value for its enterprise clients worldwide.
Mark Colaluca, Vice President/GM,
Communication Technology Group, HPE, said, "Enterprises see
Private 5G as an enabler for their digital transformation, and the
Infosys approach of vertically aligned pre-integrated business
solutions can accelerate 5G adoption. HPE and Infosys are working
together by combining HPE's Private 5G solutions with Infosys
as-a-Service offering and pre-integrated vertical use-cases for
faster customer value realization."
- Infosys collaborated with ZF Friedrichshafen AG to revamp their
multi-echelon supply chain with SAP Integrated Business Planning®
and Infosys Cobalt. Rainer
Scheuring, Vice President IT AC Market and Materials
Management, ZF Friedrichshafen AG, said, "Based on the holistic
IBP planning approach and the guidance of our implementation
partner Infosys, we built the foundation for improved
availabilities and reduced inventories within our multi-echelon
supply chain."
- Infosys Finacle implemented the Infosys Finacle Liquidity
Management Solution for ABN AMRO's
corporate customers, to empower them with a wide range of services
to better identify, manage, and enhance liquidity positions on the
go. Xander van Heeringen,
Director of Transaction Banking, ABN
AMRO, said, "We are excited to announce this
collaboration with Infosys Finacle, the market-leading provider of
banking technology. The right technology investment for corporate
banking customers is of great importance to ABN AMRO as smarter cash management is evolving
as a key priority for our customers, pushing the need for driving
resilience in treasury operations. Together with Infosys Finacle,
we will further enable ABN AMRO to
propel with its liquidity management business transformation."
- United Nations Development Programme (UNDP) collaborated with
Infosys Public Services (IPS) to deploy UNDP's Quantum Global
Digital Management System to provide a unified and seamless
platform for all UNDP business functions. Sylvain St-Pierre, Chief Information Officer,
UNDP, said, "Digital technology will allow us to rapidly evolve
with the ever-changing development needs of people and our planet.
Our previous systems were difficult to change and often made it
challenging to adapt to changing global development needs and world
events. This new digital core represents a quantum leap forward
that enables UNDP with a modernized, integrated platform, allowing
for truly transformative digital capabilities combined with a
first-rate digital user experience. Quantum, our new digital
corporate management system implemented with Infosys Public
Services, underpins a #FutureSmart UNDP that leaves no one
behind."
- Infosys collaborated with GE Digital to accelerate grid
transformation for the utilities sector. Together, GE Digital and
Infosys will follow a joint go-to-market approach to deliver value
added solutions for grid related products and services, for their
new and existing clients. "With energy transition driving
increasing complexity on the grid, alignment between IT and OT is
becoming very important," said, Mahesh
Sudhakaran, General Manager, GE Digital Grid Software.
"Our collaboration with Infosys will help accelerate adoption of
grid software that bridges these disciplines, equipping the next
generation of grid operators with the tools they need to keep the
grid stable, resilient, and sustainable. The utility's ability to
not just manage but orchestrate the clean energy grid relies on a
unique combination of software and partnership for strategy
building, as well as execution of solutions. Infosys' clear
understanding of GE solutions and strong commitment to leadership
will enable significant productivity and service level
improvements, along with critical cost efficiencies."
- Infosys Compaz collaborated with StarHub to enable their IT
transformation to help boost the quality, performance,
availability, responsiveness, and cost efficiency of StarHub's
foundational technology platform, while improving customer
satisfaction and minimizing cyber risks. Kee Yaw Yee, CIO, StarHub, said, "We are
excited to collaborate with Infosys Compaz to strengthen key
components of our IT application and infrastructure landscape as we
prepare for the future with a new IT operating model. StarHub's
technology leadership, coupled with Infosys' deep domain
competencies, local presence, and proven digital capabilities, will
definitely strengthen and accelerate StarHub's digital journey,
which augurs well for our DARE+ strategy and promises to benefit
our customers."
4. Recognitions
- Recognized as one of the 2023 World's Most Ethical Companies®
by Ethisphere
- Positioned in the Leadership category of the Indian Corporate
Governance Scorecard Assessment 2023
- Recognized as a Global Top Employer 2023 by the Top Employers
Institute
- Won the Gold Award at the Brandon Hall Group Excellence in
Technology Awards
- Won the Sustainability 100+ Award for Carbon Neutrality under
Climate Action category
- Won the Asset Triple A ESG Awards 2022 for Diversity and
Inclusion
- Won the ICAI Sustainability Reporting Awards 2021-22 for Gender
Equality
- Won the Economic Times Best Organisations for Women Award,
2023
- Identified as a leader in 2022 ISG Provider Lens™ Digital
Business Enablement and ESG Services in US, UK, Nordics,
Germany, Australia and Brazil
- Positioned as a leader in Avasant's CPG Digital Services
2022-23 RadarView™
- Positioned as a leader in Avasant's Hybrid Enterprise Cloud
Services 2022-23 RadarView™
- Rated as a leader in The Forrester Wave™: Multicloud-Managed
Services Providers, Q1 2023
- Positioned as a leader in Everest Application and Digital
Services (ADS) in Life and Annuity (L&A) Insurance PEAK Matrix®
Assessment 2023
- Positioned as a leader in Everest Advanced Analytics and
Insights (AA&I) Services PEAK Matrix® Assessment 2023
- Positioned as a leader in Everest Digital Transformation
Consulting Services PEAK Matrix® Assessment 2023
- Rated as a leader in IDC Worldwide Manufacturing Intelligence
Transformation 2023 Vendor Assessment
- Rated as a leader in IDC Worldwide Manufacturing Intelligence
Transformation Strategic Consulting 2023 Vendor Assessment
- Rated as a leader in IDC MarketScape: Worldwide Professional
Services Firms for Mining Operational Process Optimization 2023
Vendor Assessment
- Rated as a leader in IDC MarketScape: Asia/Pacific Intelligent
Digital Workplace Services 2023 Vendor Assessment
- Ranked as a leader in HFS Horizons: The Best Service Providers
for Retail Banking, 2023
- Ranked as a leader in HFS Horizons: Digital Engineering Service
Providers, 2023
- Ranked as a leader in HFS Horizons: Metaverse Services
Providers 2023
- Positioned as a leader in Constellation ShortList™ Innovation
Services and Engineering
- Positioned as a leader in Constellation ShortList™ Learning
Marketplaces
- Positioned as a leader in Constellation ShortList™ Microsoft
End-to-End Service Providers
- Rated as a leader in NelsonHall Financial Services Cloud NEAT,
BPaas NEAT, and SaaS NEAT 2023
- Recognized as the Top Service Provider Across Nordics in the
Whitelane Research and PA Consulting IT Sourcing Study 2023
- Infosys Finacle won the 'Best Core Banking System Initiative in
partnership with Bank Raya' and 'Best Retail Bank in partnership
with Axis Bank' at the Retail Banker International Asia Trial
blazer Awards 2023
- Infosys BPM recognized as a Leader & Star Performer in
Everest Group Capital Markets Operations PEAK Matrix® Assessment
2023
- Infosys BPM recognized as a Leader in Everest Group Marketing
Services PEAK Matrix® Assessment 2023
- Infosys BPM recognized as a Leader in the NelsonHall Financial
Services Cloud, SaaS & BPaaS NEAT 2023
- Infosys BPM and Rio Tinto won the SSON North America Impact
Award 2023, in the Business Resiliency category
- Infosys BPM won the Best CSR Impact Award at the Corporate
Social Responsibility Summit & Awards 2023 by UBS Forum
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. 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)
|
|
March 31,
2023
|
March 31,
2022
|
ASSETS
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
1,481
|
2,305
|
Current
investments
|
841
|
880
|
Trade
receivables
|
3,094
|
2,995
|
Unbilled
revenue
|
1,861
|
1,526
|
Other Current
assets
|
1,349
|
1,159
|
Total current
assets
|
8,626
|
8,865
|
Non-current
assets
|
|
|
Property, plant and
equipment and Right-of-use assets
|
2,516
|
2,429
|
Goodwill and other
Intangible assets
|
1,095
|
1,042
|
Non-current
investments
|
1,530
|
1,801
|
Unbilled
revenue
|
176
|
124
|
Other non-current
assets
|
1,369
|
1,294
|
Total non-current
assets
|
6,686
|
6,690
|
Total
assets
|
15,312
|
15,555
|
LIABILITIES AND
EQUITY
|
|
|
Current
liabilities
|
|
|
Trade
payables
|
470
|
545
|
Unearned
revenue
|
872
|
834
|
Employee benefit
obligations
|
292
|
288
|
Other current
liabilities and provisions
|
3,135
|
2,766
|
Total current
liabilities
|
4,769
|
4,433
|
Non-current
liabilities
|
|
|
Lease
liabilities
|
859
|
607
|
Other non-current
liabilities
|
460
|
521
|
Total non-current
liabilities
|
1,319
|
1,128
|
Total
liabilities
|
6,088
|
5,561
|
Total
equity attributable to equity holders of the
company
|
9,172
|
9,941
|
Non-controlling
interests
|
52
|
53
|
Total
equity
|
9,224
|
9,994
|
Total liabilities
and equity
|
15,312
|
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
March 31, 2023
|
3 months ended
March 31, 2022
|
Year ended
March 31, 2023
|
Year ended
March 31, 2022
|
Revenues
|
4,554
|
4,280
|
18,212
|
16,311
|
Cost of
sales
|
3,164
|
2,955
|
12,709
|
10,996
|
Gross
profit
|
1,390
|
1,325
|
5,503
|
5,315
|
Operating
expenses:
|
|
|
|
|
Selling
and marketing expenses
|
202
|
179
|
776
|
692
|
Administrative expenses
|
231
|
226
|
902
|
868
|
Total operating
expenses
|
433
|
405
|
1,678
|
1,560
|
Operating
profit
|
957
|
920
|
3,825
|
3,755
|
Other income, net
(3)
|
72
|
78
|
300
|
281
|
Profit before income
taxes
|
1,029
|
998
|
4,125
|
4,036
|
Income tax
expense
|
284
|
245
|
1,142
|
1,068
|
Net profit (before
minority interest)
|
745
|
753
|
2,983
|
2,968
|
Net profit (after
minority interest)
|
744
|
752
|
2,981
|
2,963
|
Basic EPS
($)
|
0.18
|
0.18
|
0.71
|
0.70
|
Diluted EPS
($)
|
0.18
|
0.18
|
0.71
|
0.70
|
NOTES:
- The above information is extracted from the audited
condensed consolidated Balance sheet and Statement of Comprehensive
Income for the quarter and year ended March
31, 2023, which have been taken on record at the Board
meeting held on April 13,
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.
- The quarter figures added up to the figures reported in
previous quarters might not always add up to the year ended figures
reported in this statement as all figures are taken from the source
and rounded off to the nearest digits.
IFRS-INR Press Release:
https://www.infosys.com/investors/reports-filings/quarterly-results/2022-2023/q4/documents/ifrs-inr-press-release.pdf
Fact sheet:
https://www.infosys.com/investors/reports-filings/quarterly-results/2022-2023/q4/documents/fact-sheet.pdf
Logo:
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SOURCE Infosys