BENGALURU, India, Oct. 13, 2021 /PRNewswire/ -- Infosys (NSE: INFY)
(BSE: INFY) (NYSE: INFY), a global leader in next-generation
digital services and consulting, delivered a strong Q2 performance
with YoY growth increasing to 19.4% and sequential growth
accelerating to 6.3% in constant currency. Growth was broad-based
across geographies and segments with the largest geography,
North America growing at 23.1% and
the largest segment, Financial Services growing at 20.5%, YoY in
constant currency. Large deal momentum continued with TCV of
$2.15 billion in Q2. Operating margin
for the quarter was resilient at 23.6%. The Board has announced
interim dividend of `15 per share for FY22.
"Our stellar performance and robust growth outlook continue to
demonstrate our strategic focus and the strength of our digital
offerings. As we witness a strong market opportunity with global
enterprises rapidly accelerating their digital journeys, our
sustained investments in expanding capabilities, including the
differentiated cloud play, Infosys Cobalt™, has
uniquely positioned us to continue serving our clients effectively,
gain market share and emerge as the preferred cloud and digital
transformation partner in the market," said Salil Parekh, CEO and MD. "Given this
continued momentum we have further increased our revenue growth
guidance to 16.5%-17.5%", he added.
42.4% YoY
CC Digital growth
|
19.4% YoY
6.3% QoQ
CC Revenue growth
|
23.6%
Operating margin
|
12.7% YoY
Increase in EPS
(₹ terms)
|
$2.15 bn
Large deal signings
|
1. Key highlights:
For the quarter
ended September 30, 2021
|
For six months
ended September 30, 2021
|
|
- Revenues in
CC terms grew by 19.4% YoY and 6.3% QoQ
- Reported
revenues at $3,998 million, growth of 20.7% YoY
- Digital
revenues at 56.1% of total revenues, YoY CC growth of
42.4%
-
Operating margin at 23.6%, decline of 1.8% YoY and 0.1%
QoQ
- Basic EPS at
$0.17, growth of 13.0% YoY
- FCF at $712
million, YoY growth of 5.6%; FCF conversion at 97.1% of net
profit
|
- Revenues in
CC terms grew by 18.1% YoY
- Reported
revenues at $7,780 million, growth of 21.0% YoY
- Digital
revenues at 55.0% of total revenues, YoY CC growth of
42.2%
- Operating
margin at 23.6%, decline of 0.4% YoY
- Basic EPS at
$0.34, growth of 19.0% YoY
- FCF at $1,575
million, YoY growth of 12.3%; FCF conversion at 109.5% of net
profit
|
"In order to harness the full potential of the market
opportunity, we are expanding our college graduates hiring program
to ~45,000 for the year. Simultaneously, we continue to strengthen
employee value proposition including health and wellness measures,
reskilling programs, appropriate compensation interventions and
enhanced career growth opportunities", said Pravin Rao, Chief Operating Officer. "With
over 86% of Infoscions in India
having received at least one dose of 'vaccination', we are now
preparing to embrace the hybrid work model. We have equipped
employees with the resources they need to be productive, cyber
secure, stay connected, and maintain a work-life balance. Our
talent strategy also factors in expanded hiring pools that include
new communities and work locations", he added.
"Our operating margins for Q2 were resilient; the impact of
enhanced employee value proposition initiatives was offset by
strong operating parameters, cost optimization and operating
leverage. We will continue to invest in our employees to remain a
preferred employer-of-choice and seamlessly fulfill client demand",
said Nilanjan Roy, Chief
Financial Officer. "Cash generation remained robust. We have
executed the capital allocation policy with the successful closure
of share buyback and step up in interim dividend to `15 per share",
he added.
2. Capital Allocation
The company has completed the open market share buyback on
September 8 at an average price of
~₹1,649 per share (compared to maximum Buyback Price of ₹1,750 per
share). Consequently, the share capital of the company has reduced
by 1.31%. With this, the company has returned ~82% of the free cash
flow for FY20 and FY21 through dividends and buyback.
The Board has announced interim dividend of `15 per share for
FY22.
3. Client wins & Testimonials
- Infosys recently launched Infosys Equinox to help
enterprises securely deliver hyper-segmented, personalized
omnichannel commerce experiences for B2B and B2C buyers.
Eric Nelson, Chief Information
Officer North America, The Kraft Heinz Company, said, "Infosys
Equinox serves us as a digital hub powering over 250 of our global
brand sites, B2B ecommerce and recipe sites, as well as
direct-to-consumer (D2C) initiatives. We are able to launch new
brand sites in as little as 3 to 5 days. The platform also supports
our hyper-personalization initiatives and distills real-time
insights for our marketing programs. With Infosys Equinox, we at
Kraft Heinz are well set to offer richer, more personalized, and
meaningful experiences to our consumers."
- Infosys inaugurated its Automotive Digital Technology and
Innovation Center in Stuttgart,
Germany last quarter, furthering its strategic commitment to
drive innovation and IT infrastructure transformation in the
automotive sector. "As software becomes modular and IT
infrastructure continues to scale, Daimler will take three
simultaneous steps to transform its IT landscape: consolidation,
scaling and modernization. Through establishing the Infosys
Automotive and Mobility GmbH in Germany, Infosys is committed to grow with us
in the automotive industry and provide exciting career
opportunities for our employees. The center will also set new
standards for cloud and infrastructure services in the automotive
industry. We're delighted that through this partnership, Daimler
will strengthen its overall technology investment and partnership
strategy," said, Jan Brecht,
Chief Information Officer, Daimler and Mercedes-Benz.
- Infosys collaborated with Goldman Sachs to digitally transform
their Client Services Helpdesk using ServiceNow Platform. "Infosys
truly partnered with Goldman Sachs by providing best practices and
guidance in our service management transformation journey. They
collaboratively worked with us to understand our pain points and
challenges. Based on their experience, Infosys ensured that the
solution was aligned with our requirements and expectations, thus
resulting in improved agent productivity and enhanced user
experience.", said, Robert
Naccarella, Managing Director, Goldman Sachs.
- Frost Bank and Infosys recently launched a new mortgage loan
product offering. "Offering mortgage loans along with our other
consumer loan products is integral to meeting our customers'
evolving needs and bringing the Frost experience to more Texans,"
said, Phil Green, Chairman and
CEO at Frost Bank. "Working with a world-class company like
Infosys will allow us to be involved in the entire process from
start to finish and bring our industry-leading customer service
experience to mortgages."
- Infosys and The Economist Group announced a new strategic
partnership around sustainability. Lara Boro, CEO, The Economist Group, said,
"A sustainable future will depend on creative collaboration. This
exciting partnership with Infosys shows how pooling strengths can
accelerate innovation and amplify impact in the pursuit of
progress."
- BankDhofar, one of the leading banks in Oman, was able to successfully complete a
three-phase modernization program leveraging the Finacle Digital
Banking Suite. Abdul Hakeem Omar Al
Ojaili, Chief Executive Officer, BankDhofar, said, "We
are glad that BankDhofar Vision 2020 is today a reality with a new
digital-first banking platform, powered by Infosys Finacle. We are
glad that our transformation program covering technology upgrade,
channels upliftment, process improvement, data restructuring,
branch modernization, and culture transformation are well underway,
allowing no room for disruption to the end customer. Post go-live,
we believe BankDhofar ranks the highest in terms of technology
leadership, and functional coverage. We are now well positioned to
offer our customers a world-class banking facility with the new
platform, either at the branch or through digital channels, as we
strive to strengthen our leadership position in the
Sultanate."
- Universities and Colleges Admissions Service (UCAS), UK,
recently announced a major core technology collaboration
with Infosys. Sander Kristel,
UCAS' Chief Operations Officer, said, "I cannot emphasise
enough the importance of this new agreement with Infosys, and the
benefits to UCAS staff and customers. It represents a real shift in
our partnership, and will focus extensively on automation,
innovation, and efficiency across the business, which is key to
delivering on our strategy for the future."
- Infosys Living Labs partners with venture capital
investment arms of global enterprises to mutually enrich portfolios
of tech innovators. "We are excited to partner with Infosys to help
our portfolio companies scale new heights by providing them access
to Infosys' global client base. Infosys brings its rich heritage of
delivery excellence and global access to our portfolio companies.
We are a growth investor in lighthouse technologies and Infosys
Living Labs provides a great opportunity to bring best in class
technology innovations to clients while de-risking the adoption of
startup solutions for Infosys clients." said, Matthew Koertge, Managing Director, Telstra
Ventures.
- Infosys Public Services recently launched a blockchain
network to modernize public recordkeeping for County of
Riverside in California. "As Riverside County's
Assessor-County Clerk-Recorder, our goal is to provide
recordkeeping, record issuance, and property valuation in a timely,
secure, and cost-effective manner," said, Peter Aldana, Assessor-County Clerk-Recorder at
County of Riverside. "Adoption
of blockchain technology will greatly advance our digital
transformation journey towards our goal."
4. Recognitions
- Infosys won the 2021 Microsoft US Partner Award for
demonstrating excellence in Azure AI capabilities
- Infosys won four Stevie® Awards for great employers 2021
- Ranked #1 by HfS in the Banking and Financial Services
Providers Top 10, 2021
- Ranked as a leader in Gartner - Magic Quadrant for IT Services
for Communications Service Providers, Worldwide
- Ranked as a leader in The Forrester Wave™ - Application
Modernization and Migration Services, Q3 2021
- Ranked as a leader in Everest - Data and Analytics (D&A)
Services PEAK Matrix® Assessment 2021
- Ranked as a leader in Everest - Envisioning the Connected
Future: 5G Engineering Services PEAK Matrix Assessment 2021
- Positioned as a leader in IDC - MarketScape Asia/Pacific
Managed Cloud Services 2021 Vendor Assessment
- Positioned as a leader in IDC - MarketScape Worldwide Life
Science R&D ITO Services Vendor Assessment
- Positioned as a leader in IDC MarketScape - European Smart
Manufacturing Service Providers 2021 Vendor Assessment
- Positioned as a leader in NelsonHall - Wealth and Asset
Management NEAT Evaluation 2021
- Ranked as a leader in Constellation - Public Cloud
Transformation Services: Global
- Positioned as a leader in Constellation - Customer Experience
Operation Services: Global
- Positioned as a leader in Constellation - Campaign to Commerce:
Best of Breed Commerce Platforms
- Positioned as a leader in Everest Microsoft Dynamics 365
Services PEAK Matrix® Assessment 2021
- Infosys Finacle rated as a leader by Forrester in Forrester
Wave™: Digital Banking Engagement Platforms, Q3 2021 report
- Infosys Finacle rated as a leader by Forrester in Forrester
Wave™: Digital Banking Engagement Hubs, Q3 2021 report
- Positioned as a leader in IDC MarketScape: Worldwide B2B
Commerce Services for Industrial Manufacturing 2021 Vendor
Assessment
- Infosys positioned as a leader in the ISG Provider Lens™
Cybersecurity Services and Solutions 2021 for U.S.
- Infosys ranked as a North America Utilities leader in ISG
Provider Lens™ 2021 Report
- Infosys rated as a leader in ISG Provider Lens™ SAP HANA
Ecosystem Services in U.S. 2021 and Germany 2021 Quadrant Report
- Infosys rated as a 'Global' leader in ISG Provider Lens™
'Internet of Things – Services and Solutions 2021' report.
- Infosys positioned as a leader in 'Next-Gen Private/Hybrid
Cloud - Data Center Services and Solutions 2021' in ISG Provider
Lens™ for U.S.
- Infosys positioned as a leader in 'Network - Software Defined
Solutions and Services 2021' in ISG Provider Lens™ for Australia, U.K., and Nordics Region
- Infosys rated as a leader in 'Avasant Digital Talent Capability
2021' RadarView™
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)
|
|
|
September 30,
2021
|
March 31,
2021
|
ASSETS
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
2,432
|
3,380
|
Current
investments
|
671
|
320
|
Trade
receivables
|
2,711
|
2,639
|
Unbilled
revenue
|
1,268
|
1,030
|
Other Current
assets
|
1,002
|
938
|
Total current
assets
|
8,084
|
8,307
|
Non-current
assets
|
|
|
Property, plant and
equipment and Right-of-use assets
|
2,429
|
2,519
|
Goodwill and other
Intangible assets
|
1,080
|
1,115
|
Non-current
investments
|
1,360
|
1,623
|
Unbilled
revenue
|
102
|
81
|
Other non-current
assets
|
1,240
|
1,180
|
Total non-current
assets
|
6,211
|
6,518
|
Total
assets
|
14,295
|
14,825
|
LIABILITIES AND
EQUITY
|
|
|
Current
liabilities
|
|
|
Trade
payables
|
428
|
362
|
Unearned
revenue
|
592
|
554
|
Employee benefit
obligations
|
301
|
276
|
Other current
liabilities and provisions
|
2,409
|
2,072
|
Total current
liabilities
|
3,730
|
3,264
|
Non-current
liabilities
|
|
|
Lease
liabilities
|
587
|
627
|
Other non-current
liabilities
|
501
|
432
|
Total non-current
liabilities
|
1,088
|
1,059
|
Total
liabilities
|
4,818
|
4,323
|
Total
equity attributable to equity holders of the
company
|
9,420
|
10,442
|
Non-controlling
interests
|
57
|
60
|
Total
equity
|
9,477
|
10,502
|
Total liabilities
and equity
|
14,295
|
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
September 30,
2021
|
3 months ended
September 30,
2020
|
6 months ended
September 30,
2021
|
6 months ended
September 30,
2020
|
Revenues
|
3,998
|
3,312
|
7,780
|
6,433
|
Cost of
sales
|
2,675
|
2,125
|
5,184
|
4,196
|
Gross
profit
|
1,323
|
1,187
|
2,596
|
2,237
|
Operating
expenses:
|
|
|
|
|
Selling
and marketing expenses
|
167
|
153
|
336
|
305
|
Administrative expenses
|
215
|
194
|
423
|
385
|
Total operating
expenses
|
382
|
347
|
759
|
690
|
Operating
profit
|
941
|
840
|
1,837
|
1,547
|
Other income,
net (3)
|
65
|
70
|
142
|
128
|
Profit before income
taxes
|
1,006
|
910
|
1,979
|
1,675
|
Income tax
expense
|
272
|
255
|
540
|
456
|
Net profit (before
minority interest)
|
734
|
655
|
1,439
|
1,219
|
Net profit (after
minority interest)
|
733
|
653
|
1,437
|
1,212
|
Basic EPS
($)
|
0.17
|
0.15
|
0.34
|
0.29
|
Diluted EPS
($)
|
0.17
|
0.15
|
0.34
|
0.29
|
NOTES:
1. 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, 2021 which have been
taken on record at the Board meeting held on October 13, 2021.
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/q2/documents/ifrs-inr-press-release.pdf
Fact
sheet: https://www.infosys.com/investors/reports-filings/quarterly-results/2021-2022/q2/documents/fact-sheet.pdf
View original
content:https://www.prnewswire.com/news-releases/infosys-growth-accelerates-in-q2-with-resilient-operating-margins-301399276.html
SOURCE Infosys