Strong Revenue growth guidance of 13%-15% and operating
margin guidance of 21%-23% for FY23
BENGALURU, India, April 13, 2022 /PRNewswire/ -- Infosys (NSE:
INFY), (BSE: INFY), (NYSE: INFY), a global leader in
next-generation digital services and consulting, delivered
$16.3 billion in revenues with the
highest annual growth in the last decade of 19.7% in constant
currency with a robust operating margin of 23.0%. Growth was
broad-based, supported by continued momentum in large deal wins
with TCV of $9.5 billion. EPS grew by
15.2% in rupee terms. FCF crossed $3
billion for the year.
Q4 sequential growth was 1.2% in constant currency with
operating margin of 21.5%. TCV of large deal wins was $2.3 billion in Q4.
"Infosys delivered highest annual growth in a decade with
broad-based performance driven by deeply differentiated digital and
Infosys Cobalt led cloud capabilities, powered by 'One Infosys'
approach. We continue to gain market share as a result of sustained
clients' confidence in our ability to successfully navigate their
digital journeys," said Salil Parekh CEO and MD. "With the
acceleration of digital disruptions across industries, we see
immense potential to engage and partner with clients as they
transform, adapt and thrive. We will scale talent globally, invest
in employees and accelerate innovation and digital capabilities to
capitalize on the expanding market opportunities," he added.
38.8% YoY
41.2% FY
CC Digital growth
|
20.6% YoY
19.7% FY
CC Revenue growth
|
21.5% Q4
23.0% FY
Operating margin
|
13.4% YoY
15.2% FY
Increase in EPS
(₹ terms)
|
$2.3 bn Q4
$9.5 bn FY
Large deal TCV
|
Guidance for FY23:
- Revenue growth of 13%-15% in constant currency
- Operating margin of 21%-23%
- Key financial highlights:
For the quarter
ended March 31, 2022
- Revenues in CC terms grew by 20.6% YoY and
1.2% QoQ
- Reported revenues at $4,280 million, growth
of 18.5% YoY
- Digital revenues at 59.2% of total
revenues,
YoY CC growth of 38.8%
- Operating margin at 21.5%, decline of 3.0%
YoY
- Basic EPS at $0.18, growth of 9.2% YoY
- FCF at $761 million, decline of 4.8% YoY;
FCF conversion at 101.0% of net profit
|
For the year ended
March 31, 2022
- Revenues in CC terms grew by 19.7% YoY
- Reported revenues at $16,311 million, growth
of 20.3% YoY
- Digital revenues at 57.0% of total
revenues,
YoY CC growth of 41.2%
- Operating margin at 23.0%, decline of 1.5%
YoY
- Basic EPS at $0.70, growth of 14.3% YoY
- FCF at $3,055 million, growth of 2.8%
YoY;
FCF conversion at 102.9% of net profit
|
"In a year marked by intense supply side challenges, Infosys
delivered strong financial performance – EPS growth of 15.2%, Free
Cash Flows surpassing $3 billion and
Return on Equity of 29.1%, reflecting the company's success, driven
by client-centricity and rich capabilities. The Board has proposed
a final dividend of ₹16 per share, taking the total dividend for
FY22 to ₹31 per share, an increase of 14.8% over prior year,"
said Nilanjan Roy, Chief
Financial Officer. "With a robust demand environment ahead, we
envisage making appropriate long-term investments in capability
building across sales, delivery and innovation. However, we plan to
neutralize some of the impact through aggressive cost optimization
programs and value led pricing driven by service and brand
differentiation. This, along with post-pandemic normalization of
expenses, is reflected in the margin guidance," he added.
2. Capital allocation
For FY22, the Board has recommended a final dividend of ₹16 per
share ($0.21 per ADS*). Together with
the interim dividend of ₹15 per share already paid, the total
dividend per share for FY22 will amount to ₹31 (app. $0.41 per ADS*) which is a 14.8% increase over
FY21. With this, the company has announced total dividend of
approx. ₹13,000 crore (approx. $1.74
billion*) for FY22.
*USD-INR rate of 75.00
3. Client wins & Testimonials
- Infosys launched Infosys Metaverse Foundry, an integral part of
Infosys Living Labs to accelerate enterprises' ability to evolve
and execute strategies for virtual-physical interconnections.
Daniel Schumacher, Head of Global
IT Applications and Digital Innovation, Komatsu, said, "Our
strategic foresight and transformation roadmap point to the rapid
acceleration of digital ecosystems, and we are looking to bring its
value to all facets of our business – both as we know them today
and to what we can create for the future. We are excited to partner
with Infosys metaverse foundry to uncover the most significant
investment we must make in the virtual world and plant seeds today
that are most likely to bear fruit for our future."
- Infosys collaborated with E.ON for its Digital Workplace
Transformation across multiple services. "We were looking for an
innovative and future oriented partner for our entire workplace
transformation journey. We are delighted to have Infosys as E.ON's
digital workplace partner, supporting 75K+ users across 12
countries for all their workplace needs. This collaboration cuts
across services that include IT Service Desk, End User Devices,
Unified Communication and Collaboration and IT Service Management.
Infosys is also engaging with E.ON for multiple other initiatives
as our strategic transformation partner. We are confident that this
collaboration will be a great enabler in our ongoing digital
transformation journey," said, David Benkelberg, Head of User
Services, E.ON.
- Infosys collaborated with Telenor Norway to transform its
finance and supply chain operations through standardized, Oracle
Cloud ERP solution. Terje Borge,
CFO, Telenor Norway, said, "Telenor Norway needs to
continuously raise the bar in its operational performance to serve
as the trusted digital partner for its consumer and enterprise
customers. IT as a business enabler plays a critical role in this
objective. The ERP transformation program is one of the steps in
making Telenor agile and efficient."
- Infosys Finacle enabled WhatsApp Baking for Union Bank of
India. The new service, called
Union Virtual Connect (UVConn), will provide customers personalized
and daily banking services. Shri Rajkiran Rai G, Managing
Director & CEO, Union Bank of India, said, "It has always been our
endeavor to build lasting relationships with customers by offering
simple, fast, and contextual banking solutions and experiences with
improved convenience. In line with this vision, we have introduced
this service on WhatsApp, one of the most popular instant messaging
applications in the world. Our retail customers can execute a host
of their banking requirements on their own, without visiting a
branch, instantaneously and securely. With Finacle Conversational
Banking and Remote Banker we can now tap into the growing
prominence of social media in everyday life. We expect this simple
and convenient form of banking to add immense convenience to our
customers and hope to see its rapid adoption in the months to
come."
- Nu Skin, a leading health, beauty and wellness company with
businesses in over 50 countries, collaborated with Infosys to
achieve their vision of becoming a next generation social commerce
enterprise. Ryan Napierski,
President and CEO, Nu Skin said,
"At Nu Skin, we are delighted to partner with Infosys for our
transformation into a next-gen social commerce enterprise. Key to
this is our collaborative work to provide personalized and engaging
consumer journeys to build customer loyalty and help fuel our
future growth."
4. Recognitions
- Recognized as one of the 2022 World's Most Ethical Companies by
Ethisphere
- Recognized as the fastest-growing IT services brand by Brand
Finance, the world's leading brand valuation firm, in its Global
500, 2022 report
- Awarded Global Top Employer 2022 certification in 22 countries
across Asia Pacific, Europe, the Middle
East, and North America in
recognition of its outstanding strategies and people practices
- Received Brandon Hall Group's Organizational Excellence
Certification for demonstrating best-in-class talent acquisition
strategy and human capital management practices
- Certified as a Great Place to Work® for excellence in its
employment practices in Canada for
2022
- Ranked #1 among top 100 listed companies in India for receiving the highest score on ESG
by Stakeholders Empowerment Services (SES)
- Received LEED Platinum certification from US Green Building
Council for 4 buildings, situated in Indianapolis, Bengaluru, Mysuru and
Thiruvananthapuram, with a total area of 2.15 million sq.ft.
- Ranked #2 in Everest Group PEAK Matrix® IT Service Provider of
the Year
- Positioned as a leader in Gartner Magic Quadrant for Data and
Analytics Service Providers
- Infosys Finacle positioned as a leader in Gartner Magic
Quadrant for Global Retail Core Banking for Finacle Core Banking
Solution
- Ranked as a leader in Everest Cloud Services PEAK Matrix®
Assessment 2022 – North
America
- Rated as a leader in HFS Top 10 Digital Associates Services
2022
- Positioned as a Leader in 'Banking Digital Services' ISG
Provider Lens™ Study for U.S., UK and Nordics regions
- Ranked as a leader in Everest Cloud Services PEAK Matrix®
Assessment 2022 – Europe
- Positioned as a leader in NelsonHall Quality Engineering NEAT
2022
- Ranked as a leader in HFS Top 10 Energy Transition Services Top
10 Snapshot, 2022
- Rated as a leader in Avasant's Healthcare Payor Digital
Services 2022-2023 RadarView™
- Positioned as a Leader in 'Mainframes Services and
Solutions'2022 ISG Provider Lens™
- Positioned as a leader in PAC RADAR SAP Services in
Germany 2021
- Rated as a leader in Avasant's Multisourcing Service
Integration 2021-2022 RadarView™
- Rated as a leader in Everest Digital Product Engineering
Services PEAK Matrix® Assessment 2022
- Positioned as a leader in HFS Top 10 Application Modernization
Services, 2022
- Positioned as a leader in Everest Oracle Cloud Applications
(OCA) Services PEAK Matrix® Assessment 2022
- Rated as a leader in NelsonHall Digital Banking Services NEAT
2022
- Positioned as a leader in HFS Utilities Services Top 10,
2022
- Rated as a leader in Everest Advanced Analytics and Insights
(AA&I) Services PEAK Matrix® Assessment 2022
- Rated as a leader in HFS Top 10 Retail and CPG Services,
2022
- Positioned as a Leader in 'Healthcare Digital Services' ISG
Provider Lens™ Study for U.S. region
- Infosys Finacle positioned as a Leader by Everest Group in the
Consumer Loan Origination System Products Peak Matrix Assessment
2022 report
- Infosys Finacle was a winner at the Finnovex Awards Qatar 2022
under the 'Excellence in Payments' category for its Finacle
Payments Suite
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: INFY) (BSE:
INFY (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
million)
|
|
March 31,
2022
|
March 31,
2021
|
ASSETS
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
2,305
|
3,380
|
Current
investments
|
880
|
320
|
Trade
receivables
|
2,995
|
2,639
|
Unbilled
revenue
|
1,526
|
1,030
|
Other Current
assets
|
1,159
|
938
|
Total current
assets
|
8,865
|
8,307
|
Non-current
assets
|
|
|
Property, plant and
equipment and Right-of-use assets
|
2,429
|
2,519
|
Goodwill and other
Intangible assets
|
1,042
|
1,115
|
Non-current
investments
|
1,801
|
1,623
|
Unbilled
revenue
|
124
|
81
|
Other non-current
assets
|
1,294
|
1,180
|
Total non-current
assets
|
6,690
|
6,518
|
Total
assets
|
15,555
|
14,825
|
LIABILITIES AND
EQUITY
|
|
|
Current
liabilities
|
|
|
Trade
payables
|
545
|
362
|
Unearned
revenue
|
834
|
554
|
Employee benefit
obligations
|
288
|
276
|
Other current
liabilities and provisions
|
2,766
|
2,072
|
Total current
liabilities
|
4,433
|
3,264
|
Non-current
liabilities
|
|
|
Lease
liabilities
|
607
|
627
|
Other non-current
liabilities
|
521
|
432
|
Total non-current
liabilities
|
1,128
|
1,059
|
Total
liabilities
|
5,561
|
4,323
|
Total
equity attributable to equity holders of the
company
|
9,941
|
10,442
|
Non-controlling
interests
|
53
|
60
|
Total
equity
|
9,994
|
10,502
|
Total liabilities
and equity
|
15,555
|
14,825
|
Extracted from the
Condensed Consolidated statement of Comprehensive Income under IFRS
for:
|
(Dollars in million
except per equity share data)
|
|
3 months ended
March 31, 2022
|
3 months ended
March 31, 2021
|
Year ended
March 31, 2022
|
Year ended
March 31, 2021
|
Revenues
|
4,280
|
3,613
|
16,311
|
13,561
|
Cost of
sales
|
2,955
|
2,357
|
10,996
|
8,828
|
Gross
profit
|
1,325
|
1,256
|
5,315
|
4,733
|
Operating
expenses:
|
|
|
|
|
Selling
and marketing expenses
|
179
|
165
|
692
|
624
|
Administrative expenses
|
226
|
207
|
868
|
784
|
Total operating
expenses
|
405
|
372
|
1,560
|
1,408
|
Operating
profit
|
920
|
884
|
3,755
|
3,325
|
Other income, net
(3)
|
78
|
68
|
281
|
271
|
Profit before income
taxes
|
998
|
952
|
4,036
|
3,596
|
Income tax
expense
|
245
|
255
|
1,068
|
973
|
Net profit (before
minority interest)
|
753
|
697
|
2,968
|
2,623
|
Net profit (after
minority interest)
|
752
|
697
|
2,963
|
2,613
|
Basic EPS
($)
|
0.18
|
0.16
|
0.70
|
0.62
|
Diluted EPS
($)
|
0.18
|
0.16
|
0.70
|
0.61
|
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
31,2022 which have been taken on record at the Board meeting
held on April 13, 2022.
- A Fact Sheet providing the operating metrics of the Company
can be downloaded from www.infosys.com.
- Other Income includes Finance Cost.
IFRS-INR Press Release:
https://www.infosys.com/investors/reports-filings/quarterly-results/2021-2022/q4/documents/ifrs-inr-press-release.pdf
Fact sheet:
https://www.infosys.com/investors/reports-filings/quarterly-results/2021-2022/q4/documents/fact-sheet.pdf
Logo:
https://mma.prnewswire.com/media/633365/Infosys_Logo.jpg