PR87604

 

BENGALURU, India, Jan. 13, 2021 /PRNewswire=KYODO JBN/ --

 

- Breakthrough year of performance continues with 6.6% YoY CC growth in Q3

- Digital crosses 50% of revenues

 

 

Infosys (NSE: EQINFY) (BSE: 500209)  (NYSE: INFY), a global leader in

next-generation digital services and consulting, delivered its highest Q3

sequential growth of 5.3% in 8 years in constant currency. On a year on year

basis, revenues grew by 6.6%, digital revenues grew by 31.3% and overall

digital revenue crossed more than half of total revenues. Large deal TCV was at

all time high of $7.13bn with 73% being net new. Strong and steady operating

margin at 25.4%. Revenue and margin guidance band increased to 4.5%-5.0% and

24.0%-24.5% respectively on the back of continued strong performance.

 

"The Infosys team has delivered another quarter of excellent results. Execution

of client relevant strategy focused on digital transformation continues to

drive superior growth, well ahead of the industry. The scale of new client

partnerships with leading global companies such as Vanguard, Daimler and

Rolls-Royce demonstrate the depth of digital and cloud capabilities of Infosys.

The commitment and skills of our employees to support and drive the digital

journey of clients are matters of great pride for me", said Salil Parekh, CEO

and MD. "With the intense focus on client needs and the comprehensive

foundation built on differentiated capabilities, I remain confident about the future."

 

$7.13bn

Large deal signings

 

31.3% YoY

Digital CC growth

 

6.6% YoY

CC growth

 

25.4%

Operating margin

 

16.5% YoY

Increase in EPS (INR terms)

 

 

- Q3 revenues grew year-on-year by 8.4% in USD; grew by 6.6% in constant currency

- Digital revenues cross 50% of total revenue, year-on-year growth of 31.3% in

constant currency

- Q3 operating margin at 25.4%, year-on-year increase of 350 bps

- Robust Q3 net profit at $705 million, year-on-year growth of 12.6%

- Continued strong Q3 free cash flow at $772 million, year-on-year growth of

15.1%; FCF conversion at 109.0% of net profit

- Q3 voluntary attrition for IT services declined to 10.0% from 15.8% in Q3 20

- Year-to-date revenues grew by 3.5% in constant currency

- Year-to-date operating margin at 24.5%, an expansion of 310 bps

- FY 21 revenue growth guidance increases to 4.5%-5.0% in constant currency

- FY 21 operating margin guidance increases to 24.0%-24.5%

 

In Q3, Infosys further enhanced its digital investments in Infosys Cobalt - the cloud

services, platforms and solutions portfolio launched last quarter. The company

expanded the Infosys Cobalt portfolio by unveiling Infosys Modernization Suite to

help enterprises modernize their legacy systems and Infosys Live Enterprise

Application Management Platform to deliver cloud-powered, managed services

for IT operations. Infosys Applied AI converges the power of AI, analytics and

cloud to deliver new business solutions and perceptive experiences.

 

Infosys also reached a significant milestone in its ESG journey by becoming

carbon neutral in 2020, thirty years ahead of 2050, the timeline set by the

Paris Agreement. Infosys reiterated its commitment to Environment, Social and

Governance causes by announcing its ESG 2030 vision and ambitions.

 

1. Financial Highlights –Consolidated results under International Financial

Reporting Standards (IFRS)

 

For the quarter ended December 31, 2020

Revenues were $3,516 million, growth of 8.4% YoY and 6.2% QoQ

Operating profit was $893 million, growth of 25.6% YoY and 6.4% QoQ

Basic EPS was $0.17, growth of 12.5% YoY and 7.9% QoQ

 

For nine months ended December 31, 2020

Revenues were $9,948 million, growth of 3.8% YoY

Operating profit was $2,441 million, growth of 19.1% YoY

Basic EPS was $0.45, growth of 10.6% YoY

 

"The resilience of Infosys has been severely tested over the past several

quarters and I am delighted with our response marked by strong revenue

performance, large deal wins, healthy operating metrics and continued low

attrition," said Pravin Rao, COO. "This outstanding performance has been made

possible by reimagining Infosys, over the last three years, as a live

enterprise with fully transformed digital infrastructure – Infosys Lex for

learning, InfyMe for employee engagement, Infosys Meridian for collaboration,

and Infosys DevSecOps platform to empower application teams to rapidly build

and deploy new features. These highly differentiated systems and processes,

redesigned for a digital-first world, are built on a strong foundation of

robust connectivity to customer networks and fully secured personal devices.

Not only does this give us an advantage in these times of distributed working

but also a distinct long-term lead into the future."

 

"Navigating your next strategy coupled with razor sharp focus on our operating

model and efficiencies continues to deliver superior shareholder value

creation," said Nilanjan Roy, CFO. "I am also delighted with the announcement

of Infosys ESG vision 2030 simultaneously with our climate neutrality

achievement, a journey we had embarked on ten years ago. As a responsible

corporate citizen, Infosys is committed to its vision of shaping and sharing

solutions that serve the development of businesses and communities."

 

2.  Client wins & Testimonials

 

The unstinting support extended to Infosys by clients motivates our teams to

bring greater benefits of digital transformation and the best of Infosys to

their business.

 

- Infosys formed a strategic partnership with Daimler AG, one of the world's

most successful automotive companies, to support a technology-driven IT

infrastructure transformation. Jan Brecht, Chief Information Officer, Daimler

and Mercedes-Benz, said, "Software becomes modular and IT infrastructure

becomes big. Daimler will take three steps at once to transform its IT

infrastructure: consolidation, scaling and modernization. We need to think

infrastructure beyond the size of our company. With Infosys we found a partner

to scale, to innovate and to speed up. Moreover, this is a strategic

partnership for Daimler's IT capabilities and Infosys' automotive expertise.

Infosys wants to grow with us in the automotive industry, which gives career

opportunities for our employees. With this partnership, Daimler also

strengthens its overall technology investment and partnership strategy."

 

- Infosys was selected by El Paso Water, a municipal utility in El Paso, Texas,

to transform its legacy customer information systems (CIS) with Oracle

Utilities Customer to Meter (C2M). Marcela Navarrete, Vice President at

EPWater, said, "This is an ambitious undertaking with multiple system upgrades

simultaneously, but it's a necessary project to help us make a leap forward to

improve both efficiency and customer satisfaction."

 

- Infosys partnered with Rolls-Royce, one of the world's leading aerospace and

defence technology companies, for sourcing engineering and R&D Services for

Rolls-Royce's Civil Aerospace business. Kishore Jayaraman, President,

Rolls-Royce India & South Asia, said, "India has grown to become a key

contributor to the Rolls-Royce global engineering ecosystem, delivering high

levels of technical capability to support a broad range of complex business

demands. Our vision is to continue this high capability engineering work in

India, in partnership with Infosys. Infosys has been a valued partner to

Rolls-Royce for many years, and we now look forward to building on this

strategic partnership to secure the full range of our engineering capabilities

here, while ensuring future growth potential for our engineering talent. We are

committed to India and remain positive about the long-term prospects in this market."

 

- Resimac, a leading non-bank lender in Australia and New Zealand, selected

Infosys Finacle's Digital Banking SaaS to achieve end-to-end digital

modernization for providing enhanced customer experience across all its brands

in Australia and New Zealand. Scott McWilliam, Chief Executive Officer,

Resimac, said, "At Resimac, we are engineering for the future. Our 'customer

first' digital strategy recognizes that lending in the future will look

fundamentally different from today. Our partnership with Infosys Finacle will

enable us to seamlessly adapt to the dynamic and complex lending landscape,

while serving our customers' financial needs in a secure manner. We are

confident that Finacle's solutions delivered on the cloud will accelerate our

transformation into a digital-first lender and help deliver a range of

multi-accessible, flexible and innovative financial solutions."

 

- Mobile Health AG, a Switzerland-based Health Tech startup, selected Infosys

to enhance the go-to-market (GTM) strategy for its electronically

patient-reported outcomes (ePRO) platform, Consilium Care(TM). Frank Gulitz,

CIO, Mobile Health AG, said, "After a rigorous selection process we selected

Infosys as strategic partner for our Cloud Provider Due Diligence, the global

setup of Microsoft Azure, as well as partner for the Infrastructure Operation

and Platform Application Managed Service. Infosys was leading against

competitors by their well-established Cloud Management Services combined with

strong Security Consulting Offerings and Health Industry Insight. We are

looking forward to commonly develop new markets for Consilium Care™, our award

winning CE-marked platform."

 

- "We embarked on our finance transformation journey in 2018 with an aspiration

to save and automate one million hours of manual work. We have now achieved

this goal with the help of Infosys BPM in enabling digital transformation. This

is among the largest and most complex automation programs undertaken, and the

collaborative efforts between the Philips and Infosys BPM teams was key for the

success of the program. Infosys BPM defined and implemented the automation

program, with formal design principles to standardize and automate the selected

use cases. The AssistEdge RPA platform (EdgeVerve) from Infosys was leveraged

to enable digital workers deployed globally with bots concurrently managing

finance processes, including complex record-to-report month-end

reconciliations" - Abhijit Bhattacharya, Chief Financial Officer, Member of the

Executive Committee, Royal Philips, a global leader in health technology.

 

        

Awards & Recognitions

 

- Ranked as a leader in The Forrester Wave(TM): Multicloud Managed Services

Providers, Q4 2020

- Rated as a leader in Everest - System Integrator (SI) Capabilities on Google

Cloud Platform (GCP) Services PEAK Matrix(R) Assessment 2021 NEW

- Positioned as a leader in Everest - System Integrator (SI) Capabilities on

Microsoft Azure Services PEAK Matrix(R) Assessment 2021

- Rated as a leader in Everest - System Integrator (SI) Capabilities on Amazon

Web Services (AWS) Compendium 2021

- Positioned as a leader in NelsonHall - Cloud Infrastructure Brokerage,

Orchestration & Management 2020

- Ranked as a leader in Everest - ServiceNow Services PEAK Matrix Assessment 2021

- Ranked as a leader in IDC MarketScape: Asia/Pacific Salesforce Implementation

Services 2020 Vendor Assessment

- Positioned as a leader in IDC MarketScape: Worldwide Professional Services

Firms for Mining Operational Process Optimisation 2020 Vendor Assessment

- Ranked as a leader in HFS Research Top 10 Healthcare Sector Service Providers

- Positioned as a leader in Everest - Next-generation Application Management

Services PEAK Matrix(R) Assessment 2021

- Ranked as a leader in Gartner Magic Quadrant for Application Testing Services, Worldwide

- Ranked as a leader in IDC MarketScape: Worldwide Retail Commerce Platform

Service Providers 2020 Vendor Assessment

- Positioned as a leader in IDC MarketScape: Worldwide Headless Digital

Commerce Applications 2020-2021 Vendor Assessment

- Positioned as a leader in IDC MarketScape: Worldwide Manufacturing Service

Life-Cycle Management Systems Integrators/Business Process Outsourcing 2020

Vendor Assessment

- Positioned as a leader in IDC MarketScape Worldwide Oracle Cloud

Implementation Services

- Positioned as a leader in Everest - Application and Digital Services in

Capital Markets PEAK Matrix 2020

- Won 1st Runner up for Excellence in Diversity & Inclusion in SHRM HR Excellence Awards

- Infosys Finacle was awarded 'Best Use of IT in Corporate Banking with Bank of 

the West BNP Paribas'

- nfosys Finacle received the award for 'Most Impactful Project in the use of

Blockchain in Banking: Infosys Finacle and Royal Bank of Scotland'

- Infosys achieved over 1,000 Mulesoft certifications. As a strategic MuleSoft

partner, Infosys is committed to helping mutual customers accomplish

cloud-first outcomes in transforming legacy apps, modernizing integration on

cloud, developing digital apps, and building API-led ecosystems

 

About Infosys

 

Infosys is a global leader in next-generation digital services and consulting.

We enable clients in 46 countries to navigate their digital transformation.

With nearly 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 (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, 2020. 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)

                 

                                                            December          March 31

                                                              31, 2020              2020

ASSETS                  

Current assets                  

Cash and cash equivalents                     3,022                 2,465

Current investments                                  454                    615

Trade receivables                                    2,629                 2,443

Unbilled revenue                                     1,050                    941

Other Current assets                                 832                     748

Total current assets                                7,987                  7,212

Non-current assets                         

Property, plant and

equipment and

Right-of-use assets                                2,483                 2,361

Goodwill and other

Intangible assets                                    1,155                    950

Non-current investments                       1,094                    547

Other non-current assets                       1,150                 1,190

Total non-current assets                        5,882                 5,048

Total assets                                          13,869               12,260

LIABILITIES AND EQUITY                  

Current liabilities                  

Trade payables                                         339                   377

Unearned revenue                                    544                   395

Employee benefit obligations                   278                   242

Other current liabilities

and provisions                                        1,905                1,743

Total current liabilities                           3,066                2,757

Non-current liabilities                  

Lease liabilities                                         600                  530

Other non-current liabilities                      342                  272

Total non-current liabilities                       942                  802

Total liabilities                                        4,008                3,559

Total equity attributable to

equity holders of the company               9,800               8,646

Non-controlling interests                            61                    55

Total equity                                             9,861               8,701

Total liabilities and equity                     13,869             12,260

 

 

Extracted from the Condensed Consolidated statement of Comprehensive Income

under IFRS for:

                                                                                

                                                                                

      (Dollars in millions except per equity share data)

                                   

                                                      3 months         3 months           9 months           9 months

                                                         ended              ended               ended                 ended 

                                                  December 31     December 31    December 31     December 31

                                                          2020                2019                  2020                   2019

      

Revenues                                         3,516                3,243                9,948                   9,583

Cost of sales                                    2,275                2,159                6,471                   6,420

Gross profit                                      1,241                1,084                3,477                   3,163

Operating expenses:                                   

   Selling and marketing expenses      156                 169                    459                      502

   Administrative expenses                  192                 204                    577                      612

Total operating expenses                    348                 373                 1,036                    1,114

Operating profit                                   893                 711                 2,441                    2,049

Other income, net (3)                           77                  110                    203                       294

Profit before income taxes                  970                 821                 2,644                     2,343

Income tax expense                            263                 194                    718                       597

Net profit (before minority interest)    707                627                  1,926                    1,746

Net profit (after minority interest)       705                626                  1,916                    1,741

Basic EPS ($)                                      0.17                0.15                   0.45                      0.41

Diluted EPS ($)                                   0.17                0.15                   0.45                      0.41

 

NOTES:

1.  The above information is extracted from the audited condensed consolidated

Balance sheet and Statement of Comprehensive Income for the quarter and nine

months ended December 31, 2020 which have been taken on record at the Board

meeting held on January 13, 2021.

2.  A Fact Sheet providing the operating metrics of the Company can be

downloaded from www.infosys.com.

3.  Other Income includes Finance Cost.

 

Download the INR & Factsheet link here -

https://www.infosys.com/investors/reports-filings/quarterly-results.html

 

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Source: Infosys