Infosys: Digital Differentiation and Large Deal Momentum Drive Industry-leading Growth in FY21
PR89008
BENGALURU, India, April 14, 2021 /PRNewswire=KYODO JBN/ --
- Double-digit Revenue Growth Guidance of 12%-14% for FY22
- Share Buyback of Rs 9,200 Crore ($1.23 bn) and Final Dividend of Rs 6,400
Crore ($0.85 bn) Announced
Infosys (NSE: INFY), (BSE: INFY), (NYSE: INFY), a global leader in
next-generation digital services and consulting, delivered strong FY21
performance with 5.0% CC growth, and growth accelerating to 9.6% in Q4 – in the
face of a turbulent economic environment. Large deal TCV for FY21 peaked to an
all-time high of $14.1 billion with 66% being net new. Operating margin for the
year expanded by 3.2% and Free Cash Flows increased by 38.5%. The Board has
recommended capital return of Rs 15,600 crore (app. $2.08 billion) including
final dividend of Rs 6,400 crore (app. $0.85 billion) and open market buyback
of shares of Rs 9,200 crore (app. $1.23 billion).
"I am very pleased with our performance this year and incredibly proud of
our employees for the passion and commitment they displayed despite a very
tough environment. We have crossed a milestone of `100,000 crore in revenue in
FY21. Our intense focus on client relevance, growing our digital portfolio with
differentiated capabilities like Infosys CobaltTM, and empowering employees
have helped us emerge as a preferred 'partner-of-choice' for our global
clients. Our record large deal wins stand testimony to the effectiveness of
this approach", said Salil Parekh, CEO and MD. "A strong momentum exiting FY21,
alongside a focused strategy to accelerate client digital journeys, gives us
confidence for a stronger FY22", he added.
34.4% Q4 YoY 9.6% Q4 YoY 24.5% Q4 17.0% FY
$2.1 bn Q4
29.4% FY 5.0% FY 24.5% FY Increase in EPS
$14.1 bn FY
CC Digital growth CC Revenue growth Operating margin (INR terms)
Large deal signings
Outlook for FY22:
- Revenue growth guidance of 12%-14% in constant currency
- Operating margin guidance of 22%-24%
In Q4, Infosys continued to expand its digital capabilities, especially
with the Infosys CobaltTM cloud portfolio. The company announced a partnership
with LivePerson for Conversational AI to help brands manage AI-powered
conversations with consumers and employees. Powered by NVIDIA DGX A100 systems,
the company also built its own applied AI cloud to provide employees simple and
fast access to AI infrastructure, expanding their ability to drive AI-driven
transformation for enterprises.
During the quarter, Infosys was also recognized as one of the World's Most
Ethical Companies in 2021 by Ethisphere Institute, US and was ranked #30 on
WSJ's 2021 list of 100 most sustainably managed companies in the world.
1. Key highlights for the quarter and year ended March 31, 2021
For the quarter ended March 31, 2021
Revenues in CC terms grew by 9.6% YoY and 2.0% QoQ
Reported revenues at $3,613 million, growth of 13.0% YoY
Digital revenues at 51.5% of total revenues, YoY CC growth of 34.4%
Operating margin at 24.5%, increase of 3.4% YoY and decline of 0.9% QoQ
Basic EPS at $0.16, growth of 18.0% YoY
FCF at $799 million, YoY growth of 34.7%; FCF conversion at 114.6% of net
profit
For the year ended March 31, 2021
Revenues in CC terms grew by 5.0% YoY
Reported revenues at $13,561 million, growth of 6.1% YoY
Digital revenues at 48.5% of total revenues, YoY CC growth of 29.4%
Operating margin at 24.5%, increase of 3.2% YoY
Basic EPS at $0.62, growth of 12.5% YoY
FCF at $2,973 million, YoY growth of 38.5%; FCF conversion at 113.3% of net
profit
"Despite the disruptions, we continue to execute seamlessly with
broad-based momentum across verticals. This has led to healthy volume growth
and record utilization in a seasonally soft quarter", said Pravin Rao, COO.
While our employees continue to work from home through this health crisis, we
remain focused on their wellness, including facilitating vaccination rollout
for eligible employees. Attrition has picked up, largely reflecting a strong
demand environment, but we remain confident of our employee engagement
initiatives, vast talent pool and training capabilities to ensure seamless
execution," he added.
"FY21 was a landmark year with superior shareholder returns backed by
robust operating metrics and strong growth across revenue, margins and free
cash flows", said Nilanjan Roy, CFO. "Executing on our capital allocation
policy, the company proposes to increase the total dividend per share by 54%
over previous year and Buyback of Equity shares of up to ₹9,200 crore",
he added.
2. Capital Allocation
The Board in its meeting held today approved the following:
- Buyback of Equity Shares, from the open market route through the Indian
stock exchanges, amounting to ₹9,200 crore (Maximum Buyback Size,
excluding buyback tax) (app. $1.23 billion*) at a price not exceeding
₹1,750 per share (Maximum Buyback Price) (app. $23.3 per ADS*), subject
to shareholders' approval in the ensuing AGM.
- For FY 21, the Board has recommended a final dividend of ₹15 per
share ($0.20 per ADS*). Together with the interim dividend of ₹12 per
share already paid, the total dividend per share for FY 21 will amount to
₹27 (app. $0.36 per ADS*) which is a 54% increase over FY 20. With this,
the company has announced total dividend of ₹11,500 crore (app. $1.53
billion*) for FY21.
*USD-INR rate of 75.00
3. Client Wins & Testimonials
The trust clients repose in Infosys drives us to invest further in building
stronger digital capabilities and to raise the bar in delivery excellence.
- Sam Marnick, Executive Vice President and Chief Operating Officer, Spirit
AeroSystems, said, "We look forward to partnering with Infosys on our efforts
to further diversify our business and strategically position Spirit AeroSystems
for the future. We appreciate the long-standing relationship we have with
Infosys and the support they have brought to a number of strategic projects for
Spirit."
- Alan Feeley, CIO of Siemens Gamesa, said, "Implementing a single S/4HANA
system across all business units and regions is a core component of our
company-wide strategy towards process efficiency, standardization and
industrialization. These first go live steps across 7 countries, supporting all
business types, have proven the value of the greenfield approach chosen,
achieving a stable productive environment around Hybrid Azure cloud by Infosys.
This single and global setup provides an almost Zero "change the standard"
approach giving confidence towards sustainable cost management & upgrade
proofing for the future. Infosys has demonstrated admirable 'staying power' and
has delivered a solid product whilst fulfilling our expectations of being a
partner in full."
- "We are pleased to continue to partner with Infosys BPM in standardizing
and digitizing supply chain processes across our regions. Infosys BPM's strong
leadership commitment and clear understanding of our operations will enable
significant productivity improvements, service levels improvements, and cost
savings," said Ryan Plourde, Group Executive – Supply Chain, Newmont
Corporation.
- Paolo Lomonaco, CFO, Chalhoub Group, said, "We are delighted to extend
our strategic collaboration with Infosys to accelerate our digital
transformation journey and enable a seamless transition to a new business model
in the post-Covid normal. Infosys has been our partner of choice in providing a
range of technology services for almost a year and has managed to efficiently
transition during the unprecedented situation. We look forward to leveraging
Infosys' adroitness and a clear understanding of best in class retail
technologies to scale digital commerce and drive operational efficiency."
- "We collaborated with Infosys to organize our first Mars AI virtual
festival in December 2020, featuring top leaders from Mars, incorporated and
globally renowned AI experts. With more than 8,000 associates and business
stakeholders attending, spread across geographies, and spanning various
business segments, we needed a platform that could not only support the scale
of the event but also deliver a seamless, immersive, and engaging experience.
And the Infosys Meridian platform delivered. Using the Infosys Meridian
workplace ecosystem, we were able to drive interactions and collaboration
amongst the global participants by orchestrating immersive interventions that
included 26 kiosks, a speaker hangout area, a Twitter board, multiple games, a
leaderboard, a digital caricature corner, and a live DJ. Over the five days of
the event, we were able to execute an exciting agenda to create and sustain
meaningful engagements with our global stakeholders." - Miao Song, Global CIO,
Mars Petcare
- "Our partnership with Infosys has been invaluable, allowing us to
innovate, strengthen our core operations, handle growing volumes and as
customers focus on becoming increasingly digital, improve our services. The
Infosys team supports our business transformation goals by helping us drive
efficiencies and improve customer experience. Infosys demonstrated great
support and flexibility throughout the pandemic, helping us keep our operations
running and delivering with an unwavering customer-focus." - Petteri Naulapää,
CIO, Posti Group Oyj
4. Recognitions
1. Ranked #30 (from previous ranking of #94 in 2020) on WSJ's 2021 List of
100 Most Sustainably Managed
Companies in the World
2. Recognized as one of the World's Most Ethical Companies in 2021 by
Ethisphere Institute, US
3. Positioned as a leader in Gartner Magic Quadrant for Data and Analytics
Service Providers
4. Ranked as a leader in HFS Top 10: Hyperscaler Cloud Service Providers
2021
5. Ranked as a leader in HFS Top 10: Digital Associates Services
6. Positioned as a leader in NelsonHall NEAT on Salesforce Services 2020
7. Ranked as a leader in NelsonHall NEAT in SAP Cloud Migration Services
2021
8. Ranked as a leader in Constellation ShortList™ Microsoft End-to-End
Service Providers
9. Positioned as a leader in Constellation ShortList™ Blockchain
Technology Services
10. Positioned as a leader in Constellation ShortList™ Learning
Marketplaces
11. Ranked as a Leader in Everest - Software Product Engineering Services
PEAK Matrix® Assessment 2021
12. Infosys scored 95 out of 100 on the Human Rights Campaign Corporate
Equality Index for LGBTQI+ Inclusion
13. Rated by Sustainalytics as an ESG Industry Top Rated Company
14. Awarded Top Employers Global 2021 certification in 20 countries across
Europe, Middle East, Asia
Pacific, and North America. With top ranking in 15 countries and #1
ranking in India, APAC, and Middle East
Region, and among the top 2 employers in the United States and Australia.
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)
March 31, 2021 March 31, 2020
ASSETS
Current assets
Cash and cash equivalents 3,380 2,465
Current investments 320 615
Trade receivables 2,639 2,443
Unbilled revenue 1,030 941
Other Current assets 938 748
Total current assets 8,307 7,212
Non-current assets
Property, plant and equipment
and Right-of-use assets 2,519 2,361
Goodwill and other Intangible assets 1,115 950
Non-current investments 1,623 547
Unbilled revenue 81 -
Other non-current assets 1,180 1,190
Total non-current assets 6,518 5,048
Total assets 14,825 12,260
LIABILITIES AND EQUITY
Current liabilities
Trade payables 362 377
Unearned revenue 554 395
Employee benefit obligations 276 242
Other current liabilities and provisions 2,072 1,743
Total current liabilities 3,264 2,757
Non-current liabilities
Lease liabilities 627 530
Other non-current liabilities 432 272
Total non-current liabilities 1,059 802
Total liabilities 4,323 3,559
Total equity attributable to equity
holders of the company 10,442 8,646
Non-controlling interests 60 55
Total equity 10,502 8,701
Total liabilities and equity 14,825 12,260
Extracted from the Condensed Consolidated statement of
Comprehensive Income under IFRS for:
(Dollars in millions except per equity
share data)
3 months ended 3 months ended Year ended Year
ended
March 31, 2021 March 31, 2020 March 31, 2021 March
31, 2020
Revenues 3,613 3,197
13,561 12,780
Cost of sales 2,357 2,133
8,828 8,552
Gross profit 1,256 1,064
4,733 4,228
Operating expenses:
Selling and marketing 165 161
624 664
expenses
Administrative expenses 207 229
784 840
Total operating expenses 372 390
1,408 1,504
Operating profit 884 674
3,325 2,724
Other income, net(3) 68 78
271 371
Profit before income taxes 952 752
3,596 3,095
Income tax expense 255 160
973 757
Net profit
(before minority interest) 697 592
2,623 2,338
Net profit
(after minority interest) 697 590
2,613 2,331
Basic EPS ($) 0.16 0.14
0.62 0.55
Diluted EPS ($) 0.16 0.14
0.61 0.55
NOTES:
1. 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, 2021 which have been taken on record at the
Board meeting held on April 14, 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.
IFRS-INR Press Release :
Fact sheet:
Source: Infosys
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