Differentiated Cloud Services and Large Deal Momentum Drive Infosys' Highest Annual Growth in a Decade
PR95464
BENGALURU, India, April 13, 2022 /PRNewswire=KYODO JBN/ --
Strong Revenue growth guidance of 13%-15% and operating margin guidance of
21%-23% for FY23
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 (INR 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%
1. 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
[https://brandfinance.com/ ] , the world's leading brand valuation firm, in its
Global 500, 2022 report [https://brandirectory.com/rankings/global/ ]
- 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:
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 31,2022 which have been taken on record at the Board meeting held
on April 13, 2022.
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:
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Source: Infosys
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