PR99450

 

BENGALURU, India, Jan. 12, 2023 /PRNewswire=KYODO JBN/ --

 

- Strongest large deal wins in the last 8 quarters at $3.3 billion

- Revenue guidance for FY23 revised to 16.0%-16.5%

 

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

next-generation digital services and consulting, reported strong Q3 performance

with year-on-year growth at 13.7% and sequential growth at 2.4% in constant

currency. Year on year growth was in double digits for most business segments

and geographical regions in constant currency terms. Large deal TCV for the

quarter was the strongest in the last 8 quarters at $3.3 billion. Digital

comprised 62.9% of overall revenues and grew at 21.7% in constant currency.

Operating margin for the quarter remained resilient at 21.5%. FY23 revenue

guidance revised to 16.0%-16.5%. FY23 operating margin guidance retained at

21%-22%.

"Our revenue growth was strong in the quarter, with both digital business and

core services growing. This is a clear reflection of our deep client relevance,

industry-leading digital, cloud, and automation capabilities, and the

unrelenting dedication of our employees", said Salil Parekh, CEO and MD. "As

reflected in the large deals momentum, we continue to gain market share as a

trusted transformation and operational partner for our clients. Our end-to-end

capabilities and global scale make us a preferred choice as clients look at

consolidating vendors. We remain focused on helping businesses accelerate their

digital agenda to uncover new value and growth, as well as improve operational

and cost effectiveness," he added.

 

21.7% YoY

CC Digital growth

 

13.7% YoY  

2.4% QoQ  

CC Revenue growth

 

21.5 %        

Operating margin

 

13.4% YoY        

Increase in EPS

(INR terms)

 

$3.3 bn  

Large deal TCV

 

1.  Key highlights:

 

For the quarter ended December 31, 2022        

•        Revenues in CC terms grew by 13.7% YoY and 2.4% QoQ

•        Reported revenues at $4,659 million, growth of 9.6% YoY

•        Digital revenues at 62.9% of total revenues, YoY CC growth of 21.7%

•        Operating margin at 21.5%, decline of 2.0% YoY and stable QoQ

•        Basic EPS at $0.19, growth of 3.3% YoY

•        FCF at $576 million, decline of 19.9% YoY; FCF conversion at 72.0% of net

profit

 

For nine months ended December 31, 2022        

•        Revenues in CC terms grew by 17.8% YoY

•        Reported revenues at $13,657 million, growth of 13.5% YoY

•        Digital revenues at 61.9% of total revenues, YoY CC growth of 29.5%

•        Operating margin at 21.0%, decline of 2.6% YoY

•        Basic EPS at $0.53, growth of 1.7% YoY

•        FCF at $1,821 million, decline of 20.6% YoY; FCF conversion at 81.4% of net

profit

"Operating margins in Q3 remained resilient due to cost optimization benefits

which offset the impact of seasonal weakness in operating parameters", said

Nilanjan Roy, Chief Financial Officer. "Attrition reduced meaningfully during

the quarter and is expected to decline further in the near-term," he added.

 

2.  Capital Allocation

Pursuant to the Board recommendation and subsequent to shareholders' approval

through postal ballot, the company has started share buyback program through

open market route from December 7, 2022 and till date, has bought back 31.3

million shares worth ₹4,790 crore (app. $0.6 billion*) or 51.5% of total

authorization of ₹9,300 crore at an average price of approx. ₹1,531

per share (compared to maximum Buyback Price of ₹1,850 per share).

*USD-INR rate of 82.00

 

3.  Client wins & Testimonials

•        Centric Brands has selected Infosys to be a strategic technology partner to

provide a range of digital, IT, business operations and transformation

services. Infosys will leverage its cognitive first IT framework along with its

industry leading digital, cognitive AI, cloud and retail industry solution

accelerators to improve and transform the technology landscape. Anurup Pruthi,

Global CFO, Centric Brands, said, "By partnering with Infosys, we will be able

to standardize our internal processes, bring in the best practices and tools,

and strengthen the skills needed for continued success in the Retail B2B

marketplace."

•        Infosys helped develop a cloud-based platform to digitize and automate manual

processes at Envision AESC, a world-leading battery technology company's

Electric Vehicle (EV) battery manufacturing plants. "At Envision AESC, we

believe that advancements in battery technology will propel the EV revolution

to newer heights. The manufacturing processes of our breakthrough batteries

need a robust digital foundation to accelerate the speed and scale of

innovation. We are confident that Infosys, with their trusted cloud

technologies and deep expertise in the automotive industry, will help us

continue on our journey towards achieving our transformation goals," said,

Brian Sullivan, Executive Vice President of Global Manufacturing and Supply

Chain at Envision AESC.

•        Infosys and Microsoft modernized Spark New Zealand's corporate functions to

enhance business resilience, operational simplicity, workplace agility, and

customer experience. Mark Beder, Chief Operating Officer, Spark, said, "As we

embarked on a journey to revamp our business operations and step out of our

legacy systems, we were looking for partners that understand and provide

strength to our vision for an ERP-driven business transformation. It has been

great working with Infosys and Microsoft as our transformation partners. The

level of ERP implementation expertise and scale they bring to the table in this

endeavor underpinned by best-fit digital solutions and resources is helping us

to unshackle legacy system constraints and will help us improve operational

simplicity, workplace agility and customer experience."

•        Infosys collaborated with CIRCOR, one of the world's leading providers of

mission critical flow control products and services for the Industrial,

Aerospace & Defense markets, to help transform its IT landscape and modernize

its IT infrastructure. Pete Sattler, Chief Information Officer, CIRCOR, said,

"The goal of our alliance with Infosys is to offer all our customers – both

internal and external – faster and more reliable service, enhance our

cybersecurity, and provide 24x7 monitoring for our global IT environment."

•        Avon, part of Natura Group, entered a five-year strategic collaboration with

Infosys to advance its digital transformation journey, implement cognitive

operations, drive continuous innovation, and help in better serving its

customers. Karen McElhatton, CIO, Avon, said, "Through this collaboration,

Infosys will accelerate the realization of our Digital vision, through a

well-planned transformation roadmap to reduce opex spends, increase resilience

and reliability of our application landscape, and prepare us better for new

digital capabilities. We are confident that Infosys, with its sound expertise

in Infrastructure Management Services, Cybersecurity, and Application Services,

will enable us to continue to provide cutting-edge services to our members and

customers."

•        Conagra has entered into a five-year strategic partnership with Infosys to

innovate its IT operations. Conagra and Infosys will be implementing product

based cognitive-first delivery model, with focus on improving operational

excellence, drive continuous innovation, and most importantly improve the

quality of service for Conagra's customers. Andy Xydakis, CTO, Conagra, said,

"We wanted to change the way we run our IT operations. Delivering in true agile

fashion where teams focus on value delivery. Our partnership with Infosys will

help achieve the vision, given their deep Industry knowledge and ability to

align this new way of working to support our overarching business strategy.

Through this collaboration, Infosys will help accelerate the adoption of our

product based continuous delivery operating model, by creating capacity to

deliver features, increase resiliency and reliability of our infrastructure and

application landscape, thereby helping Conagra advance new digital

capabilities."

 

4.  Recognitions

•        Infosys received the Great Place to Work® Certification across five regions

including India, Australia, United Kingdom, Germany, and Mexico. Infosys BPM

received the Great Place to Work® Certification in Philippines

•        Infosys recognized as the Champion of Inclusion in the Most Inclusive

Companies Index (MICI) and featured in the "100 Best – Hall of Fame" by Avtar &

Seramount, 2022

•        Infosys secured a place in CDP's annual 'A List' for its leadership in

corporate transparency and performance on climate change

•        Infosys rated as "Most Noteworthy" Company by DiversityInc, USA

•        Infosys recognized as a constituent of the Dow Jones Sustainability World

Index for 2022

•        Infosys InStep Ranked as the 'Best Internship Program' in the 2023 Vault

Internship Rankings

•        Infosys won the 2022 Marketing Excellence Gold Award from Information

Technology Services Marketing Association (ITSMA) for Infosys Cobalt

•        Infosys, along with client Lanxess recognized as a winner in the "Workplace

of the Future" category in 2022 ISG Paragon Awards™ EMEA

•        Infosys positioned as a leader in Gartner Magic Quadrant for IT Services for

Communications Service Providers, Worldwide

•        Infosys recognized as a leader in Forrester Wave™: Cloud Migration and

Managed Service Partners in Asia Pacific, Q4 2022

•        Infosys positioned as a leader in IDC MarketScape: Asia/Pacific Salesforce

Implementation Services 2022 Vendor Assessment

•        Infosys recognized as a leader in Software Product Engineering Services PEAK

Matrix® Assessment 2023 by Everest

•        Infosys recognized as a leader in System Integration (SI) Capabilities on

Google Cloud Platform (GCP) PEAK Matrix® Assessment 2022 by Everest

•        Infosys recognized as a leader in HFS Horizons: Cloud Native Transformation,

2022

•        Infosys ranked as a leader in Next-Gen ADM Services 2022 ISG Provider lens™

study in US

•        Infosys positioned as a leader in IDC Worldwide Manufacturing Service

Life-Cycle Management Strategic Consulting 2022

•        Infosys recognized as a leader in Workplace Communication and Collaboration

(WCC) Services PEAK Matrix® Assessment 2023 by Everest

•        Infosys positioned as a leader in IDC MarketScape: EMEA Industrial Internet

of Things Service Providers for Oil and Gas Companies 2022 Vendor Assessment

•        Infosys recognized as a leader in Application and Digital Services (ADS) in

Property & Casualty (P&C) Insurance PEAK Matrix® Assessment 2023 by Everest

•        Infosys recognized as a leader in Risk & Compliance in BFS IT Services PEAK

Matrix® Assessment 2023 by Everest

•        Infosys positioned as a leader in Avasant's Utilities Digital Services

2022–2023 RadarViewTM

•        Infosys positioned as a leader in Avasant's Manufacturing Digital Services

2022–2023 RadarViewTM

•        Infosys Finacle positioned as a Leader in The Everest Group PEAK Matrix® for

Wealth Management Products Provider 2023 report

•        Infosys BPM ranked as Leader and Star Performer in Everest Group's Finance

and Accounting Outsourcing (FAO) PEAK Matrix® Assessment 2022

 

About Infosys

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

Over 300,000 of our people work to amplify human potential and create the next

opportunity for people, businesses and communities. With over four decades of

experience in managing the systems and workings of global enterprises, we

expertly steer clients, in more than 50 countries, as they navigate their

digital transformation powered by the cloud. We enable them with an AI-powered

core, empower the business with agile digital at scale and drive continuous

improvement with always-on learning through the transfer of digital skills,

expertise, and ideas from our innovation ecosystem. We are deeply committed to

being a well-governed, environmentally sustainable organization where diverse

talent thrives in an inclusive workplace.

 

Visit www.infosys.com to see how Infosys (NSE, BSE, NYSE: INFY) can help your

enterprise navigate your next.

 

Safe Harbor

This Release contains 'forward-looking statements' within the meaning of

Section 27A of the Securities Act of 1933, as amended (the "Securities Act"),

and Section 21E of the Securities Exchange Act of 1934, as amended (the

"Exchange Act"), that involve substantial risks and uncertainties.

Forward-looking statements generally relate to future events or our future

financial or operating performance and that are based on our current

expectations, assumptions, estimates and projections about the Company, our

industry, economic conditions in the markets in which we operate, and certain

other matters. Generally, these forward-looking statements can be identified by

the use of forward-looking terminology such as 'may', 'anticipate', 'believe',

'estimate', 'expect', 'continue', 'intend', 'will', 'project', 'seek', 'could',

'would', 'should' and similar expressions. Those statements include, among

other things, statements regarding our business strategy, our expectations

concerning our market position, future operations, growth, margins,

profitability, attrition, liquidity, and capital resources, our ESG vision, our

capital allocation policy, the effects of COVID-19 on global economic

conditions and our business and operations, wage increases, change in the

regulations including immigration regulation and policies in the United States,

and corporate actions including timely completion of the proposed buy-back of

our equity shares. These statements are subject to known and unknown risks,

uncertainties and other factors which may cause actual results or outcomes to

differ materially from those implied by the forward-looking statements.

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,

2022. 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 31, 2022        March 31, 2022 

 

ASSETS                 

Current assets                 

Cash and cash equivalents                                                 

1,401                 2,305

Current investments                                                        

1,055                   880

Trade receivables                                                        

3,343                 2,995

Unbilled revenue                                                        1,588                

1,526

Other Current assets                                                        

1,366                 1,159

Total current assets                                                        

8,753                 8,865

Non-current assets                

Property, plant and equipment and Right-of-use assets                        

2,405                 2,429

Goodwill and other Intangible assets                                        

1,098                 1,042

Non-current investments                                                        

1,497                 1,801

Unbilled revenue                                                          

206                   124

Other non-current assets                                            1,267                

1,294

Total non-current assets                                             6,473                

6,690

Total assets                                                              

15,226                15,555

LIABILITIES AND EQUITY                 

Current liabilities                 

Trade payables                                                                  

579                   545

Unearned revenue                                                          

861                   834

Employee benefit obligations                                                  

290                   288

Other current liabilities and provisions                        3,251                

2,766

Total current liabilities                                                 

4,981                 4,433

Non-current liabilities                 

Lease liabilities                                                          

795                   607

Other non-current liabilities                                                   

424                   521

Total non-current liabilities                                                

1,219                 1,128

Total liabilities                                                         

6,200                 5,561

Total equity attributable to equity holders of the company                

8,975                 9,941

Non-controlling interests                                                  

51                    53

Total equity                                                                

9,026                 9,994

Total liabilities and equity                                               

15,226                15,555

                

 

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    9 months ended    9 months ended 

 

                                     December 31,       December 31,        December 31,       December 31, 

       

                                      2022                     2021                       2022                     2021        

Revenues                                        4,659            4,250            13,657              12,031

Cost of sales                                   3,230            2,856              9,544              8,041

Gross profit                                    1,429            1,394              4,113               3,990

Operating expenses:                                

   Selling and marketing expenses    196              177                574                  513

   Administrative expenses                232              219                671                  642

Total operating expenses                  428              396              1,245               1,155

Operating profit                              1,001              998              2,868               2,835

Other income, net (3)                          84                61                 229                  203

Profit before income taxes             1,085            1,059              3,097               3,038

Income tax expense                          285              283                 859                   823

Net profit (before minority interest) 800              776               2,238                2,215

Net profit (after minority interest)    800              774               2,237                2,211

Basic EPS ($)                                   0.19              0.18                0.53                  0.52

Diluted EPS ($)                                0.19              0.18                0.53                  0.52

                                

 

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, 2022, which have been taken on record at the Board

meeting held on January 12, 2023.

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.

4.        The quarter figures added up to the figures reported in previous quarters

might not always add up to the nine months ended figures reported in this

statement as all figures are taken from the source and rounded off to the

nearest digits.

 

IFRS-INR Press Release:

https://www.infosys.com/investors/reports-filings/quarterly-results/2022-2023/q3/documents/ifrs-inr-press-release.pdf

 

Fact sheet:

https://www.infosys.com/investors/reports-filings/quarterly-results/2022-2023/q3/documents/fact-sheet.pdf

 

 

Logo: https://mma.prnewswire.com/media/633365/Infosys_Logo.jpg

 

Source: Infosys