Infosys : Highest ever large and mega deal wins with TCV of $7.7 billion lay solid foundation for future

Infosys : Highest ever large and mega deal wins with TCV of $7.7 billion lay solid foundation for future

PR Newswire

BENGALURU, India, Oct. 12, 2023

Q2 growth at 2.3% sequentially with resilient margins of 21.2%. Revenue guidance revised to 1.0%- 2.5%

BENGALURU, India, Oct. 12, 2023 /PRNewswire/ -- Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY), a global leader in next-generation digital services and consulting, delivered $4,718 million in Q2 revenues with year-on-year growth of 2.5% and sequential growth of 2.3% in constant currency. Large deal TCV for the quarter was $7.7 billion, with net new of 48%. Operating margin for the quarter increased by 40 bps sequentially to 21.2%. Attrition declined further to 14.6%. FY24 revenue guidance revised to 1.0%-2.5% and operating margin guidance retained at 20%-22%.

Infosys Logo

"We had our highest large deals value at $7.7 billion in Q2 spread across all verticals and geographies.  This, in an uncertain macro-environment, is a testament to our ability to pivot and stay relevant to the evolving client needs, by delivering the benefits of transformation as well as productivity and cost savings at scale", said Salil Parekh, CEO and MD. "Strong H1 performance with significant large deal wins, builds a solid foundation for the future. The growing adoption of our Generative AI offering, Topaz, is helping us deliver consistent value and expand market share", he added.

2.5% YoY
2.3% QoQ
CC Revenue growth


21.2%
Operating margin


$7.7 bn 
Large deal TCV


4.6% YoY 
Increase in EPS 
(₹ terms)

 

Guidance for FY24:

1. Key highlights: 

For the quarter ended September 30, 2023

  • Revenues in CC terms grew by 2.5% YoY and 2.3% QoQ
  • Reported revenues at $4,718 million, growth of 3.6% YoY
  • Operating margin at 21.2%, decline of 0.3% YoY and increase
    of 0.4% QoQ
  • Basic EPS at $0.18, growth of 1.7% YoY
  • FCF at $670 million, growth of 13.8% YoY;
    FCF conversion at 89.2% of net profit

For six months ended September 30, 2023

  •  Revenues in CC terms grew by 3.3% YoY
  • Reported revenues at $9,334 million, growth of 3.7% YoY
  • Operating margin at 21.0%, growth of 0.3% YoY
  • Basic EPS at $0.36, growth of 4.0% YoY
  • FCF at $1,369 million, growth of 10.0% YoY;
    FCF conversion at 92.8% of net profit

"Our Q2 operating margin of 21.2% demonstrates the early benefits of recently unveiled margin improvement plan and is a clear reflection of our ability to continuously identify opportunities for improving operational efficiencies", said Nilanjan Roy, CFO. "In line with our capital allocation policy, the Board has announced an interim dividend of ` 18 per share, an increase of 9.1% over last year", he added.

2.  Client wins & testimonials

3.  Recognition

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. We enable clients in more than 56 countries to navigate their digital transformation. With over four decades of experience in managing the systems and workings of global enterprises, we expertly steer clients, 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

Certain statements in this release concerning our future growth prospects, or our future financial or operating performance 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 or outcomes 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 the execution of our business strategy, our ability to attract and retain personnel, our transition to hybrid work model, economic uncertainties, technological innovations such as Generative AI, the complex and evolving regulatory landscape including immigration regulation changes, our ESG vision, our capital allocation policy and expectations concerning our market position, future operations, margins, profitability, liquidity, capital resources, and our corporate actions including acquisitions. Important factors that may cause actual results or outcomes to differ from those implied by the forward-looking statements are discussed in more detail in our US Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2023.  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)


September 30, 2023

March 31, 2023

ASSETS



Current assets



Cash and cash equivalents

1,892

1,481

Current investments

913

841

Trade receivables

3,403

3,094

Unbilled revenue

1,692

1,861

Other Current assets

1,379

1,349

Total current assets

9,279

8,626

Non-current assets



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

2,424

2,516

Goodwill and other Intangible assets

1,058

1,095

Non-current investments

1,414

1,530

Unbilled revenue

171

176

Other non-current assets

1,343

1,369

Total non-current assets

6,410

6,686

Total assets

15,689

15,312

LIABILITIES AND EQUITY



Current liabilities



Trade payables

386

470

Unearned revenue

844

872

Employee benefit obligations

315

292

Other current liabilities and provisions

3,134

3,135

Total current liabilities

4,679

4,769

Non-current liabilities



Lease liabilities

798

859

Other non-current liabilities

441

460

Total non-current liabilities

1,239

1,319

Total liabilities

5,918

6,088

Total equity attributable to equity holders of the company

9,720

9,172

Non-controlling interests

51

52

Total equity

9,771

9,224

Total liabilities and equity

15,689

15,312




 

Extracted from the Condensed Consolidated statement of Comprehensive Income under IFRS for: 

(Dollars in millions except per equity share data)


3 months ended
September 30,
2023

3 months ended
September 30,
2022

6 months ended
September 30,
2023

6 months ended
September 30,
2022

Revenues

4,718

4,555

9,334

8,999

Cost of sales

3,271

3,170

6,481

6,315

Gross profit

1,447

1,385

2,853

2,684

Operating expenses:





   Selling and marketing expenses

213

185

429

378

   Administrative expenses

234

221

463

439

Total operating expenses

447

406

892

817

Operating profit

1,000

979

1,961

1,867

Other income, net (3)

60

65

117

145

Profit before income taxes

1,060

1,044

2,078

2,012

Income tax expense 

309

295

603

574

Net profit (before minority interest)

751

749

1,475

1,438

Net profit (after minority interest)

751

748

1,475

1,437

Basic EPS ($)

0.18

0.18

0.36

0.34

Diluted EPS ($)

0.18

0.18

0.36

0.34

NOTES:

  1. The above information is extracted from the audited condensed consolidated Balance sheet and Statement of Comprehensive Income for the quarter and six months ended September 30, 2023, which have been taken on record at the Board meeting held on October 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. As the quarter and six months ended figures are taken from the source and rounded to the nearest digits, the quarter figures in this statement added up to the figures reported for the previous quarter might not always add up to the six months ended figures reported in this statement.

IFRS-INR Press Release : https://www.infosys.com/investors/reports-filings/quarterly-results/2023-2024/q2/documents/ifrs-inr-press-release.pdf

Fact sheet: https://www.infosys.com/investors/reports-filings/quarterly-results/2023-2024/q2/documents/fact-sheet.pdf

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

Cision View original content:https://www.prnewswire.co.uk/news-releases/infosys--highest-ever-large-and-mega-deal-wins-with-tcv-of-7-7-billion-lay-solid-foundation-for-future-301954967.html

Voltar noticias em Inglês