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

12 ottobre 2023 | 15.08

LETTURA: 12 minuti

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%.

"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% YoY2.3% QoQCC 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% QoQReported revenues at $4,718 million, growth of 3.6% YoYOperating margin at 21.2%, decline of 0.3% YoY and increaseof 0.4% QoQBasic EPS at $0.18, growth of 1.7% YoYFCF 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% YoYReported revenues at $9,334 million, growth of 3.7% YoYOperating margin at 21.0%, growth of 0.3% YoYBasic EPS at $0.36, growth of 4.0% YoYFCF 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

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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 endedSeptember 30,2023	3 months endedSeptember 30,2022	6 months endedSeptember 30,2023	6 months endedSeptember 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