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Infosys: Strong performance with broad based revenue growth in CC of 3.1% sequentially and 3.3% YoY

17 ottobre 2024 | 14.24

LETTURA: 13 minuti

FY25 revenue guidance revised to 3.75%-4.50%; Margin guidance retained at 20%-22%

BENGALURU, India, Oct. 17, 2024 /PRNewswire/ -- Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY), a global leader in next-generation digital services and consulting, delivered broad based growth performance with $4,894 million in Q2 revenues, sequential growth of 3.1% and year on year growth of 3.3% in constant currency. Operating margin for Q2 was at 21.1%. Free cash flow for Q2 was at $839 million, growing 25.2% year on year. TCV of large deal wins was $2.4 billion, 41% being net new.

H1 revenues grew at 2.9% year over year in constant currency. Operating margin for H1 was at 21.1%.

"We had strong growth of 3.1% quarter-on-quarter in constant current in Q2. The growth was broad based with good momentum in financial services. This stems from our strength in industry expertise, market leading capabilities in cloud with Cobalt and generative AI with Topaz, resulting in growing client preference to partner with us", saidSalil Parekh, CEO and MD. "Our large deals at $2.4 billion in Q2 reflect our differentiated position. I am grateful to our employees for their unwavering commitment to our client as we further strengthen our market leadership" he added.

3.1% QoQ

3.3% YoY

CC Growth

21.1%

Operating Margin

4.7% YoY

EPS Increase

(₹ terms)

$2.4 Bn

Large Deal

TCV

$839 Mn

Free

Cash Flow

Guidance for FY25:

Key highlights:

For six months ended September 30, 2024	For the quarter ended September 30, 2024
Revenues in CC terms grew by 2.9% YoYReported revenues at $9,608 million, growth of 2.9% YoYOperating margin at 21.1%, growth of 0.1% YoYBasic EPS at $0.37, growth of 4.4% YoYFCF at $1,933 million, growth of 41.2% YoY; FCF conversion at 125.3% of net profit	Revenues in CC terms grew by 3.3% YoY and 3.1% QoQReported revenues at $4,894 million, growth of 3.7% YoYOperating margin at 21.1%, decline of 0.1% YoY and flat QoQBasic EPS at $0.19, growth of 3.4% YoYFCF at $839 million, growth of 25.2% YoY; FCF conversion at 107.8% of net profit

"We continue to focus on accelerating revenue growth with a sharp focus on margin performance. Operating margins for the quarter was at 21.1%, driven by continued benefits from value-based pricing and utilization despite higher employee payouts. Our focus on cash generation resulted in another quarter of over 100% Free Cash Flow conversion to net profits," said Jayesh Sanghrajka, CFO. "The Board announced an interim dividend of `21 per share, 16.7% increase from last year," he added.

1. Client wins & Testimonials

2. Recognitions & Awards

Brand

^®^®

AI and Cloud Services

Key Digital Services

Industry & Solutions

Read more about our Awards & Recognitions here.

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, our future financial or operating performance, the McCamish cybersecurity incident and the related review and notification process 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, increased competition for talent, our ability to attract and retain personnel, increase in wages, investments to reskill our employees, our ability to effectively implement a hybrid working model, economic uncertainties and geo-political situations, technological disruptions and 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, our corporate actions including acquisitions, the amount of any additional costs, including indemnities or damages or claims, resulting directly or indirectly from the McCamish cybersecurity incident and the outcome and effect of pending litigation. 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, 2024. 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, 2024	March 31, 2024
ASSETS
Current assets
Cash and cash equivalents	2,601	1,773
Current investments	887	1,548
Trade receivables	3,820	3,620
Unbilled revenue	1,559	1,531
Other current assets	1,817	2,250
Total current assets	10,684	10,722
Non-current assets
Property, plant and equipment and Right-of-use assets	2,284	2,323
Goodwill and other Intangible assets	1,604	1,042
Non-current investments	1,189	1,404
Unbilled revenue	255	213
Other non-current assets	912	819
Total non-current assets	6,244	5,801
Total assets	16,928	16,523
LIABILITIES AND EQUITY
Current liabilities
Trade payables	458	474
Unearned revenue	860	880
Employee benefit obligations	343	314
Other current liabilities and provisions	3,210	2,983
Total current liabilities	4,871	4,651
Non-current liabilities
Lease liabilities	756	767
Other non-current liabilities	463	500
Total non-current liabilities	1,219	1,267
Total liabilities	6,090	5,918
Total equity attributable to equity holders of the company	10,789	10,559
Non-controlling interests	49	46
Total equity	10,838	10,605
Total liabilities and equity	16,928	16,523

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, 2024	3 months ended September 30, 2023	6 months ended September 30,2024	6 months ended September 30, 2023
Revenues	4,894	4,718	9,608	9,334
Cost of sales	3,400	3,271	6,659	6,481
Gross profit	1,494	1,447	2,949	2,853
Operating expenses:
Selling and marketing expenses	221	213	454	429
Administrative expenses	240	234	469	463
Total operating expenses	461	447	923	892
Operating profit	1,033	1,000	2,026	1,961
Other income, net ⁽³⁾	72	60	160	117
Profit before income taxes	1,105	1,060	2,186	2,078
Income tax expense	327	309	644	603
Net profit (before minority interest)	778	751	1,542	1,475
Net profit (after minority interest)	777	751	1,540	1,475
Basic EPS ($)	0.19	0.18	0.37	0.36
Diluted EPS ($)	0.19	0.18	0.37	0.36