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Infosys: Industry leading FY23 revenue growth of 15.4% with healthy 21.0% operating margins

13 aprile 2023 | 14.49

LETTURA: 13 minuti

Revenue growth guidance of 4%-7% and operating margin guidance of 20%-22% for FY24

BENGALURU, India, April 13, 2023 /PRNewswire/ -- Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY), a global leader in next-generation digital services and consulting, delivered $18.2 billion in FY23 revenues with industry-leading growth of 15.4% in constant currency and operating margins of 21.0%. Growth was broad-based across industry verticals and geographical regions. Digital comprised 62.2% of overall revenues and grew at 25.6% in constant currency.

Q4 year on year growth was 8.8% and sequential decline was 3.2% in constant currency terms. Operating margin for the quarter was 21.0%. Free cash flow conversion was 95.7% for Q4. Continuing the recent trend, attrition declined further in Q4.

"Our strong performance in FY23 is a testimony to the continued focus on digital, cloud and automation capabilities which resonated with our clients. We have launched exciting programs with our clients leveraging generative AI platforms," said Salil Parekh, CEO and MD. "As the environment has changed, we see strong interest from our clients for efficiency, cost and consolidation opportunities, resulting in a strong large deal pipeline. We have expanded our internal program on efficiency and cost to build a path to higher margins in the medium term. We continue to invest in our people and in supporting our clients," he added.

15.0% YoY25.6 % FYCC Digital growth

8.8% YoY15.4% FYCC Revenue growth

21.0% Q421.0 % FYOperating margin( $ terms)

9.0% YoY9.7% FY Increase in EPS (₹ terms)

$2.1 bn Q4$9.8 bn FY Large deal TCV

Guidance for FY24:

1. Key highlights:

For the quarter ended March 31, 2023

Revenues in CC terms grew by 8.8% YoY and declined by 3.2% QoQReported revenues at $4,554 million, growth of 6.4% YoYDigital revenues at 62.9% of total revenues, YoY CC growth of 15.0%Operating margin at 21.0%, decline of 0.5% YoY and QoQBasic EPS at $0.18, growth of 0.2% YoYFCF at $713 million, decline of 6.3% YoY;FCF conversion at 95.7% of net profit

For the year ended March 31, 2023

Revenues in CC terms grew by 15.4% YoYReported revenues at $18,212 million, growth of 11.7% YoYDigital revenues at 62.2% of total revenues, YoY CC growth of 25.6%Operating margin at 21.0%, decline of 2.0% YoYBasic EPS at $0.71, growth of 1.3% YoYFCF at $2,534 million, decline of 17.1% YoY; FCF conversion at 85.0% of net profit

"Our continued focus on cost optimization and operational efficiencies have helped in achieving operating margins of 21.0% in FY23", said Nilanjan Roy, Chief Financial Officer. "Free cash generation in Q4, led by robust collections, was strong. Executing on our capital allocation policy, we successfully completed the share buyback and have proposed a final dividend of `17.50 for FY23", he added.

2. Capital Allocation

For FY23, the Board has recommended a final dividend of ₹17.50 per share ($0.21 per ADS*). Together with the interim dividend of ₹16.50 per share already paid, the total dividend per share for FY23 will amount to ₹34.00 (app. $0.41 per ADS*) which is a 9.7% increase over FY22. With this, the company has announced total dividend of approx. ₹14,200 crore (approx. $1.7 billion*) for FY23.

The company has completed the open market share buyback on February 13, at an average price of approx. ₹1,539 per share (compared to maximum Buyback Price of ₹1,850 per share). Consequently, the share capital of the company has reduced by 1.44%.

Including the recently concluded buyback and final dividend for FY23, the company has returned approx. 86% of Free Cash Flow to shareholders under the current capital allocation policy.

*USD-INR rate of 82.00

3. Client wins & Testimonials

4. Recognitions

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. 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)
	March 31, 2023	March 31, 2022
ASSETS
Current assets
Cash and cash equivalents	1,481	2,305
Current investments	841	880
Trade receivables	3,094	2,995
Unbilled revenue	1,861	1,526
Other Current assets	1,349	1,159
Total current assets	8,626	8,865
Non-current assets
Property, plant and equipment and Right-of-use assets	2,516	2,429
Goodwill and other Intangible assets	1,095	1,042
Non-current investments	1,530	1,801
Unbilled revenue	176	124
Other non-current assets	1,369	1,294
Total non-current assets	6,686	6,690
Total assets	15,312	15,555
LIABILITIES AND EQUITY
Current liabilities
Trade payables	470	545
Unearned revenue	872	834
Employee benefit obligations	292	288
Other current liabilities and provisions	3,135	2,766
Total current liabilities	4,769	4,433
Non-current liabilities
Lease liabilities	859	607
Other non-current liabilities	460	521
Total non-current liabilities	1,319	1,128
Total liabilities	6,088	5,561
Total equity attributable to equity holders of the company	9,172	9,941
Non-controlling interests	52	53
Total equity	9,224	9,994
Total liabilities and equity	15,312	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 March 31, 2023	3 months ended March 31, 2022	Year ended March 31, 2023	Year ended March 31, 2022
Revenues	4,554	4,280	18,212	16,311
Cost of sales	3,164	2,955	12,709	10,996
Gross profit	1,390	1,325	5,503	5,315
Operating expenses:
Selling and marketing expenses	202	179	776	692
Administrative expenses	231	226	902	868
Total operating expenses	433	405	1,678	1,560
Operating profit	957	920	3,825	3,755
Other income, net⁽³⁾	72	78	300	281
Profit before income taxes	1,029	998	4,125	4,036
Income tax expense	284	245	1,142	1,068
Net profit (before minority interest)	745	753	2,983	2,968
Net profit (after minority interest)	744	752	2,981	2,963
Basic EPS ($)	0.18	0.18	0.71	0.70
Diluted EPS ($)	0.18	0.18	0.71	0.70