Skip to content
Technology & Innovation

Infosys: Broad based growth in H1 of 20.1% in constant currency; Q2 margins expand 150 bps


— Highest large deal TCV of $2.7 bn in last 7 quarters; quarterly
attrition declined for 3rd quarter in a row
— Share buyback of INR9,300 crores ($1.13 bn) & interim dividend of
INR6,940 crores ($0.85 bn) announced

Infosys (NSE: INFY) (BSE: INFY)(NYSE: INFY), a global leader in
next-generation digital services and consulting, reported strong Q2 performance
with year-on-year growth at 18.8% and sequential growth at 4.0% in constant
currency. Year-on-year growth was in double digits across all business segments
in constant currency terms. Digital comprised 61.8% of overall revenues and
grew at 31.2% in constant currency. Operating margin for the quarter increased
sequentially by 150 bps to 21.5%. Large deal TCV for the quarter was robust at
$2.7 bn, highest in last 7 quarters. FY 23 revenue guidance is revised to
15%-16%; operating margin guidance is also revised to 21%-22%.

31.2% YoY 18.8% YoY 21.5% 11.5% YoY $2.7 bn
CC Digital 4.0% QoQ Operating Increase in EPS Large deal TCV
growth CC Revenue growth margin (INR terms)
(in $ terms)

1. Key highlights:
For the quarter ended September 30, 2022
– Revenues in CC terms grew by 18.8% YoY and 4.0% QoQ
– Reported revenues at $4,555 million, growth of 13.9% YoY
– Digital revenues at 61.8% of total revenues, YoY CC growth of 31.2%
– Operating margin at 21.5%, decline of 2.1% YoY and increase of 1.5% QoQ
– Basic EPS at $0.18, growth of 2.5% YoY
– FCF at $589 million, decline of 17.3% YoY; FCF conversion at 78.6% of net

For six months ended September 30, 2022

– Revenues in CC terms grew by 20.1% YoY
– Reported revenues at $8,999 million, growth of 15.7% YoY
– Digital revenues at 61.4% of total revenues, YoY CC growth of 34.5%
– Operating margin at 20.7%, decline of 2.9% YoY
– Basic EPS at $0.34, growth of 0.8% YoY
– FCF at $1,245 million, decline of 21.0% YoY; FCF conversion at 86.6% of
net profit

“Operating margins in Q2 expanded sequentially by 150 bps, helped by our
operational rigor. While supply side challenges are gradually abating as
reflected in the reducing attrition rates, they continue to exert pressure on
our cost structure,” said Nilanjan Roy, Chief Financial Officer. “In line with
the capital allocation policy, the Board has announced an interim dividend of
INR16.50 per share, an increase of 10% over FY 22 interim dividend and an
open market share buyback of INR9,300 crores,” he added.

2. Capital allocation

The Board in its meeting held today approved the following:

— Buyback of Equity Shares, from the open market route through the Indian
stock exchanges, amounting to INR9,300 crore (Maximum Buyback Size,
excluding buyback tax) (app. $1.13 bn*) at a price not exceeding INR1,850
per share (Maximum Buyback Price), subject to shareholders’ approval.
— Interim dividend of INR16.50 per share (app. $0.20 per ADS*) vs. FY
22 interim dividend of INR15. The total amount of interim dividend will be
app. INR6,940 crores (app. $0.85 bn*).

*USD-INR rate of 82.00

3. Client wins and Testimonials

— Currys plc entered into a strategic collaboration with Infosys for
technology and business process services, to help accelerate profitable
growth of their business across key UK and European markets. “As part of
our ongoing transformation, Infosys will help us design and deliver a
next-generation Group Business Services capability. This collaboration
will give us access to world-class digital operations across UK, Europe
and India, benefitting our colleagues and customers with best-in-class
technology, systems, and processes; and new sources of competitive
advantage for our core business,” said Bruce Marsh, Group CFO, Currys
— Infosys Cyber Next platform and Palo Alto Networks strengthened Bpost’s
security posture as part of the cloud transformation journey. Rony
Monnaie, CISO, Bpost, said, “While we embarked on our cloud
transformation journey, Infosys drove several well-considered
cybersecurity initiatives to protect our environment and improve Bpost’s
overall security posture. Today, both our employees and customers
benefit from the secure foundation we now have to deliver and track both
mail and parcels.”
— Spirit AeroSystems entered into a five-year collaboration with Infosys
to co-innovate Aerostructure and Systems Engineering Services by
leveraging Infosys’ next-gen technologies. “At Spirit AeroSystems, we
believe our ability to continuously advance our offering at design and
engineering levels is one of our competitive differentiators. Our
longstanding collaboration with Infosys means we are well-positioned to
co-innovate on critical stages of product development, ensuring we
continue to pursue the highest standards in quality and airworthiness.
This strategic agreement further reinforces our strengths and will
leverage mutual synergies to accelerate the development of world-class,
sustainable aerostructures and services across our commercial and
aftermarket business segments,” said, Dr. Sean Black, Senior Vice
President and Chief Engineer, Engineering and Technology, Spirit
— Infosys collaborated with Telenor Norway to accelerate their IT
modernization and establish Telenor as a product-based organization
through a co-managed model. Commenting on this collaboration, Birgitte
Engebretsen, CEO, Telenor Norway, said, “In current times, it is
imperative for an organization like Telenor Norway to stay ahead of the
curve and ensure that our customers are provided with superior service.
To do this, we have to be future-ready. Staying true to our strategy of
‘Beyond Connectivity’, combined with our powerful collaboration with
Infosys, we are excited to embark on this modernization journey that
will empower us to serve our customers better.”
— “Infosys has been our technology partner for more than 5 years. Infosys
has helped us transform not only our technology landscape, but also how
we engage with students and colleagues helping us to develop new digital
solutions and build new data platforms to gain real value and insights
to better inform our decision-making,” said Judi Turnbull, Director for
Information Technology at Open University.

4. Recognitions

— Infosys won the ‘Most Outstanding Company in India – IT Services Sector’
in Asia’s Outstanding Companies Poll 2022. Asiamoney has designed this
poll to acknowledge the listed companies that have excelled in areas
such as financial performance, management team excellence, investor
relations activities, and CSR initiatives
— Recognized as India’s Best Workplaces(TM) for Women 2022 by Great Place
to Work(R)
— Recognized as UK’s Best Workplaces(TM) in Tech 2022 by Great Place to
— Recognized among Mexico’s Best HR leaders of 2022 by Great Place to Work
— Positioned as a leader in Power & Utilities Industry – Services and
Solutions 2022 by ISG Provider lens study in the US
— Ranked as a leader in HFS Top 10: Sustainability Services, 2022
— Positioned as a leader in HFS Top 10: Capital Markets Services, 2022
— Positioned as a leader in End-to-End Cloud Infrastructure Management
Services 2022 by NelsonHall
— Ranked as a leader in IDC MarketScape: Asia/Pacific SAP Implementation
Services Vendor Assessment, 2022
— Recognized as a leader in EMEA Service Providers for Energy Transition
and New Business Models for Oil and Gas Companies 2022 Vendor Assessment
by IDC
— Positioned as a leader by NelsonHall in Supply Chain Transformation 2022
— Ranked as a leader by NelsonHall in Mortgage & Loan Services 2022
— Ranked as a leader in Data and Analytics (D&A) Services PEAK Matrix(R)
Assessment 2022 by Everest
— Recognized as a leader in System Integration (SI) Capabilities on Amazon
Web Services (AWS) PEAK Matrix(R) Assessment 2022 by Everest
— Recognized as a leader in ServiceNow Services PEAK Matrix(R) Assessment
2022 by Everest
— Positioned as a leader in System Integration (SI) Capabilities on
Microsoft Azure PEAK Matrix(R) Assessment 2022 by Everest
— Ranked as a leader in Avasant’s Digital Master’s 2022 RadarView(TM)
— Positioned as a leader in Avasant’s Freight and Logistics Digital
Services 2022-23 RadarView(TM)
— Recognized as a leader in Avasant’s Life Sciences Digital services
2022-23 RadarView(TM)
— Ranked as a leader in Constellation ShortList(TM) Blockchain Technology
— Positioned as a leader in Constellation ShortList(TM) Campaign to
Commerce: Best-of-Breed Commerce Platforms
— Ranked as a leader in Constellation ShortList(TM) Digital Transformation
Services (DTX): Global
— Positioned as a leader in Constellation ShortList(TM) Public Cloud
Transformation Services: Global
— Ranked as a leader in Constellation ShortList(TM) AI-Driven Cognitive
— Recognized as a leader in Constellation ShortList(TM) Customer
Experience (CX) Operations Services: Global
— Recognized as a leader in Constellation ShortList(TM) Metaverse Design
and Services
— Infosys BPM recognized as LEADER in Everest Group Financial Crime &
Compliance Operations – Services PEAK Matrix(R) Assessment 2022
— Infosys BPM ranked as LEADER in Nelson Hall NEAT: Supply Chain
Transformation 2022

About Infosys

Infosys is a global leader in next-generation digital services and
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 [] 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 []. 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, March 31,
2022 2022
Current Assets
Cash and cash equivalents 1,828 2,305
Current investments 1,448 880
Trade receivables 3,122 2,995
Unbilled revenue 1,635 1,526
Other Current assets 1,178 1,159
Total current assets 9,211 8,865
Non-current assets
Property, plant and
equipment and Right-of-use
assets 2,339 2,429
Goodwill and other
Intangible assets 1,072 1,042
Non-current investments 1,557 1,801
Unbilled revenue 174 124
Other non-current assets 1,287 1,294
Total non-current assets 6,429 6,690
Total assets 15,640 15,555
Current liabilities
Trade payables 512 545
Unearned revenue 855 834
Employee benefit obligations 276 288
Other current liabilities
and provisions 2,946 2,766
Total current liabilities 4,589 4,433
Non-current liabilities
Lease liabilities 685 607
Other non-current liabilities 489 521
Total non-current
liabilities 1,174 1,128
Total liabilities 5,763 5,561
Total equity attributable
to equity holders
of the company 9,828 9,941
Non-controlling interests 49 53
Total equity 9,877 9,994
Total liabilities
and equity 15,640 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 6 months ended 6 months ended
September 30, September 30, September 30, September 30,
2022 2021 2022 2021

Revenues 4,555 3,998 8,999 7,780
Cost of sales 3,170 2,675 6,315 5,184
Gross profit 1,385 1,323 2,684 2,596
Operating expenses:
Selling and marketing
expenses 185 167 378 336
expenses 221 215 439 423
Total operating
expenses 406 382 817 759
Operating profit 979 941 1,867 1,837
Other income, net (3) 65 65 145 142
Profit before
income taxes 1,044 1,006 2,012 1,979
Income tax expense 295 272 574 540
Net profit
(before minority
interest) 749 734 1,438 1,439
Net profit
(after minority
interest) 748 733 1,437 1,437
Basic EPS ($) 0.18 0.17 0.34 0.34
Diluted EPS ($) 0.18 0.17 0.34 0.34


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, 2022, which have been taken on record at the
Board meeting held on October 13, 2022.
2. A Fact Sheet providing the operating metrics of the Company can be
downloaded from [].
3. Other Income includes 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:

Fact Sheet:


SOURCE: Infosys

Source: Infosys