Country for PR: United Kingdom
Contributor: PR Newswire Europe
Monday, July 25 2022 - 00:59
Infosys: Industry leading revenue growth in Q1 lays robust foundation for the year
BENGALURU, India, July 24, 2022 /PRNewswire-AsiaNet/ --

-  FY 23 Revenue guidance increased to 14%-16%.
-  Margin guidance retained at 21%-23%

    Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY), a global leader in 
next-generation digital services and consulting, delivered a robust performance 
in Q1 with year-on-year growth at 21.4% and sequential growth at 5.5% in 
constant currency. Year on year growth was in double digits across all business 
segments in constant currency terms. Digital accounted for 61.0% of overall 
revenues, growing at 37.5% in constant currency. Net hiring was strong at 
21,171. Operating margin for the quarter was 20.0%, with Free Cash Flow 
conversion at 95.2% of net profit.

    "Our strong overall performance in Q1 amidst an uncertain economic 
environment is a testament to our innate resilience as an organization, our 
industry-leading digital capabilities and continued client-relevance. We 
continue to gain market share and see a significant pipeline driven by our 
Cobalt cloud capabilities and differentiated digital value proposition," said 
Salil Parekh, CEO and MD. "We are investing in rapid talent expansion while 
ensuring rewarding careers for our employees, to better serve evolving market 
opportunities. This has resulted in a strong performance in Q1 and increase in 
FY 23 revenue guidance to 14%-16%," he added.

    37.5% YoY
    CC Digital growth

    21.4% YoY 
    5.5% QoQ 
    CC Revenue growth
    20.0 %
    Operating margin 
    ($ terms)

    4.4% YoY
    Increase in EPS 
    (INR terms) 

    $1.7 bn  
    Large deal TCV

    1.  Key highlights for the quarter ended June 30, 2022

     - Revenues in CC terms grew by 21.4% YoY and 5.5% QoQ
    - Reported revenues at $4,444 million, growth of 17.5% YoY
    - Digital revenues at 61.0% of total revenues, YoY CC growth of 37.5% 
    - Operating margin at 20.0%, decline of 3.7% YoY and decline of 1.5% QoQ
    - Basic EPS at $0.16, decline of 1.1% YoY
    - FCF at $656 million; FCF conversion at 95.2% of net profit

    "We are fueling the strong growth momentum with strategic investments in 
talent through hiring and competitive compensation revisions. While this will 
impact margins in the immediate term, it is expected to reduce attrition levels 
and position us well for future growth. We continue to optimize various cost 
levers to drive efficiency in operations," said Nilanjan Roy, Chief Financial 
Officer. "Continued high focus on cash led to strong FCF to net profit 
conversion at 95.2% and improvement in ROE to 31.0%," he added.

    2.  Client Wins & Testimonials

    - Infosys and Rolls-Royce extended their strategic collaboration with the 
launch of a joint 'Aerospace Engineering and Digital Innovation Centre' in 
Bengaluru, India. Speaking about the new centre, Kishore Jayaraman, President – 
India and South Asia, Rolls-Royce, said, "Our strategic partnership with 
Infosys presents an exciting opportunity for both companies to leverage 
combined strengths in engineering and digital innovation to accelerate growth 
in the civil aerospace market. Given the aerospace sector is poised for revival 
and growth in India and across the world, this joint innovation centre will 
strengthen Rolls-Royce's global engineering ecosystem and position us well for 
the future."
    - Infosys launched the Infosys Cobalt Financial Services Cloud, an industry 
cloud platform for enterprises across the financial services industry to 
accelerate business value in the cloud. Dave Cosgrove, Global Head of 
Settlements & Middle Office, MarketAxess, said, "MarketAxess is leveraging the 
Infosys Cobalt Financial Services Cloud platform for reconciliation as a 
service on cloud. This is helping us scale the reconciliation process on-demand 
while improving accuracy and transparency. Leveraging the reconciliation 
service on Infosys Cobalt Financial Services Cloud enabled us to go-live 
quickly without significant capex investments and ongoing maintenance thereby, 
bringing the power of cloud agility and usage-based pricing model to a critical 
business process."
    - Infosys and Google Cloud have been selected by Backcountry to help them 
deliver seamless and secure digital experiences for outdoor enthusiasts. Vismay 
Thakkar, VP of Technology, Backcountry, said, "As we enter the Spring season 
and our customers embark on more outdoor adventures, we anticipate heightened 
demand for our products, which is why we're opening new brick-and-mortar stores 
to meet their needs in any format. Infosys offers the necessary skills and 
resources to deliver a secure and seamless customer experience, virtually or 
in-person, which is why our collaboration is proving to be so powerful."
    - Infosys collaborated with TK Elevator to revamp their digital workplace 
management, network security, and IT infrastructure, powered by Infosys Cobalt. 
Susan Poon, Global CIO at TK Elevator, said, "At TK Elevator, IT infrastructure 
is the core of our digital initiatives, and we continuously strive to provide 
state-of-the-art user services. With Infosys as a strategic partner, we are 
confident to achieve our target of automation, innovation, and efficiency 
across the IT landscape."
    - EisnerAmper, one of the largest accounting, tax, and business advisory 
firms in the U.S., selected RISE with SAP. Sanjay Desai, CTO EisnerAmper said, 
"Infosys is implementing a flexible and scalable solution like SAP S/4HANA 
Public Cloud to help EisnerAmper meet their growth ambitions over the coming 

    3.  Recognitions

    - Recognized among Kantar's global 100 most valuable brands in 2022
    - Ranked highest in Stakeholders Empowerment Services' (SES) 'ESG Scores - 
Top 100 Listed Companies in India' report
    - Recognized as the '2021 Global AI Services Company of the Year' by Frost 
& Sullivan
    - Awarded HFS OneOffice™ Award in the Sustainability category
    - Awarded HFS OneOffice™ Award in the Innovation Ecosystem category
    - Recognized as 'GSI Innovation Partner of the Year 2022' at Snowflake 
    - Winner of the 2022 Microsoft Security Modern Endpoint Management Partner 
of the Year Award
    - Positioned as a leader in the 2022 Gartner® Magic Quadrant™ for SAP 
S/4HANA Application Services, Worldwide
    - Positioned as a leader in the 2022 Gartner® Magic Quadrant™ for Oracle 
Cloud Applications Services, Worldwide
    - Infosys BPM positioned as a leader in the 2022 Gartner® Magic Quadrant™ 
for Finance and Accounting Business Process Outsourcing
    - Ranked as a leader in Everest - Healthcare Payer Digital Services Peak 
Matrix Assessment
    - Recognized as a leader in Everest - Oracle Cloud Applications (OCA) 
Services PEAK Matrix® Assessment for Europe
    - Recognized as a leader in Everest - Sustainability Enablement Technology 
Services PEAK Matrix® Assessment
    - Recognized as a leader in ISG Provider Lens™ ServiceNow Ecosystem 
Partners in U.S. and Australia 2022 Quadrant Report
    - Ranked as a leader in the IDC MarketScape Worldwide Cloud Professional 
Services Vendor Assessment
    - Ranked as a leader in the IDC MarketScape Worldwide Intelligent 
Automation Services Vendor Assessment
    - Positioned as a leader in the IDC MarketScape Worldwide SAP 
Implementation Services 2022 Vendor Assessment
    - Positioned as a leader in Avasant's Salesforce Services 2022 RadarView™
    - Positioned as a leader in Avasant's Internet of Things Services 2022 
    - Ranked as a leader in Avasant's Cybersecurity Services 2022 RadarView™
    - Positioned as a leader in Avasant's Applied AI and Advanced Analytics 
Services 2022 RadarView™
    - EdgeVerve adjudicated as an Innovator in the Computer Vision Category at 
the 2022 NASSCOM AI Game Changer Award
    - EdgeVerve awarded the Gold GLOBEE Awards for Disruptor Company of the 
Year in Automation and Productivity
    - Infosys BPM Winners in the International Project of the Year category 
with Telefonica UK, at the Global Sourcing Association (GSA) UK Awards 2022
    - Infosys BPM announced as a winner in the Telecommunications Project of 
the Year category with BT-EE, at the Global Sourcing Association (GSA) UK 
Awards 2022

    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 to see how Infosys (NSE: INFY) (BSE: INFY) (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 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.

    TABLE 1:

    Infosys Limited and subsidiaries
    Extracted from the Condensed Consolidated Balance Sheet under IFRS as at: 
(Dollars in millions)

                                                              June 30, 2022    
March 31, 2022

    Current assets
     Cash and cash equivalents                                      1,771       
     Current investments                                            
1,027         880
     Trade receivables                                              2,917       
     Unbilled revenue                                               1,709       
     Other Current assets                                           1,258       
    Total current assets                                            8,682       

    Non-current assets
     Property, plant and equipment and Right-of-use assets          2,377       
     Goodwill and other Intangible assets                           1,030       
     Non-current investments                                        1,664       
     Unbilled revenue                                                 
150         124
     Other non-current assets                                       1,290       
    Total non-current assets                                   	    6,511       

    Total assets                                                   15,193      

    Current liabilities
     Trade payables                                                   
501          545
     Unearned revenue                                                 
800          834
     Employee benefit obligations                                     
282          288
     Other current liabilities and provisions                       
3,060        2,766
    Total current liabilities                                       
4,643        4,433

    Non-current liabilities
     Lease liabilities                                                
655          607
     Other non-current liabilities                                    
508          521
    Total non-current liabilities                                   
1,163        1,128

    Total liabilities                                               
5,806        5,561
     Total equity attributable to equity holders of the company     
9,337        9,941
     Non-controlling interests                                         
50           53
    Total equity                                                    
9,387        9,994

    Total liabilities and equity                                   15,193       

    TABLE 2: 

    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 
                                                June 30, 2022           June 
30, 2021

    Revenues                                      4,444                      
    Cost of sales                                 3,144                      
    Gross profit                                  1,300                      

    Operating expenses:
      Selling and marketing expenses                193                        
      Administrative expenses                       219                        
    Total operating expenses                        412                        

    Operating profit                                888                        

    Other income, net (3)                            80                         

    Profit before income taxes                      968                        

    Income tax expense                              279                        

    Net profit (before minority interest)           689                        

    Net profit (after minority interest)            689                        

    Basic EPS ($)                                   0.16                       

    Diluted EPS ($)                                 0.16                       


    1. The above information is extracted from the audited condensed 
consolidated Balance sheet and Statement of Comprehensive Income for the 
quarter ended June 30, 2022, which have been taken on record at the Board 
meeting held on July 24, 2022.
    2. A Fact Sheet providing the operating metrics of the Company can be 
downloaded from
    3. Other Income includes Finance Cost.

    IFRS-INR Press Release:

    Fact sheet:


    Source: Infosys