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- FY 23 Revenue guidance increased to 14%-16%.
- Margin guidance retained at 21%-23%
BENGALURU, India, July 25, 2022 /PRNewswire/ -- 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 | 21.4% YoY | 20.0 % | 4.4% YoY | $1.7 bn |
CC Digital growth | CC Revenue growth | Operating margin | Increase in EPS | Large deal TCV |
1. Key highlights for the quarter ended June 30, 2022
"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
3. 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: 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 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) | ||
June 30, 2022 | March 31, 2022 | |
ASSETS | ||
Current assets | ||
Cash and cash equivalents | 1,771 | 2,305 |
Current investments | 1,027 | 880 |
Trade receivables | 2,917 | 2,995 |
Unbilled revenue | 1,709 | 1,526 |
Other Current assets | 1,258 | 1,159 |
Total current assets | 8,682 | 8,865 |
Non-current assets | ||
Property, plant and equipment and Right-of-use assets | 2,377 | 2,429 |
Goodwill and other Intangible assets | 1,030 | 1,042 |
Non-current investments | 1,664 | 1,801 |
Unbilled revenue | 150 | 124 |
Other non-current assets | 1,290 | 1,294 |
Total non-current assets | 6,511 | 6,690 |
Total assets | 15,193 | 15,555 |
LIABILITIES AND EQUITY | ||
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 | 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 | |
Revenues | 4,444 | 3,782 |
Cost of sales | 3,144 | 2,509 |
Gross profit | 1,300 | 1,273 |
Operating expenses: | ||
Selling and marketing expenses | 193 | 169 |
Administrative expenses | 219 | 208 |
Total operating expenses | 412 | 377 |
Operating profit | 888 | 896 |
Other income, net (3) | 80 | 77 |
Profit before income taxes | 968 | 973 |
Income tax expense | 279 | 268 |
Net profit (before minority interest) | 689 | 705 |
Net profit (after minority interest) | 689 | 704 |
Basic EPS ($) | 0.16 | 0.17 |
Diluted EPS ($) | 0.16 | 0.17 |
NOTES:
IFRS-INR Press Release: https://www.infosys.com/investors/reports-filings/quarterly-results/2022-2023/q1/documents/ifrs-inr-press-release.pdf
Fact sheet: https://www.infosys.com/investors/reports-filings/quarterly-results/2022-2023/q1/documents/fact-sheet.pdf
