 |
Revenue guidance at 3%-4% and operating margin guidance at 20%-22%
Highest Free Cash Flow at $1.1 billion; Record number of large deals at 34 with $4.1 billion TCV
BENGALURU, India, July 18, 2024 /PRNewswire/ -- Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY), a global leader in next-generation digital services and consulting, delivered $4,714 million in Q1 revenues with a sequential growth of 3.6% and year on year growth of 2.5% in constant currency. Operating margin was at 21.1%, a sequential expansion of 1%. Free cash flow was highest ever at $1,094 million, an increase of 56.5% year over year. Number of large deal wins were highest ever at 34 with TCV of $4.1 billion, 57.6% being net new.
"We had an excellent start to FY25 with strong and broad-based growth, operating margin expansion, robust large deals, and highest ever cash generation. This is a testimony to our differentiated service offerings, enormous client trust, and relentless execution", said Salil Parekh, CEO and MD. "With our focused approach for generative AI for enterprises working with their data sets on a cloud foundation, we have strong traction with our clients. This is building on our Topaz and Cobalt capabilities" he added.
3.6% QoQ | 21.1% | 7.0% YoY | $4.1 Bn | $1.1 Bn |
Guidance for FY25:
1. Key highlights:
For the quarter ended June 30, 2024
"Our relentless drive on cost optimization through Project Maximus, a comprehensive margin expansion program, is reflected in the all-round improvement in key operating metrices leading to 1.0% growth in operating margin in Q1", said Jayesh Sanghrajka, CFO. "We had the highest ever FCF generation at $1.1 bn and ROE increased to 33.6% due to higher payouts to investors", he added.
2. Update on in-tech acquisition
Infosys has completed the acquisition of in-tech, a leading Engineering R&D services provider focused on German automotive industry. This follows the announcement the company made on April 18, 2024.
Headquartered in Germany, in-tech, is one of the fastest growing Engineering R&D services providers that shapes digitization in the automotive, rail transport and smart industry sectors. in-tech develops solutions in e-mobility, connected and autonomous driving, electric vehicles, off-road vehicles and railroad. in-tech brings to Infosys, marquee German original equipment manufacturers, deep client relationships, and an extensive industry expertise with a multidisciplinary team of 2,200 people across locations in Germany, Austria, China, UK, and nearshore locations in Czech Republic, Romania, Spain, and India.
The entire shareholding in in-tech Group India Private Limited, a step-down subsidiary of in-tech Holding GmbH, will be acquired by Infosys Limited. Infosys is delighted to welcome in-tech and its leadership team.
3. Client wins & testimonials
4. 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, and the McCamish cybersecurity incident 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 findings of the review of the extent and nature of data subject to unauthorized access and exfiltration in relation to the McCamish cybersecurity incident and reaction to such findings, the timing of the notification process, and the amount of any additional costs, including indemnities or damages or claims, resulting directly or indirectly from the incident. 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) | ||
June 30, 2024 | March 31, 2024 | |
ASSETS | ||
Current assets | ||
Cash and cash equivalents | 1,971 | 1,773 |
Earmarked bank balance for dividend (4) | 1,394 | - |
Current investments | 1,051 | 1,548 |
Trade receivables | 3,709 | 3,620 |
Unbilled revenue | 1,511 | 1,531 |
Other Current assets | 1,882 | 2,250 |
Total current assets | 11,518 | 10,722 |
Non-current assets | ||
Property, plant and equipment and Right-of-use assets | 2,285 | 2,323 |
Goodwill and other Intangible assets | 1,055 | 1,042 |
Non-current investments | 1,340 | 1,404 |
Unbilled revenue | 198 | 213 |
Other non-current assets | 874 | 819 |
Total non-current assets | 5,752 | 5,801 |
Total assets | 17,270 | 16,523 |
LIABILITIES AND EQUITY | ||
Current liabilities | ||
Trade payables | 443 | 474 |
Unearned revenue | 834 | 880 |
Employee benefit obligations | 336 | 314 |
Other current liabilities and provisions | 4,473 | 2,983 |
Total current liabilities | 6,086 | 4,651 |
Non-current liabilities | ||
Lease liabilities | 740 | 767 |
Other non-current liabilities | 441 | 500 |
Total non-current liabilities | 1,181 | 1,267 |
Total liabilities | 7,267 | 5,918 |
Total equity attributable to equity holders of the company | 9,956 | 10,559 |
Non-controlling interests | 47 | 46 |
Total equity | 10,003 | 10,605 |
Total liabilities and equity | 17,270 | 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 | 3 months ended | |
Revenues | 4,714 | 4,617 |
Cost of sales | 3,259 | 3,211 |
Gross profit | 1,455 | 1,406 |
Operating expenses: | ||
Selling and marketing expenses | 232 | 217 |
Administrative expenses | 229 | 228 |
Total operating expenses | 461 | 445 |
Operating profit | 994 | 961 |
Other income, net (3) | 88 | 57 |
Profit before income taxes | 1,082 | 1,018 |
Income tax expense | 318 | 294 |
Net profit (before minority interest) | 764 | 724 |
Net profit (after minority interest) | 763 | 724 |
Basic EPS ($) | 0.18 | 0.17 |
Diluted EPS ($) | 0.18 | 0.17 |
NOTES:
IFRS-INR Press Release: https://www.infosys.com/investors/reports-filings/quarterly-results/2024-2025/q1/documents/ifrs-inr-press-release.pdf
Fact sheet: https://www.infosys.com/investors/reports-filings/quarterly-results/2024-2025/q1/documents/fact-sheet.pdf
![[Herald Interview] 'Trump will use tariffs as first line of defense for American manufacturing'](http://res.heraldm.com/phpwas/restmb_idxmake.php?idx=645&simg=/content/image/2024/11/26/20241126050017_0.jpg&u=20241126161719)
