- Breakthrough year of performance continues with 6.6% YoY CC
growth in Q3
- Digital crosses 50% of revenues
BENGALURU, India, Jan. 13, 2021 /PRNewswire/ -- Infosys
(NSE: EQINFY) (BSE: 500209) (NYSE: INFY), a global
leader in next-generation digital services and consulting,
delivered its highest Q3 sequential growth of 5.3% in 8 years in
constant currency. On a year on year basis, revenues grew by 6.6%,
digital revenues grew by 31.3% and overall digital revenue crossed
more than half of total revenues. Large deal TCV was at all time
high of $7.13bn with 73% being net
new. Strong and steady operating margin at 25.4%. Revenue and
margin guidance band increased to 4.5%-5.0% and 24.0%-24.5%
respectively on the back of continued strong performance.
"The Infosys team has delivered another quarter of excellent
results. Execution of client relevant strategy focused on digital
transformation continues to drive superior growth, well ahead of
the industry. The scale of new client partnerships with leading
global companies such as Vanguard, Daimler and Rolls-Royce
demonstrate the depth of digital and cloud capabilities of Infosys.
The commitment and skills of our employees to support and drive the
digital journey of clients are matters of great pride for me",
said Salil Parekh, CEO and
MD. "With the intense focus on client needs and the
comprehensive foundation built on differentiated capabilities, I
remain confident about the future."
$7.13bn
31.3%
YoY 6.6%YoY 25.4% 16.5%
YoY
Large deal signings Digital CC
growth CC
growth Operating
margin Increase in EPS (INR
terms)
- Q3 revenues grew year-on-year by 8.4% in USD; grew by 6.6% in
constant currency
- Digital revenues cross 50% of total revenue, year-on-year
growth of 31.3% in constant currency
- Q3 operating margin at 25.4%, year-on-year increase of 350
bps
- Robust Q3 net profit at $705
million, year-on-year growth of 12.6%
- Continued strong Q3 free cash flow at $772 million, year-on-year growth of 15.1%; FCF
conversion at 109.0% of net profit
- Q3 voluntary attrition for IT services declined to 10.0% from
15.8% in Q3 20
- Year-to-date revenues grew by 3.5% in constant currency
- Year-to-date operating margin at 24.5%, an expansion of 310
bps
- FY 21 revenue growth guidance increases to 4.5%-5.0% in
constant currency
- FY 21 operating margin guidance increases to 24.0%-24.5%
In Q3, Infosys further enhanced its digital investments in
Infosys Cobalt - the cloud services, platforms and solutions
portfolio launched last quarter. The company expanded the Infosys
Cobalt portfolio by unveiling Infosys Modernization Suite to help
enterprises modernize their legacy systems and Infosys Live
Enterprise Application Management Platform to deliver
cloud-powered, managed services for IT operations. Infosys Applied
AI converges the power of AI, analytics and cloud to deliver new
business solutions and perceptive experiences.
Infosys also reached a significant milestone in its ESG journey
by becoming carbon neutral in 2020, thirty years ahead of 2050, the
timeline set by the Paris Agreement. Infosys reiterated its
commitment to Environment, Social and Governance causes by
announcing its ESG 2030 vision and ambitions.
1. Financial Highlights
–Consolidated results under International Financial Reporting Standards (IFRS)
For the quarter ended December 31,
2020
Revenues were $3,516 million, growth of 8.4% YoY and 6.2%
QoQ
Operating profit was $893 million,
growth of 25.6% YoY and 6.4% QoQ
Basic EPS was $0.17, growth of 12.5%
YoY and 7.9% QoQ
For nine months ended December 31,
2020
Revenues were $9,948 million, growth of 3.8% YoY
Operating profit was $2,441 million,
growth of 19.1% YoY
Basic EPS was $0.45, growth of 10.6%
YoY
"The resilience of Infosys has been severely tested over the
past several quarters and I am delighted with our response marked
by strong revenue performance, large deal wins, healthy operating
metrics and continued low attrition," said Pravin Rao, COO. "This outstanding
performance has been made possible by reimagining Infosys, over the
last three years, as a live enterprise with fully transformed
digital infrastructure – Infosys Lex for learning, InfyMe for
employee engagement, Infosys Meridian for collaboration, and
Infosys DevSecOps platform to empower application teams to rapidly
build and deploy new features. These highly differentiated systems
and processes, redesigned for a digital-first world, are built on a
strong foundation of robust connectivity to customer networks and
fully secured personal devices. Not only does this give us an
advantage in these times of distributed working but also a distinct
long-term lead into the future."
"Navigating your next strategy coupled with razor sharp focus on
our operating model and efficiencies continues to deliver superior
shareholder value creation," said Nilanjan Roy, CFO. "I am also delighted with
the announcement of Infosys ESG vision 2030 simultaneously with our
climate neutrality achievement, a journey we had embarked on ten
years ago. As a responsible corporate citizen, Infosys is committed
to its vision of shaping and sharing solutions that serve the
development of businesses and communities."
2. Client wins & Testimonials
The unstinting support extended to Infosys by clients motivates
our teams to bring greater benefits of digital transformation and
the best of Infosys to their business.
- Infosys formed a strategic partnership with Daimler AG,
one of the world's most successful automotive companies, to support
a technology-driven IT infrastructure transformation.
Jan Brecht, Chief Information
Officer, Daimler and Mercedes-Benz, said, "Software becomes
modular and IT infrastructure becomes big. Daimler will take three
steps at once to transform its IT infrastructure: consolidation,
scaling and modernization. We need to think infrastructure beyond
the size of our company. With Infosys we found a partner to scale,
to innovate and to speed up. Moreover, this is a strategic
partnership for Daimler's IT capabilities and Infosys' automotive
expertise. Infosys wants to grow with us in the automotive
industry, which gives career opportunities for our employees. With
this partnership, Daimler also strengthens its overall technology
investment and partnership strategy."
- Infosys was selected by El Paso
Water, a municipal utility in El Paso, Texas, to transform its legacy
customer information systems (CIS) with Oracle Utilities Customer
to Meter (C2M). Marcela
Navarrete, Vice President at EPWater, said, "This is an
ambitious undertaking with multiple system upgrades simultaneously,
but it's a necessary project to help us make a leap forward to
improve both efficiency and customer satisfaction."
- Infosys partnered with Rolls-Royce, one of the world's
leading aerospace and defence technology companies, for sourcing
engineering and R&D Services for Rolls-Royce's Civil Aerospace
business. Kishore Jayaraman,
President, Rolls-Royce India & South
Asia, said, "India has
grown to become a key contributor to the Rolls-Royce global
engineering ecosystem, delivering high levels of technical
capability to support a broad range of complex business demands.
Our vision is to continue this high capability engineering work in
India, in partnership with
Infosys. Infosys has been a valued partner to Rolls-Royce for many
years, and we now look forward to building on this strategic
partnership to secure the full range of our engineering
capabilities here, while ensuring future growth potential for our
engineering talent. We are committed to India and remain positive about the long-term
prospects in this market."
- Resimac, a leading non-bank lender in Australia and New
Zealand, selected Infosys Finacle's Digital Banking SaaS to
achieve end-to-end digital modernization for providing enhanced
customer experience across all its brands in Australia and New
Zealand. Scott McWilliam,
Chief Executive Officer, Resimac, said, "At Resimac, we are
engineering for the future. Our 'customer first' digital strategy
recognizes that lending in the future will look fundamentally
different from today. Our partnership with Infosys Finacle will
enable us to seamlessly adapt to the dynamic and complex lending
landscape, while serving our customers' financial needs in a secure
manner. We are confident that Finacle's solutions delivered on the
cloud will accelerate our transformation into a digital-first
lender and help deliver a range of multi-accessible, flexible and
innovative financial solutions."
- Mobile Health AG, a Switzerland-based Health Tech startup,
selected Infosys to enhance the go-to-market (GTM) strategy for its
electronically patient-reported outcomes (ePRO) platform, Consilium
Care™. Frank Gulitz, CIO, Mobile
Health AG, said, "After a rigorous selection process we
selected Infosys as strategic partner for our Cloud Provider Due
Diligence, the global setup of Microsoft Azure, as well as partner
for the Infrastructure Operation and Platform Application Managed
Service. Infosys was leading against competitors by their
well-established Cloud Management Services combined with strong
Security Consulting Offerings and Health Industry Insight. We are
looking forward to commonly develop new markets for Consilium
Care™, our award winning CE-marked platform."
- "We embarked on our finance transformation journey in 2018 with
an aspiration to save and automate one million hours of manual
work. We have now achieved this goal with the help of Infosys BPM
in enabling digital transformation. This is among the largest and
most complex automation programs undertaken, and the collaborative
efforts between the Philips and Infosys BPM teams was key for the
success of the program. Infosys BPM defined and implemented the
automation program, with formal design principles to standardize
and automate the selected use cases. The AssistEdge RPA platform
(EdgeVerve) from Infosys was leveraged to enable digital workers
deployed globally with bots concurrently managing finance
processes, including complex record-to-report month-end
reconciliations" - Abhijit
Bhattacharya, Chief Financial Officer, Member of the
Executive Committee, Royal
Philips, a global leader in health
technology.
Awards & Recognitions
- Ranked as a leader in The Forrester Wave™: Multicloud Managed
Services Providers, Q4 2020
- Rated as a leader in Everest - System Integrator (SI)
Capabilities on Google Cloud Platform (GCP) Services PEAK Matrix®
Assessment 2021 NEW
- Positioned as a leader in Everest - System Integrator (SI)
Capabilities on Microsoft Azure Services PEAK Matrix® Assessment
2021
- Rated as a leader in Everest - System Integrator (SI)
Capabilities on Amazon Web Services (AWS) Compendium 2021
- Positioned as a leader in NelsonHall - Cloud Infrastructure
Brokerage, Orchestration & Management 2020
- Ranked as a leader in Everest - ServiceNow Services PEAK Matrix
Assessment 2021
- Ranked as a leader in IDC MarketScape: Asia/Pacific Salesforce
Implementation Services 2020 Vendor Assessment
- Positioned as a leader in IDC MarketScape: Worldwide
Professional Services Firms for Mining Operational Process
Optimisation 2020 Vendor Assessment
- Ranked as a leader in HFS Research Top 10 Healthcare Sector
Service Providers
- Positioned as a leader in Everest - Next-generation Application
Management Services PEAK Matrix® Assessment 2021
- Ranked as a leader in Gartner Magic Quadrant for Application
Testing Services, Worldwide
- Ranked as a leader in IDC MarketScape: Worldwide Retail
Commerce Platform Service Providers 2020 Vendor Assessment
- Positioned as a leader in IDC MarketScape: Worldwide Headless
Digital Commerce Applications 2020-2021 Vendor Assessment
- Positioned as a leader in IDC MarketScape: Worldwide
Manufacturing Service Life-Cycle Management Systems
Integrators/Business Process Outsourcing 2020 Vendor
Assessment
- Positioned as a leader in IDC MarketScape Worldwide Oracle
Cloud Implementation Services
- Positioned as a leader in Everest - Application and Digital
Services in Capital Markets PEAK Matrix 2020
- Won 1st Runner up for Excellence in Diversity & Inclusion
in SHRM HR Excellence Awards
- Infosys Finacle was awarded 'Best Use of IT in Corporate
Banking with Bank of the West BNP Paribas'
- Infosys Finacle received the award for 'Most Impactful Project
in the use of Blockchain in Banking: Infosys Finacle and Royal Bank
of Scotland'
- Infosys achieved over 1,000 Mulesoft certifications. As
a strategic MuleSoft partner, Infosys is committed to helping
mutual customers accomplish cloud-first outcomes in transforming
legacy apps, modernizing integration on cloud, developing digital
apps, and building API-led ecosystems
About Infosys
Infosys is a global leader in next-generation digital services
and consulting. We enable clients in 46 countries to navigate their
digital transformation. With nearly four decades of experience in
managing the systems and workings of global enterprises, we
expertly steer our clients through their digital journey. We do it
by enabling the enterprise with an AI-powered core that helps
prioritize the execution of change. We also empower the business
with agile digital at scale to deliver unprecedented levels of
performance and customer delight. Our always-on learning agenda
drives their continuous improvement through building and
transferring digital skills, expertise, and ideas from our
innovation ecosystem.
Visit www.infosys.com to see how Infosys (NYSE: INFY) can
help your enterprise navigate your next.
Safe Harbor
"Certain statements in this release concerning our future growth
prospects, financial expectations and plans for navigating the
COVID-19 impact on our employees, clients and stakeholders 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 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 COVID-19 and the effects of government and
other measures seeking to contain its spread, risks related to an
economic downturn or recession in India, the United
States and other countries around the world, changes in
political, business, and economic conditions, fluctuations in
earnings, fluctuations in foreign exchange rates, our ability to
manage growth, intense competition in IT services including those
factors which may affect our cost advantage, wage increases in
India, our ability to attract and
retain highly skilled professionals, time and cost overruns on
fixed-price, fixed-time frame contracts, client concentration,
restrictions on immigration, industry segment concentration, our
ability to manage our international operations, reduced demand for
technology in our key focus areas, disruptions in telecommunication
networks or system failures, our ability to successfully complete
and integrate potential acquisitions, liability for damages on our
service contracts, the success of the companies in which Infosys
has made strategic investments, withdrawal or expiration of
governmental fiscal incentives, political instability and regional
conflicts, legal restrictions on raising capital or acquiring
companies outside India,
unauthorized use of our intellectual property and general economic
conditions affecting our industry and the outcome of pending
litigation and government investigation. 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, 2020. 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)
|
|
|
|
|
December 31,
2020
|
March 31,
2020
|
ASSETS
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
3,022
|
2,465
|
Current
investments
|
454
|
615
|
Trade
receivables
|
2,629
|
2,443
|
Unbilled
revenue
|
1,050
|
941
|
Other Current
assets
|
832
|
748
|
Total current
assets
|
7,987
|
7,212
|
Non-current
assets
|
|
|
Property, plant and
equipment and Right-of-use assets
|
2,483
|
2,361
|
Goodwill and other
Intangible assets
|
1,155
|
950
|
Non-current
investments
|
1,094
|
547
|
Other non-current
assets
|
1,150
|
1,190
|
Total non-current
assets
|
5,882
|
5,048
|
Total
assets
|
13,869
|
12,260
|
LIABILITIES AND
EQUITY
|
|
|
Current
liabilities
|
|
|
Trade
payables
|
339
|
377
|
Unearned
revenue
|
544
|
395
|
Employee benefit
obligations
|
278
|
242
|
Other current
liabilities and provisions
|
1,905
|
1,743
|
Total current
liabilities
|
3,066
|
2,757
|
Non-current
liabilities
|
|
|
Lease
liabilities
|
600
|
530
|
Other non-current
liabilities
|
342
|
272
|
Total non-current
liabilities
|
942
|
802
|
Total
liabilities
|
4,008
|
3,559
|
Total
equity attributable to equity holders of the
company
|
9,800
|
8,646
|
Non-controlling
interests
|
61
|
55
|
Total
equity
|
9,861
|
8,701
|
Total liabilities
and equity
|
13,869
|
12,260
|
Extracted from the
Condensed Consolidated statement of Comprehensive Income under IFRS
for:
(Dollars
in millions except per equity share data)
|
|
|
|
|
|
|
3 months ended
December 31, 2020
|
3 months ended
December 31, 2019
|
9 months ended
December 31, 2020
|
9 months ended
December 31, 2019
|
Revenues
|
3,516
|
3,243
|
9,948
|
9,583
|
Cost of
sales
|
2,275
|
2,159
|
6,471
|
6,420
|
Gross
profit
|
1,241
|
1,084
|
3,477
|
3,163
|
Operating
expenses:
|
|
|
|
|
Selling
and marketing expenses
|
156
|
169
|
459
|
502
|
Administrative expenses
|
192
|
204
|
577
|
612
|
Total operating
expenses
|
348
|
373
|
1,036
|
1,114
|
Operating
profit
|
893
|
711
|
2,441
|
2,049
|
Other income,
net (3)
|
77
|
110
|
203
|
294
|
Profit before income
taxes
|
970
|
821
|
2,644
|
2,343
|
Income tax
expense
|
263
|
194
|
718
|
597
|
Net profit (before
minority interest)
|
707
|
627
|
1,926
|
1,746
|
Net profit (after
minority interest)
|
705
|
626
|
1,916
|
1,741
|
Basic EPS
($)
|
0.17
|
0.15
|
0.45
|
0.41
|
Diluted EPS
($)
|
0.17
|
0.15
|
0.45
|
0.41
|
NOTES:
1. The above information is
extracted from the audited condensed consolidated Balance sheet and
Statement of Comprehensive Income for the quarter and nine months
ended December 31, 2020 which have
been taken on record at the Board meeting held on January 13,
2021.
2. A Fact
Sheet providing the operating metrics of the Company can be
downloaded from
www.infosys.com.
3.
Other Income includes Finance Cost.
Download the INR & Factsheet link here -
https://www.infosys.com/investors/reports-filings/quarterly-results.html
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