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

• Highest massive deal TCV of $2.7 bn in final 7 quarters; quarterly attrition declined for third quarter in a row
• Share buyback of ₹9,300 crores ($1.13 bn) and interim dividend of ₹6,940 crores ($0.85 bn) introduced

BENGALURU, India, Oct. 13, 2022 /PRNewswire/ — Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY), a world chief in next-generation digital providers and consulting, reported robust Q2 efficiency with year-on-year growth at 18.8% and sequential growth at 4.0% in constant forex. Year-on-year growth was in double digits throughout all business segments in constant forex phrases. Digital comprised 61.8% of total revenues and grew at 31.2% in constant forex. Operating margin for the quarter elevated sequentially by 150 bps to 21.5%. Large deal TCV for the quarter was strong at $2.7 bn, highest in final 7 quarters. FY 23 income steering is revised to fifteen%-16%; working margin steering can be revised to 21%-22%.

“Our strong large deal wins and steady all-round growth in Q2 reflect the deep relevance and differentiation of our digital and cloud solutions for clients as they navigate their business transformation,” stated Salil Parekh, CEO and MD. “While concerns around the economic outlook persist, our demand pipeline is strong as clients remain confident in our ability to deliver the value they seek, both on the growth and efficiency of their businesses. This is reflected in our revised revenue guidance of 15%-16% for FY 23,” he added.

1.  Key highlights:

“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,” stated Nilanjan Roy, Chief Financial Officer. “In line with the capital allocation policy, the Board has announced an interim dividend of ₹16.50 per share, an increase of 10% over FY 22 interim dividend and an open market share buyback of ₹9,300 crores,” he added.

2.  Capital allocation

The Board in its assembly held as we speak authorised the next:

• Buyback of Equity Shares, from the open market route by the Indian inventory exchanges, amounting to ₹9,300 crore (Maximum Buyback Size, excluding buyback tax) (app. $1.13 bn*) at a value not exceeding ₹1,850 per share (Maximum Buyback Price), topic to shareholders’ approval.
• Interim dividend of ₹16.50 per share (app. $0.20 per ADS*) vs. FY 22 interim dividend of ₹15. The complete quantity of interim dividend will probably be app. ₹6,940 crores (app. $0.85 bn*).

*USD-INR price of 82.00

3. Client wins and Testimonials

• Currys plc entered right into a strategic collaboration with Infosys for expertise and business course of providers, to assist speed up worthwhile growth of their business throughout 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,” stated Bruce Marsh, Group CFO, Currys plc.
• Infosys Cyber Next platform and Palo Alto Networks strengthened Bpost’s safety posture as half of the cloud transformation journey. Rony Monnaie, CISO, Bpost, stated, “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 right into a five-year collaboration with Infosys to co-innovate Aerostructure and Systems Engineering Services by leveraging Infosys’ next-gen applied sciences. “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,” stated, Dr. Sean Black, Senior Vice President and Chief Engineer, Engineering and Technology, Spirit AeroSystems.
• Infosys collaborated with Telenor Norway to speed up their IT modernization and set up Telenor as a product-based group by a co-managed mannequin. Commenting on this collaboration, Birgitte Engebretsen, CEO, Telenor Norway, stated, “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,” stated Judi Turnbull, Director for Information Technology at Open University.

4.  Recognitions

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

About Infosys

Infosys is a world chief in next-generation digital providers and consulting. Over 300,000 of our folks work to amplify human potential and create the subsequent alternative for folks, companies and communities. With over 4 a long time of expertise in managing the programs and workings of international enterprises, we expertly steer shoppers, in greater than 50 nations, as they navigate their digital transformation powered by the cloud. We allow them with an AI-powered core, empower the business with agile digital at scale and drive steady enchancment with always-on studying by the switch of digital expertise, experience, and concepts from our innovation ecosystem. We are deeply dedicated to being a well-governed, environmentally sustainable group the place numerous expertise thrives in an inclusive office.

Visit www.infosys.com to see how Infosys (NSE, BSE, NYSE: INFY) may help your enterprise navigate your subsequent.

Safe Harbor

This Release comprises ‘forward-looking statements’ throughout the that means 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 contain substantial dangers and uncertainties. Forward-looking statements usually relate to future occasions or our future monetary or working efficiency and which are based on our present expectations, assumptions, estimates and projections in regards to the Company, our business, financial circumstances in the markets in which we function, and sure different issues. Generally, these forward-looking statements might be recognized by the use of forward-looking terminology equivalent to ‘could’, ‘anticipate’, ‘consider’, ‘estimate’, ‘count on’, ‘proceed’, ‘intend’, ‘will’, ‘undertaking’, ‘search’, ‘might’, ‘would’, ‘ought to’ and comparable expressions. Those statements embrace, amongst different issues, statements concerning our business technique, our expectations regarding our market place, future operations, growth, margins, profitability, attrition, liquidity, and capital sources, our ESG imaginative and prescient, our capital allocation coverage, the consequences of COVID-19 on international financial circumstances and our business and operations, wage will increase, change in the rules together with immigration regulation and insurance policies in the United States, and company actions together with well timed completion of the proposed buy-back of our fairness shares. These statements are topic to recognized and unknown dangers, uncertainties and different components which can trigger precise outcomes or outcomes to vary materially from these implied by the forward-looking statements. Additional dangers that might have an effect on our future working outcomes are extra totally described in our United States Securities and Exchange Commission filings together with our Annual Report on Form 20-F for the fiscal yr ended March 31, 2022. These filings can be found at www.sec.gov. Infosys could, occasionally, make extra written and oral forward-looking statements, together with statements contained in the Company’s filings with the Securities and Exchange Commission and our studies to shareholders. The Company doesn’t undertake to replace any forward-looking statements which may be made occasionally by or on behalf of the Company until it’s required by regulation.

NOTES:

1. The above data is extracted from the audited condensed consolidated Balance sheet and Statement of Comprehensive Income for the quarter and 6 months ended September 30, 2022, which have been taken on report on the Board assembly held on October 13, 2022.
2. A Fact Sheet offering the working metrics of the Company might be downloaded from www.infosys.com.
3. Other Income contains Finance Cost.
4. As the quarter and 6 months ended figures are taken from the supply and rounded to the closest digits, the quarter figures in this assertion added as much as the figures reported for the earlier quarter won’t at all times add as much as the six months ended figures reported in this assertion.

IFRS INR Press Release: https://www.infosys.com/investors/reports-filings/quarterly-results/2022-2023/q2/documents/ifrs-inr-press-release.pdf 

Fact Sheet: https://www.infosys.com/investors/reports-filings/quarterly-results/2022-2023/q2/documents/fact-sheet.pdf

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