FY25 guidance - revenue growth of 1%-3% and
operating margin of 20%-22%
BENGALURU, India, April 18,
2024 /PRNewswire/ -- Infosys (NSE: INFY) (BSE: INFY)
(NYSE: INFY), a global leader in next-generation digital services
and consulting, delivered $18.6
billion in FY24 revenues with a growth of 1.4% in constant
currency and operating margin of 20.7%. Free Cash Flow was strong
at $2,882 million, an increase of
13.7% over FY 23. Large deal TCV for FY24 was highest ever at
$17.7 billion, with 52% being net
new.
Q4 revenues were at $4,564
million, flat year on year and decrease of 2.2% sequentially
in constant currency. Large deal TCV for the quarter was
$4.5 billion, with 44% being net new.
Operating margin for the quarter was 20.1%, a sequential decrease
of 40 bps. Free Cash Flow was robust at $848
million.
"We delivered the highest ever large deal value
in the financial year 2024. This reflects the strong trust clients
have in us. Our capabilities in Generative AI continue to expand.
We are working on client programs leveraging large language models
with impact across software engineering, process optimization, and
customer support, said Salil
Parekh, CEO and MD. "I would like to thank our 317,000
employees across the world that are working to create value for our
clients." he added.
1.4% FY
|
20.7% FY
20.1% Q4
Operating
Margin
|
10.0% FY
30.2% Q4
YoY EPS
Increase
(₹ terms)
|
$17.7 Bn FY
$4.5 Bn Q4
Large
Deal
TCV
|
$2.9 Bn FY
|
Flat Q4
|
$848 Mn Q4
|
YoY CC
Growth
|
Free Cash
Flow
|
Guidance for FY25:
- Revenue growth of 1%-3% in constant currency
- Operating margin of 20%-22%
1. Key highlights:
For the quarter ended March 31,
2024
|
|
For year ended March 31, 2024
|
|
|
|
- Revenues in CC terms
remained flat YoY and declined by 2.2% QoQ
|
|
- Revenues in CC terms
grew by 1.4% YoY
|
- Reported revenues at
$4,564 million, growth of 0.2% YoY
|
|
- Reported revenues at
$18,562 million, growth of 1.9% YoY
|
- Operating margin at
20.1%, decline of 0.9% YoY and 0.4% QoQ
|
|
- Operating margin at
20.7%, decline of 0.3% YoY
|
- Basic EPS at $0.23,
increase of 28.9% YoY
|
|
- Basic EPS at $0.77,
increase of 7.3% YoY
|
- FCF at $848 million,
growth of 18.9% YoY ; FCF conversion at 88.4% of net
profit
|
|
- FCF at $2,882
million, growth of 13.7% YoY; FCF conversion at 91.0% of net
profit
|
"Free cash flow of $848
million in Q4 was highest in the last 11 quarters driven by
our relentless focus to improve working capital cycle. Consistent
with the objective of giving high and predictable returns to
shareholders, the Board has approved the capital allocation policy
under which the company expects to return 85% over the next 5 years
and progressively increase annual Dividend Per Share", said
Jayesh Sanghrajka, CFO.
"Operating margin expansion in the medium-term and improving cash
generation continue to remain our priorities underpinned by early
success in Project Maximus", he added.
2. Capital Allocation
- For the Financial Year 2024, the Board recommended a final
dividend of `20 per share (0.24 per ADS) and additionally a special
dividend of `8 per share (0.10 per ADS*). With this, the total
payout over FY20 – FY 24 will be 85% of Free Cash Flow, in line
with our capital allocation policy announced earlier.
- The Board in its meeting held on April
18, 2024 has reviewed and approved the capital allocation
policy for the next 5 years from FY25 – FY29 after taking into
consideration the strategic and operational cash requirements as
below.
"Effective from financial year 2025, the Company
expects to continue its policy of returning approximately 85% of
the free cash flow cumulatively over a 5-year period through a
combination of semi-annual dividends and/or share buyback/ special
dividends subject to applicable laws and requisite approvals, if
any."
Under this policy, the Company expects to
progressively increase its annual Dividend Per Share (excluding
special dividend if any).
Free cash flow is defined as net cash provided by operating
activities less capital expenditure as per the consolidated
statement of cash flows prepared under IFRS. Dividend and buyback
include applicable taxes.
*USD/INR rate of `83.41
3. Update on India Income Tax Orders
During the quarter ending March 31,
2024, the Company received orders under sections 250 and 254
of the Income Tax Act, 1961, from the Income Tax Authorities in
India for the assessment years,
2007-08 to 2015-16, 2017-18 and 2018-19. These orders confirmed the
Company's position with respect to tax treatment of certain
contentious matters. As a result, interest income (pre-tax) of
$232 million was recognized and
provision for income tax aggregating $63
million was reversed with a corresponding credit to the
Statement of Profit and Loss. Also, upon resolution of the
disputes, an amount aggregating to $196
million has been reduced from contingent liabilities.
4. Update on Financial Services Client
During Q4, we had rescoping and renegotiation of one of the
large contracts in the financial services segment leading to a
one-time impact of approximately 100bps in Q4. Nearly 85% of the
scope of the contract continues as-is.
5. Client wins & testimonials
- Infosys announced a strategic collaboration with Musgrave to
help automate their IT operations by leveraging its industry
leading AI and Cloud offerings, Infosys Topaz and Infosys Cobalt.
Stephen Mckenna, Chief Technology
Officer, Musgrave, said, "I am delighted by our recently
announced collaboration with Infosys, which will enable us to
leverage Infosys' expertise and resources to deliver innovative
solutions to all our customers and retail partners. Musgrave has
always been committed to providing our customers with the best
possible service, and this collaboration is a testament to that
commitment. We are confident that this collaboration will result in
new and exciting products and services that will benefit all our
customers."
- Infosys collaborated with PROG Holdings, Inc. to bring
AI-powered experiences to their customers and intelligent
automation to their operations, as an integral part of PROG
Holdings' ongoing cloud and AI-focused technology modernization and
innovation efforts. Steve
Michaels, President and CEO of PROG Holdings, said, "We
look forward to working with Infosys to develop and enhance key
systems that positively impact the speed to market, agility, and
scalability of key PROG Holdings technologies and platforms. We
expect our collaboration with Infosys will reduce friction for both
our customers and retail partners, further solidifying PROG
Holdings' position atop the virtual lease-to-own industry we helped
create twenty-five years ago."
- Infosys collaborated with Pacific International Lines (PIL) to
accelerate their digital transformation initiative by helping
revamp PIL's existing customer portal and deploying a scalable and
modern technology platform, aimed at creating a positive impact for
PIL's key stakeholders across the shipping and logistics ecosystem.
Lionel Patrice Chatelet, Chief Commercial Officer, Pacific
International Lines (PIL), said, "We are looking for a partner
who can not only bring technology but also play an advisory role in
the journey of transformation. Infosys brings together a strong
combination of right capabilities as well as highly collaborative
ways of working. We are delighted to collaborate with
Infosys."
- Resolution Life Australasia collaborated with Infosys to
virtualize its mainframe systems by enabling a seamless migration
to the cloud, enhancing the overall customer experience.
Peter Histon, CIO of Resolution
Life Australasia, said, "Infosys brought a number of
proprietary accelerators to the table as part of the virtualization
which helped us to deliver the solution rapidly. But beyond that,
Infosys brought in a number of different people capabilities. We
took a progressive approach around migration of the underlying
applications. There were two very big releases. Infosys worked with
us every step of the way."
- zooplus and Infosys have entered into a strategic eight- year
collaboration to set up an AI-led product and technology hub in
Hyderabad, India. Markus Hermanutz, Chief Information Officer,
zooplus SE, said, "We are excited to have selected Infosys to
set up a new AI-led hub through which we will drive our business
growth ambition. With Infosys Topaz, we will achieve productivity
and efficiency at scale, and attract the right talent for upcoming
transformations across our e-commerce value chain."
- Infosys is expanding its successful collaboration with Hasbro,
building on their initial achievements in the SAP S4
implementation. Together, they are advancing their relationship and
strategy globally through a multi-year strategic engagement.
Leveraging Infosys's expertise in AI and a proven experience led
cognitive approach, Infosys is poised to support Hasbro's global
business. This collaboration aims to drive operational excellence,
foster innovation, and deliver superior experiences at scale for
both customers and employees worldwide. Steve Zoltick, CIO & Head, Global Business
Enablement, Hasbro, said, "Infosys is bringing the right talent
to our collaboration allowing us to enhance our capabilities and
achieve our Global Business Enablement goals".
- Infosys Finacle successfully implemented the Finacle Digital
Lending Solution Suite in a Software-as-a-Service (SaaS) mode for
Regional Investment Corporation (RIC) which included the adoption
of the Finacle Online Banking and Finacle Alerts Solution.
Chris Rawlins, Executive Director
Transformation, Regional Investment Corporation (RIC), said,
"At RIC, our mission is to nurture the growth of the Australian
farm businesses through affordable loans, while also ensuring their
resilience and profitability. With the Infosys Finacle Lending
solution, we have a proven technology platform to support the
evolving demands of our business and customers, with the agility to
roll out new products and regulations as mandated by the Federal
Government. The nine-month implementation by the Infosys Finacle
team was delivered on schedule and we are impressed by the team's
commitment to facilitate RIC in achieving a smooth transition
without any disruptions to our customers."
- Infosys and Handlesblatt Media Group announced a strategic
collaboration to support the Handelsblatt Research Institute (HRI)
in making complex reports on global economic and financial topics
more accessible and easily consumable for the public, by leveraging
Infosys Topaz, an AI-first set of services, solutions and platforms
using generative AI technologies. Dr. Jan Kleibrink, Managing Director, Handelsblatt
Research Institute, said, "We are excited to collaborate with
Infosys to offer cutting-edge, AI-enabled trend reports. One of the
core tasks of the Handelsblatt Research Institute is to present
complex economic relationships and the results of scientific
analysis to a broad readership. We achieve this with texts of the
highest journalistic quality and visual storytelling based on
high-quality infographics. With Infosys as our AI and digital
innovation partner, we now move to the next level of digital
storytelling that is powered by AI."
6. Recognitions & Awards
AI and Cloud Services
- Awarded ISO 42001:2023 certification for implementing an
Artificial Intelligence Management System framework
- Positioned as a leader in IDC MarketScape Worldwide Higher
Education Cloud Professional Services Vendor Assessment
- Positioned as a leader in HFS Horizons: Assuring the Generative
Enterprise™, 2024
- Rated as a leader in ISG's Multi Public Cloud Services Provider
Lens™ study
- Rated as a leader in ISG's Intelligent Automation - Solutions
and Services Provider Lens™ study in US and Europe
Key Digital Services
- Rated as a leader in The Forrester Wave™: Application
Modernization And Migration Services, Q1 2024
- Positioned as a leader in the Unified Communication &
Collaboration (UCC) Specialist Services PEAK Matrix® Assessment
2024 by Everest and ranked #1 in the UCC rating by Everest
- Rated as a leader in Pega Services PEAK Matrix® Assessment 2024
by Everest
- Positioned as a leader in Application Transformation Services
PEAK Matrix® Assessment 2024 – North
America by Everest
- Positioned as a leader in Application Transformation Services
PEAK Matrix® Assessment 2024 – Europe by Everest
- Positioned as a leader in Software Product Engineering Services
PEAK Matrix® Assessment 2024 by Everest
- Rated as a leader in Talent Readiness for Next-generation IT
Services PEAK Matrix® Assessment 2023 by Everest
- Positioned as a leader in IDC MarketScape: Worldwide Blockchain
Services 2024 Vendor Assessment
- Rated as a leader in Cyber Resiliency NEAT 2024 by
NelsonHall
- Rated as a leader in Salesforce Services 2024 NEAT 2024 by
NelsonHall
- Rated as a leader in ShortList 2024: Custom Software
Development Services by Constellation Research
- Rated as a leader in ShortList 2024: Innovation Services and
Engineering by Constellation Research
- Rated as leader in ShortList 2024: Learning Marketplaces by
Constellation Research
- Rated as leader in ShortList 2024: Microsoft End-to-End Service
Providers by Constellation Research
- Rated as leader in ShortList 2024: QA Tools for NextGen Apps by
Constellation Research
- Recognized as a leader in Avasant's Retail Digital Services
2024 Radarview™
- Recognized as a leader in Avasant's SAP S/4HANA Services
2023–2024 Radarview
- Rated as a leader in ISG's Environmental, Social and Governance
Services (ESG) Provider Lens™ study in US, Europe and Global
Industry & Solutions
- Positioned as a leader in Retail IT Services PEAK Matrix®
Assessment 2024 by Everest
- Positioned as a leader in HFS Horizons: Manufacturing
Intelligent Operations Services, 2024
- Positioned as a leader in HFS Horizons: The Best Service
Providers for Asset and Wealth Management
- Rated as a leader in ESG Services in Banking 2024 by
NelsonHall
- Rated as a leader in Innovation Radar – Salesforce Related
Services in Europe: The
Communications & Media View by PAC, The Manufacturing View by
PAC, The Energy & Utilities View by PAC, and The Financial
Services View by PAC
- Infosys Finacle along with its customers, won multiple industry
awards at the Retail Banker International Asia Trailblazer Awards
2024. These include Infosys Finacle Mobile Teller awarded for Most
Innovative Branch Offering; Infosys Finacle and HDFC awarded
for
Excellence in Mass Affluent Banking; Infosys Finacle and South
Indian Bank awarded for Best CSR Initiative – Environmental Impact;
Infosys Finacle and Suryoday Bank awarded for Best Core Banking
System Initiative
- Infosys BPM and T-Mobile won the SSON North America Impact
Award 2024, in the Creative Talent Management category
- Infosys BPM recognized at the ISG Digital Case Study Research
and Awards 2023 with 3 STANDOUT winners: Banking and Financial
Services (India), Communications
(Asia Pacific), Retail (UK,
Ireland, Scandinavia)
- Infosys BPM won the Best Workplace Diversity Award, at HR Tech
Summit & Awards 2024
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, our
ability to attract and retain personnel, our ability to effectively
implement a hybrid working model, macro-economic and geo-political
situations, technological innovations such as Generative AI, the
complex and evolving regulatory landscape including immigration
regulation changes, onerous terms and conditions in customer
contracts, 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 ongoing review
of the extent and nature of accessed or exfiltrated data in
relation to the McCamish cybersecurity incident and reaction to
such findings, the timing of the review and notification process,
and the amount of any additional costs, including indemnities or
damages / claims, resulting 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, 2023. 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)
|
|
|
|
|
|
March 31,
2024
|
March 31,
2023
|
ASSETS
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
1,773
|
1,481
|
Current
investments
|
1,548
|
841
|
Trade
receivables
|
3,620
|
3,094
|
Unbilled
revenue
|
1,531
|
1,861
|
Other Current
assets
|
2,250
|
1,349
|
Total current
assets
|
10,722
|
8,626
|
Non-current
assets
|
|
|
Property, plant and
equipment and Right-of-use assets
|
2,323
|
2,516
|
Goodwill and other
Intangible assets
|
1,042
|
1,095
|
Non-current
investments
|
1,404
|
1,530
|
Unbilled
revenue
|
213
|
176
|
Other non-current
assets
|
819
|
1,369
|
Total non-current
assets
|
5,801
|
6,686
|
Total
assets
|
16,523
|
15,312
|
LIABILITIES AND
EQUITY
|
|
|
Current
liabilities
|
|
|
Trade
payables
|
474
|
470
|
Unearned
revenue
|
880
|
872
|
Employee benefit
obligations
|
314
|
292
|
Other current
liabilities and provisions
|
2,983
|
3,135
|
Total current
liabilities
|
4,651
|
4,769
|
Non-current
liabilities
|
|
|
Lease
liabilities
|
767
|
859
|
Other non-current
liabilities
|
500
|
460
|
Total non-current
liabilities
|
1,267
|
1,319
|
Total
liabilities
|
5,918
|
6,088
|
Total
equity attributable to equity holders of the
company
|
10,559
|
9,172
|
Non-controlling
interests
|
46
|
52
|
Total
equity
|
10,605
|
9,224
|
Total liabilities
and equity
|
16,523
|
15,312
|
Extracted from the Condensed Consolidated
statement of Comprehensive Income under IFRS
for:
|
(Dollars in
millions except per equity share data)
|
|
|
3 months ended
March 31, 2024
|
3 months ended
March 31, 2023
|
Year
ended
March 31, 2024
|
Year
ended
March 31, 2023
|
Revenues
|
4,564
|
4,554
|
18,562
|
18,212
|
Cost of
sales
|
3,219
|
3,164
|
12,975
|
12,709
|
Gross
profit
|
1,345
|
1,390
|
5,587
|
5,503
|
Operating
expenses:
|
|
|
|
|
Selling
and marketing expenses
|
209
|
202
|
842
|
776
|
Administrative expenses
|
219
|
231
|
911
|
902
|
Total operating
expenses
|
428
|
433
|
1,753
|
1,678
|
Operating
profit
|
917
|
957
|
3,834
|
3,825
|
Other income, net
(3)
|
315
|
72
|
512
|
300
|
Profit before income
taxes
|
1,232
|
1,029
|
4,346
|
4,125
|
Income tax
expense
|
273
|
284
|
1,177
|
1,142
|
Net profit (before
minority interest)
|
959
|
745
|
3,169
|
2,983
|
Net profit (after
minority interest)
|
958
|
744
|
3,167
|
2,981
|
Basic EPS ($)
(4)
|
0.23
|
0.18
|
0.77
|
0.71
|
Diluted EPS ($)
(4)
|
0.23
|
0.18
|
0.76
|
0.71
|
NOTES:
- The above information is extracted from the audited
condensed consolidated Balance sheet and Statement of Comprehensive
Income for the quarter and year ended March
31, 2024, which have been taken on record at the Board
meeting held on April 18,
2024.
- A Fact Sheet providing the operating metrics of the Company
can be downloaded from www.infosys.com.
- Other income is net of Finance Cost.
- Includes interest income (pre-tax) of $232Mn and reversal of net tax provisions
amounting to $5Mn on account of
orders received under sections 250 & 254 of the Income Tax Act,
1961, from the Income Tax Authorities in India for certain assessment years. This has
resulted in a positive impact on the consolidated Basic and Diluted
EPS by approximately $0.06 for the
quarter and year ended March 31,
2024.
- As the quarter and year ended figures are taken from the
source and rounded to the nearest digits, the quarter figures in
this statement added up to the figures reported for the previous
quarters might not always add up to the year ended figures reported
in this statement.
IFRS-INR Press Release:
https://www.infosys.com/investors/reports-filings/quarterly-results/2023-2024/q4/documents/ifrs-inr-press-release.pdf
Fact
sheet: https://www.infosys.com/investors/reports-filings/quarterly-results/2023-2024/q4/documents/fact-sheet.pdf
Logo: https://mma.prnewswire.com/media/633365/Infosys_Logo.jpg
View original
content:https://www.prnewswire.com/news-releases/infosys-strong-large-deal-tcv-of-4-5-billion-in-q4-and-record-17-7-billion-in-fy24-create-robust-foundation-for-growth-302120999.html
SOURCE Infosys