BENGALURU, India, April 20, 2020 /PRNewswire/ -- "I am proud of the Infosys team that has worked exceptionally well to achieve 93% remote working today and ensuring consistent service delivery for our clients in this rapidly changing environment. Our focus on the health of our employees and our commitment to our clients helped us navigate the past few weeks," said Salil Parekh, CEO and MD. "We had an exceptional year in financial year 2020 with growth of 9.8% and operating margin of 21.3%. While the immediate short-term will be challenging, looking ahead, we can see that there is a strong interest to consolidate with partners with high-quality and agile service delivery and strong financial resilience. I am confident we will emerge from this stronger."
31.7% YoY 6.4% YoY 21.1% Q4 -0.8% CC $1.65bn Q4 37.8% FY 9.8% FY 21.3% FY -1.4% Reported $9.0bn FY Digital CC growth CC growth Operating margin QoQ growth Large deal signings
-- FY20 revenues grew by 8.3% in USD, 9.8% in constant currency -- FY 20 operating margin at 21.3% -- FY 20 Free Cash Flow at $2.15 billion; Free Cash Flow to net profit conversion at 92% -- Q4 20 revenues grew year-on-year by 4.5% in USD; 6.4% in constant currency -- Q4 20 revenues declined sequentially by 1.4% in USD; 0.8% in constant currency -- Q4 20 Digital revenues at $1,341 million (41.9% of total revenues), year-on-year growth of 31.7% and sequential growth of 2.6% in constant currency -- Announces final dividend of `9.50 per share -- Considering the business uncertainty emanating from COVID-19, the company is unable to provide guidance on revenues and margins for FY 21 at this stage. The company will provide guidance after visibility improves
1. Financial Highlights - Consolidated results under International Financial Reporting Standards (IFRS)
For the quarter ended March For the Year ended March 31, 2020 31, 2020 Revenues were $3,197 Revenues were $12,780 million, growth of 4.5% million, growth of 8.3% YoY and decline of 1.4% YoY QoQ Operating profit was $674 Operating profit was $2,724 million, increase of 2.6% million, growth of 1.0% YoY and decline of 5.2% YoY. Operating margin was QoQ. Operating margin was 21.3%. 21.1%. Basic EPS was $0.14, growth Basic EPS was $0.55, growth of 4.2% YoY and decline of of 8.3% YoY 5.7% QoQ
"We completed a satisfying year on multiple counts - growth in all verticals and geographies, significant increase in large deal wins, good client mining and operational discipline", said Pravin Rao, COO. "The impact caused by COVID-19 since last few weeks of March has led to significant displacement in the operating model while severely testing business continuity plans of companies. We demonstrated what a 'Live Enterprise' truly is by improving the infrastructure and technology enablement for our employees in a short time span and ensuring business continuity for clients."
"We continue to remain focused on execution excellence in a period of high uncertainty. Our relentless focus on liquidity will be supported by our strong Balance Sheet of $3.6 billion cash, backed by accelerated cost take-outs and operational rigor", said Nilanjan Roy, CFO. "The final dividend of `9.50 per share is a testimony of a strong free cash flow performance for FY 20."
2. COVID-19 update
As the world comes together to manage the impact of the crisis caused by COVID-19, Infosys is making every effort to tackle the turbulence. The company is prioritizing employee well-being, assuring services for business continuity and strategizing offerings to improve business resilience for its clients, while also supporting community initiatives. Over 93% of our workforce is enabled to work from home, in countries still under lockdown, and from the company's offices, wherever possible - are all in sync with the company's priorities and working tirelessly to help make sure clients are running their businesses and preparing for a future of resilience. (Please refer to the separate press release on our COVID-19 response released today)
3. Update on whistleblower matters
The Audit Committee appointed an external legal counsel to conduct an independent investigation into the whistleblower allegations which have been previously disclosed to stock exchanges on October 22, 2019 and to the Securities Exchange Commission (SEC) on Form 6-K on the same date. As previously disclosed on January 10, 2020 the outcome of the investigation has not resulted in restatement of previously issued financial statements.
The Company cooperated with an investigation by the SEC regarding the same matters. In March 2020, the Company received notification from the SEC that the SEC has concluded its investigation and the Company does not anticipate any further action by the SEC on this matter. The Company is responding to all the inquires received from the Indian regulatory authorities and will continue to cooperate with the authorities for any additional requests for information. Additionally, in October 2019, a shareholder class action lawsuit was filed in the United States District Court for the Eastern District of New York against the Company and certain of its current and former officers for alleged violations of the US federal Securities Laws. The Company is presently unable to predict the scope, duration or the outcome of these matters.
4. Board changes
DN Prahlad, Independent Director, has resigned from the company to devote more time for his other business commitments with effect from April 20, 2020. The Board placed on record its appreciation for the services rendered by him during his tenure.
The Company announced the appointment of Uri Levine as an Independent Director of the Company, effective April 20, 2020, based on the recommendations of the Nomination and Remuneration Committee of the Board. The appointment is for a period of three years and is subject to the approval of shareholders.
Uri Levine is a passionate serial entrepreneur and disruptor. He co-founded Waze, the world's largest community-based driving traffic and navigation app, with more than 500 million drivers around the globe, which was acquired by Google on June 2013 for more than $1.1 billion. Uri has been in the high-tech business for the last 30 years with half of them in the start-up scene.
5. Client wins & Testimonials