Publicado 10/01/2020 14:07

Infosys: Continued Momentum in Digital Drives 11.1% YTD Growth (1)

- FY 20 revenue guidance increased to 10.0%-10.5%

BENGALURU, India, Jan. 10, 2020 /PRNewswire/ -- "Q3 results further underscore that we remain steadfast in our journey of sustained client relevance and deepening engagement with them, as they partner with us in navigating their next in the digital transformation era", said Salil Parekh, CEO and MD. "For us, this has translated into double digit growth year-to-date, leading to an increase in revenue guidance, accompanied by expanding operating margins."

40.8% YoY 9.5% YoY 1% QoQ 21.9% $1.8 bnDigital CC growth Cc growth CC growth Operating Margin Large deal signings []

-- Q3 20 revenues grew year-on-year by 8.6% in USD; 9.5% in constant currency -- Q3 20 revenues grew sequentially by 1.0% in USD and in constant currency -- Q3 20 Digital revenues at $1,318 million (40.6% of total revenues), year-on-year growth of 40.8% and sequential growth of 6.8% in constant currency -- Q3 20 operating margin at 21.9%, 0.2% improvement over Q2 20 -- Year-to-date revenues grew by 11.1% in constant currency -- Year-to-date operating margin at 21.4%, within the margin guidance for the year -- Increased FY 20 revenue guidance; revised guidance is 10.0%-10.5% in constant currency -- Maintained FY 20 operating margin guidance range of 21%-23%

1. Financial Highlights - Consolidated results under International Financial Reporting Standards (IFRS)

-- For the quarter ended December 31, 2019 -- Revenues were $3,243 million, growth of 8.6% YoY and 1% QoQ -- Operating profit was $711million, increase of 5.4% YoY and 2.2% QoQ. Operating margin was 21.9%. -- Basic EPS was $0.15, growth of 27.7% YoY and 10.2% QoQ -- For nine months ended December 31, 2019 -- Revenues were $9,583 million, growth of 9.7% YoY -- Operating profit was $2,049 million, growth of 0.6% YoY. Operating margin was 21.4%. -- Basic EPS was $0.41, growth of 9.7% YoY

"Overall performance during the quarter was satisfactory on multiple counts - broad-based growth, steady increase in client metrics and healthy large deal wins", said Pravin Rao, COO. "Large deal wins continue to be robust with growth of 56% so far this year. We had a further reduction in attrition, demonstrating the results of our continued efforts towards strengthening employee engagement and value proposition."

"Operating margins improved further during the quarter driven by relentless cost optimization and operating leverage", said Nilanjan Roy, CFO. "Cash generation was extremely strong with cumulative free cash flow crossing $ 1.5 bn. Return on Equity increased further to 25.9% driven by margin expansion and increased shareholder payouts."

2. Update on Whistleblower Matters

The company has issued a separate press release announcing conclusion of the independent investigation into allegations contained in the anonymous whistleblower complaints disclosed earlier.

3. Client wins & Testimonials

-- We were selected by Telenet, a Belgian telecommunication provider as its preferred IT partner to deliver several digital and data initiatives for the next five years. Telenet plans to leverage Infosys' ecosystem to drive simplification of its existing landscape, build new digital and data capabilities, extract relevant insights from data and leverage existing talent more effectively. -- We entered a strategic long-term partnership with Siemens Gamesa Renewable Energy (SGRE) to support its digital transformation journey. Infosys will provide end-to-end IT infrastructure transformation of SGRE, including hybrid cloud transformation, roll-out of a software defined network, set-up of an intelligent service desk and digital workplace services. -- We were selected as the main supplier to deliver Volvo Cars' digital transformation services for its Enterprise Digital Commercial Operations Applications and Products. As part of this engagement, Infosys will offer next generation application services leveraging its Global Delivery Model (GDM), agile delivery, automation and other service optimization levers to deliver effective service operations. -- Infosys entered an agreement with the Australian Federal Government's Services Australia to transform the entitlement calculation engine for the nation's welfare system. The project will enable Services Australia to more quickly implement policy changes for the benefit of Australians without disrupting services and deliver operational cost savings. The Welfare Payment Infrastructure Transformation (WPIT) programme will replace a significant portion of Centrelink's 30-year-old platform, modernizing the way Services Australia calculates entitlements for Australians needing government support. -- Benjamin Kreider, Global Traceability Director, Mars Global Services, said, "At Mars, we are delighted to enter into a partnership with Infosys for our Digital Supply Chain initiative focused on improving the ongoing market traceability of all of our products, across all business segments, by using Infosys' Traceability Solution for the Food, Beverage, and CPG Industry on their TradeEdge Market Connect Platform. The efficiency and agility of this platform make it strongly suited to meet the unique needs of our industry, across a variety of ERP and warehouse management systems in our factories and third party manufacturers who service our global markets." -- Christian Bornfeld, Chief Innovation & Technology Officer (Group COO) and Executive Board Member at ABN AMRO Bank, said, "At ABN AMRO Bank, we're excited to be working with Infosys and accomplish our strategic goals and deliver this very key IT transformation in the coming years. Infosys' strategic investment in Cloud, Digital and DevOps has helped create best in class solutions and we are confident that this partnership will help us transform our IT environment in a timely and cost-effective way." -- Jean-Luc Galzi, CIO, GEFCO, said: "We are pleased to begin our digital transformation journey with Infosys. Digital innovation in the supply chain sector is key and our new partnership will help strengthen GEFCO's expertise and bring value to our customers."

4. Recognitions