BENGALURU, India, Oct. 14, 2020 /PRNewswire/ -- "Our second quarter performance is a clear reflection of our ability to help clients on their digital transformation journeys. Our digital and cloud capabilities combined with intense client relevance are helping us achieve differentiated results in the market as is visible in 2.2% year on year overall revenue growth and 25.4% growth from digital offerings, which now are at 47.3% of revenues," said Salil Parekh, CEO and MD. "Increase in revenue and margin outlook for FY 21 is due to the continued trust clients have in us. I am extremely proud of our team for achieving these results in challenging business conditions globally."
25.4% YoY 2.2% YoY 25.4% $3.15bn INR 12 Digital CC growth CC growth Operating margin Large deal signings Interim DPS, up by 50% YoY ---
-- Q2 revenues grew sequentially by 4.0% in constant currency -- Q2 revenues grew year-on-year by 3.2% in USD; grew by 2.2% in constant currency -- Q2 Digital revenues at $1,568 million (47.3% of total revenues), year-on-year growth of 25.4% in constant currency -- Q2 operating margin at 25.4%, increase of 370 basis points year-on-year -- Q2 free cash flow at $674 million; year-on-year growth of 69.8% -- Q2 net profit at $653 million, year-on-year growth of 14.7% -- Q2 voluntary attrition for IT services declined to 7.8% from 18.3% in Q2 20 -- H1 revenues grew by 1.9% in constant currency -- H1 operating margin at 24.1% -- Declared interim dividend of INR 12 per share -- FY 21 revenue growth guidance revised upward to 2%-3% in constant currency -- FY 21 operating margin guidance revised upward to 23%-24%
1. Financial Highlights - Consolidated results under International Financial Reporting Standards (IFRS)
For For six months ended September the 30, 2020 quarter ended September 30, 2020 Revenues Revenues were $6,433 million, were growth of 1.5% YoY $3,312 million, growth of 3.2% YoY and 6.1% QoQ Operating Operating profit was $1,547 profit QoQ million, growth of 15.6% YoY was $840 million, growth of 20.7% YoY and 18.7% Basic Basic EPS was $0.29, growth of EPS 9.5% YoY was $0.15, growth of 14.9% YoY and 17.0% QoQ ---
"The strength and resilience of Infosys was fully visible in Q2 with operating metrics witnessing a healthy increase, broad-based growth, highest ever large deal TCV at $ 3.15 bn and attrition reducing to single digits," said Pravin Rao, COO. "Employees have been critical part of our success. As a recognition of their stellar performance, we are giving 100% variable pay along with a special incentive for Q2. Additionally, we are rolling out salary increases and promotions across all levels effective Jan 1st."
"Our relentless efforts on cost optimization and strengthening operational efficiencies helped by certain cost deferrals led to 270 bps sequential improvement in operating margin to 25.4% and a 300 bps improvement in H1 margins," said Nilanjan Roy, CFO. "Free Cash Flows grew significantly in H1 driven by our consistent focus on liquidity and cash management. Consequently, we are increasing our interim dividend per share by 50% to INR 12."
2. Client wins & Testimonials
Even amid global uncertainty across industries and the current medical situation, Infosys continued to nurture a culture of deep client relevance while building capabilities to aid them through recovery.
-- Among several milestones achieved in the second quarter, Consolidated Edison Company (Con Edison), one of the oldest Fortune 500 utility companies, selected Infosys to digitally transform Con Edison's customer service capabilities over the next four years -- Infosys collaborated with LANXESS, a leading specialty chemicals company headquartered in Cologne, Germany, to support the company's IT Infrastructure digitization strategy and enable its global workforce with a secure and fully managed modern workplace -- Essential Utilities, one of the largest publicly traded water, wastewater and natural gas providers in the U.S., selected Infosys as a strategic partner to drive its digital transformation -- Infosys has entered into a first-of-its-kind, 360 degree partnership with LivePerson, a leader in conversational AI, headquartered in New York, to transform their infrastructure on the public cloud that will deliver industry-leading agility, scalability, and security. Infosys will also help drive penetration of LivePerson's offerings across its clients and digital marketing, e-commerce, contact center, employee engagement and shared services channels. -- Old National Bancorp (ONB), the largest financial services bank holding company headquartered in Indiana, U.S., wanted Infosys to enable faster adoption of digital solutions, modernize ONB's existing technology infrastructure, and enhance both the client and employee experience -- The National Bank of Bahrain (NBB) selected Infosys Finacle for the digital transformation of its transaction banking business
As global businesses navigate this tough environment, the strength of our relationships and our digital capabilities have helped us sustain the momentum to help our clients grow resilient. Here is what some of them have to say:
-- "We have worked with the Infosys team for over 5 years now, and very successfully. The results were phenomenal. My finance team and the senior Enterprise leadership team couldn't believe how far the guys have gone above and beyond the contract. I am so delighted with the results, delighted with the service that I have received. When the pandemic hit, we had to shut down and lock down both onshore and offshore teams. Thanks to the RPA bots, we were able to issue every single order and we didn't miss a single KPI. Without those bots, we would have been stranded. I can't speak highly enough of the guys involved and the actual tool itself. Superstars one and all." - Brad Monks, Head of Mobile, BT Enterprise -- Kai Finke, CIO of LANXESS said, "Standardized and harmonized workplace services will enable us to increase our service quality and usability on a global basis as well as increase flexibility and scalability which nowadays are getting more and more important. Working with Infosys will allow us to implement state-of-the-art-technologies faster and thus bring LANXESS to the next level regarding workplace services enhancing our collaboration and mobility capabilities."
Awards & Recognitions