- Breakthrough year of performance continues with 6.6% YoY CC growth in Q3
- Digital crosses 50% of revenues
BENGALURU, India, Jan. 13, 2021 /PRNewswire/ -- Infosys (NSE: EQINFY) , a global leader in next-generation digital services and consulting, delivered its highest Q3 sequential growth of 5.3% in 8 years in constant currency. On a year on year basis, revenues grew by 6.6%, digital revenues grew by 31.3% and overall digital revenue crossed more than half of total revenues. Large deal TCV was at all time high of $7.13bn with 73% being net new. Strong and steady operating margin at 25.4%. Revenue and margin guidance band increased to 4.5%-5.0% and 24.0%-24.5% respectively on the back of continued strong performance.
"The Infosys team has delivered another quarter of excellent results. Execution of client relevant strategy focused on digital transformation continues to drive superior growth, well ahead of the industry. The scale of new client partnerships with leading global companies such as Vanguard, Daimler and Rolls-Royce demonstrate the depth of digital and cloud capabilities of Infosys. The commitment and skills of our employees to support and drive the digital journey of clients are matters of great pride for me", said Salil Parekh, CEO and MD. "With the intense focus on client needs and the comprehensive foundation built on differentiated capabilities, I remain confident about the future."
$7.13bn31.3% YoY6.6%YoY 25.4% 16.5% YoY
Large deal signings Digital CC growth CC growth Operating margin Increase in EPS (INR terms)
-- Q3 revenues grew year-on-year by 8.4% in USD; grew by 6.6% in constant currency -- Digital revenues cross 50% of total revenue, year-on-year growth of 31.3% in constant currency -- Q3 operating margin at 25.4%, year-on-year increase of 350 bps -- Robust Q3 net profit at $705 million, year-on-year growth of 12.6% -- Continued strong Q3 free cash flow at $772 million, year-on-year growth of 15.1%; FCF conversion at 109.0% of net profit -- Q3 voluntary attrition for IT services declined to 10.0% from 15.8% in Q3 20 -- Year-to-date revenues grew by 3.5% in constant currency -- Year-to-date operating margin at 24.5%, an expansion of 310 bps -- FY 21 revenue growth guidance increases to 4.5%-5.0% in constant currency -- FY 21 operating margin guidance increases to 24.0%-24.5%
In Q3, Infosys further enhanced its digital investments in Infosys Cobalt - the cloud services, platforms and solutions portfolio launched last quarter. The company expanded the Infosys Cobalt portfolio by unveiling Infosys Modernization Suite to help enterprises modernize their legacy systems and Infosys Live Enterprise Application Management Platform to deliver cloud-powered, managed services for IT operations. Infosys Applied AI converges the power of AI, analytics and cloud to deliver new business solutions and perceptive experiences.
Infosys also reached a significant milestone in its ESG journey by becoming carbon neutral in 2020, thirty years ahead of 2050, the timeline set by the Paris Agreement. Infosys reiterated its commitment to Environment, Social and Governance causes by announcing its ESG 2030 vision and ambitions.
1. Financial Highlights -Consolidated results under International Financial Reporting Standards (IFRS)
For the quarter ended December 31, 2020
Revenues were $3,516 million, growth of 8.4% YoY and 6.2% QoQ
Operating profit was $893 million, growth of 25.6% YoY and 6.4% QoQ
Basic EPS was $0.17, growth of 12.5% YoY and 7.9% QoQ
For nine months ended December 31, 2020
Revenues were $9,948 million, growth of 3.8% YoY
Operating profit was $2,441 million, growth of 19.1% YoY
Basic EPS was $0.45, growth of 10.6% YoY
"The resilience of Infosys has been severely tested over the past several quarters and I am delighted with our response marked by strong revenue performance, large deal wins, healthy operating metrics and continued low attrition," said Pravin Rao, COO. "This outstanding performance has been made possible by reimagining Infosys, over the last three years, as a live enterprise with fully transformed digital infrastructure - Infosys Lex for learning, InfyMe for employee engagement, Infosys Meridian for collaboration, and Infosys DevSecOps platform to empower application teams to rapidly build and deploy new features. These highly differentiated systems and processes, redesigned for a digital-first world, are built on a strong foundation of robust connectivity to customer networks and fully secured personal devices. Not only does this give us an advantage in these times of distributed working but also a distinct long-term lead into the future."
"Navigating your next strategy coupled with razor sharp focus on our operating model and efficiencies continues to deliver superior shareholder value creation," said Nilanjan Roy, CFO. "I am also delighted with the announcement of Infosys ESG vision 2030 simultaneously with our climate neutrality achievement, a journey we had embarked on ten years ago. As a responsible corporate citizen, Infosys is committed to its vision of shaping and sharing solutions that serve the development of businesses and communities."
2. Client wins & Testimonials
The unstinting support extended to Infosys by clients motivates our teams to bring greater benefits of digital transformation and the best of Infosys to their business.