Infosys: Growth acceleration accompanied by 3.7% YoY margin expansion; revenue and margin guidance increased to 2%-3% in cc and 23%-24% respectively

For the quarter ended September 30, 2020

Revenues were $3,312 million, growth of 3.2% YoY and 6.1% QoQ

Operating profit was $840 million, growth of 20.7% YoY and 18.7% QoQ

Basic EPS was $0.15, growth of 14.9% YoY and 17.0% QoQ

For six months ended September 30, 2020

Revenues were $6,433 million, growth of 1.5% YoY

Operating profit was $1,547 million, growth of 15.6% YoY

Basic EPS was $0.29, growth of 9.5% YoY

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.”

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.”