Revenue guidance at 3%-4% and operating margin guidance at 20%-22%
Highest Free Cash Flow at $1.1 billion; Record number of large deals at 34 with $4.1 billion TCV
Bengaluru, India – July 18, 2024:
Infosys (NSE, BSE, NYSE: INFY), a global leader in next-generation digital services and consulting, delivered $4,714 million in Q1 revenues with a sequential growth of 3.6% and year on year growth of 2.5% in constant currency. Operating margin was at 21.1%, a sequential expansion of 1%. Free cash flow was highest ever at $1,094 million, an increase of 56.5% year over year. Number of large deal wins were highest ever at 34 with TCV of $4.1 billion, 57.6% being net new.
“We had an excellent start to FY25 with strong and broad-based growth, operating margin expansion,
robust large deals, and highest ever cash generation. This is a testimony to our differentiated service
offerings, enormous client trust, and relentless execution”, said Salil Parekh, CEO and MD. “With our
focused approach for generative AI for enterprises working with their data sets on a cloud foundation,
we have strong traction with our clients. This is building on our Topaz and Cobalt capabilities” he added.
Guidance for FY25:
• Revenue growth of 3%-4% in constant currency
• Operating margin of 20%-22%
1. Key highlights:
“Our relentless drive on cost optimization through Project Maximus, a comprehensive margin expansion
program, is reflected in the all-round improvement in key operating metrices leading to 1.0% growth in
operating margin in Q1”, said Jayesh Sanghrajka, CFO. “We had the highest ever FCF generation at
$1.1 bn and ROE increased to 33.6% due to higher payouts to investors”, he added.
2. Update on in-tech acquisition
Infosys has completed the acquisition of in-tech, a leading Engineering R&D services provider
focused on German automotive industry. This follows the announcement the company made on April
18, 2024.
Headquartered in Germany, in-tech, is one of the fastest growing Engineering R&D services
providers that shapes digitization in the automotive, rail transport and smart industry sectors. in-tech
develops solutions in e-mobility, connected and autonomous driving, electric vehicles, off-road
vehicles and railroad. in-tech brings to Infosys, marquee German original equipment manufacturers,
deep client relationships, and an extensive industry expertise with a multidisciplinary team of 2,200
people across locations in Germany, Austria, China, UK, and nearshore locations in Czech Republic,
Romania, Spain, and India.
The entire shareholding in in-tech Group India Private Limited, a step-down subsidiary of in-tech
Holding GmbH, will be acquired by Infosys Limited. Infosys is delighted to welcome in-tech and its
leadership team.
3. Client wins & testimonials
• Infosys announced a strategic multi-year collaboration with Telstra to accelerate its software
engineering and IT transformation journey and further enhance their customer experience. Kim
Krogh Andersen, Group Executive, Product and Technology, Telstra, said, “Consumers
around the world have significantly increased their expectations when it comes to the seamless,
digital delivery of their products and services. As we approach the tipping point of Generative
AI and an avalanche of digital adoption, strategic partnerships with global leaders such as
Infosys are critical to support our shared ambitions for digital leadership.”
• Infosys launched Infosys AsterTM – a set of AI-amplified marketing services, solutions and
platforms that deliver engaging brand experiences, enhanced marketing efficiency, and
accelerated effectiveness for business growth. Tom Portman, Group VP, Online
Transformation and Group Head of Digital Channels, ABB, said, “Infosys Aster™ is bringing
expertise to help us reimagine, engineer, and activate best-in-class omnichannel experiences
for our customers, partners, and prospects enabling them to quickly access the relevant and up
to date information they need. We see the potential of AI to amplify these capabilities and
significantly raise the bar in the delivery of personalized content, ensuring predictability of
engagement. We are elevating the way we connect with our customers and how our customers
connect with us.”
• Infosys collaborated with La-Z-Boy to establish a Testing Center of Excellence. Infosys will
provide comprehensive Quality Engineering services by leveraging modern technologies and
AI automation tools. Carol Lee, CIO, La-Z-Boy, said, “We chose Infosys as our strategic partner
due to their impressive track record of establishing strong testing center of excellence along
with providing comprehensive testing services by leveraging their QA methodologies, industry
leading tools, transforming QA powered by Gen AI, AI/ML led tools and accelerators.”
• Infosys announced a strategic three-year partnership with the ABB FIA Formula E World
Championship as its official Digital Innovation Partner. Jeff Dodds, Chief Executive Officer,
Formula E, said, “Infosys’ expertise in cutting-edge technologies makes them the ideal partner
to help us drive the future of electric motorsport. We are excited to work with them to deliver
exceptional experiences for our global fan base and further strengthen Formula E’s position as
a leader in sustainable, digital-first sports. Infosys’ commitment to sustainability and innovation
aligns perfectly with our vision, and we are confident that this collaboration will unlock new
avenues in our key focus areas.”
• Infosys announced a multi-year strategic collaboration with First Abu Dhabi Bank (FAB) to
optimize and modernize FAB’s IT infrastructure services. Suhail Bin Tarraf, Group Chief
Operating Officer, First Abu Dhabi Bank (FAB), said, “At FAB, we are committed to
transforming our IT organization and delivering world-class services that drive tangible business
outcomes. After a thorough evaluation, we selected Infosys as our strategic partner due to their
proven expertise, innovative solutions, and the strong trust they built at all levels. Infosys’
outcome-oriented managed services model coupled with their automation-powered delivery
approach will help us significantly improve service quality, compliance, and operational
efficiency.”
• Infosys and Posti extended their strategic collaboration to help Posti enhance its customer
experience and operational efficiency, leveraging Infosys Topaz. Petteri Naulapää, CIO & SVP,
ICT and Digitalization, Posti Group, said, “We are pleased to announce the renewal of our
collaboration with Infosys for another seven years. This decision is underpinned by a robust
service delivery coupled with a spirit of continuous innovation by leveraging enterprise AI
capabilities through Infosys Topaz. Infosys’ continuous commitment to delivering customer
satisfaction and a sharp focus on emerging technologies such as cloud, data, and AI will help
in catalysing Posti’s digital transformation journey in line with its larger corporate strategy of
delivering on an industry-leading operational efficiency.”
• Infosys collaborated with Proximus to revamp their ServiceNow platform by leveraging Infosys
Cobalt. Antonietta Mastroianni, Chief Digital and IT Officer, Proximus, said, “Our
collaboration with Infosys marks a transformative leap in reshaping the telecom realm. Infosys’
technical expertise in transforming legacy environments with the ServiceNow platform makes it
an ideal choice for collaboration. Together, we will continue to revolutionize service delivery and
provide enhanced customer experience.”
• Infosys announced successful completion of the technology landscape separation program of
Team Global Express. Danny Gravell, CIO of Team Global Express, said, “Our partnership
with Infosys enabled us to successfully set up an independent technology capability and
transform our foundation technology platforms. We value Infosys’ thought leadership,
collaborative approach, and experience in implementing infrastructure and cloud transformation
programs as a true strategic partner. By using the ready-to-use templates from Infosys Cobalt,
we could complete the transformation at speed with maximum efficiency. This program has
enabled us to work towards providing the best possible experience for our customers.”
• Infosys collaborated with Commerzbank to consolidate their trading ecosystem on a unified
Murex platform to help the bank accelerate its digital transformation journey. Sebastian Kauck,
CIO Corporate Clients, Commerzbank, said, “The successful platform consolidation is a major
achievement after three years of hard work. Throughout this project, the collaboration of our
internal teams with Murex, Infosys and other external partners has always been an integral part
to its success. The new setup enables Commerzbank to significantly enhance process efficiency
and simultaneously reduce costs. Additionally, it lays the foundation for future business growth
as adapting to market changes can be done more swiftly.”
