Infosys Topaz driving strong differentiation and market leadership in generative AI
BENGALURU, India, Jan. 11, 2024 /PRNewswire/ -- Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY), a global leader in next-generation digital services and consulting, delivered $4,663 million in Q3 revenues with year-on-year and sequential decline of 1.0% in constant currency. Large deal TCV for the quarter was $3.2 billion, with 71% being net new. Operating margin for the quarter was 20.5%, a sequential decline of 70 bps. Attrition declined further to 12.9%. FY24 revenue guidance revised to 1.5%-2.0% and operating margin guidance at 20%-22%.
"Our performance in Q3 was resilient. Large deal wins were strong at $3.2 billion, with 71% of this as net new, reflecting the relevance and strength of our portfolio of offerings ranging from generative AI, digital and cloud to cost, efficiency and automation" said Salil Parekh, CEO and MD. "Our clients are leveraging our Topaz generative AI capabilities and our Cobalt cloud capabilities to create long-term value for their businesses", he added.
-1.0% |
20.5% |
3.0% |
$3.2 bn |
Guidance for FY24:
1. Key highlights:
For the quarter ended December 31, 2023
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For nine months ended December 31, 2023
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"Q3 performance is a demonstration of our strong execution capabilities reflected in improved operational efficiencies achieved under 'Project Maximus', despite a challenging environment," said Nilanjan Roy, Chief Financial Officer. "Cash generation remained robust with FCF to net profit conversion for Q3 at 90.6%," he added.
2. Client wins & testimonials
3. Recognitions & Awards
AI and Cloud Services
Key Digital Services
Industry & Solutions
About Infosys
Infosys is a global leader in next-generation digital services and consulting. Over 300,000 of our people work to amplify human potential and create the next opportunity for people, businesses and communities. We enable clients in more than 56 countries to navigate their digital transformation. With over four decades of experience in managing the systems and workings of global enterprises, we expertly steer clients, as they navigate their digital transformation powered by the cloud. We enable them with an AI-powered core, empower the business with agile digital at scale and drive continuous improvement with always-on learning through the transfer of digital skills, expertise, and ideas from our innovation ecosystem. We are deeply committed to being a well-governed, environmentally sustainable organization where diverse talent thrives in an inclusive workplace.
Visit www.infosys.com to see how Infosys (NSE, BSE, NYSE: INFY) can help your enterprise navigate your next.
Safe Harbor
Certain statements in this release concerning our future growth prospects, or our future financial or operating performance, are forward-looking statements intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results or outcomes to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the execution of our business strategy, our ability to attract and retain personnel, our transition to hybrid work model, economic uncertainties, technological innovations such as Generative AI, the complex and evolving regulatory landscape including immigration regulation changes, our ESG vision, our capital allocation policy and expectations concerning our market position, future operations, margins, profitability, liquidity, capital resources, our corporate actions including acquisitions, the actual or anticipated findings of the ongoing assessment of the extent and nature of exfiltrated data in relation to the McCamish cybersecurity incident and customer reaction to such findings, and the amount of any additional costs, including indemnities or damages / claims, resulting from the McCamish cybersecurity incident. Important factors that may cause actual results or outcomes to differ from those implied by the forward-looking statements are discussed in more detail in our US Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2023. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and our reports to shareholders. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company unless it is required by law.
Infosys Limited and subsidiaries |
||
Extracted from the Condensed Consolidated Balance Sheet under IFRS as at: (Dollars in millions) |
||
December 31, 2023 |
March 31, 2023 |
|
ASSETS |
||
Current assets |
||
Cash and cash equivalents |
1,640 |
1,481 |
Current investments |
958 |
841 |
Trade receivables |
3,680 |
3,094 |
Unbilled revenue |
1,589 |
1,861 |
Other Current assets |
1,425 |
1,349 |
Total current assets |
9,292 |
8,626 |
Non-current assets |
||
Property, plant and equipment and Right-of-use assets |
2,375 |
2,516 |
Goodwill and other Intangible assets |
1,075 |
1,095 |
Non-current investments |
1,354 |
1,530 |
Unbilled revenue |
202 |
176 |
Other non-current assets |
1,308 |
1,369 |
Total non-current assets |
6,314 |
6,686 |
Total assets |
15,606 |
15,312 |
LIABILITIES AND EQUITY |
||
Current liabilities |
||
Trade payables |
460 |
470 |
Unearned revenue |
922 |
872 |
Employee benefit obligations |
326 |
292 |
Other current liabilities and provisions |
2,970 |
3,135 |
Total current liabilities |
4,678 |
4,769 |
Non-current liabilities |
||
Lease liabilities |
802 |
859 |
Other non-current liabilities |
458 |
460 |
Total non-current liabilities |
1,260 |
1,319 |
Total liabilities |
5,938 |
6,088 |
Total equity attributable to equity holders of the company |
9,617 |
9,172 |
Non-controlling interests |
51 |
52 |
Total equity |
9,668 |
9,224 |
Total liabilities and equity |
15,606 |
15,312 |
Extracted from the Condensed Consolidated statement of Comprehensive Income under IFRS for: |
||||
(Dollars in millions except per equity share data)
|
||||
3 months ended |
3 months ended |
9 months ended |
9 months ended |
|
Revenues |
4,663 |
4,659 |
13,997 |
13,657 |
Cost of sales |
3,274 |
3,230 |
9,755 |
9,544 |
Gross profit |
1,389 |
1,429 |
4,242 |
4,113 |
Operating expenses: |
||||
Selling and marketing expenses |
204 |
196 |
633 |
574 |
Administrative expenses |
229 |
232 |
692 |
671 |
Total operating expenses |
433 |
428 |
1,325 |
1,245 |
Operating profit |
956 |
1,001 |
2,917 |
2,868 |
Other income, net (3) |
79 |
84 |
196 |
229 |
Profit before income taxes |
1,035 |
1,085 |
3,113 |
3,097 |
Income tax expense |
301 |
285 |
904 |
859 |
Net profit (before minority interest) |
734 |
800 |
2,209 |
2,238 |
Net profit (after minority interest) |
733 |
800 |
2,208 |
2,237 |
Basic EPS ($) |
0.18 |
0.19 |
0.53 |
0.53 |
Diluted EPS ($) |
0.18 |
0.19 |
0.53 |
0.53 |
NOTES:
IFRS-INR Press Release: https://www.infosys.com/investors/reports-filings/quarterly-results/2023-2024/q3/documents/ifrs-inr-press-release.pdf
Fact sheet: https://www.infosys.com/investors/reports-filings/quarterly-results/2023-2024/q3/documents/fact-sheet.pdf