Infosys: Continued Momentum in Digital Drives 11.1% YTD Growth

Bengaluru, India (ots/PRNewswire) - - FY 20 revenue guidance increased to
10.0%-10.5%

"Q3 results further underscore that we remain steadfast in our journey of
sustained client relevance and deepening engagement with them, as they partner
with us in navigating their next in the digital transformation era", said Salil
Parekh, CEO and MD. "For us, this has translated into double digit growth
year-to-date, leading to an increase in revenue guidance, accompanied by
expanding operating margins."

40.8% YoY 9.5% YoY 1% QoQ 21.9%
$1.8 bn
Digital CC growth Cc growth CC growth Operating
Margin Large deal signings

- Q3 20 revenues grew year-on-year by 8.6% in USD; 9.5% in constant
currency
- Q3 20 revenues grew sequentially by 1.0% in USD and in constant
currency
- Q3 20 Digital revenues at $1,318 million (40.6% of total revenues),
year-on-year growth of 40.8% and sequential growth of 6.8% in
constant currency
- Q3 20 operating margin at 21.9%, 0.2% improvement over Q2 20
- Year-to-date revenues grew by 11.1% in constant currency
- Year-to-date operating margin at 21.4%, within the margin guidance
for the year
- Increased FY 20 revenue guidance; revised guidance is 10.0%-10.5%
in constant currency
- Maintained FY 20 operating margin guidance range of 21%-23%

1. Financial Highlights - Consolidated results under International Financial
Reporting Standards (IFRS)

- Revenues were $3,243 million, growth of 8.6% YoY and 1% QoQ
- Operating profit was $711million, increase of 5.4% YoY and 2.2%
QoQ. Operating margin was 21.9%.
- Basic EPS was $0.15, growth of 27.7% YoY and 10.2% QoQ

- Revenues were $9,583 million, growth of 9.7% YoY
- Operating profit was $2,049 million, growth of 0.6% YoY. Operating
margin was 21.4%.
- Basic EPS was $0.41, growth of 9.7% YoY

- For the quarter ended December 31, 2019
- For nine months ended December 31, 2019

"Overall performance during the quarter was satisfactory on multiple counts -
broad-based growth, steady increase in client metrics and healthy large deal
wins", said Pravin Rao, COO. "Large deal wins continue to be robust with growth
of 56% so far this year. We had a further reduction in attrition, demonstrating
the results of our continued efforts towards strengthening employee engagement
and value proposition."

"Operating margins improved further during the quarter driven by relentless cost
optimization and operating leverage", said Nilanjan Roy, CFO. "Cash generation
was extremely strong with cumulative free cash flow crossing $ 1.5 bn. Return on
Equity increased further to 25.9% driven by margin expansion and increased
shareholder payouts."

2. Update on Whistleblower Matters

The company has issued a separate press release announcing conclusion of the
independent investigation into allegations contained in the anonymous
whistleblower complaints disclosed earlier.

3. Client wins & Testimonials

- We were selected by Telenet, a Belgian telecommunication provider
as its preferred IT partner to deliver several digital and data
initiatives for the next five years. Telenet plans to leverage
Infosys' ecosystem to drive simplification of its existing
landscape, build new digital and data capabilities, extract
relevant insights from data and leverage existing talent more
effectively.
- We entered a strategic long-term partnership with Siemens Gamesa
Renewable Energy (SGRE) to support its digital transformation
journey. Infosys will provide end-to-end IT infrastructure
transformation of SGRE, including hybrid cloud transformation,
roll-out of a software defined network, set-up of an intelligent
service desk and digital workplace services.
- We were selected as the main supplier to deliver Volvo Cars'
digital transformation services for its Enterprise Digital
Commercial Operations Applications and Products. As part of this
engagement, Infosys will offer next generation application services
leveraging its Global Delivery Model (GDM), agile delivery,
automation and other service optimization levers to deliver
effective service operations.
- Infosys entered an agreement with the Australian Federal
Government's Services Australia to transform the entitlement
calculation engine for the nation's welfare system. The project
will enable Services Australia to more quickly implement policy
changes for the benefit of Australians without disrupting services
and deliver operational cost savings. The Welfare Payment
Infrastructure Transformation (WPIT) programme will replace a
significant portion of Centrelink's 30-year-old platform,
modernizing the way Services Australia calculates entitlements for
Australians needing government support.
- Benjamin Kreider, Global Traceability Director, Mars Global
Services, said, "At Mars, we are delighted to enter into a
partnership with Infosys for our Digital Supply Chain initiative
focused on improving the ongoing market traceability of all of our
products, across all business segments, by using Infosys'
Traceability Solution for the Food, Beverage, and CPG Industry on
their TradeEdge Market Connect Platform. The efficiency and agility
of this platform make it strongly suited to meet the unique needs
of our industry, across a variety of ERP and warehouse management
systems in our factories and third party manufacturers who service
our global markets."
- Christian Bornfeld, Chief Innovation & Technology Officer (Group
COO) and Executive Board Member at ABN AMRO Bank, said, "At ABN
AMRO Bank, we're excited to be working with Infosys and accomplish
our strategic goals and deliver this very key IT transformation in
the coming years. Infosys' strategic investment in Cloud, Digital
and DevOps has helped create best in class solutions and we are
confident that this partnership will help us transform our IT
environment in a timely and cost-effective way."
- Jean-Luc Galzi, CIO, GEFCO, said: "We are pleased to begin our
digital transformation journey with Infosys. Digital innovation in
the supply chain sector is key and our new partnership will help
strengthen GEFCO's expertise and bring value to our customers."

4. Recognitions

- Infosys was recognized as a 2020 Top Employer in Australia,
Singapore and Japan
- Our flagship global internship program, Infosys InStep, has been
ranked number one in the Best Overall Internship category in 2020
Internship Rankings by Vault.com, a career intelligence
organization
- Recognized as a leader in Gartner Magic Quadrant for Application
Testing Services, Worldwide
- Ranked as a leader in IDC MarketScape: Asia/Pacific (Excluding
Japan) Microsoft Dynamics 365 Implementation Services 2019 Vendor
Assessment
- Rated as a leader by ARC Advisory for Engineering Services by
Global Service Providers in India Global Market 2018-2023
- Recognized in HFS Top 10: IOT Service Providers 2019
- Recognized in HFS Top 10: ServiceNow Services 2019
- Recognized in HFS Top 10: Retail and CPG Services 2019
- Recognized in HFS Top 10: Insurance Services Providers 2019
- Recognized in HFS Top 10: Life Science Services 2019
- Recognized in HFS Top 10: Industry 4.0 Services
- Recognized as a leader in NelsonHall's Agile & DevOps Services -
NEAT Analysis
- Recognized as a leader in Enterprise Blockchain Services PEAK
Matrix(TM) Assessment 2020 by Everest Group
- Recognized as a leader in Application and Digital Banking PEAK
Matrix(TM) Vendor Assessment 2020 by Everest Group
- Recognized as a leader in Healthcare Payer Digital Services PEAK
Matrix(TM) 2020 by Everest Group
- Recognized as a leader in Application and Digital Services Capital
Markets Peak Matrix(TM) Vendor Assessment 2020 by Everest Group
- Recognized as leader in Insurance Application and Digital Services
Life Insurance Peak Matrix(TM) 2020 by Everest Group
- Awarded the Excellent Partner Award by Mazda
- Infosys Finacle won the Juniper Research Future Digital Awards in
the category Banking Innovation for Best Banking Platform 2019
- Infosys Finacle awarded the Banking Technology Awards for Best Use
of Emerging or Innovative Technology
- Infosys Finacle won the IBS Global FinTech Innovation Awards 2019
for Best Payments System implementation
- Conferred with the 2019 Asia IP Elite award excellence in
developing innovative Intellectual Property (IP) functions and
creating IP value
- Compass - The career enablement platform at Infosys won the
international Association for Talent Development (ATD) Excellence
in Practice Award
- Awarded the IT Ratna of Karnataka for 2018-19 for outstanding
performance in IT Exports and being the biggest exporter and
employer in the state of Karnataka
- Awarded the NASSCOM Corporate Award for Excellence (2019) for the
Inclusion of Persons with Disability

About Infosys

Infosys is a global leader in next-generation digital services and consulting.
We enable clients to navigate their digital transformation, leveraging our teams
from over 46 countries. With over three decades of experience in managing the
systems and workings of global enterprises, we expertly steer our clients
through their digital journey. We do it by enabling the enterprise with an
AI-powered core that helps prioritize the execution of change. We also empower
the business with agile digital at scale to deliver unprecedented levels of
performance and customer delight. Our always-on learning agenda drives their
continuous improvement through building and transferring digital skills,
expertise, and ideas from our innovation ecosystem.

Visit www.infosys.com to see how Infosys (NYSE: INFY) can help your enterprise
navigate your next.

Safe Harbor

Certain statements mentioned in this release concerning our future growth
prospects are forward-looking statements regarding our future business
expectations 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 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
fluctuations in earnings, fluctuations in foreign exchange rates, our ability to
manage growth, intense competition in IT services including those factors which
may affect our cost advantage, wage increases in India, our ability to attract
and retain highly skilled professionals, time and cost overruns on fixed-price,
fixed-time frame contracts, client concentration, restrictions on immigration,
industry segment concentration, our ability to manage our international
operations, reduced demand for technology in our key focus areas, disruptions in
telecommunication networks or system failures, our ability to successfully
complete and integrate potential acquisitions, liability for damages on our
service contracts, the success of the companies in which Infosys has made
strategic investments, withdrawal or expiration of governmental fiscal
incentives, political instability and regional conflicts, legal restrictions on
raising capital or acquiring companies outside India, unauthorized use of our
intellectual property and general economic conditions affecting our industry and
the outcome of pending litigation and government investigation. Additional risks
that could affect our future operating results are more fully described in our
United States Securities and Exchange Commission filings including our Annual
Report on Form 20-F for the fiscal year ended March 31, 2019. 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
subsidiariesAudited
Condensed
Consolidated
Balance Sheet as
at:
(Dollars in
millions except
equity share data)
December March
31, 2019 31,
2019
ASSETS
Current assets
Cash and cash 2,422 2,829
equivalents
Current investments 431 958
Trade receivables 2,529 2,144
Unbilled revenue 914 777
Prepayments and 820 827
other current
assets
Income tax assets 1 61
Derivative 5 48
financial
instruments
Total current 7,122 7,644
assets
Non-current assets
Property, plant and 1,896 1,931
equipment
Right-of-use assets 540 -
(B4)
Goodwill 584 512
Intangible assets 185 100
Non-current 594 670
investments
Deferred income tax 195 199
assets
Income tax assets 739 914
Other non-current 255 282
assets
Total non-current 4,988 4,608
assets
Total assets 12,110 12,252
LIABILITIES AND
EQUITY
Current liabilities
Trade payables 263 239
Lease liabilities 79 -
(B4)
Derivative 13 2
financial
instruments
Current income tax 216 227
liabilities
Client deposits 2 4
Unearned revenue 438 406
Employee benefit 268 234
obligations
Provisions 85 83
Other current 1,438 1,498
liabilities
Total current 2,802 2,693
liabilities
Non-current
liabilities
Lease liabilities 501 -
(B4)
Deferred income tax 88 98
liabilities
Employee benefit 6 6
obligations
Other non-current 136 55
liabilities
Total liabilities 3,533 2,852
Equity
Share capital- INR 332 339
5 ($0.16) par value
4,800,000,000
(4,800,000,000)
equity shares
authorized, issued
and outstanding
4,239,766,436
(4,335,954,462)
equity shares fully
paid up, net of
18,781,564
(20,324,982)
treasury shares as
at December 31,
2019 (March 31,
2019)
Share premium 300 277
Retained earnings 10,458 11,248
Cash flow hedge (2) 3
reserve
Other reserves 560 384
Capital redemption 17 10
reserve
Other components of (3,141) (2,870)
equity
Total equity 8,524 9,391
attributable to
equity holders of
the company
Non-controlling 53 9
interests
Total equity 8,577 9,400
Total liabilities 12,110 12,252
and equity

Infosys Limited and
subsidiariesAudited
Condensed
Consolidated
Statement of
Comprehensive
Income for the
period:
(Dollars in
millions except
equity share and
per equity share
data)
Three months Three months Nine months Nine months
ended ended ended ended
December 31, December 31, December 31, December 31,
2019 2018 2019 2018
Revenues 3,243 2,987 9,583 8,740
Cost of sales 2,159 1,956 6,420 5,660
Gross profit 1,084 1,031 3,163 3,080
Operating expenses
Selling and 169 161 502 464
marketing expenses
Administrative 204 195 612 578
expenses
Total operating 373 356 1,114 1,042
expenses
Operating profit 711 675 2,049 2,038
Other income, 116 105 312 317
net(A3) (B2)
Finance cost(B4) (6) - (18) -
Reduction in the - - - (39)
fair value of
Disposal Group held
for sale(A1)
Adjustment in - (65) - (65)
respect of excess
of carrying amount
over recoverable
amount on
reclassification
from "Held for
Sale" (A2)
Profit before 821 715 2,343 2,251
income taxes
Income tax expense 194 213 597 633
Net profit 627 502 1,746 1,618
Other comprehensive
income
Items that will not
be reclassified
subsequently to
profit or loss:
Re-measurements of (16) (4) (22) (3)
the net defined
benefit
liability/asset,
net
Equity instrument (6) 8 (5) 10
through other
comprehensive
income, net
(22) 4 (27) 7
Items that will be
reclassified
subsequently to
profit or loss:
Fair valuation of (1) 6 1 (3)
investments, net
Fair value changes (4) 8 (5) 5
on derivatives
designated as cash
flow hedge, net
Foreign currency (40) 295 (247) (634)
translation
(45) 309 (251) (632)
Total other (67) 313 (278) (625)
comprehensive
income/(loss), net
of tax
Total comprehensive 560 815 1,468 993
income
Profit attributable
to:
Owners of the 626 502 1,741 1,618
Company
Non-controlling 1 - 5 -
interests
627 502 1,746 1,618
Total comprehensive
income attributable
to:
Owners of the 559 815 1,465 993
Company
Non-controlling 1 - 3 -
interests
560 815 1,468 993
Earnings per equity
share
Basic ($) 0.15 0.12 0.41 0.37
Diluted ($) 0.15 0.12 0.41 0.37
Weighted average
equity shares used
in computing
earnings per equity
share
Basic 4,239,607,543 4,347,673,466 4,263,569,478 4,347,130,342
Diluted 4,245,716,437 4,352,731,387 4,270,509,294 4,352,705,150

NOTES:

A. Notes pertaining to previous quarters / periods

1. In the quarter ended June 30, 2018, the Company had recorded a
reduction in the fair value amounting to $39 million in respect of
its subsidiary Panaya.
2. In the quarter ended December 31, 2018, the Company had recorded
an adjustment in respect of excess of carrying amount over
recoverable amount of $65 million in respect of its subsidiary
Skava
3. Other income includes interest on income tax refunds amounting to
$7 million for the three and nine month ended Dec 31, 2018.

B. Notes pertaining to the current quarter

1. The audited interim condensed consolidated Balance sheet and
Statement of Comprehensive Income for the three months and nine
months ended December 31, 2019 have been taken on record at the
Board meeting held on January 10, 2020
2. Other income includes interest on income tax refunds amounting to
$34 million for the three month ended Dec 31, 2019 and $35 million
for the nine month ended Dec 31, 2019.
3. A Fact Sheet providing the operating metrics of the Company can be
downloaded from www.infosys.com.
4. On account of adoption of IFRS 16- Leases effective April 1, 2019.

INR: https://www.infosys.com/investors/reports-filings/quarterly-results/2019-20
20/q3/documents/ifrs-inr-press-release.pdf

Factsheet: https://www.infosys.com/investors/reports-filings/quarterly-results/2
019-2020/q3/documents/fact-sheet.pdf

Contact

Investor Relations
Sandeep Mahindroo
+91-80-3980-1018
Sandeep_Mahindroo@infosys.com

Media Relations
Mehak Chawla
+91-80-4156-3998
Mehak.Chawla@infosys.com

Chiku Somaiya
+1-71367-06752
Chiku.Somaiya@infosys.com

LOGO: https://mma.prnewswire.com/media/633365/Infosys_Logo.jpg

Additional content: https://www.presseportal.de/pm/38775/4488833
OTS: INFOSYS

Original-Content von: INFOSYS, übermittelt durch news aktuell