Infosys

Solid Q1 year on year revenue growth of 4.2% at 20.8% operating margins

Bengaluru, India (ots/PRNewswire) - Strong large deal closures and robust deal
pipeline position us well for future growth

Infosys (NSE: INFY), (BSE: INFY), (NYSE:INFY), a global leader in
next-generation digital services and consulting, delivered $4,617 million in Q1
revenues with year on year growth of 4.2% and sequential growth of 1.0% in
constant currency. Large deal TCV for the quarter was at $2.3 billion, with net
new of 56.1%. Operating margin for the quarter was stable at 20.8%. ROE improved
180 bps to 32.8%. Attrition declined further to 17.3%. FY24 revenue guidance
revised to 1.0%-3.5% and operating margin guidance retained at 20%-22%.

"We had a solid Q1 with a growth of 4.2% and large deals of $2.3 billion which
helps us to set a strong foundation for future growth. Our generative AI
capabilities are expanding well, with 80 active client projects. Topaz, our
comprehensive AI offering, is resonating well with clients. We see this being
transformative for clients and enhancing our overall service portfolio," said
Salil Parekh, CEO and MD. "We have expanded the margin improvement program with
a holistic set of actions for the short, medium and long-term, working on five
key areas, supported by our leadership team," he added.

4.2% YoY 20.8% 12.4% YoY $2.3 bn

1.0% QoQ Operating margin Increase in EPS Large deal
TCV
CC Revenue growth (INR terms)


Guidance for FY24:

- Revenue growth of 1.0%-3.5% in constant currency
- Operating margin of 20%-22%

1. Key highlights:

For the quarter ended June 30, 2023

- Revenues in CC terms grew by 4.2% YoY and by 1.0% QoQ

- Reported revenues at $4,617 million, growth of 3.9% YoY

- Operating margin at 20.8%, growth of 0.8% YoY and decline of 0.2% QoQ

- Basic EPS at $0.17, growth of 6.6% YoY

- FCF at $699 million, growth of 6.6% YoY; FCF conversion at 96.6% of net
profit


"Q1 operating margins were resilient in an uncertain macro environment on the
back of our continued focus on cost optimization. Company's rigorous operational
discipline including improved productivity measures and higher utilization
helped margins for the quarter," said Nilanjan Roy, CFO . "Free Cash conversion
was robust at 96.6% of net profits. Execution of strong capital allocation
policy resulted in higher payouts to investors and improved ROE to 32.8%," he
added.

2. Client wins & Testimonials

- Danske Bank recently signed a strategic collaboration with Infosys to
accelerate the bank's digital transformation initiatives with speed and scale.