Infosys

High Quality Growth of 1.5% Year-on-year (constant Currency) With Expanded Operating Margin at 22.7%

Bengaluru, India (ots/PRNewswire) - "Our Q1 results, especially growth, are a
clear testimony to the relevance of our service offerings and deep understanding
of clients' business priorities which is resonating with them in these times. It
also demonstrates the remarkable dedication of our employees and leadership
during this period," said Salil Parekh, CEO and MD . "Our confidence and
visibility for the rest of the year is improving driven by our Q1 performance
and large deal wins."

25.5% YoY 1.5% YoY 22.7% $1.74bn

Digital CC growth CC growth Operating margin Large deal
signings


- Revenues declined year-on-year by 0.3% in USD; grew by 1.5% in constant
currency
- Digital revenues at $1,389 million (44.5% of total revenues), year-on-year
growth of 25.5% in constant currency
- Operating margin at 22.7%, increase of 220 basis points year-on-year
- Free Cash Flow at $728 million; year-on-year growth of 50.1%
- Voluntary attrition for IT services declined to 11.7% from 20.2% in Q1 20
- FY 21 Revenue growth guidance in the range of 0%-2% in constant currency
- Operating margin for FY 21 to be in the range of 21%-23%

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

For the quarter ended June 30, 2020 Revenues were $3,121 million, decline of
0.3% YoY and 2.4% QoQ Operating profit was $708 million, growth of 10.1% YoY
and 4.9% QoQ. Operating margin was 22.7% Basic EPS was $0.13, growth of 3.8%
YoY and decline of 5.4% QoQ


"During the last few months, we took multiple steps aimed at employee safety and
well-being while providing seamless services to our clients. Clients have
recognized us for the speed, security and effectiveness of our remote enablement
efforts", said Pravin Rao, COO . "The strength and diversity of our portfolio
was evident in good revenue performance, sizeable large deal wins, high focus on
operating metrics and significant decline in attrition."

"Operating margin expanded to 22.7% driven by preemptive deployment of our
strategic cost levers along with tactical opportunities triggered by the COVID
situation", said Nilanjan Roy, CFO . "Collections were robust and capex was
focused, which led to 50% year on year increase in Free Cash Flows. Our liquid
and debt free Balance Sheet is a huge source of strength in these times."

2. Board changes

The Board, based on the recommendation of the Nomination and Remuneration
Committee, appointed Bobby Parikh as an additional and Independent Director of
the Company effective July 15, 2020 for a period of 3 years, subject to the