Infosys

Strong large deal TCV of $4.5 billion in Q4 and record $17.7 billion in FY24 create robust foundation for growth

Bengaluru, India (ots/PRNewswire) - FY25 guidance - revenue growth of 1%-3% and
operating margin of 20%-22%

Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY), a global leader in next-generation
digital services and consulting, delivered $18.6 billion in FY24 revenues with a
growth of 1.4% in constant currency and operating margin of 20.7%. Free Cash
Flow was strong at $2,882 million, an increase of 13.7% over FY 23. Large deal
TCV for FY24 was highest ever at $17.7 billion, with 52% being net new.

Q4 revenues were at $4,564 million, flat year on year and decrease of 2.2%
sequentially in constant currency. Large deal TCV for the quarter was $4.5
billion, with 44% being net new. Operating margin for the quarter was 20.1%, a
sequential decrease of 40 bps. Free Cash Flow was robust at $848 million.

"We delivered the highest ever large deal value in the financial year 2024. This
reflects the strong trust clients have in us. Our capabilities in Generative AI
continue to expand. We are working on client programs leveraging large language
models with impact across software engineering, process optimization, and
customer support, said Salil Parekh, CEO and MD . "I would like to thank our
317,000 employees across the world that are working to create value for our
clients." he added.

1.4% FY 20.7% FY 10.0% FY $17.7 Bn $2.9 Bn
FY FY
20.1% Q4 30.2% Q4
$4.5 Bn
Operating YoY EPS Increase Q4

Margin (INR terms) Large
Deal

TCV

Flat Q4 $848 Mn Q4

YoY CC Growth Free Cash Flow


Guidance for FY25:

- Revenue growth of 1%-3% in constant currency
- Operating margin of 20%-22%

1. Key highlights:

For the quarter ended March 31, 2024 For year ended March 31, 2024

- Revenues in CC terms remained flat - Revenues in CC terms grew by 1.4%
YoY and declined by 2.2% QoQ YoY

- Reported revenues at $4,564 million, - Reported revenues at $18,562
growth of 0.2% YoY million, growth of 1.9% YoY

- Operating margin at 20.1%, decline - Operating margin at 20.7%, decline
of 0.9% YoY and 0.4% QoQ of 0.3% YoY

- Basic EPS at $0.23, increase of - Basic EPS at $0.77, increase of 7.3%
28.9% YoY YoY

- FCF at $848 million, growth of 18.9% - FCF at $2,882 million, growth of
YoY ; FCF conversion at 88.4% of net 13.7% YoY; FCF conversion at 91.0% of
profit net profit


"Free cash flow of $848 million in Q4 was highest in the last 11 quarters driven
by our relentless focus to improve working capital cycle. Consistent with the
objective of giving high and predictable returns to shareholders, the Board has
approved the capital allocation policy under which the company expects to return
85% over the next 5 years and progressively increase annual Dividend Per Share",
said Jayesh Sanghrajka, CFO . "Operating margin expansion in the medium-term and
improving cash generation continue to remain our priorities underpinned by early
success in Project Maximus", he added.

2. Capital Allocation

- For the Financial Year 2024, the Board recommended a final dividend of `20 per
share (0.24 per ADS) and additionally a special dividend of `8 per share (0.10
per ADS*). With this, the total payout over FY20 - FY 24 will be 85% of Free
Cash Flow, in line with our capital allocation policy announced earlier.
- The Board in its meeting held on April 18, 2024 has reviewed and approved the
capital allocation policy for the next 5 years from FY25 - FY29 after taking
into consideration the strategic and operational cash requirements as below.

"Effective from financial year 2025, the Company expects to continue its policy
of returning approximately 85% of the free cash flow cumulatively over a 5-year
period through a combination of semi-annual dividends and/or share buyback/
special dividends subject to applicable laws and requisite approvals, if any."

Under this policy, the Company expects to progressively increase its annual
Dividend Per Share (excluding special dividend if any).

Free cash flow is defined as net cash provided by operating activities less
capital expenditure as per the consolidated statement of cash flows prepared
under IFRS. Dividend and buyback include applicable taxes.

*USD/INR rate of ` 83.41

3. Update on India Income Tax Orders

During the quarter ending March 31, 2024, the Company received orders under
sections 250 and 254 of the Income Tax Act, 1961, from the Income Tax
Authorities in India for the assessment years, 2007-08 to 2015-16, 2017-18 and
2018-19. These orders confirmed the Company's position with respect to tax
treatment of certain contentious matters. As a result, interest income (pre-tax)
of $232 million was recognized and provision for income tax aggregating $63
million was reversed with a corresponding credit to the Statement of Profit and
Loss. Also, upon resolution of the disputes, an amount aggregating to $196
million has been reduced from contingent liabilities.

4. Update on Financial Services Client

During Q4, we had rescoping and renegotiation of one of the large contracts in
the financial services segment leading to a one-time impact of approximately
100bps in Q4. Nearly 85% of the scope of the contract continues as-is.

5. Client wins & testimonials

- Infosys announced a strategic collaboration with Musgrave to help automate
their IT operations by leveraging its industry leading AI and Cloud offerings,
Infosys Topaz and Infosys Cobalt. Stephen Mckenna, Chief Technology Officer,
Musgrave , said, "I am delighted by our recently announced collaboration with
Infosys, which will enable us to leverage Infosys' expertise and resources to
deliver innovative solutions to all our customers and retail partners.
Musgrave has always been committed to providing our customers with the best
possible service, and this collaboration is a testament to that commitment. We
are confident that this collaboration will result in new and exciting products
and services that will benefit all our customers."
- Infosys collaborated with PROG Holdings, Inc. to bring AI-powered experiences
to their customers and intelligent automation to their operations, as an
integral part of PROG Holdings' ongoing cloud and AI-focused technology
modernization and innovation efforts. Steve Michaels, President and CEO of
PROG Holdings , said, "We look forward to working with Infosys to develop and
enhance key systems that positively impact the speed to market, agility, and
scalability of key PROG Holdings technologies and platforms. We expect our
collaboration with Infosys will reduce friction for both our customers and
retail partners, further solidifying PROG Holdings' position atop the virtual
lease-to-own industry we helped create twenty-five years ago."
- Infosys collaborated with Pacific International Lines (PIL) to accelerate
their digital transformation initiative by helping revamp PIL's existing
customer portal and deploying a scalable and modern technology platform, aimed
at creating a positive impact for PIL's key stakeholders across the shipping
and logistics ecosystem. Lionel Patrice Chatelet, Chief Commercial Officer,
Pacific International Lines (PIL) , said, "We are looking for a partner who
can not only bring technology but also play an advisory role in the journey of
transformation. Infosys brings together a strong combination of right
capabilities as well as highly collaborative ways of working. We are delighted
to collaborate with Infosys."
- Resolution Life Australasia collaborated with Infosys to virtualize its
mainframe systems by enabling a seamless migration to the cloud, enhancing the
overall customer experience. Peter Histon, CIO of Resolution Life Australasia
, said, "Infosys brought a number of proprietary accelerators to the table as
part of the virtualization which helped us to deliver the solution rapidly.
But beyond that, Infosys brought in a number of different people capabilities.
We took a progressive approach around migration of the underlying
applications. There were two very big releases. Infosys worked with us every
step of the way."
- zooplus and Infosys have entered into a strategic eight- year collaboration to
set up an AI-led product and technology hub in Hyderabad, India. Markus
Hermanutz, Chief Information Officer, zooplus SE , said, "We are excited to
have selected Infosys to set up a new AI-led hub through which we will drive
our business growth ambition. With Infosys Topaz, we will achieve productivity
and efficiency at scale, and attract the right talent for upcoming
transformations across our e-commerce value chain."
- Infosys is expanding its successful collaboration with Hasbro, building on
their initial achievements in the SAP S4 implementation. Together, they are
advancing their relationship and strategy globally through a multi-year
strategic engagement. Leveraging Infosys's expertise in AI and a proven
experience led cognitive approach, Infosys is poised to support Hasbro's
global business. This collaboration aims to drive operational excellence,
foster innovation, and deliver superior experiences at scale for both
customers and employees worldwide. Steve Zoltick, CIO & Head, Global Business
Enablement, Hasbro , said, "Infosys is bringing the right talent to our
collaboration allowing us to enhance our capabilities and achieve our Global
Business Enablement goals".
- Infosys Finacle successfully implemented the Finacle Digital Lending Solution
Suite in a Software-as-a-Service (SaaS) mode for Regional Investment
Corporation (RIC) which included the adoption of the Finacle Online Banking
and Finacle Alerts Solution. Chris Rawlins, Executive Director Transformation,
Regional Investment Corporation (RIC) , said, "At RIC, our mission is to
nurture the growth of the Australian farm businesses through affordable loans,
while also ensuring their resilience and profitability. With the Infosys
Finacle Lending solution, we have a proven technology platform to support the
evolving demands of our business and customers, with the agility to roll out
new products and regulations as mandated by the Federal Government. The
nine-month implementation by the Infosys Finacle team was delivered on
schedule and we are impressed by the team's commitment to facilitate RIC in
achieving a smooth transition without any disruptions to our customers."
- Infosys and Handlesblatt Media Group announced a strategic collaboration to
support the Handelsblatt Research Institute (HRI) in making complex reports on
global economic and financial topics more accessible and easily consumable for
the public, by leveraging Infosys Topaz, an AI-first set of services,
solutions and platforms using generative AI technologies. Dr. Jan Kleibrink,
Managing Director, Handelsblatt Research Institute , said, "We are excited to
collaborate with Infosys to offer cutting-edge, AI-enabled trend reports. One
of the core tasks of the Handelsblatt Research Institute is to present complex
economic relationships and the results of scientific analysis to a broad
readership. We achieve this with texts of the highest journalistic quality and
visual storytelling based on high-quality infographics. With Infosys as our AI
and digital innovation partner, we now move to the next level of digital
storytelling that is powered by AI."

6. Recognitions & Awards

AI and Cloud Services

- Awarded ISO 42001:2023 certification for implementing an Artificial
Intelligence Management System framework
- Positioned as a leader in IDC MarketScape Worldwide Higher Education Cloud
Professional Services Vendor Assessment
- Positioned as a leader in HFS Horizons: Assuring the Generative
Enterprise(TM), 2024
- Rated as a leader in ISG's Multi Public Cloud Services Provider Lens(TM) study
- Rated as a leader in ISG's Intelligent Automation - Solutions and Services
Provider Lens(TM) study in US and Europe

Key Digital Services

- Rated as a leader in The Forrester Wave(TM): Application Modernization And
Migration Services, Q1 2024
- Positioned as a leader in the Unified Communication & Collaboration (UCC)
Specialist Services PEAK Matrix® Assessment 2024 by Everest and ranked #1 in
the UCC rating by Everest
- Rated as a leader in Pega Services PEAK Matrix® Assessment 2024 by Everest
- Positioned as a leader in Application Transformation Services PEAK Matrix®
Assessment 2024 - North America by Everest
- Positioned as a leader in Application Transformation Services PEAK Matrix®
Assessment 2024 - Europe by Everest
- Positioned as a leader in Software Product Engineering Services PEAK Matrix®
Assessment 2024 by Everest
- Rated as a leader in Talent Readiness for Next-generation IT Services PEAK
Matrix® Assessment 2023 by Everest
- Positioned as a leader in IDC MarketScape: Worldwide Blockchain Services 2024
Vendor Assessment
- Rated as a leader in Cyber Resiliency NEAT 2024 by NelsonHall
- Rated as a leader in Salesforce Services 2024 NEAT 2024 by NelsonHall
- Rated as a leader in ShortList 2024: Custom Software Development Services by
Constellation Research
- Rated as a leader in ShortList 2024: Innovation Services and Engineering by
Constellation Research
- Rated as leader in ShortList 2024: Learning Marketplaces by Constellation
Research
- Rated as leader in ShortList 2024: Microsoft End-to-End Service Providers by
Constellation Research
- Rated as leader in ShortList 2024: QA Tools for NextGen Apps by Constellation
Research
- Recognized as a leader in Avasant's Retail Digital Services 2024 Radarview(TM)
- Recognized as a leader in Avasant's SAP S/4HANA Services 2023-2024 Radarview
- Rated as a leader in ISG's Environmental, Social and Governance Services (ESG)
Provider Lens(TM) study in US, Europe and Global

Industry & Solutions

- Positioned as a leader in Retail IT Services PEAK Matrix® Assessment 2024 by
Everest
- Positioned as a leader in HFS Horizons: Manufacturing Intelligent Operations
Services, 2024
- Positioned as a leader in HFS Horizons: The Best Service Providers for Asset
and Wealth Management
- Rated as a leader in ESG Services in Banking 2024 by NelsonHall
- Rated as a leader in Innovation Radar - Salesforce Related Services in Europe:
The Communications & Media View by PAC, The Manufacturing View by PAC, The
Energy & Utilities View by PAC, and The Financial Services View by PAC
- Infosys Finacle along with its customers, won multiple industry awards at the
Retail Banker International Asia Trailblazer Awards 2024. These include
Infosys Finacle Mobile Teller awarded for Most Innovative Branch Offering;
Infosys Finacle and HDFC awarded for Excellence in Mass Affluent Banking;
Infosys Finacle and South Indian Bank awarded for Best CSR Initiative -
Environmental Impact; Infosys Finacle and Suryoday Bank awarded for Best Core
Banking System Initiative
- Infosys BPM and T-Mobile won the SSON North America Impact Award 2024, in the
Creative Talent Management category
- Infosys BPM recognized at the ISG Digital Case Study Research and Awards 2023
with 3 STANDOUT winners: Banking and Financial Services (India),
Communications (Asia Pacific), Retail (UK, Ireland, Scandinavia)
- Infosys BPM won the Best Workplace Diversity Award, at HR Tech Summit & Awards
2024

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 http://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, our
future financial or operating performance, and the McCamish cybersecurity
incident review and notification process 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 ability to effectively implement a hybrid working model,
macro-economic and geo-political situations, technological innovations such as
Generative AI, the complex and evolving regulatory landscape including
immigration regulation changes, onerous terms and conditions in customer
contracts, 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
findings of the ongoing review of the extent and nature of accessed or
exfiltrated data in relation to the McCamish cybersecurity incident and reaction
to such findings, the timing of the review and notification process, and the
amount of any additional costs, including indemnities or damages / claims,
resulting from the 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
(https://url.us.m.mimecastprotect.com/s/iUVrCERK7kTP8MKpSN24Or?domain=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)

March 31, 2024 March 31, 2023

ASSETS

Current assets

Cash and cash equivalents 1,773 1,481

Current investments 1,548 841

Trade receivables 3,620 3,094

Unbilled revenue 1,531 1,861

Other Current assets 2,250 1,349

Total current assets 10,722 8,626

Non-current assets

Property, plant and equipment and 2,323 2,516
Right-of-use assets

Goodwill and other Intangible assets 1,042 1,095

Non-current investments 1,404 1,530

Unbilled revenue 213 176

Other non-current assets 819 1,369

Total non-current assets 5,801 6,686

Total assets 16,523 15,312

LIABILITIES AND EQUITY

Current liabilities

Trade payables 474 470

Unearned revenue 880 872

Employee benefit obligations 314 292

Other current liabilities and provisions 2,983 3,135

Total current liabilities 4,651 4,769

Non-current liabilities

Lease liabilities 767 859

Other non-current liabilities 500 460

Total non-current liabilities 1,267 1,319

Total liabilities 5,918 6,088

Total equity attributable to equity holders 10,559 9,172
of the company

Non-controlling interests 46 52

Total equity 10,605 9,224

Total liabilities and equity 16,523 15,312


Extracted from the Condensed Consolidated statement of Comprehensive Income
under IFRS for:

(Dollars in millions except per equity share data)

3 months 3 months Year ended Year ended
ended March ended March March 31, March 31,
31, 2024 31, 2023 2024 2023

Revenues 4,564 4,554 18,562 18,212

Cost of sales 3,219 3,164 12,975 12,709

Gross profit 1,345 1,390 5,587 5,503

Operating expenses:

Selling and marketing 209 202 842 776
expenses

Administrative expenses 219 231 911 902

Total operating expenses 428 433 1,753 1,678

Operating profit 917 957 3,834 3,825

Other income, net (3) 315 72 512 300

Profit before income taxes 1,232 1,029 4,346 4,125

Income tax expense 273 284 1,177 1,142

Net profit (before minority 959 745 3,169 2,983
interest)

Net profit (after minority 958 744 3,167 2,981
interest)

Basic EPS ($) (4) 0.23 0.18 0.77 0.71

Diluted EPS ($) (4) 0.23 0.18 0.76 0.71


NOTES :

1. The above information is extracted from the audited condensed consolidated
Balance sheet and Statement of Comprehensive Income for the quarter and year
ended March 31, 2024, which have been taken on record at the Board meeting
held on April 18, 2024.
2. A Fact Sheet providing the operating metrics of the Company can be downloaded
from http://www.infosys.com/ .
3. Other income is net of Finance Cost .
4. Includes interest income (pre-tax) of $232Mn and reversal of net tax
provisions amounting to $5Mn on account of orders received under sections 250
& 254 of the Income Tax Act, 1961, from the Income Tax Authorities in India
for certain assessment years. This has resulted in a positive impact on the
consolidated Basic and Diluted EPS by approximately $0.06 for the quarter and
year ended March 31, 2024.
5. As the quarter and year ended figures are taken from the source and rounded
to the nearest digits, the quarter figures in this statement added up to the
figures reported for the previous quarters might not always add up to the
year ended figures reported in this statement.

IFRS-INR Press Release: https://www.infosys.com/investors/reports-filings/quarte
rly-results/2023-2024/q4/documents/ifrs-inr-press-release.pdf

Fact sheet: https://www.infosys.com/investors/reports-filings/quarterly-results/
2023-2024/q4/documents/fact-sheet.pdf

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Contact:

Investor Relations,
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[e-mail],
Media Relations,
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[phone],
[e-mail],
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