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10.01.2020 – 14:05


Infosys: Continued Momentum in Digital Drives 11.1% YTD Growth

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 
- Q3 20 revenues grew sequentially by 1.0% in USD and in constant 
- 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 
- 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, a career intelligence 
- 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 
- 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 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 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
Balance Sheet as   
(Dollars in        
millions except    
equity share data) 
                    December March  
                    31, 2019 31,    
Current assets                      
Cash and cash       2,422    2,829  
Current investments 431      958    
Trade receivables   2,529    2,144  
Unbilled revenue    914      777    
Prepayments and     820      827    
other current                       
Income tax assets   1        61     
Derivative          5        48     
Total current       7,122    7,644  
Non-current assets                  
Property, plant and 1,896    1,931  
Right-of-use assets 540      -      
Goodwill            584      512    
Intangible assets   185      100    
Non-current         594      670    
Deferred income tax 195      199    
Income tax assets   739      914    
Other non-current   255      282    
Total non-current   4,988    4,608  
Total assets        12,110   12,252 
LIABILITIES AND                     
Current liabilities                 
Trade payables      263      239    
Lease liabilities   79       -      
Derivative          13       2      
Current income tax  216      227    
Client deposits     2        4      
Unearned revenue    438      406    
Employee benefit    268      234    
Provisions          85       83     
Other current       1,438    1,498  
Total current       2,802    2,693  
Lease liabilities   501      -      
Deferred income tax 88       98     
Employee benefit    6        6      
Other non-current   136      55     
Total liabilities   3,533    2,852  
Share capital- INR  332      339    
5 ($0.16) par value                 
equity shares                       
authorized, issued                  
and outstanding                     
equity shares fully                 
paid up, net of                     
treasury shares as                  
at December 31,                     
2019 (March 31,                     
Share premium       300      277    
Retained earnings   10,458   11,248 
Cash flow hedge     (2)      3      
Other reserves      560      384    
Capital redemption  17       10     
Other components of (3,141)  (2,870)
Total equity        8,524    9,391  
attributable to                     
equity holders of                   
the company                         
Non-controlling     53       9      
Total equity        8,577    9,400  
Total liabilities   12,110   12,252 
and equity                          
Infosys Limited and
Statement of       
Income for the     
(Dollars in        
millions except    
equity share and   
per equity share   
                    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          
Total operating     373           356           1,114         1,042        
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                                                                  
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                                                        
Items that will not                                                        
be reclassified                                                            
subsequently to                                                            
profit or loss:                                                            
Re-measurements of  (16)          (4)           (22)          (3)          
the net defined                                                            
Equity instrument   (6)           8             (5)           10           
through other                                                              
income, net                                                                
                    (22)          4             (27)          7            
Items that will be                                                         
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)        
                    (45)          309           (251)         (632)        
Total other         (67)          313           (278)         (625)        
income/(loss), net                                                         
of tax                                                                     
Total comprehensive 560           815           1,468         993          
Profit attributable                                                        
Owners of the       626           502           1,741         1,618        
Non-controlling     1             -             5             -            
                    627           502           1,746         1,618        
Total comprehensive                                                        
income attributable                                                        
Owners of the       559           815           1,465         993          
Non-controlling     1             -             3             -            
                    560           815           1,468         993          
Earnings per equity                                                        
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                                                        
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


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 
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 
4. On account of adoption of IFRS 16- Leases effective April 1, 2019.




Investor Relations 
Sandeep Mahindroo 
Media Relations 
Mehak Chawla 
Chiku Somaiya 


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