Infosys, a global leader in next-generation digital services and consulting, delivered strong Q3 performance with sequential growth of 7.0% in a seasonally weak quarter and year-on-year growth of 21.5% in constant currency. Growth remained broad-based and deal momentum robust, with digital transformation rapidly scaling across verticals and regions. Large deal wins accelerated with TCV of $2.53 billion in Q3. Operating margin for the quarter was healthy at 23.5%, with Free Cash Flow conversion at 92.6%. Our talent strategy continued to be a key focus area marked by efforts to further strengthen employee skilling and well-being while nurturing our workforce to fulfil client requirements.
"Our strong performance and market share gains are a testament to the enormous confidence our clients have in us to help them in their digital transformation. This stems from four years of sustained strategic focus on areas of relevance for our clients in digital and cloud, continued re-skilling of our people, and deep relationships of trust that our clients have with us. This is reflected in an upgrade in our revenue guidance to 19.5%-20.0% for FY22. We expect the healthy technology spend to continue with large enterprises progressing on their digital transformations," said Salil Parekh, CEO and MD. "I am immensely proud of the relentless commitment of our employees during these challenging times and grateful for their extraordinary efforts in delivering success for our clients", he added.
|
42.6% YoY |
21.5% YoY |
23.5% |
13.1% YoY |
$2.53 bn |
|
CC Digital growth |
CC Revenue growth |
Operating margin |
Increase in EPS |
Large deal signings |
- Key highlights:
|
For the quarter ended December 31, 2021 |
For nine months ended December 31, 2021 |
|
- Revenues in CC terms grew by 21.5% YoY and 7.0% QoQ |
- Revenues in CC terms grew by 19.3% YoY |
"Despite the cost escalations driven primarily by supply side challenges, we delivered another quarter of healthy margins, with improved cost optimization, continued operating leverage and a stable pricing environment," said Nilanjan Roy, Chief Financial Officer. "We continue to prioritize investments in talent acquisition and development and have further increased our global graduate hiring program to over 55,000 for FY22 to support our growth ambitions", he added.
- Client wins & Testimonials
- Infosys accelerated Daimler's transition to sustainable mobility by transferring its High Performance Computing (HPC) workloads used to design vehicles and automated driving technologies to one of Europe's greenest data centers, Lefdal Mine Datacenter, in Norway. Infosys provided 'Green Data Center as a Service', part of Infosys Cobalt, to facilitate Daimler's journey to net zero. Jan Brecht, Chief Information Officer, Daimler and Mercedes-Benz, said, "A large proportion of our IT energy consumption comes from our data centers which require significant power for computing and cooling. That's why we're transforming our data centers with the support of our partner Infosys, bringing particularly the high-performance computing into one energy efficient solution at Lefdal Mine Datacenter. Not only will we benefit from natural cooling thanks to the cold weather, our operations will also be run on 100% green energy. This initiative marks another important milestone on our journey to becoming CO2"
- Infosys integrated its flagship human-centric digital commerce platform, Infosys Equinox, with Packable IQ (Packable's proprietary e-commerce platform) to help strengthen Packable's ability to offer its brand partners an engaging, innovative, and agile Direct to Consumer platform (D2C): "D2C-in-a-box."Andrew Vagenas, Chief Executive Officer, Packable, said, "We're thrilled to partner with Infosys. This exciting partnership marks another milestone in the execution of Packable's strategy of augmenting our D2C platform ecosystem to accelerate brand partners' revenues and profitability across e-commerce channels. As we continue our journey to becoming a public company, we're diligently looking for partnerships to help bring the highest-quality services to customers, and this agreement with Infosys Equinox allows us to do just that."
- Infosys and bp agreed to develop and pilot an energy as a service (EaaS) solution, which will aim to help businesses improve the energy efficiency of infrastructure and help meet their decarbonization goals.Sashi Mukundan, President, bp India and Senior Vice President, bp Group, said, "At bp, we set out to provide solutions to enable cities and hard to abate industries decarbonize. Integrating advances in energy, mobility and digital technologies and services has huge potential to accelerate the progress towards a more sustainable and resilient future. By bringing together our complementary capabilities, products, and services from bp's different joint ventures in India, bp and Infosys can help each other – and our customers – achieve energy and sustainability goals faster."
- Infosys extended its strategic collaboration with Proximus, Belgium's leading digital services and communications solutions provider, to digitally transform, develop, and maintain their IT applications with leading AI and automation solutions.Antonietta Mastroianni, Chief Digital & IT Officer, Proximus, said, "As we continue on this journey to elevate our digital initiatives, we were looking for a partner that could understand and provide strength to our digital vision. IT services companies play an imperative role during these times of transformation. Infosys continues to be our strategic partner to drive efficiency in our IT landscape and support us in our digital transformation journey. Having shared a bond with Infosys for over 24 years, its knowledge of the existing landscape and skilled resources will help ensure the success of our initiative. We are happy to extend this collaboration with Infosys and are looking forward to a successful journey together."
- Infosys extended its digital innovation partnership with the Australian Open (AO) until the end of 2026. Craig Tiley, CEO of Tennis Australia and Australian Open Tournament Directorsaid, "We are excited to extend our partnership with Infosys until 2026 as part of our ongoing journey of innovation. We look forward to working together to continue to change the way fans, players, coaches and audiences around the world engage with the Australian Open and our sport."
- Infosys and ATP recently launched a suite of exciting match stats and analysis tools designed to bring fans, coaches, and media closer to the action of men's professional tennis through digital innovation. Daniele Sano, ATP Chief Business Officer, said: "As an organisation we are constantly looking for new ways to make the experience of our sport more compelling. Tennis is incredibly data-rich, and Infosys has both technological expertise and passion for tennis to bring it to life in an intuitive way. We are excited for fans to interact with these new features and look forward to future digital innovation together with Infosys."
- Infosys and Financial Times collaborated to enhance immersive journalism. Infosys will leverage digital innovation to support the latest creative and engaging data-led storytelling experiences for FT's readers.James Lamont, Director of Strategic Partnerships, Financial Times, said: "Our readers expect the best from the FT, and we are experimenting with exciting digital ways to bring stories and features to a wider audience. With Infosys' help, we can use technology better and faster to deliver editorial features in more enterprising and eye-catching ways. The expertise Infosys provides to these newsroom projects will help foster a spirit of innovation and reader service that supports our mission to delight and inform the FT's audience."
- Infosys recently became the official digital innovation partner of Madison Square Garden (MSG) Sports and MSG Entertainment "Madison Square Garden welcomes millions of people each year and one of our most important priorities is finding new ways to deliver a world-class experience to each and every one of them, down to the smallest detail – this Infosys partnerships helps us do just that," said Andrew Lustgarten, president and CEO of MSG Sports and president of MSG Entertainment. "Infosys shares our vision for using data and analytics to improve the guest experience, and we couldn't be more excited that they are joining us in such a significant and integrated partnership."
- Recognitions
- Infosys won Platinum Award at The Asset ESG Corporate Awards 2021, and won awards for Best Initiative in Diversity and Inclusion and for the Best Investor Relations Team
- Infosys recognized as a Top Employer in the 2021 India Workplace Equality Index (IWEI), won Silver for LGBT+ Inclusion
- Infosys recognized among Top 50 India's Best Workplace for Women 2021 by Great Place To Work in the large companies' category
- Infosys recognized as Exemplars of Inclusion in Working Mother & AVTAR Most Inclusive Companies Index 2021
- Infosys recognized among Top 10 Working Mother and AVTAR Best Company for Women in India in 2021
- Accredited as a Disability Confident Recruiter by the Australian Network on Disability (AND) for 2020-21
