Infosys Announces Results, Salary Hike and Promotions for Employees Across Levels

Infosys has just announced results, and the company has reported a growth acceleration accompanied by 3.7% YoY margin expansion, revenue and margin guidance increased to 2 to 3% in cc and 23 to 24%, respectively. The other highlights of the results are as follows:

• Q2 revenues grew sequentially by 4.0% in constant currency
• Q2 revenues grew year-on-year by 8.6% in INR; grew by 2.2% in constant currency
• Q2 Digital revenues at $1,568 million (47.3% of total revenues), year-on-year growth of 25.4% in constant currency
• Q2 operating margin at 25.4%, increase of 370 basis points year-on-year
• Q2 free cash flow at Rs 4,989 crore; year-on-year growth of 78.1%
• Q2 net profit at Rs 4,845 crore, year-on-year growth of 20.5%
• Q2 voluntary attrition for IT services declined to 7.8% from 18.3% in Q2 20
• H1 revenues grew by 1.9% in constant currency
• H1 operating margin at 24.1%
• Declared interim dividend of Rs 12 per share

“Our second quarter performance is a clear reflection of our ability to help clients on their digital transformation journeys. Our digital and cloud capabilities combined with intense client relevance are helping us achieve differentiated results in the market as is visible in 2.2% year on year overall revenue growth and 25.4% growth from digital offerings, which now are at 47.3% of revenues”, said Salil Parekh, CEO and MD. “Increase in revenue and margin outlook for FY 21 is due to the continued trust clients have in us. I am extremely proud of our team for achieving these results in challenging business conditions globally.”

For the quarter ended 30 September 2020

• Revenues were Rs 24,570 crore, growth of 8.6% YoY and 3.8% QoQ
• Operating profit was Rs 6,228 crore, growth of 26.8% YoY and 16.1% QoQ
• Basic EPS was Rs 11.42, growth of 20.8% YoY and 14.4% QoQ

For six months ended 30 September 2020

• Revenues were Rs 48,234 crore, growth of 8.6% YoY
• Operating profit was Rs 11,593 crore, growth of 23.6% YoY
• Basic EPS was Rs 21.40, growth of 17.1% YoY

Furthermore, the company will be rolling-out salary hikes and promotions for employees across all levels. “The strength and resilience of Infosys was fully visible in Q2 with operating metrics witnessing a healthy increase, broad-based growth, highest ever large deal TCV at $ 3.15 bn and attrition reducing to single digits”, said Pravin Rao, COO. “Employees have been critical part of our success. As a recognition of their stellar performance, we are giving 100% variable pay along with a special incentive for Q2. Additionally, we are rolling out salary increases and promotions across all levels effective Jan 1st.”