Infosys Q1 results have been announced and the company has reported revenue growth in Q1, which has set the foundation for the year
Infosys Q1 results were recently announced and the company has reported a year-on-year growth at 21.4% and sequential growth at 5.5% in constant currency. Year on year growth was in double digits across all business segments in constant currency terms. Digital accounted for 61.0% of overall revenues, growing at 37.5% in constant currency. Net hiring was strong at 21,171. Operating margin for the quarter was 20.1%, with Free Cash Flow conversion at 95.2% of net profit.
“Our strong overall performance in Q1 amidst an uncertain economic environment is a testament to our innate resilience as an organization, our industry-leading digital capabilities and continued client-relevance. We continue to gain market share and see a significant pipeline driven by our Cobalt cloud capabilities and differentiated digital value proposition”, said Salil Parekh, CEO and MD. “We are investing in rapid talent expansion while ensuring rewarding careers for our employees, to better serve evolving market opportunities. This has resulted in a strong performance in Q1 and increase in FY 23 revenue guidance to 14%-16%”, he added.
Key highlights Infosys Q1 Results
Some of the key highlights from Infosys of the quarter that ended on 30 June 2022 are as follows:
- Revenues in CC terms grew by 21.4% YoY and 5.5% QoQ.
- Reported revenues at Rs 34,470 crore, growth of 23.6% YoY.
- Digital revenues at 61.0% of total revenues, YoY CC growth of 37.5%.
- Operating margin at 20.1%, decline of 3.6% YoY and decline of 1.4% QoQ.
- Basic EPS at Rs 12.78, growth of 4.4% YoY.
- FCF at Rs 5,106 crore; FCF conversion at 95.2% of net profit.
“We are fueling the strong growth momentum with strategic investments in talent through hiring and competitive compensation revisions. While this will impact margins in the immediate term, it is expected to reduce attrition levels and position us well for future growth. We continue to optimize various cost levers to drive efficiency in operations”, said Nilanjan Roy, chief financial officer, Infosys. “Continued high focus on cash led to strong FCF to net profit conversion at 95.2% and improvement in ROE to 31.0%”, he added