INFOSYS - Q1 FY 21 - RESULTS REVIEW

INFOSYS

Q1 FY 21 RESULTS REVIEW

Infosys (in Rs. Cr.)	Jun '20	Mar '20	Jun '19	YOY	QOQ
Net Sales	23,665.00	23,267.00	21,803.00	8.54	1.71
Employees Cost	13,604.00	12,916.00	12,302.00	10.58	5.33
Depreciation	756	749	681	11.01	0.93
Other Expenses	3,940.00	4,675.00	4,349.00	-9.4	-15.72
P/L Before Other Inc., Int., Excpt. Items & Tax	5,365.00	4,927.00	4,471.00	20	8.89
Other Income	475	614	736	-35.46	-22.64
P/L Before Int., Excpt. Items & Tax	5,840.00	5,541.00	5,207.00	12.16	5.4
Interest	48	45	40	20	6.67
P/L Before Tax	5,792.00	5,496.00	5,167.00	12.1	5.39
Tax	1,520.00	1,161.00	1,365.00	11.36	30.92
FINAL NPT	4,233.00	4,321.00	3,798.00	11.45	-2.04
Equity Share Capital	2,122.00	2,122.00	2,137.00	-0.7	0
Reserves Excluding Revaluation Reserves	63,328.00	63,328.00	62,778.00	0.88	0
Basic EPS	9.98	10.19	8.83	13.02	-2.06
Diluted EPS	9.97	10.18	8.82	13.04	-2.06

MP         911                                                        

PE           22.84                                                      

                   

52 Wk L/H            511.1     952                                        

                                                

                                                                               

Valuation 

                              

Market Cap (Rs Cr.)  :  387,979.31                     

                             

P/E              24.97               

                               

Book Value (Rs)        146.11                      

                            

Dividend (%)       350                       

                         

Industry P/E       21.75                         

                            

EPS (TTM)         36.49                           

                           

Price/Book           6.23                     

                                

Dividend Yield.(%)  1.92                                  

                             

Face Value (RS) 5                             

                              

MKT PRICE      3 YR BEF NOW      %GAIN        

Open Price    500               900               80         

Close Price    486.03          831.45          71.07           

                                 

Share Holding Pattern in (%)      

                        

Standalone	Mar-20	Dec-19	Sep-19	Jun-19
Promoters	13.17	13.16	13.17	13.05
Pledged	0	0	0	0
FII/FPI	30.98	31.75	33.41	33.27
Total DII	45.49	44.75	43.51	43.54
Fin.Insts	0.13	0.13	0.13	0.13
Insurance Co	10.74	10.31	9.58	9.59
MF	13.67	13.37	12.99	13.17
Others DIIs	20.95	20.94	20.81	20.65
Others	10.36	10.35	9.92	10.12
Total	100	100.01	100.01	99.98

Management      

                

Nandan M Nilekani        Chairman         

Salil Parekh      Managing Director & CEO         

U B Pravin Rao        Whole Time Director & COO 

“Our Q1 results, especially growth,are a clear testimony to the relevance of our service offerings and deep understanding of clients’ business priorities which is resonating with them in these times. It also demonstrates the remarkable dedication of our employees and leadership during this period”,said Salil Parekh, CEO and MD. “Our confidence and visibility for the rest of the year is improving driven by our Q1 performance and large deal wins. 

     

•Revenues grew year-on-year by 8.5% in INR;grew by 1.5% in constant currency

•Digital revenues at $1,389million (44.5% of total revenues), year-on-year growth of 25.5%in constant currency

•Operating margin at 22.7%, increase of 220 basis points year-on-year

•Free Cash Flow at `5,524crore; year-on-year growth of 63.5%

•Voluntary attrition for IT services declined to 11.7% from 20.2% in Q1 20

•FY 21 Revenue growth guidance in the range of 0%-2% in constant currency

•Operating margin for FY 21 to be in the range of 21%-23%     

      

“During the last few months, we took multiple steps  aimed  at  employee  safety  and well-being  while providing  seamless  services to  our  clients.  Clients  have  recognized  us  for  the  speed,  security  and effectiveness of our remote enablement efforts”, said Pravin Rao, COO.

 “The strength and diversity of our portfolio was evident in good revenue performance, sizeable large deal wins, high focus on operating metrics and significant decline in attrition.”For the quarter ended June30, 2020 Revenues were `23,665 crore, growth of 8.5% YoY and 1.7% QoQ Operating profit was Rs.5,365 crore, growth of 20.0% YoY and 8.9% QoQ. Operating margin was 22.7% Basic EPS was `9.98, growth of 13.1% YoY and decline of 2.0% QoQ

“Operating margin expanded to 22.7% driven by preemptive deployment of our strategic cost levers along with tactical opportunities triggered by the COVID situation”, said Nilanjan Roy, CFO. “Collections were robust and capex was focused, which led to 50% year on year increase in Free Cash Flows. Our liquid and debt free Balance Sheet is a huge source of strength in these times.”

About Infosys

Infosys is a global leader in next-generation digital services and consulting. It enables clients in 46 countries to navigate their digital transformation. With  nearly four  decades  of  experience  in  managing  the  systems  and workings  of  global  enterprises,  it  expertly  steers its  clients  through their  digital  journey.  Infosys  does  it  by  enabling  the  enterprise  with  an  AI-powered core that helps prioritize the execution of change. Infosys also empowers   the   business   with   agile   digital   at   scale   to   deliver unprecedented  levels  of  performance and  customer  delight.  Its always-on  learning  agenda  drives  their  continuous  improvement through building and transferring digital skills, expertise, and ideas from its innovation ecosystem.