INFOSYS LTD - Q2 FY 21 - RESULTS REVIEW - DT 15 10 20

 

INFOSYS LTD

Q2 FY 21 RESULTS REVIEW

DT 15 10 20

 

 

Consolidated Results In Crores of Rupees, except per equity share data

Particulars     Q2 FY21 Q2 FY 20 YOY%  Q1 FY 21QOQ%

Revenues           24,570  22,629 8.6 23,665 3.8

Cost of sales        15,771   15,079   4.6 15,703   0.4

Gross Profit          8,799     7,550     16.5  7,962   10.5

Operating Expenses:

Selling and marketing expenses

                            1,136     1,162     (2.2)  1,146  (0.9)

Administrative expenses

                            1,435     1,476     (2.8)   1,451 (1.1)

Total Operating Expenses

                            2,571     2,638     (2.5)      2,597(1.0)

Opting Profit         6,228     4,912     26.8       5,365 16.1

Optg Margin%      25.3       21.7       3.6        22.7  2.7

Other Income,net       522        584 (10.6)    427 22.2

Profit before IT            6,750     5,496 22.8    5,792 16.5

Income tax                  1,892     1,459 29.7    1,520 24.5

Net Profit (before minority interest)

                                   4,858     4,037 20.3    4,272 13.7

Net Profit (after minority interest)

                                   4,845     4,019 20.5    4,233  14.4

Basic EPS(Rs)             11.42    9.46   20.8    9.98   14.4

Diluted EPS (Rs)         11.40     9.44   20.7    9.97   14.4

Dividend Per Share(Rs)12.00    8.00   50.0    --           --

Declared an interim dividend of ₹12/-per equity share;

Fixed October 26, 2020 as record date for interim dividend and November 11, 2020as payment date.

Other matters

Approved the grant of 33,900 RSUs to certain eligible employees under the 2015 Plan. The grant date for these RSUs is November 1, 2020. The RSUs would vest over a period of three to four years and the exercise price of RSUs will be equal to the par value of the share.

25.4% OPERATING MARGIN

LARGE DEAL SIGNINGS $3.15 BN

REVENUE GROWTH Q2 FY 21

QOQ GROWTH% :        REPORTED 6.1%       CC 4.0%

YOY GROWTH%          REPORTED  3.2%        CC 2.2%

REVENUE BY BUSINESS SEGMENTS %

FINANCIAL SERVICES 32%

RETAIL                              14.9%

COMMUNICATION              12.6%

ENERGY,UTILITIES ETC      12.3%

MNFG                                9.1%

HITECH                              9.1%

LIFE SCIENCES                  6.8%

OTHERS                             3.2%

TOTAL                                100%

REVENUE BY GEOGRAPHICAL SEGMENTS %

NORTH AMERICA               60.7%

EUROPE                             24.3%

ROW                                  12.0%

INDIA                                3.0%

TOTAL                                100%

NUMBER OF CLIENTS

ACTIVE                              1487

ADDED DURING THE PERIOD GROSS      96

EMPLOYEE METRICS

TOTAL EMPLOYEES ; 2,40,208

Cash Flow

Free Cash Flow : Rs.4989 Cr.

consolidated cash and Investments :      Rs.33,601 Cr

"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 . 

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%

FY 21 revenue growth guidance revised upward to 2%-3% in constant currency

FY 21 operating margin guidance revised upward to 23%-24%

 

"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 from Jan 1st.

 

Our relentless efforts on cost optimization and strengthening operational efficiencies helped by certain cost deferrals led to 270 bps sequential improvement in operating margin to 25.4% and a 300 bps improvement in H1 margins," said Nilanjan Roy, CFO. Free cash flows grew significantly in H1 driven by our consistent focus on liquidity and cash management. Consequently, we are increasing our interim dividend per share by 50% to Rs.12."