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Infosys Q1 Results FY22-2023

24 July 2022

India’s second largest IT company in terms of market capitalisation, Infosys announced its quarterly financial result for Q1 FY23 on 24th July 2022. 

Infosys reported a stable growth in its net profit, which increased 3.17% YoY (year on year) to Rs. 5,360 crores in Q1 FY23 from Rs. 5,197 crores in Q1 FY22. The revenue from operations of the company came in at Rs. 34,470 crores, jumping 23% YoY from Rs. 27,896 crores reported in the same quarter of the previous year. 

Operating profits in Q1 FY23 were published at Rs. 6,914 crores, up 4.7% YoY from Rs. 6,603 crores in Q1 FY22. The operating profit margin, however, came in at 20.1%, down 3.6% from 23.6% on a yearly basis. On a quarterly basis, the margin has slipped by 1.4% (quarter on quarter) from the 21.5% reported in Q4 FY22. This may be attributed to increased outgo on account of transport costs, employee retention costs and higher payouts the company has been forced to take given the tough overall environment the IT industry faces. The company hasn't made a marked comment yet.

Other incomes in this quarter rose 8.2% YoY to Rs. 620 crores from Rs. 573 crores in Q1 FY22. 

For the first quarter of this financial year, Infosys reported the revenue in terms of constant currency as displaying a growth of 21.4% YoY, and a sequential growth of 5.5%. 

The Bangalore-headquartered company also signed a mega $1.7 billion deal, which was the largest deal of the quarter in terms of the total contract value (TCV). 

The IT giant reported strong net hiring of 21,171 employees in the quarter. However, the attrition rate came in at 28.4%. 

Looking at the segment wise performance, on a yearly basis, the growth was in double digits across all business segments in constant currency terms. The digital segment alone accounted for 61.0% of overall revenues, growing at 37.5% in terms of constant currency. 

Basic EPS was published at Rs. 12.78, growing 4.4% YoY. Infosys closed in the red at Rs. 1,506 per share, falling 1.74% on 22 July 2022, Friday. 

Hits of Infosys Q1 Results FY22-23

  • Revenues in CC terms grew by 21.4% YoY and 5.5% QoQ.
  • Reported revenues at 34,470 crores, growth of 23.6% YoY.
  • Digital revenues at 61.0% of total revenues, YoY CC growth of 37.5%.
  • Basic EPS at 12.78, growth of 4.4% YoY.
  • FCF came in at Rs. 5,106 crores; FCF conversion at 95.2% of net profit.

Misses Infosys Quarterly Results 2023

  • Operating margin came in at 20.1%, declining 3.6% YoY and 1.4% QoQ.
  • The attrition rate came in at 28.4%. 

Revenue by offering under Infosys Results

  • Digital - For Q1FY23 ending, revenue through digital came in at Rs. 2,710 crores, rising 32.8% YoY and 37.5% on a CC basis.
  • Core - For the quarter ending June, revenue through core operations came in at Rs. 1,734 crores, falling 0.5% YoY, while rising 2.4% on a sequential basis.  

Revenue by business segments 

  • Financial services - Revenue was recorded at Rs. 10,562 crores from Rs. 9,217 crores rising 9% YoY.
  • Retail - Revenue came in at Rs. 5,004 crores rising 14% YoY from Rs. 4,175 crores.
  • Communication - Revenue was published at Rs. 4,464 crores rising 24.7% YoY from Rs. 3,403 crores.
  • Energy, Utilities, Resources & Services - Revenue was recorded at Rs. 4,259 crores from Rs. 3,371 crores last year, jumping 20.2% YoY.
  • Manufacturing - Revenue came in at Rs. 4,172 crores, rising a stellar 46.5% YoY from Rs. 2,702 crores.
  • Hi-Tech - Revenue was published at Rs. 2,812 crores, a 21.73% YoY increase from Rs. 2,310 crores last year. 
  • Life Sciences - Revenue came in at Rs. 2,257 crores, rising a 13.5% YoY from Rs. 1,891 crores.
  • Others - Revenue from other business verticals came in at Rs. 940 crores, rising 8% YoY from Rs 827 crores.

From the management 

Sahil Parekh, MD and CEO said, “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. We are investing in rapid talent expansion while ensuring rewarding careers for our employees to serve evolving market opportunities better. This has resulted in a strong performance in Q1 and increase in FY 23 revenue guidance to 14%-16%”, he added.

Other things to know about Infosys Q1 Result 

  • Infosys was among Kantar's global 100 most valuable brands in 2022.
  • The company ranked highest in Stakeholders Empowerment Services’ (SES) 'ESG Scores - Top 100 Listed Companies in India' report.
  • Infosys was recognized as the ‘2021 Global AI Services Company of the Year’ by Frost & Sullivan.
  • Infosys won the 2022 Microsoft Security Modern Endpoint Management Partner of the Year Award.
  • Infosys BPM positioned itself as a leader in the 2022 Gartner® Magic Quadrant™ for Finance and Accounting Business Process Outsourcing
  • The company was ranked as a leader in Everest - Healthcare Payer Digital Services Peak Matrix Assessment
  • Infosys was recognized as a leader in ISG Provider Lens™ ServiceNow Ecosystem Partners in the U.S. and Australia 2022 Quadrant Report
  • The company was ranked as a leader in the IDC MarketScape Worldwide Cloud Professional Services Vendor Assessment
  • The company was declared a leader in the IDC MarketScape Worldwide SAP Implementation Services 2022 Vendor Assessment
  • EdgeVerve was adjudicated as an innovator in the Computer Vision Category at the 2022 NASSCOM AI Game Changer Award
  • Infosys BPM was announced as a winner in the Telecommunications Project of the Year category
  • Infosys and Rolls-Royce extended their strategic collaboration with the launch of a joint 'Aerospace Engineering and Digital Innovation Centre' in Bengaluru, India
  • Infosys launched the Infosys Cobalt Financial Services Cloud, an industry cloud platform for enterprises across the financial services industry to accelerate business value in the cloud.
  • Infosys and Google Cloud have been selected by Backcountry to help them deliver seamless and secure digital experiences for outdoor enthusiasts.
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Research Analyst: Bavadharini KS
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