Tuesday , November 12 2019
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Infosys: Accelerated Double Digit Growth of 12.4%; Highest Ever Large Deal TCV at $ 2.7 Bn

“We had a strong start to FY 20 with constant currency growth accelerating to 12.4% on year over year basis and digital revenue growth of 41.9%. This was achieved through our consistent client focus and investments which have strengthened our client relationships,” said Salil Parekh, CEO and MD. “Consequently, we are raising our revenue guidance for the year from 7.5%-9.5% to 8.5%-10%.”

41.9% YoY

12.4% YoY

2.8% QoQ


$2.7 bn

Digital CC growth

CC growth

CC growth

Operating margin

Large deal signings

  • Q1 20 revenues grew year-on-year by 10.6% in USD; 12.4% in constant currency
  • Q1 20 revenues grew sequentially by 2.3% in USD; 2.8% in constant currency
  • Q1 20 Digital revenues at $1,119 million (35.7% of total revenues), year-on-year growth of 41.9% and sequential growth of 8.6% in constant currency
  • Increased FY 20 revenue growth guidance range to 8.5%-10% in constant currency
  • Maintained FY 20 operating margin guidance range of 21%-23%

Financial Highlights – Consolidated results under International Financial Reporting Standards (IFRS)

Revenues were $3,131 million, growth of 10.6% YoY and 2.3% QoQ

Operating profit was $642 million, decline of 4.2% YoY and 2.3% QoQ. Operating margin was 20.5%.

“We had a good quarter as we continue to leverage our digital navigation framework to help our clients build and nurture their live enterprise,” said Pravin Rao, COO. “Large deal TCV was highest ever at $2.7 bn. Segment growth was robust with all large regions and most verticals growing at double digits yoy in constant currency.”

“Our first quarter results and continued focus on operational efficiencies gives us the confidence on our revenue and margin guidance for the year,” said Nilanjan Roy, CFO. “Continuing our objective of improving shareholder returns, we have revised our capital allocation policy upwards to distribute ~ 85% of free cash flows cumulatively over a 5-year period.”

Capital Allocation

  • The Company is on track towards completing its previously announced share buyback of INR 8,260 crore. The company has till date bought back shares worth `INR 5,934 crore.
  • The Company’s current policy is to pay up to 70% of the free cash flow annually by way of dividend and/or buyback. The Board has reviewed and approved a revised Capital Allocation Policy of the Company after taking into consideration the strategic and operational cash requirements.

    “Effective from Financial year 2020, the company expects to return approximately 85% of the free cash flow cumulatively over a 5-year period through a combination of semi-annual dividends and/or share buyback and/or special dividends, subject to applicable laws and requisite approvals, if any.”

    Free cash flow is defined as net cash provided by operating activities less capital expenditure as per the consolidated statement of cash flows prepared under IFRS 


  • Infosys positioned in HFS Top 10 Healthcare Services 2019
  • Recognized as a Leader in NelsonHall’s SAP HANA and S/4HANA services report
  • Recognized as a Leader in the Enterprise Platform IT Services in BFS PEAK Matrix™ Assessment 2019
  • Recognized in the HFS Top 10: Managed Security Services (MSS)
  • Recognized in the HFS Top 10 Google AI Services
  • Recognized as a Leader in The Forrester Wave™: Global API Strategy And Delivery Service Providers, Q2 2019
  • Recognized as a Leader in the NEAT on Next-Generation Software Testing Services
  • Recognized as a Leader in the IDC MarketScape: Worldwide Microsoft Implementation Services 2019 Vendor Assessment
  • Recognized in the NEAT on IoT in Digital Transformation
  • Recognized in the HFS Top 10 Manufacturing Service Providers 2019
  • Recognized in the HFS Top 10 Energy Services 2019
  • Recognized as a Leader in Gartner Magic Quadrant for Public Cloud Infrastructure Managed Service Providers
  • Awarded the “Most Valuable Partner – Commercial Cloud” Award by Oracle
  • Won the Golden Peacock Environment Management Award
  • Won the Pega partner excellence award in recognition of innovative practice development and continued investment in the growth of a strong delivery practice
  • Recognized with the Global Partner of the Year Award for driving customer success at TIBCO NOW
  • Recognized as MuleSoft Americas Growth & Emerging Partner of the Year 2019 by MuleSoft
  • Awarded ‘System Integrator Partner of the year 2019 for Hybrid Cloud Solutions’ by HPE at HPE Discover 2019