Result Analysis Infosys Limited

Conference call Highlights:

• Strong Q3 performance with 13.7% YoY and 2.4% QoQ growth in Revenue on CC basis despite changing global economy.
• Margins is at 21.5% flat sequentially, got benefit of 40 bps increase from currency appreciation and 70 bps increase from cost optimization.
• LTM attrition declined by 280 bps QoQ and is expected to decline further going forward.
• Continue to gain market share and benefit from consolidation; Large deal value is highest in eight quarters at $3.3 billion with 32 large deals out of which 36% is net new deals in the quarter.
• CC Digital revenue growth of 22% and counts 63% of total revenue.
• Signs of slowing global economy prevails; Mortgages, investment banking, financial services industry, telco, high-tech and retail industries are more impacted. Confident in the area of digital, cloud and automation segments.
• Revenue growth guidance for FY23 has upgraded to 16%-16.5% from earlier guidance of 15%-16% as vendor consolidation and cost optimization provide growth opportunities further. Operating profit margin guidance for FY23 retained at 21%-22% and expect it to remain at the lower end.

Source: Company website, EWL Research

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