INFY - Earnings call transcript Q3 2021

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Operator

Ladies and gentlemen, good day and welcome to the Infosys Earnings Conference Call.

As a reminder, all participant lines will be in the listen-only mode. And there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Mahindroo. Sandeep over and you to you sir. Thank

Sandeep Mahindroo

Sandeep and Year. Welcome everyone, discuss FY This wish in Relations of you New happy QX is release. earnings very a XXXX the to Bangalore. to Investor team all Infosys Hello, from this call earnings

in COO faces. risks is outlook on along team. today Parekh; and I'd remarks with we for with the the performance of now senior this which like a anything management these other that start future, conjunction company to Pravin Mr. on which CFO A explanation pass can the risk of by our some on is Rao; us www.sec.gov. in read Please SEC questions. statement, we and found with the Salil. is that full CEO which to that members Pravin Joining MD, be of the Nilanjan, it Mr. the We'll note say, statement call call company and our open with the filings call Salil for Mr. Nilanjan forward-looking available Roy; be refers Salil, to the must up the on before

Salil Parekh

strong all evening clients. created was support delighted made to enormous for the and to the had share that dimensions. and by of digital This Good and built has extreme morning for transformation and had you am of journeys digital relevance across I quarter and exceptionally safe have clients that helped client healthy. New I our and cloud Sandeep. enormous continue of we multiple possible the trust good focus Year a our trust each Thanks, and the you. start to have great to an be we’ve

of the believe continue what in deal presence in Let largest wins to expand large is includes billion. in deal our strong the with history a some This achieved European industry Continental We and highest IT the we you our our largest will we of in me signed history markets. deal $X.X services highlights. with This in value the share the the India.

market nine for Our strong financial months new value currency nine X.X% billion, over months financial of of overall $X grew operating sequentially. Revenues flat net $XX for strongly deal momentum important is saw ahead. expansion and X.X% over HX on at now sequentially, our large gains. points back this basis of Digital value constant very earlier, is now and us our billion margin is revenues. constant and is XX.X%, and by crossed the of in deal We the positioning establishing currency of the delivered for over we deal year in XX.X% the a grew revenue digital in large that which year-on-year XXX further year-on-year share and year-on-year of have very milestone, an in quarters the an wins this year XX% secured we

operating at the cash was $XXX for flow million quarter. Our robust

payout of and variable Our paying the pay investments cash continuing our dividend. sequentially are which of the employees times, interim these billion, stable and balance out $X.X sheet for company is quarter with after Recognizing from at remains during performance stellar XXX%. the we at solid contribution

XXXX announcing target the governance XXXX and XX years quarter. by multinational cycle of global our are ahead a in vision milestone reached further in we we becoming And commitment our earlier, announced This X, expanding this ambitions. for effective the are As levels of will In XXXX. our across initiating social January we and carbon-neutral. causes reiterated agencies. all QX, by by increases set employees promotion which salary be We is to environmental, ESG journey, ESG our significant

increased gain guidance in update and for XX% time. We our full growth concludes our constant for digital X% to revenue the the you XX% share to see to year for X% update. continue you, Keeping transformation in we we year. operations. previously to XX% to full from our to our clients. at ahead, for Looking Over year increased give Pravin the operating the me in Pravin. let X.X% currency. Thank full my guidance you that margin XX.X% to now increased X% And at strong speed market to growth That your to guidance momentum an request from on business, mind, our new

Pravin Rao

Year. Hello, you, everyone. a Salil. Thank you Wish New and safe healthy happy very

seen X.X% sequential with accelerating of operating the the double-digit in COVID-XX rate is commencement work-from-home. constant continuing also The High-Tech in due surge three. XX% for world. in delivery the BCP there Financial currency seen momentum of of first year. segments; our Consequently, Three continued increasing from majority the revenue of various Sciences parts X.X% our are have to vaccination, year-on-year with renewed growth in growth globally constant mode of to employees we currency, Services, While and of a centers acceleration business reported Life Growth optimism further to of quarter growth. in infection the increased half

several increased up was on RPP sequential year-on-year on which a Subcon picked by factors a slightly up We eased lower growth have at during but was parameters cetera, operating costs ever sequential as points the meaningfully. seasonal a et working effort seen XX.X%, furlough is XX.X%. lowest basis like to all-time Utilization basis. XX level. on basis mix days basis high improving Onshore declined quarter. at due

Let three is the three the deals new marked deals than deal talk we a quarter we new and high large crossed in in of three XX%. signed quarter the me levels of two quarter all-time more at signed times deal quarter The what Share entire $X.XX Large new wins net of was XXXX. X.X was which fiscal billion. TCV in about key highlight performance. our

we in deal services industry. sector, segments. our in XX two deal deals year-on-year. retail large of IT three, and we in increase from resources Salil from Indian another new As in over seized services, large deal comparable months nine and other what and the deal have quarter this is wise XXX% won of the seven deal four increased is Overall, the wins Americas, this, in world. were one XX by Region year. signed three XX services said Apart With quarter deals three, in billion from and for last deal manufacturing signed largest energy nine were signed Europe for an were wins million. high-tech large $XX $XXX from financial Net rest over and months XX% we the period communication each in utilities probably of

signings to value large to deal the this will involved. deal employee three addition were very second fiscal quarter due revenues signings the the strong, of Net next transition While in quarter of than contributing quarter to than services more lower XX%, IT the although of for to eased share comfort during to and of X,XXX women was attrition XX% XX%. up Voluntary band increased employees XX.X%. our to start

increase as will digital across planning normally all Budget agenda. is levels We XXXX. January for their clients to progressing transformation XXXX salary X, be focus and calendar of to expect on implementing continue we

pipeline cloud, opening with new for accelerated to regional as grow focus Finacle increased positive. improve Moving Growth transformation. digital accelerating growth established opportunities with softness for on segment things turning industry OEM bank and pressure. and up itself one transformation services of deal data we segments momentum are digital improved many remain deal accounts platforms best under subverticals Retail entertainment, like remains large to also creating continued past retirement agenda captive clients consolidation The segment services. steadily wins, segments. in banking firmly digital in continues and seeing ramp-up three quarter capabilities opportunities Financial the volumes mortgages, year-on-year various have and across Services of our and to despite Performance around the of and Communications media, We advertising post-COVID. seasonal monetization. improve wealth banks, new in although see the in in and sequentially and healthy multiple business vendor

steady. segment continue have deals. a hospitality to we due pipeline three in quarter utility to education, in last a stress momentum revenue publishing gas, the while environment expect face energy and which quarters. see resources across continue performance of travel Manufacturing quarter both have difficult utilities despite and and like in and Based relatively pipeline, deal We deal in won a stable oil the improved this coming disruptions recent et to and verticals continued wins standard service had segments strong the of in Parts to deals signings on of and deal remain meaningfully cetera, terms subsegments.

we deals this over quarters, revenue segment. coming for momentum the will see As ramp-up superior

deals. expanding the Modernization The constant around radical capabilities with now Innovation that growth has crossed Enterprise the with has of Acorn also over and by offerings Adobe in capabilities digital analysts. their Elite Blue and overall Infosys accelerate U.S.; across in and as areas choice areas opportunity becoming portfolio from to Nilanjan. newer largest hand embrace expect of saw grown pipeline also gone the leader and threat often business will enrich been the revenue. businesses. reduction the In Platform preferred in array security that to year-on-year Platinum share to We global double-digits We've industry Suite, one and in of have partner Three pandemic resilience launched their and for Cobalt of pentagon the data, will and re-imagination last GuideVision, I digital in XX% in as AI. acquisitions Infosys rated digital Kaleidoscope confidence and of both Infosys currency own traditional have opportunity ServiceNow further offering digital gained quarter completed cloud Infosys part services-related spend Live space. customers Application XX.X% With strong XX and of both the is the in Applied quarter; its capabilities in the last -- clients But in partners Infosys Europe; Infosys BPM journey. our strengthening areas. the grow at Management strong own and we to of digital in of

Nilanjan Roy

greetings morning you and successive would years. QX the last revenue was the healthy like to with Pravin. QX another Good eight and XXXX. evening a Thanks everyone. acceleration marked in safe the I in all families by quarter your revenue wish good continued growth seasons sequential and highest

in subcon operational for costs a higher XX.X% of XX and movement of XX.X% rebadging to balance stood sequentially. nine costs stable and quarter were impact nine currency. margin others. at excellence, higher operating last up past growth relating margin improvement during over sequentially all this at XX the Operating negated and impact constant These levers. due a rounded on-site and comprised and movements XXX QX our like of years of supported next shareholder months for and total cost margin Sequential navigating constant bps management combination due cross-currency and the billion margin to and return employee basis X.X% fiscal. in by is due the $X.XX parameters recently Revenue and the deals, other mix core basis stood growth X.X% X.X% in compensation to execution were months currency. partly three basis to year-on-year offset to appreciation digital, point against at client XX.X% XX benefit of corrections year-on-year X.X% transition strategy reflecting XX driver with in basis by which This Operating this the cash period. points one-offs relevance stood rupee performance our better the translates at won our increase is benefits clearly X.X% for and growth a the utilization promotions for by unwavering nine months point by of appreciation. for cost points to compared a a in Our

XXX% INR XXX XX.X%, basis. points Nine revenue Coupled year. strong while and of helped XX.X% basis increasing in DSO months terms on we terms will on dollar to remained to an for XX.X% of INR mentioned an $XXX quarter, lower for EPS hike basis Collection LTM see on million. stable last and XX.X% equity year-on-year dollar year-on-year by four further in CapEx the measured January. over three days $XX grew increased generating year-on-year, last as a employees million operational quarter-on-quarter. cash salary with remained of QX effective EPS quarter XX.X% Free FCF Return XX.X% flow of net conversion and a costs by for basis. YTD million, XXX% As and growth improvement in increased by and XX% $XXX record QX in a on remained of our implement nine a at on months. a cash in a strong of grew flow growth the the profit we year-on-year higher in basis.

also Quarter and $XXX We on quarter decline of in the nine constant interest Driven three and increasing of positive ForEx were continue are significant in throughout wins quarter $X.X for Cash earlier. during first months, with X. the to despite the we paying revenue and half to X.X% maintain the a previous continue liquid three balance balances marked currency from of yield guided consecutive quarter, in the strong X% X% in as again dividend cash line XXnd to to income volatility X% the at billion sheet. deal regime by X% this Yield strong debt-free moderating end was FY yearly investments XXXX performance due period. India, globe. to approximately to revenue guidance despite terms million in currency quarter

of company commitment of shown year the standards of impacting the In with mentioned achieving environment in the it ESG will as Amidst achievement environment vision me in in We that XX.X% holistic journey of of this will With social not for the and was carbon our landmark be measurable the and of mention operating the societies, communities call quarter a we to in we employees XX% new XX% can years range the us we of XXXX XX remiss and pillars goal. Paris we announced attaining guidance integrating and help also open first are the area. as expect Accord. approach last numbers and setting believe targets ahead quarter We proud stakeholders previous a shareholders. this for to to extremely questions. of the the three XXXX to governance extended and XX%. embarked neutrality be model robust to in compared these a This of margins full business climate, our Salil our towards

Operator

is first Thank the you very question Ankur of Instructions] Rudra ahead. The from JPMorgan. go much. from [Operator line Please

Ankur Rudra

Exceptionally again. yet quarter you. Thank

cost on budgets a large starting of this be year. this part with appears a Just and if you I wondering momentum your consolidation to takeouts deal the of to question with strong exceptional perhaps, And alluded at perhaps Salil, was win had yourself up actually or beginning stay freed tech going cost of And as up participating in implies budgets whatever shrink how see sort Thank you. that freed enterprise by might flat you up those type was opposed CXXXX? these in also, takeouts to do budgets? catalyzed

Salil Parekh

Thanks, Ankur. definitely seeing we some today are is it element The is cost there takeout. of way

growth end we we digital If also both at you described year this looking three for you second own to look financial seen the wins infrastructure but for their cost into that quarters, in large part their the that all have this invest enterprises their those are past quarter amount and the takeout, customers. and see landscape with and as what

Those and positive other you So, stage us; of calendar number are have those to cloud are depend enterprises can year and budgets of as XXXX. one a the those we are these capabilities at digital the all takeout for key the overall estimates to two we have sorts difficult capability transformation be But monies always estimates. for the on and all the the for cost for spent investment estimate know. capability this have agencies the is: And which so have. efficiency we that driving, automation with and

and that. quite are seemed we approach playing dual So, a both sides on of it's -- we

Ankur Rudra

for that. you Thank

last trends you've very the And Just in perhaps a due to if won you expect few acceleration seen to on go right for here. recognition conversion follow-up the virtual I signing wondering now? onboarding? on to of large would those deals strong an from quarters, was revenue you've conversion, clearly momentum the

Salil Parekh

in some next some not that bit deals the different Pravin start in seen QX a comments up see are convert which shared are later transition. we converting. way a of the We've anything Yes. deals sort There some show faster; have from will of what transition slower of in to his year. QX in

that So, has changed. not pattern

conversion Nothing's on. changed virtual do so more have are faster some of a and deals and the slow. Some because onboarding

Ankur Rudra

Thanks the color. Okay. for

perhaps a seen Thank F impact current expect margins, XXXX come like the these in as large you. on quarter? significant deals you've lastly in should through Just we

Salil Parekh

I'll request ahead Go margins, please. On in. Nilanjan step to

Nilanjan Roy

Yes.

you know, with as portfolio. I we Ankur, So mean run a

deals. We large have

small We have deals.

the deals we new coming maturing have are large into We Also pipeline. deals.

pyramid, year, with Day have the deals. something about course, talked deploy seeing So, that's focus And have up cycle Analyst impact if each you comfortable green, gone four enough we the we rebadge And wage quarter in we terms be enough One performance in course, of of or of overall the portfolio deal. this you near a higher as or realized of large in they at cost we cost. around three the the are. enter our portfolio be this will quite these entirely, or fact, I reasons. levers we've actually of mix. deal pick and initially plus year, if continuously think in not they When one-off But our automation deals accelerated next hikes start therefore, and is our we margin manage the we we portfolio. couple also portfolio. we minus. the over will portfolio that's have could are Yes, because offshore see will relentlessly strategic run margins last mission And not the the also quarter at there we think the initially. our we have is the Because deals onsite mix, new also in even of large the and And as this margins look on. and when we process the with we And onsite that margins And the may revenues, And our hitting lower improvement, of course, history And the I is, time maturing have are which overall we've on offshore had automation. into up. the we costs years, deals life as look flow terms. would way pipeline every

Some I quite travel which this terms a next we but we're back maybe and optimization as cost But costs in all, and in away. come the of like have of may bit year said, we confident. again, further that approach the

Ankur Rudra

luck for best you of Thank year. and the

Operator

Thank the Susquehanna. James ahead. of you. go The line question Friedman next from Please from is

James Friedman

But results. the response, and on the prepared previous this extraordinary large in you've Pravin, that Congratulations a bill in remarks, Hi. any that know terms you're vary. mistake we to our wins be QX. can that reflected exercise? your the of modeling I boarding can -- deal would about I or those in addressed future the that suggesting start is currently were Salil, realize that there linearly, think in

Pravin Rao

Yeah.

large parallel involve will second services wins period deal. providing over and of the it back the then the be As said, in and to maybe nature but modernizing. of on other vary next period start in cases, doing transition quarter a In taking will In over the these deal could only clients the the kicking of all also transformation. time trajectory I of some of initially in some large its same Again taking the revenue deals primarily at revenue time a over fiscal.

actually the of deals So nature the varies.

a we can out. how have will say revenue I don't to common think it's, yardstick So pan

James Friedman

I of good vertical. “a pipeline And you the think also you talking then about Pravin were deals.” mentioned communications

give vertical you context equivalent said helpful? Is Could you you good be see you're Some despite what's some overall. context seeing manufacturing that? say good about the would the vertical say in that a deals? pipeline that You that about? vertical opportunity media to that that pipeline When in in for strength us weak

Pravin Rao

it's the OEM. decent. only good, segment at I number not you of primarily media the said And think it's in when communications it's as communications also in space, entertainment the about I because opportunities is fairly telecom telecom look

seeing find but do -- are more segment. we and lot a entertainment see telecom the from in So softness media traction OEM,

be And the but pipeline telecom pandemic We far this forward. segment their so the translated this said telco, healthy. as really wins in given impact deals a not to the the have optimistic given least improvement quarter. volumes as on lot on in has expect we side already revenues I seen pipeline. into I it mean, probably we won this continues three At but own of we to in remain it the change as going far deal have

James Friedman

back Great. in And for you much thank so the queue. I’ll hop color. the

Operator

of go next Thank is you. from Saluja line the question The ahead. Please Kotak. from Kawaljeet

Kawaljeet Saluja

of Hey, guys, questions. quarter. fantastic Couple

TCVs was that in there to robust it conversion little very question. this earlier? left a Has lighter, be a the does quarter the conversion and pipeline last into actually is in or the bit pipeline healthy was two of quarters. a as First That's this first it continue

Salil Parekh

point Kawal. the the Thanks the pipeline overall out is it robust. as instant that extremely is Yes, Salil. but comes pipeline at conversion of out, the rightly This you of health

this QX, large in impact deal Of outlook. of win level have course in the we immediate with will that

industries still the and of across However, seeing see level different that the is pipeline all in significant opportunities health we robustness. and

So still about good the pipeline. quite feeling

Kawaljeet Saluja

you, Thank Salil.

This question the band increased. The a year has is of cost it's every should move margin operating XXXX on of question two changed. level previous beyond one margin I a rounds profitability and or profitability. good sustainable And well, thing the in large year been Nilanjan. about the wage But same Nilanjan dynamics taking to it the I really how into as -- what's second even last has of normalization of it has quarter real that into deals in asked we as consideration band that? possibly your think possibility the increases had FY

Nilanjan Roy

a get each separate you'll quarter. I'm answer Kawal. Thanks not sure

a we XX.X%. were at time So today think are nine-month we where XX.X% serious a like on I I at basis, think note, on last

points seen We a basis on basis year-on-year about nine months. have improvement for XXX a

are cuts, which a that QX. if we in of hikes discretionary or is combination have how which you will think were the this largely So mix cost in come you to optimization, continue the the I very temporary improvement yet on-site/offshore may year right? which past. took we the them up the strong and of side will our back all think something, impact brand the very, And literally opportunities normalizes. done, Also we've travel these up done, the we post-vaccine three in with is that's the last I to to some open said at cuts, open XX% clients are compensation the our of of the like last world on see see lot open et and of which confident XX%, cetera, on offshoring very has over fast But a been which more some years of and some metrics as teams one working from but look be home year. seen

the as and lever be to a offshore we well that will of step I will increase clients confidence on. think could

hiring the if sits in hand. you of therefore, hubs pressure and what pyramid, doing this. of from with only and is a have headcount putting colleges. helping localization universities, had some six in there. very unique I your the hubs of our community us the drive local think a know, has on-site actually hiring you Our IT Infosys U.S. recruiting creating whereas pyramid digital on-site count employee is XX% very a negate XX% we've Historically, the localization pyramid over to your And really battle as deep don't our years industry and the And you up address is been on-site something

with levers numbers So impact I and up our see entering are sleeves. maybe as year into some we guidance without Yes, some compensation, think year, we of our announce. next comes giving but we'll next there as any

Kawaljeet Saluja

much. Thank you so

pass-through call maybe And of of be very, large final question. last would mean, which in It's ever you have that a you Any color very my on largest won. helpful? on like a anything it want higher the you something thank form others, I with ones you sort? the much or maybe is there just signed deal this Vanguard that's so element typical have the that or question. or deal Just deals to is out unique

Salil Parekh

Let me this Salil. is try that Kawal,

cloud on think bringing and In an would your a cloud terms a all ecosystem large it's I of I for both to Infosys parts which very really course, our private all the huge look assets. together deal And characterize or working of insider like. The shaping service of it a deal. strongly in is way, of The was make partners, to that happen. we is, deals public cloud, which what driver it primary with cloud, and are Cobalt, question built what environment cloud of was relates business of to specific together ecosystem will we this

Kawaljeet Saluja

much year so and you great Thank have a ahead.

Salil Parekh

Thanks.

Operator

question next Aggarwal line The you. Thank the is Please go from ahead. of Yogesh from HSBC.

Yogesh Aggarwal

Hi. Yeah. to Year Happy quarter. the good New and well and everyone evening, a Good as team

Just two questions from me.

compared any third or execution contingencies they quarter secondly, which perspective, are do milestone-related to make since to you complicated wins a need guidance deals? So the in large similar? or almost fourth impressive. from deal is deal the achieved been weaker a than there And you these on in SLA normal execution what quarter. Firstly, have is guidance more so that lot much there a the are – is an context, different Salil, – from perspective, are

some specific there weakness that any margins third is of budget which was slower I have a quarter, follow-up kind in or So, growth after leading on a flush quarter? please. in to fourth

Salil Parekh

Okay.

those the large nine months, it's the of a any first deals different risk in the I delivery risk deal not type profile the last of quarter I across at portfolio, two past. On the last from if points, delivery think look

doing last deals or last in year Now, few this last we're few years. larger –

And so with that, the capacity increased.

where sense, talked that we've as putting situations However, on and various regard that to we deal. on In there SLAs this is delivery start now no capabilities, provisioning out we our books are the together specific out deals approach build to deliver the we of with the large is in the something about.

just point, please? that second could repeat you sorry, The

Yogesh Aggarwal

So, was much guidance trying I fourth weak understand for quarter, the yeah. to which looks –

Salil Parekh

Yeah, Infosys. and as quarters softer the are financial probably the always guidance QX and know, QX on for for historically, so industry you year

So there is nothing different.

extremely But is QX. been any that has growth revenue, unusual in shared. in robust. we point In growth had in particular We this of constant weakness that terms have nothing currency QX to you, there the a phenomenal fact, to

been However, QX the always and seasonally softer industry have across Infosys over QX and the for years.

Yogesh Aggarwal

Okay.

X% smartly et on improved offshore another you cetera, is Nilanjan, utilization around up question of your metrics most still have cost Just mix said but the margins. X%, employee as quite operating sequentially.

seen been the largely with have it's despite flattish. wage other We companies hike,

So, increase the to cost employee may? what I is leading if

Nilanjan Roy

Yes.

we a mentioned had I like this basis rebadging transition sequentially walk recently and of margin won in large So, the of impact deal. XX point

that's others called combination out. of a we operational and mix. clearly balance explaining XXX about metrics the was the which something points of And drag improvement basis sub-con and we one-off on-site talked higher cost in XXX by point basis utilization about So, the had versus

Yogesh Aggarwal

Great. so you much. Thank

Operator

Thank you next Bachman, Keith from from the your Bachman The is go of Bank line question your you. to the ahead. line in talk request Keith Montreal. mode; with go is of I Please question. ahead

Keith Bachman

two well. Thank I Yes. very you questions as much. had

certainly we about call flow that have out very that this over on call to Was And but or been quarter in unusual out quarter. want next quarters you one-time might nature? The thinking first the to of anything cash there couple want cash impressive your flow you that anything should was be also particular? the that in next

Nilanjan Roy

Yes.

all well. not XXX very clients stuck remains I are as when our strong clients. our our concern was And strong. balance seen collections quarters is we've So, have the we and the of across our entire reality clients had collection because very, have the impact ability for is in and as the sheet And course, at year quarter-after-quarter, very that think COVID terms of any we ability strong I think of first three been showing that Fortune

lower is reason flows improving one course of for the Of cash course the CapEx.

As has being home enable CapEx we've And toward can now home to everybody think some automatically -- fact working than laptops is I that able that spend so from rather from technology, with in work come desktops. down. of people repurposed our

that think don't on above of of out underlying mean I and net deferrals some cash call to an flow really. material really are still nothing nothing Yes, on we indirect here profits. a received we some I basis XXX% there So, taxes, I but -- have basis.

Keith Bachman

yes. Yes,

deal to XX% net wanted Okay. Then I impressive deal signings. question the new. to particularly signings go Again back second the being

growth the took dimensions? you largest can history you there the what deal could few large you. said to distribution the B, in -- that any the A, or the of took the I'm curious if wanted Is of out was you between that out legacy dimensions rates just you legacy curious distribution. side? at signings -- digital quarter in just if provide quarters? give over one I'm the then any versus But digital signings some the you to this last was If you what around Thank and the the say give And just was

Salil Parekh

bit the Let to able me start. might be add distribution. and Pravin This is more a Salil color then on

in an several that large In we were terms in a of deal have had what don't of the in we we averages is robust number QX have of would quarters even over the last did specific of deal. one overall we What signings. running extremely terms view of the sort a a give outside say space for I to

deals over So, anything not for while you million deal it Pravin, that else. as specific XX there was to was were And to which $XXX mentioned only color. large give at one another the was deal, just Pravin also one. also a referencing the some

Pravin Rao

Yes.

the there element about large delivering time. it's So, period is also of transforming I an digital a of and deal services, the Because of taking in think, every deal. not day large only is but end over over

a back products. led these some as give as where is that. have many plus whole are where taken been I have but are some mean, a those ADM strong varies. a deals over in providing There deals infra with there deals maintaining, are And and around we So and of infrastructure-as-a-service. really go-to-market modernization, also the are forwards breakup only cloud purely these There some in captive ADM that and IT-as-a-service. element large which some next-gen not taken is also deals. platform we are There -- products services. where which also well. have There Engineering transformation. of of digital of nature delivering don't where are we ops deals sense, over IT legacy combination deals we are deals some it's There around it

Of of is and parcel course, deals. BPM these also large part most of

there's much of of earlier, it. it'd call an out element always much said difficult in nature as I vary, but So how to digital how these And I the mean, deals be and digital is is non-digital.

Keith Bachman

Well, Cheers. so thanks. many Okay. signing, congratulations on the

Pravin Rao

Thank you.

Operator

Please ahead. Thank question go Diviya from line from of you. the is next The UBS. Nagarajan

Diviya Nagarajan

came questions you how just deal have this scale this to kind typically spoke that of of some would taking part portfolio, approach. seen explain go a start also out Nilanjan, you for is then think of back few this ramp about speak? large question. QX. Could dilution you deal deal in timeline to up and curve of a on the discussed in is to but to at to of I think for contract typically margins you to this that, this deals? Quite been about. talked When for that like the a some to do ramp-ups because up for kind you and my about large my these like coming portfolio should mature we've kind anything of already, that so these how price And that Thanks model structured? these Second in in what we like a call deals you this

Salil Parekh

to cloud of specific the bookings. what is start of Salil. first from anything given the lot me in private work that together to I broadly the not deal of the of more with we've on the all we of given state, the not timing steady beyond workplace years. that basis a really of margin the come pass the do profile it's the anything we today which sense number me underlying deals. can this where a the to large and which This that that centers these on way that that give have we with made been over a up is relates of not once is revenue QX many to on terms shared say through can ramp-ups and We've And see sort run of things the Let now And We steady transformation when foundation Pravin cloud. made earlier this What data put can part. for Nilanjan beyond a more it specifically QX. let of will you comment specific, transformation has

Nilanjan Roy

Yes.

deals portfolio earlier, mentioned tagged various below I with kinds portfolio. large come unbind like initially we So which some them of or with margin of have

on-site. dramatic ones which been There's automation are require they which because done. Client expects no transformation Some initially day has XXX% from maybe savings one.

on we be once over Typically putting So pyramid deal the we look terms very, side go five, very an that moving well. bid what automation of work are done the literally basis of seven-year it. intervention deals a are in the inside that to is clear there on-site/offshore I at we cycle. of to margins trajectory we that going And a that holistically very as so clear we very, very quarter process the think model part as these in is are of in

the years an large time that. these will But be And which profile deals kicking quite is. in that with margin profile process. are deals like the margin margins be what last every seen ongoing company in. yield talked above an same we've lower it been operating operating of the over that's So at about deals margin There And we've of exactly the them start deals will whereas will in it the the doesn't deals the existing mean start accelerating improvement elements is But three new we've yet because below margins. company portfolio maturing and in are your there deal line way and sharply. it winning come mentioned, I at

continuously side. portfolio through focus and on we the look cost a which it's So

Diviya Nagarajan

Got margin was earlier for it's on-site how What that offshore it And levers of lower mix. while. the spoke mixes the have mix about shift, seen potential you to is we that offshore one here offshore the mix you've lowest Pravin sorry further of far. so a it. alluded in room

And look potential over the various locations? my utilization, here a where on of remote utilization anything And at what's mid-XXs from we there? move structurally up how allocations as and can has they is changed structurally secondly are? So utilization working question these employee in better result

Nilanjan Roy

Yes.

I and is work-from-home on-site/offshore has So bigger curtailed have not that, been there travel the with temporary and as overseas because firstly to I said now having that yes, think benefits been I think of people able But have clients of solutioning opportunity therefore last travel that some on fact deals no confidence strategic mix the think are – therefore on are terms well. delivered in in also has seeing There's whether offshoring over of impact we on we par. started delivering been or also so SLAs give facility. year, ourselves near-shore the the And been signing can now clients improving.

is Canada base, U.S. So a near-shore for the

have both and Mexico in as this well time location. and dramatic low-cost have a We seen growth being Mexico

a we So that's one move to on offshore. hubs to then a pyramid lever in remote near-shore working on our of finally then where can it's and combination create

three large which up think open things are can opportunities. So I these think we on. I these continuously press And

temporary quite secularly travel decline back, comes downward think But lull. Of is could be I clear. some course as there the

Pravin Rao

On the...

Diviya Nagarajan

utilization? the On

Pravin Rao

me Pravin add on is let Yes, here. the This utilization.

where be. This as not to utilization, record said, think a I high. we is want I it's

think XX% I quarters we comfort and where XX% few want be. between to in we past to the Within operating that's had

aggressive So over and to levels. we to bring next more hiring the will the quarters try utilization few look at much down manageable

Diviya Nagarajan

for my good questions. a taking XXXX. of all for and Thanks on best Congrats the the rest quarter

Nilanjan Roy

Thank you.

Operator

Thank the Katri Securities. next question you. The an Please go line from from is Moshe of Wedbush ahead.

Moshe Katri

you think follow-up fiscal and of two the last you've thanks congrats during Pravin, that very the fiscal questions. XXXX. question margin that indicated confirmation seen my One have call, a strong XXXX be will Hey, taking some results. into I on I gains regarding in margins. sustainable for not

in both right trends, XX hasn't it what terms about he cetera. Thank like offshore color about second suggested today, you acceleration you. seeing seems et this the give margin of the signals seen pipeline your that we made encouraging talking question former of about you leverage, last week demand these? the some is Because that now of of some sustainability the some we're talked And some of commentary trend. the and Given hosted call Maybe the offshoring the that years. executives the can on into you is accelerating one in And about still more an case? of in that you're

Pravin Rao

Yes.

So I'll question, first take the Moshe.

So the first have XX.X% coming in said, quarter in up and wage months the – at nine like are we I hikes at we four.

off So that next impact. have some which clearly of travel as into cost have easing year, pressures. there will look we some And et cetera, be could an will

also something said, we parallelly optimization we Now on. work levers, cost we will work is having that, said continuously which on our

we pressures not So a But stage XXXX. there of but out ahead coming that these what's the on are also there's FY color we work have cost the parallelly. we optimization for margin will guidance at just saying this will cost

Moshe Katri

the of at you're this second strength? you that sustainability trends And on versus came of mix can terms terms percentage new point question, elaborate in you. seeing Thank in you're some maybe the terms the what in on pipeline the of what also in of regarding -- logos from seeing And renewals? of maybe bookings

Salil Parekh

that head. take crack, mix, the go me you Pravin, Let on

Pravin Rao

Yes.

Salil Parekh

Okay.

can And start then go the trend. on the ahead. you on mix sustainability me Let Pravin,

are pipeline see some I environment the we moving positive but and all we good There is in industry exceptional, segments segments the quite we demand call. where the all movement of deals, still see strength way the as direction. overall a of across the are think start at the referenced industry a the of the the

to think good movement year. On I there point the mix, mix, your offshore on this the we've seen

Of engine some off, restrictions movements but recruitment is well. coming of more our offshore to strong with on-site, course, from as see will travel some the very on-site we

immediately office how of delivering to within and clients wait because location that are don't seeing that watch we'll so set that functions. going fundamentally out. calls whichever it's We remotely a change, plays see broader from And

in our therefore in the time benefit So we mix to feel quite a comfortable of over margins. to the on and period will mix. of terms that you over terms of work that Pravin,

Pravin Rao

Yes. Yes.

it's is the is nine the On normally of in And for -- that. net billion the the at this what mix, and is of billion, rebates, out look XX% again, net you months $X if what is when TCV total new $XX quarter for and call net only new. new we the year, first the

on perspective, that a comfort part this nine is think seen I few percentage in growth will coming net mix from like, assured the as also with new coming a last past the momentum of revenues from there new -- the significant instance, months, of forthcoming -- is which deal So quarters. look of had we've -- a logo. last of Obviously, mix our quarters. that net in we deals quarter momentum new the mean, logos of sense a we particularly for new announced that and and we large at us was But that Vanguard, it and what one out. normally growth was the which don't we flow call the I for gives

Moshe Katri

color. Thanks for the

Operator

Kapoor is from ahead. The of the from line Please you. Pankaj go question CLSA. Thank next

Pankaj Kapoor

hi. Thanks the opportunity. for Yes,

for you. two I Nilanjan, questions had So,

terms First done…? any the understand very these is that is statement the trying again. do? deals cost is from commercial we that Are large regular there to of deals basically how different on now signed that these What transactions I'm you

Operator

audio not Please clear. Sorry to to you sir. audio is not your Kapoor, very Mr. your request Pankaj but interrupt very check? clear, your is Kapoor, Mr.

Pankaj Kapoor

Is now? Sure. better it Yes.

Operator

you. Thank is. It Yes.

Pankaj Kapoor

Okay.

So, my question was for Nilanjan.

like or do level. I flow we thing about year's revision. the these So to was these is deals, trying be generic some through of one or peers, what So, a we trying to course XXXX costs at regular I'm one of can typically is a next of do I on typically normal the a transactions my understand to Are in second wage year. commercial the also? basically your very large in capitalized structure And such is is P&L, deals understand. FY mean, question talking that have which of be

These will year are the Thank being questions two you hike follow are that wage So sometime in expecting the I pattern also you. for or next mid-year? had. April of regular the

Nilanjan Roy

Yes.

Pravin mentioned question on different. like and the all first deals I even all So they're -- think

of software. some elements, have rebadging have infrastructure them comprehensive may them of may with Some a

So to on it deal. deal depends

how -- standard I answer can answer think question. that we way no there's or a generic

may them may of a and them not. of some And have some pass-through

So entire element. it depends service transformation elements versus our

quite that's across deals. different So

think we more say at don't than specific So, this anything I stage. can there's that

Salil Parekh

wage the with one, let that. respect of any situation. me We've this to respect salary increase next announced X not address we've January second the effective hike, to With the year. So, on year comments made the

we we will approach start that this to what and is. with at next once We the the will come that conclude year. And share stage, you,

Nilanjan Roy

Salil, to also... I wanted just

Salil Parekh

ahead. go Yes,

Nilanjan Roy

to my Moshe last response make think. a to wanted I I correction to

said, it And of large total billion months correct. As I $X of TCV is out $XX nine billion. net the is deal new of for which total wins

said want that. I It's billion, I to billion its $X not clarify think, $X billion. I just $X

Pankaj Kapoor

the all Understood. Thank the you and wish best for you year.

Operator

you. Guntupalli from from go of Please question next Securities. Sudheer The line ahead. the is Thank ICICI

Sudheer Guntupalli

good vendors quarter a for opportunity. size, for aggressively the Salil, assume deal, the me a deal and we Good X evening gentlemen. might on thanks last Congrats of the regarding have Tier almost all giving the completed.

Some of them companies. might be native European

a in Some Europe of service them kind might offerings. base have of the or larger revenue infrastructure in

this can let's given the, have to variables deal three, that us So, are say help win four you Infosys understand, extra over competition? edge the what that

Salil Parekh

situation you're European, This extremely competing an Sudheer, several Indian U.S. with this companies is for work. and competitive right.

shared we've technical flexible, see be strength solution. And something that that by valued secure, of a together them. could suite was while out we scalable it One is very operations we was which stood cloud. Cobalt before, this and spread solution was, could approach theirs the what see could which of of solution put the out in we on that the give both from elements enable a and the The I globally the clients to found to understood the our really they've clients

that do why We us, also as they how make different previously capability win quite the can how extreme that's sense into And opens on we all go now the in way were elements business that because in it something to really incorporated we cloud we further And is ahead. well. the wanted fully a business journey benefited and But perspective. sure from are the wanted area perform their which to delighted this we they better, solution. I focus objectives doing we in of that we think technical the the new extremely up for from

Sudheer Guntupalli

Sure, seems quarter the previous on client quarter. during to Salil. run the than And gross in addition second be rate the the question which significantly higher is typical

at color has the that you scalability? on, addition, Can entry Pravin spoken are of do sub-segments has And around to please what in more we strong potential clients, if with these clients. think new about their I throw the driven has opening into XXX-odd some his this nature remarks?

Salil Parekh

I'll to request Let me Pravin anything first And it. there address come if is back. else,

Pravin Rao

repeat you it? the Salil, missed I question. Can

Sudheer Guntupalli

sir. Sure,

if you look gross quarters. basically quarter, in higher the the previous client So the seemed significantly to than during run the be it typical addition rate at

remarks And my the as your throw sub-segments this this driven can scalability. more addition opening well? entry in about So and strong some is, these if potential spoke your with of question on press clients color to some you and you the what do nature in meet has new if has into

Pravin Rao

new strong openings the seen new had we think account I logo openings, don't think secular trend. I across there's sub-segments. any

segments. good seen openings have as the well. have we our been past of across over quarters many We And consistent few

them transformation And don't pattern see vary. we specific many again this are And of opportunities doors the also opening any any I or thing. So with in the opportunities.

of Some large of them with -- are them deals. opening a are few

particular specific things. So it's a sub-segment. specific no combination a anything There's pattern to of or

Salil Parekh

Yeah.

there's, additions the to I to acquisitions new made. Pravin, we've add some also had client to think Just we

Sudheer Guntupalli

for helpful best the Sure, and future. the that’s all sir. And very

Operator

that the comments. and for last to hand Thank you. today. conference gentlemen, the closing the Ladies question was over I now management for

Sandeep Mahindroo

want to closing please? some you comments, do Salil, give

Salil Parekh

Thanks Yeah. Sandeep.

First session. thank for joining you us everyone this for

And extremely an feel backed revenue for up at you thank on extremely As April, will this. standout start strong have cash growth everyone overall, the was performance margin. And guidance delighted again we're the for financial upwards a collection We for noted. so, strong see, with operating margin as go next us. deals year large both quarter, joining X.X% we win, you and year-on-year. shared robust confident can extremely this revise being the in to a exceptional us with that as outlook delighted by phenomenal performance conversion And and which into we we

Operator

management. call. and on Infosys conference much, you that members of Thank of Thank for the Ladies us. you gentlemen, very joining concludes behalf this

lines. your disconnect now may You

Infosys Limited (INFY) 13 Jan 212021 Q3 Earnings call transcript