INFY - Earnings call transcript Q4 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, good day. And welcome to 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

Hello, to Discuss Margaret. am from in everyone, Earnings and Call Earnings Sandeep Bangalore. team IR Infosys to the QX I welcome Release. Thanks, and ‘XX FY

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

Salil Parekh

trust joining Sandeep. on the for and year to Good morning this quarter. are us and your and everyone for had evening session. you Thank Thanks, an exceptional families call. and I well you We’ve good safe. an exceptional

QX. X.X% constant year-on-year for was growth Our at currency

was for growth QX X.X% the at quarter-on-quarter, momentum business. volume Our accelerating reflecting in

with contribution constant in typical quarter-on-quarter, from seasonal. our X% X and mix, higher deals weak at was currency, growth revenue third-party offshore point Our efforts lower

Unidentified Company Representative

wait. You can Please take the hold.

Salil Parekh

you hear me? Can Hello.

Sandeep Mahindroo

go we Margaret, can we Salil, Yes. you. can hear ahead?

Operator

ahead. Yes, go sir. Please

Salil Parekh

in my -- statement. opening Carrying Okay. on

at in X%. growth For the our full constant currency year was

business. of year-on-year representing XX.X% grew in by XX% the Our digital business QX, overall

and were at $X.X full billion were the large billion year previous year, growth deal the QX. for of XX% from Our for wins $XX

set Helping strong Our ‘XX financial at up ‘XX. percentage us net for FY year XX%. was in for new growth

‘XX. financial industry results, leading we year these growth had exceptional With in

share. digital I’m partner trust our market the have as gain to in programs. grateful the transformation clients continue We for we Infosys them for with

Our strong This stems based to the cloud, a for in several what in growth most analytics. and our allows of and capabilities market year-on-year digital, us our segments leading digital showing was be data from is with cybersecurity critical transformation broad industry clients’ partner and growth programs.

FY reach margins full XX.X% to by year. operating XX.X% Our was at point points for also ‘XX -- for basis the improved QX. It for XXX

to previous $X Our in free XX% the year. billion, larger close financial cash flow than was a

the their balance I’m end and our extremely especially year. but employees cash past during across of year, Our the sheet years. in of at billion at general the $X.X proud financial and was enormous commitment this

July launch will in We second starting manner, XXXX. review a phased a compensation in

employees our One This successful in financial our has and enabled and of ‘XX. work the us enabled entire cohesively really of approach benefit year Our financial clients. the and leadership to for team company Infosys have a year

Hence, a large ahead, demand cloud our continued a success Looking is constant ‘XX. financial in in digital, in clients, growth for especially foundation financial data, our full XX%. see of guidance and of from have year and we deal we between revenue year currency year XX% ‘XX strong strong and

dividend a XX. a XX%. financial propose returning year, anticipate increase for avoidance our world, our at is policy, in operating over with the keeping total XX% between year gradually some part ‘XX costs strategic in our Rs. because we to we performance previous by the financial with margin improvement allocation deferment. of ‘XX leavers of and year superior full capital With cost XX% of was operating dividend to because per the return, part In For margin across that in in financial and cost for for guidance margin share normalcy and the

to up let shares you, equity which of buyback pause market let me a With approximately to of and open billion and an propose Rs. Pravin, update. over for pass the method. X,XXX is you. me that, through crores, amount on Pravin we to his thank $X.X addition, In it

Pravin Rao

Hope Subcon increased resources financial costs billion, growth won energy new a in operating were four, accelerated and Thank high-tech due and high-tech life two XX traditionally from of of in XX.X%. double-digit in of utility Salil. and growth reporting manufacturing, segments. segments safe during momentum financial America, quarter. to We high improve quarter deals was further by good, were deals XX.X%. Region of reduced low wise each a from everyone. are four your Onshore three further six various of and quarter Volume across sciences effort from four family the healthy and one was high three currency Hello, in in a sciences and with healthy. and all of world. further large acceleration Europe life services quarter. communication, a to XX to being despite increased the X.X%. services, constant strong growth doing quarter share $X.X of XX Utilization was you mix deals you, critical six were and The bps strong, with further and Most parameters year-on-year quarter them, rest to Growth four soft Growth new services, time new in each the retail, business growth. XX%. totaling utilization. continued

million last ‘XX for We basis increase four increased with as over of billion within was the talent TCV was increasing signed than employees increased. the billion. new Share and increased of of remained in deal higher Net clients FY share TCV attrition new annualized the all demand this large an Client $XX on XX.X%, women services added count employ quarter XX,XXX quarter. for FY XX.X%. to clients in addition to Voluntary XXX calculated XX, year-on-year. an crossed during IT of $XX deals ‘XX. For deals billion robust $X.X XXX to large metrics

the off from employees. the Salil date start kick for XXXX will the in next XXXX manner increase and X, with July have implemented January XXXX, We salary phase majority mentioned our July cycle of effective as of by already,

report retail segments, FY operations, lending few six provides year. services industry in hard segment, activity. in financial XXX services, to we growth from further. In a banks as and as transformation, invest with momentum improving continue in deal we end-to-end digitization, business Sequential for back the call large in front areas solid to including in the performance uptake significantly quarters demand have to such along that post-COVID coming with technology improvement Moving strong continued customer mortgages improvement center have are last quarter deals digital four, programs. well growth the to seen In transformation, base as investments in leading the higher transformation large ‘XX segment, which experience in

many workload cloud the opportunities cybersecurity. remain migration retail we and services strategy in infra labs While micro see areas in of of and silent, modernization, architecture, sub-segments like adoption

in recoveries in quarter remain of as ‘XX and pace half into net wins the we FY deal the this Given look ‘XX, segment second optimistic FY ahead sector we new last large second about FY of marginally weakened quarter. Communication of in ‘XX.

in AI, XG, and FY services ‘XX, travel due Energy quarter. improve expect the cybersecurity, deal Digital the technologies IoT the remained with spend and resources CMT. oil like gas, to computing, hospitality, soft will transformation, utility constraint in in coming the to things and edge we be disrupting wins, most resources the of vertical led next-gen and consolidation, performance However, for sector.

vendor and signs takeout, see opportunities some the areas services. deals large cost returning and consolidation, transformation the asset of account monetization, to of of openings. grid uberization of various see we initiative quality given led and stability However, in recent smart sub-segments, new wins We cloud

We impacted COVID. impacted on industries. sector a because the of discretionary pipeline, strong of Manufacturing some adversely have customer one in was despite most of deal pressure budgets the

automotive to the few to economies segments as are will emerging industrial While up. capacity. sector Aerospace previous open back and quarters get strongly take

momentum and year We throughout Infosys have new ever history the quarter by in the wins including three. seen the as in evidenced significant deal largest signed traction

We the new continued of strong year. during the pandemic the built throughout sector on relationship back are on positive and very net wins the

Infosys companies crisis, has with investing as robust experience enhance pipeline currency enterprise through portfolio is environment. within growth effectiveness IT digital in at from emerge increased transformation and terms. four, in BPM year-on-year XX.X% to In processes and capital business pandemic and outs, in in our driven carve this quarter effects ‘XX services vendor share. to significantly the constant Even contribution double-digit we consolidation combined revenues confident rates, with to of digital growth by FY XX.X% of currency XX.X% in grown terms. of plus their is sector have revenue The clients market efficiency, Lot BPM deals, the digital managed as services. further in and shared strong overall gaining constant are of grown continue global and

LivePerson Cloud especially help portfolio. to with employees. digital Conversational quarter announced expand these conversations partnership continue In last Cobalt the AI-powered with AI brands for we and with manage consumers We to capabilities, Infosys the

onboard Customer of a across With to that, leader Australia’s in related quarter industry completed to and Infosys definitive on assets leading We over agreement In AI-First, also launched services areas ranked analyst. capabilities nine We Carter Platform and applied award winning of DGXTM I AI one agencies. digital systems. cloud four, NVIDIA Infosys Engagement Digital, employees AXXX was Cortex, experienced build design pentagon purchase Nilanjan. as Cloud-First and by hand

Nilanjan Roy

FY XX.X% largest XX.X%, of currency to ‘XX XX.X% increased you good three was close these operating the for everyone maintained a the evening, sharp offshore growth areas, mix at and with FY liquidity operating We are areas by cash throughout parameters for operational that. in deal both FY utilization thank the with This year Thanks, ‘XX. X.X% and Operating XX% We by X% FY billion, focus year $XX.X all margins. razor digital and our cost over of closures time each and and Pravin. highs testimony with ‘XX management, Good XX.X% joining terms ever in morning on revenue of margins constant agility, entered focus and results improved We takeout. and effort year-on-year, growth backed of respectively. ‘XX revenues, growth call.

year comprising was XX% was an during reduction ‘XX and $X the combination deferrals factors of As was levers, other FY expected DSO a XX approximately which driven had and due focus of mentioned normalize days. for earlier, to a Record optimization. of over are the benefits, cash ‘XX for this cost on cost CapEx a cost flows of strong on focus We strategic FY free of DSO year. by specific some CapEx ahead. increase to billion,

technology compared spend. ‘XX, to FY compared INR as $XXX FY effective higher the the despite After FY Although, year. due quarter for terms. margin to to XX.X% compensation creation. currency XXX.X% ‘XX Return enabled was to in $XXX with and year-on-year ‘XX, to on effects to one-off. terms XX% optimization, to at sequential to by partially improved in X.X%. ‘XX. due four and X.X% profit margins impact reduced grew dollar by by operating growth revenue costs, FY the to impact expansion in to conversion in Xst, ‘XX percentage FCF increase three. CapEx offset increases XX.X% technology QX accelerating Jan costs, EPS constant topline compares equity XX.X% salary remote performance, other primarily related increased we This X.X% to X.X% for some XX.X% and increase over another there of by cost related optimize and stood to movement working, quarter a margin year, job basis, was driven million, CapEx versus in last support margins lower lead G&A is of on of we for improved continue in last of largely acceleration observing levels, physical FY of to million operating FY quarter QX ‘XX in out CapEx the infrastructure expansion. net saw due across an strong Coming parameters a The rolled Consequently, X.X% XX.X% a on year-on-year operating XX.X% a in

was ‘XX. to income, Quarter the four, strong, four also compared liquid marked remain X.X% The volatility continue positive debt and decline. significant free, approximately quarter yield cash $X.XX end cash to on ForEx in FY to further at continues balances currency cash X% across the Yield increased of sheet quarter balance the equivalents XXrd to and in consecutive billion despite three. of Our globe. quarter

In of to over July our FCF allocation that buybacks crores deal and policy policy crores up creation. investors This top been XX built which increasingly years, to large total guidance Rs. for XX executive know, return for that commitment peer for total market taking following, payouts generation of Rs. to FY increasingly in Rs. Coming dividend demonstrate and ‘XX FY of have double-digit share the XXXX. X,XXX solid the increase our ‘XX. TSR share aligning of group to our base and FCF you we share, allocation announced exit lead FY in AGM. shareholders Board shares coming compared to we with momentum indices. shareholder the in FY of Final of strong payouts and final dividends emphasizing capital rollout share during XX.X taxes for will in for ‘XX our XX% step of total in quartile over the the of growth through of per ‘XX. our share versus ahead consistent of approval As dividend years market happy would the wins, in line year. mean another a with of on with dividend returning excluding post share dividend open would of and landmark a of XX% per was ‘XX equity the XX% compensation Rs. the had I’m ‘XX of up five we a in five our is Rs. has in along our TSR through result recommended per route Buyback a a XX,XXX per the for FY cash ramp capital investors. of to This months, XX% buyback for to approximately TSR

the expect ‘XX With XX% compensation questions. can of XX% to of the deals XX% cetera. and guidance Operating for we for FY in large FY transition currency. of partial margin that, ‘XX by like considering impact up to We grow travel, to XX% rebound constant is revenues open after et costs impact call reviews,

Operator

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

Ankur Rudra

and range progressive just at in we compared check year level ‘XX baking years see the alluded and momentum that the Thank it capital ‘XX. return visibility conservatism to into the I you on of you. in policy earlier perhaps to to amounts. for compared COVID say, Good to perhaps pressures seen on your wanted and you different year? have of based supply any are normalization to Thank ahead, the you. earlier is How three signings

Salil Parekh

Ankur. Thanks, This is Salil.

in of think, at that have of seen one gives the outlook. environments indication the we’ve The we’ve the strongest comfort what growth of a I in seen terms while. demand a growth In very demand XX% for environment, it’s we the revenue guidance clear XX% to

I yes, and what is could recruited the in at campus have think today, which college for in plan earlier, to year ‘XX The both we about financial demand. hiring capacity increase overall across But with XX,XXX and supply this as said supply XX,XXX had pressures, there lateral see we fulfill in over we year pressures always terms we from people financial are ‘XX. of market. hiring

comfortable as we’ve this conclude extremely outlook the this demand. strong required to for it’s feel stage So and growth we fulfillment at overall, seen

Ankur Rudra

best and of you Thank luck.

Operator

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

Diviya Nagarajan

specifically in December. there Expect some more your you’re we it guided my since are Thanks about what in year sequential But I large and question this you with like should difficult much strongly. rates questions largest my know for congrats side. normalized very looking a to year a One you’ve growth Two of looks September in on some taking deal. very compared at here for think from is, coming environment. we and rates, your spikes saw how on? subdued growth deals, good ever

Two, have should you How as ramping That’s guidance, about question and is of We margins up margin we one. believe should specifically, think And going So into then to impacting QX when margins in year? your up? and about also the additional we hikes hikes pattern should think about is well. normally how we deal think the a I you wage talked that? how pick this progress? wage again, largest about where have things your just seasonality

How slightly different we a about please? seasonality in should we expect think So that QX? should

Salil Parekh

on Thanks, will Nilanjan will Salil. the start Diviya. margins. of part the is first seasonality the This I on and comment

how terms growth. function this our seeing In demand the year terms good out. what and the of pattern steady is focus -- of shape. we’ve that financial XX% It’s this a of or of state demand in currently really guidance plays of for on Today XX% growth very year. We to in course see

the growth within you As in year, seen year, shrinking. difficult pointed where an the extremely we out, many industry X% financial had last we’ve in

by are given is that really We leading the this gaining and stage. believe environment the looks anticipate most we in we’ve of broad believe industry some way markets a in serve it is the the every share, at our seen we time. it demand economic stays And market So demand indication recoveries has environment growth like in. we with as the for good that we what the this guidance clients

However, our financial to this Pravin, year. only you. guidance over is for

over to please. Nilanjan, Sorry, you,

Nilanjan Roy

Yeah.

Diviya, give the think, don’t a margin. really we of color I So on the trajectory

it’s like So XX% us mentioned to for XX%. we guardrail the between --

Xst in July. the wage We of have hike factored from second

So, automation. a which cost, et there. this, that’s even And the neutralization, may are there mix and on in cost keep the is, in cetera, on margin And some underlying of work on like quarter each quarter which course, happening. you the all of to will some yes, see up. leavers, of pyramid the continue in travel, later we an and strategic open year, But terms pressure two, we which course, things underlying

comfortable and of operating travel wage a is XX% the increase range to the in XX% said, and factored in I costs like hike. have which think, of I So, we

Operator

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

Moshe Katri

Thanks thinking and -- Hey. I the have to question. I Salil, based. points broad have maybe for one my two two more quarter that’s related

outs trends, you basis third-party color which get we specific mentioned on And you fact sequential could delta that? up? growth and that mix, numbers? probably can about the So sequential a impact. a But Obviously, from growth the from said growth there’s was helpful? maybe XXX the broad you can bookings QX less on deals, any sort something between actual also of cannibalizing some volume offshore call you. expansion very quarterly strong be then points here pipeline we And perspective, had are and picture that contribution specify Thank can think I be kind lumpy. directionally that appreciate some of

Salil Parekh

about Sure. Thanks we earlier was on the constant offshore We currency statement, for as show shared, as I effort actual question. out and Questions X% volume revenue X revenue. which saw volume show rightly within -- was mix your X.X%, the the quarter-on-quarter. indicated it in the shared that does you point addition growth up waterfall, the you increase in where pointed growth and

came originally Our years where third-party And QX seen third-party year. was little somewhat were software that In a coming lower cycle what with past have deals had we’ve deals there’s there we’ve shared with we the typically process. that into over seen QX are we’ve bit. in deals the And QX. the typical in in quarters seasonality most hardware, we then of them across those anticipated, play work a and than through that what

last remains strong exceptionally us net for strong XX% growth is with wins the XX% a year very year. full base for us for XX% for year, and output However, for larger for strong to for the year growth next guidance give us so next on demand new

want Okay ahead Nilanjan, On please? one do to that or one, the… the go second you on

Nilanjan Roy

repeat can second Moshe, the you question.

Moshe Katri

Yes.

more just perspective, are a booking was lumpy to we are and just about get get can bookings of we that color quarterly that bookings these But maybe grasp on bookings replenish can maybe a be on year-over-year, The a you able pipeline turned fact directionally? second the from on to that, lot and up some directionally been better feel on have pipeline to basis. into get feel appreciated where the a a question a

Salil Parekh

Let that. start me

if Pravin, Sorry, you to want Nilanjan, on add anything. the pipeline and

pipeline QX, deals bookings, strong billion us On had we the large very of for net XX% overall new. $X.X which is over healthy in mix

is, of large well was starting exceptional at in that that’s billion business. our the So sort set incredible, new $X a get we QX the a quite now yes, an of consider replenished rate look way The of to of deals. course after sustainable we but pipeline

industries in So us growth. we and also good that equally for good see quite pipeline feel back support the deal wins ‘XX. demand close financial start year this large both different But will year give coming robustly. We back traction the the will pipeline see going we into deals the again good revenue across to come and we financial

Moshe Katri

Thank much. you very

Operator

Prasad of HDFC next ahead. from The you. Please Thank line question Apurva is go the from Securities.

Apurva Prasad

question. I improving right. Thanks vendor they’re to that a visibility as improving scope Salil, on you my medium-term greater taking just that imagine plus outlook would the consolidation so milestone and mentioned. from enterprises further All accelerating of spoke the you with probe pipeline for sense digitization earlier, medium-term on

compared beyond to what thoughts type XX%. keeping your and higher your volume the to component, is trajectory? -- are of a on revenue a mean does ‘XX double-digit growth it guidance And offshore the guidance also ‘XX that FY of XX% So imply so to confidence FY

Salil Parekh

automation, on for good from across strong overall good clients, see traction is, theme a traction the multiyear view very analytics, traction us So good of work the cloud, -- we cybersecurity. on very the on data AI on sort good a demand the

you however So this moving which all feel We know. in don’t a comfortable aggressively ahead build or even outlook at that elements guidance the are quite is multiyear, those of have in capabilities, we we stage, as which an clients areas.

terms that year we one see fairly clients But revenue. everything the guidance indicates is from buying the have of We in strong.

pipeline, so the are business. to this overall give up nothing change in stage anything function more in seeing So If we good that of that demand, we good terms way really see GDP. holds will still the of there macro traction, a But a outlook. at good multiyear us it’s good

Of guidance year. for only is course, the one

Apurva Prasad

that, -- that ‘XX. there FY of just part And into the Sure. second for offshore a higher component built guidance is in

Salil Parekh

in So which not there the look on But volume, don’t part will we the be the split again, of sorry, we the at it. complete revenue a forward-looking We will have component specify for in a guidance. next do I didn’t have volume view address once that, terms guidance of we the our year it’s year.

Apurva Prasad

And the do finally, deliver views almost you year, has so just double-digit on expect Okay. core that? how which to your declined this

Salil Parekh

seeing there automation looking So we’re their it is enterprises to at large are what core and escape tremendous and applying efficiencies. for looking

own help that benefit, is to then them achieve they growth Our in taking automation, their that are investing and agenda which items. that approach efficiency and digital

a the of But to that seen a the few and that that’s we broad see we of core for evolution to going specific full past guidance continue We trend continue year. have don’t quarters the movement. ahead. Again, the the we’ve on sort in see

Apurva Prasad

Thank you.

Operator

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

Pankaj Kapoor

opportunity. Thanks Yeah. for Hi. the

still of cloud of TCV the And how mix term discretionary Salil, cost or seeing than the question, less kind of in continue So and is say, your those a kind spend longer see first you are more your of, back pipeline deals? costs you is terms that coming in million clients more second project spend payout do takeout, $XXX million to savings, on than $XXX or on migration kind project? do question deals

Salil Parekh

of digital our work and focus types of the the the both cost On focused you client. that type transformation reference, we also the work think, that work get there’s part, work, from I efficiency first

work at business, doing a you at you technology year are on they’re that if other which that in from even cost with some we back clients, consolidation. programs doing sort of starts more the the digital Equally If on transformation look announced and ‘XX, looks Vanguard. look we’re looks It’s other and takeout financial operations. at with focused

quite well in we’re So outlook today. the seeing in what represented they’re

the on has distributed specifically actual breakup well of of terms pipeline size, the quite pipeline, were year that, the said a In we wins distribution. similar the comment type Having the pipeline. and last don’t of the

now in was as mentioned course, specific are Of year, happen the the which we the had of every we last largest one which Those company. then. history deals deals, and

So type in a that horizon. of those really predictable not are

Pankaj Kapoor

Understood. tax your question you proposed I have Nilanjan, coming for just rate years? changes Thank impact you. the any that one effective in are do tax the recent from in U.S., Nilanjan. see more the impacting

Nilanjan Roy

Yeah.

just course, of senate proposals and of the alternative which both out. this have for sort houses, people Congress. to go one largely has the This, tax, first subsidiaries. corporations there’s U.S. some and papers you as talking of So, know, is is, the There in minimum again, through course, are is things, international two who about based

So that’s doesn’t impact us. a different and impact not --

The is they’re which rate XX% proposing the increase, itself tax the other, of from course, XX%. corporate to on

and credit therefore in therefore in the But through rate that, branch be which of and flow will our of said operations having will can Now, India it increase through through -- through subsidiary U.S. there’s structure any we we over impact impact and run from I any is, that. course, set get less. tax said, are off most we a operations most run our of run is partially if there, our a be you U.S. branch, one foreign don’t have there a tax above minor and like a

Pankaj Kapoor

Understood. Thank you.

Operator

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

Jamie Friedman

cost on deferment sorry, elaborate wasn’t mean? could Infosys XXXX if was or you your at cost prepared referring to as, sure within avoidance you is, client that. side the I that narrative. in mentioned remarks, instrumental the in what on had you were is Salil, and hoping I you

Nilanjan Roy

No.

think… I

Salil Parekh

Yeah. Go ahead.

Nilanjan Roy

Yeah. Go ahead. Yeah.

clear, the well, the So volatility right? So and COVID quarters very economic I and last think like we’ve we hit, calls were during been the saying as year, last four at in the over as just That uncertainty into January. we that postponements, due in or postponed in was do certain of which quarter June announced July were of that We last beginning salary hikes, to year. four. environment, instance, cost the for looking had

So et that Similarly QX. delayed like we in cycles started FY was were one of them. only ‘XX Even cetera. things that the recruitment, in and promotion

costs which the part in will FY one those ‘XX. was are that of come So back now it. And

into that Xst will impact four the felt cycle at compensation will of that compensation full announced be ‘XX. just year For three under July, the look We’ve of quarter hike FY will also impact of ‘XX. we FY of commencing quarters

So those deferrals the I call. cost what are

The cetera, travel, that the coming up better. et as cost start opens the of probably looks in back part world and half other second like and closer reductions travel will

Of first half there. course, of see we don’t change much for

in cost are of these calling, press of continue that tailwinds back program we year coming offshore headwinds. year every on around Offsite/Onsite strategic So optimization course, of And last course, the automation, well. we what becoming around some mix to underlying have and around pyramid, as underlying we of the leverage that

Jamie Friedman

for Thanks you. it. Thank clarification, Got Nilanjan. that

Nilanjan Roy

Welcome.

Operator

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

Sudheer Guntupalli

Yeah. gentlemen. this for me Good opportunity. Thanks evening, giving

between applicability the question, a given our in to course, market cases, two three open Nilanjan, individual buyback transmission tender our buyback, the of is were than buyback other and and subject tax I CG. the options of taxes, dividend, if open First the on higher is that shareholder, limited understanding of market loss

or recurring this dividend this So capital route of, tender and instead on just X,XXX and will crore the thought be a market growth curious mechanism? of Rs. returning let’s process say, through open

Nilanjan Roy

Yes.

‘XX dividends, special capital allocation policy and about to a guided XX% our by any policy and talk We are returning the of supplanted FY from ‘XX buybacks dividends. over dividend five-year period by FY completely progressive or that

and policy they been, market dividend see back special progressive investors the consistent they I to policy I like by, has dividend the don’t message would a said, like prefer one-off. think, these one-off consistently and backed dividends, like the and from

reason fact, -- now you well, you best are you tender, course, are as the in market, as committed for different, well. the price months open which few lock over whereas considered maximum way and and to the them tender and the So you the in maximum onto, buy the a a course, Board the in premium, next buyback market subject price to of are choices to committed as return actually a maximum open versus only of have to

in seen So for trade case have is going is we by open of an we the EPS opportunity the market. done potentially secretion have higher past

the -- stock mandated in now the company an terms indicate of has exchanges pay SEBI that understand paid the even to we implication, buyback taxes. in tax the benefit has because buyback will open regards market, As

exchanges hands SEBI, back has I the shares. that told buying the in the these indicate deals where company stock So believe of to is shareholders the

that I rolled understanding. the has tender any it So now have is this believe -- available out previously. don’t informal common SEBI our across is in but offer but this was notification, we

Sudheer Guntupalli

Sure.

meant you be the will not Nilanjan, gains say, is in to shareholders, capital of -- will be taxed it further So that that… hands not

Nilanjan Roy

don’t -- writing. in have course, don’t we have any We we Of that’s we what anything understand. informally tax, --

Sudheer Guntupalli

of Yeah. Yeah. Thanks course.

Nilanjan Roy

individual The investors The can’t will cases. see have see to investors to We will on have the that. that. comment

Sudheer Guntupalli

Sure. signaling competitors Infosys been Sure, earlier. our is price follow-up in Nilanjan. of of have mechanisms that and case very effective And question tender a buybacks itself some

aggressive. open defensive market other XX.XX is context, the that the connotation, a looks buybacks rather hand maximum Rs. defensive On typical support signaling. have of actually In more price buyback than whereas very objective by price

arriving at buffer should are months? very a extra be markets of is curious you’re because some being on volatile both read run this like thought looking the just process buyback tender this management process of a this XX.XX So Rs. six in sides just or as and signal number, long

Nilanjan Roy

Yes.

in -- is in the to that headroom. actually premium, a know a price, this the of you also and EPS eight we any date the which price the created, et So, in premium a open The will as looked is headroom the over -- is meeting the months sometime prices maximum price. and while seven this then And over the to more tender, approved process unlike gives course, at in that’s June so equation, it a you which and the Board announcement, much since next this there’s where months, possible will cetera, offer. this where give longer, so from of buyback the and cetera, shareholder the maximum deciding commit you maybe get this runway et

Sudheer Guntupalli

opportunity. side. That’s for me Sure. my it from Thanks. Thanks the giving

Operator

from the of Sandeep ahead. from is question next line Shah The go Please Equirus you. Thank Securities.

Sandeep Shah

asked. Yeah. Pankaj the what My to for opportunity. question Thanks has further is

if up have a deal wins. you look FY ‘XX, of you in guys a the So terms large at mega set threshold

are mega shaping actually at pipeline of the in disappointed ‘XX pipeline, in a believe do you So the whole? FY as deal terms up not looking you

Salil Parekh

earlier digital gains wins. you’re The is largest win shape of of were is we’ll good and in pipeline discussing to create the in good winning Salil. the is history when quite transformation difficult Thanks at pipeline see which comfortable of we continue replenished question. the been programs. is percentage This large as in one, our Hi. some company. market But has we this having It’s for said from by that, the the looking The share pipeline always that today. looking shape overall

Sandeep Shah

Nilanjan, deal be or as than question this ‘XX incremental headwind -- terms up in similar a I FY January believe on increasing -- because starting FY higher, improvement and not attrition be And the large margin just of Okay. to you ‘XX, looks higher Nilanjan a be may like headwind almost follow-up an a it in second away the do attrition And may higher could QX. QX, FY the if ramped seasonality to despite ‘XX. in giving XXX-basis-point in attrition, comes from really cost

despite what a in the led with high has So such hike wage increase a attrition?

Nilanjan Roy

Yeah.

quickly There be marginal be large my up on like ramp there will well. opening the a ‘XX initial I on will FY we the headwind, in So some mentioned as commentary. we in headwind mentioned deal, large deals as actually

into So the that’s factored margin.

Sandeep Shah

similar But Nilanjan ‘XX to incremental FY or do it’s versus that be ‘XX. you FY believe almost could

Nilanjan Roy

for my impact going way next it’s so on it’s Since a a margin basis, incremental. year-on-year to in right, year, No.

Sandeep Shah

Okay.

Pravin Rao

Pravin On the -- here. this is

growth then up Onsite way since in are has I percentage quarter growth -- after second of there factors pandemic competition offshore, very But one -- two us, the side, in one further. growth is, only the attrition, of to for first course, for dramatically come back the has first year was after right, due well. has decreased the picked a but And last in quarter not the as India, On subdued. is backs largely big growth mean, come

and is percentage XX.X% it Onsite XX% was around is it -- XX% Our four quarters back.

both. So talent on consequently, it, and for picked the is One India, growth is in resulting of volumes it’s growth top are a that’s and up higher happening tremendous demand itself has there of combination in and attrition. of most

Sandeep Shah

all best management. to Okay. the and the Perfect

Operator

you. Thank

Salil Parekh

you. Thank

Operator

question next is… The

Nilanjan Roy

Thanks.

Operator

the Parikh… Rishit from go Rishit Please ahead. from line … of Parikh Nomura.

Rishit Parikh

Hi. Thanks.

Operator

hear can … from Nomura your you. Yes. line. We

Rishit Parikh

Yeah.

Operator

Please go ahead.

Rishit Parikh

Thanks taking Okay. question. for my

result side, term growth impact obviously, and and help a offshore if effort one this? resumes has on year, over or a term the an Do the U.S. more Thank increase from you rate in last longer us see Just you margins just right? one the as longer country? could if that after on significantly impact that sentiment piece That’s postpone even improved it’s revenue my understand help budget you could obviously over of a think second this earlier aware longtime as XX%, can -- and Corporate to the extension indication any of you a from any tax the budget XX% question. in you. earlier do provide normalcy

Salil Parekh

your for This Salil. Thanks Thanks. question. is

start. Let me

Onsite I you in shift seen think, year. last as out, a we’ve pointed offshore in the especially mix the

quarters. Nilanjan Pravin few a huge it’s the last sharing and As were shift for

broader digital where those studios, in digital remote transformation then the it, and there’s are But huge it’s a other we have Europe be well. from say, in really difficult from I proximity engaged that and of built are of there our U.S., will forward, there it lot think, several context. other as amounts work and digital to to we because centers, centers demand a medium-term, factors the working in enables applied the which Looking support factors,

today see my last seen forward, So going we given few can this sides COVID at what quarters. in least like. to the is we both few what stage look first of be is, there sense will a have in outlook the the where are situation what for have continue At sense this this will don’t financial this quarters, year, we

impact the the on we any the In tax change. with terms stage respect this seen have spend at spend clients not IT to client of

We sharing, being -- compliance. that seen whatever becomes But forward, Nilanjan is put as stage once have the in we will any affects converted into this if change at you. that not was we’ll concept regulation see

Rishit Parikh

run do you it potential you from still a very for difficult upside or to the foresee impact But perspective? -- in a will tech say you

Salil Parekh

be there’ll way specific We a that or don’t whether see of understanding -- from don’t we impacts not. have point

more gaining of However, market we in the we overall in share have from that on with basis. momentum very tax that we an clients interest more team our connects huge that growth digital discussing in question spend see There’s is amount improving transformation, as are of earlier is and response. terms on and were clients positive we and that

Rishit Parikh

you. Okay. Thank

Operator

the next Mehta Ashwin question from The go is line you. from Capital. Please Thank Ambit ahead. of

Ashwin Mehta

opportunity. the for Thanks Hi.

Just one question.

Operator

very I’m well. we sorry hear Mr. you. Mehta, you interrupt to cannot

Ashwin Mehta

you Can all right hear me now?

Operator

Yes.

Thank Please is. you. it Now go ahead.

Ashwin Mehta

Yeah.

for assumption Just taken our we’ve currency one what’s guidance? the question, that margin

Nilanjan Roy

give have we See our…

Salil Parekh

Okay.

Nilanjan Roy

model margin overall guidance. really on say don’t … how the We currency. we

So I historically think do. that’s something which we

Ashwin Mehta

Okay.

last think more constant let’s or be it? currency or about compared basis we So would the it should on a say to year

Nilanjan Roy

See our guidance. this that margin so is factored -- is always on into margin basis, all a reported that

Ashwin Mehta

Okay.

salary question was seen attrition typically we of terms once of historically in terms the a up hikes in Okay. bump the have so are iteration, And second rolled out.

we in trends should historical which highs? of the running how at terms And how utilization, attrition? at that near-term are looking in So think we context, about are

Pravin Rao

This is Pravin here.

demand high level above. this the situation, for couple the of next the around be probably quarters Given attrition will

we side, are utilization the aggressively. On recruiting

the hikes and also are campuses on making on. We so

freshers high the start it So come very is interest XX.X% the we and The year what trend of utilization our as over mix, the not we -- will But utilization into are year with. getting over down. will the current next of plan. quarters comfortable

Ashwin Mehta

Fair enough. Okay. all lot best. a Thanks and the

Operator

question of line Thank Motilal ahead. Please you. The from Oswal. go next Garg is from the Mukul

Mukul Garg

see there a on in of and in how Subcon the X% shift be up locally clients cost FY to It’s little to in just items in level, material you. QX running wage U.S. bit it potential the of for hike, in the guidance FY level Besides should five-year -- the ‘XX. impact in Thank we a despite margin around expenses? Nilanjan, at build shift change wanted FY was ‘XX. or offshore dig continuous will It ‘XX. for increase high And in third-party was

Nilanjan Roy

Yeah.

past, in of I demand the we’ve like more that our largely So unlike and towards think much coming of the higher Salil Subcon not the seen offshore said, Subcon and higher X.X% also is out the demand Onsite. demand because increase this costs environment, requirement, increase

as also recruitment can the see Of we this the kicks -- the the pipe well. wage our think, now into are very, quarters moderating they as other we costs, third-party that few And start overall well. down, hikes attrition looking pairing engine the more course, mix as over we control, I in, in as at get small in hopefully next regarding very that

a small It’s no mix. really on So of go. part that will revenue very where color our

Mukul Garg

at the repeatedly for a I’m opportunity for you. And Is macro guidance, one remains broader environment point the what been start again growth that mentioning you for of within a demand a near-term Sure. Salil, the you’re on not was and environment -- as you in while remains strongest think qualitatively the do think asking beyond constraint? time scale you as some strong of or seeing do will have

Salil Parekh

looking is really their the chain, improve earlier, demand guidance is of as strong. it’s continue their over investment the environment on Yeah. improve a connects employees us discussed spend as addition to with customers, That the it. financial and enterprises from the cost well of the well. their their supply to are improve large with years also and tech benefit have enterprises is this past connects but on several positions shifting and we the to very year, us technology so a built There for all to lot robust we P&L Again, lot in tech digital spend large confidence that is gives capabilities the and becoming spend with very

environment. sense So, this overall, a good is, is my

spend are technology Infosys. connect digital place for on in space the clients We that very in a good well with positioned and is

Mukul Garg

and for question for Sure. best of ‘XX. Thanks FY luck my answering

Salil Parekh

Thank you.

Operator

India from Nippon Mutual is line question Fund. ahead. from go Rathod the Ritesh next The you. Please Thank of

Ritesh Rathod

audible? I Am

Operator

audible, you’re sir. speak not handset clear. you But Can are please on mode? You very the

Ritesh Rathod

Yeah.

are come back large cut got coming pandemic in verticals? has which which spend there key -- of something speak any the yet not particularly in you post-COVID areas come or in and back years, back, which can So can

Salil Parekh

it. follow I Sorry, didn’t

from or own internal client a our spending? You mean perspective spend

Ritesh Rathod

got coming you cut pandemic verticals, in spend not Client key which of spend back come large perspective in come which years? back and think can are the your areas in there yet has which

Salil Parekh

and add. might -- there So Pravin

their the several positioning, last example, sense areas. has low industries, of in had stage almost At to industry every We each their those travel Pravin the earlier, exposure As early saw this manufacturing year, spend. very some minimal hospitality QX are improved for some most impact overall back. that or retail, quarter said of has in

come So back but through our Pravin, to in add have own industry excludes anything, please? those will if last probably come back, want From don’t quarter that. we exposure, have you most each year. of

Pravin Rao

Yeah.

has spend both in even just of of So in back was like aerospace in instance, we seen the perspective of new engaging continue in Salil, question. said, from every ways in to responded also But sub-segments sub-segments, I industrial quarters majorly impacted. digital. some kind some we is coming some at those of But a in cases whereas about only in have in segment couple the come one coming to spend and continues the the somehow probably for right? think, spend the see up stakeholders, and with I we The business. vertical was with it as the thing resiliency cases, are even sub manufacturing, segment, automotive But terms back. be of -- is, clients looking some talked the, those last which to

in back Similarly take some of is will of spend even thought services also hospitality is quarters with we see sense take compared there what those it pandemic four But in our and back. aerospace. several probably some with cases So travel amount quarters time side, as happening. in normalcy before coming the might multiple we waves three,

Ritesh Rathod

us, not And on possibility pricing, if outlook medium-term, getting the a you price addition but on going digital year-on-year kind a within your next a can client, of the -- given to of better the forward? bringing you’re value pricing more particularly is maybe there segment, give year,

Salil Parekh

demonstrate capabilities on working that and then and are end it. our we our also more are might medium-term can you the pointed clients for add and to pricing. to providing we that as something and becomes are that you from to is and add, really start digital that more we areas. impact want which view visible But this with then clients time over the more more out, high start me think Nilanjan? value Anything with ensure to convert Let demonstrate a digital working and as We the on us Nilanjan high quality,

Nilanjan Roy

No.

well, you it think I covered Salil.

Ritesh Rathod

Thank you. from me. Okay. That’s

Operator

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

Salil Parekh

Hi. Thank. Thanks for that.

joining for you everyone thank So us.

to year delighted all extreme full which believe extremely is year performance and very growth in concern for clients, are ‘XX, for the cash with including care for with market year free margin performance flow, industry-leading buyback, our growth, and strong We all and pointing in business, we of parameters, shareholders. employees share financial X% the dividend, this the

is we for focused strong XX% ahead, these the full services the repositioned for on outlook feel a strong Looking where a really and is of growth this us, year. on XX% year business for XX% to to margin digital services, Infosys XX% recognized

you forward joining shareholders. for So our Thank the another look that, catch and the company of to year on up the being clients, yet quarter. our everyone for and successful next employees, the foundation

Sandeep Mahindroo

call. forward to this joining Look for on us everyone, connecting. Thanks,

Operator

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

Infosys Limited (INFY) 14 Apr 212021 Q4 Earnings call transcript