BENGALURU, India, Oct. 11, 2019 /PRNewswire/ -- "Our performance was robust on multiple dimensions - revenue growth, digital growth, operating margins, operational efficiencies, large deal signings and reduction in attrition," said Salil Parekh, CEO and MD. "All these are clear signs that we are progressing well in our journey of client-centricity and maximizing value for our stakeholders."
38.4% YoY 11.4% YoY 3.3% QoQ 1.2% QoQ $2.8 bn Digital CC growth CC growth CC growth OM expansion Large deal signings to 21.7%
-- Q2 20 revenues grew year-on-year by 9.9% in USD; 11.4% in constant currency -- Q2 20 revenues grew sequentially by 2.5% in USD; 3.3% in constant currency -- Q2 20 Digital revenues at $1,230 million (38.3% of total revenues), year-on-year growth of 38.4% and sequential growth of 10.7% in constant currency -- Q2 20 operating margin at 21.7%, 1.2% improvement over Q1 20 -- H1 revenues grew by 11.9% in constant currency -- H1 operating margin at 21.1%, within the margin guidance for the year -- Declared interim dividend of ?8 per share (approximately $0.11 per ADS*) -- Increased lower end of FY 20 revenue guidance; revised guidance is 9%-10% in constant currency -- Maintained FY 20 operating margin guidance range of 21%-23%
*USD/INR exchange rate as of September 30, 2019
1. Financial Highlights - Consolidated results under International Financial Reporting Standards (IFRS)
For the quarter For six months ended September ended September 30, 2019 30, 2019 Revenues were Revenues were $6,340 million, $3,210 million, growth of 10.2% YoY growth of 9.9% YoY and 2.5% QoQ Operating profit was $1,338 million, decline of 1.8% YoY. Operating margin was 21.1%. Operating profit was $696 million, increase of 0.5% YoY and 8.3% QoQ. Operating margin was 21.7%. Basic EPS was Basic EPS was $0.26, growth of $0.13, growth of 1.6% YoY 0.2% YoY and 5.6% QoQ
"Q2 witnessed another quarter of all-round growth in industry segments and geographies which is a testimony to our strong credentials and client relevance", said Pravin Rao, COO. "Large deal wins were $2.8 bn. We are especially pleased by the reduction in attrition driven by our focus on enhanced employee value proposition."
"We saw expansion in operating margins during the quarter driven by improvement in operational parameters and cost efficiencies", said Nilanjan Roy, CFO. "We took the first step towards implementation of our new capital allocation policy by increasing interim dividend by over 14% compared to FY 19."
2. Capital Allocation
The Company completed its share buyback of ?8,260 crore on 26th August, 2019. With this the company completed the additional capital return program of upto ?13,000 crore announced in April 2018.
3. Client wins & Testimonials
-- We were selected by Toyota Material Handling North America (TMHNA) for a cloud-based IoT telematics product implementation along with application support and development for its SAP Platform. As the development partner for TMHNA Global Telematics Solution (GTS), an industry leading cloud-based IoT offering, Infosys is enabling remote monitoring and diagnostic capabilities including vehicle access control, system maintenance, condition sensing and location tracking. -- We were selected as a strategic partner by Movement Mortgage, a fast-growing mortgage bank in the U.S., to lead its digital transformation and accelerate growth. Infosys will support Movement Mortgage's 650 locations in 47 states to ensure the smooth transition of business models in key projects, with the aim to increase business volume and leverage the company's fintech services to develop mortgage industry specific solutions for Infosys customers. -- In collaboration with Microsoft, we announced a long-term strategic partnership with JG Summit Holdings, Inc., one of the largest and most diversified conglomerates, headquartered in Manila, Philippines. As a technology services partner, Infosys is helping formulate and execute the digital transformation strategy for JG Summit, based on Microsoft Azure, an open, hyper-scale, enterprise-grade cloud platform, along with SAP S/4 HANA. The collaboration will offer JG Summit seamless implementation and migration to Microsoft Azure cloud platform, to develop an agile and robust digital infrastructure for its business processes. -- EdgeVerve Systems, a subsidiary of Infosys, was selected by Al Ahli Bank of Kuwait to steer its automation journey using AssistEdge Robotic Process Automation (RPA). We are working the bank in their process automation journey, driving cost efficiencies and streamlining its operations. -- We have partnered with one of the largest utility companies to transform its IT Service Management. The program, leveraging ServiceNow, is helping our client significantly improve end-user experience, enhance employee productivity and deliver business agility. Infosys will also deliver a comprehensive solution for organization change management and user training as a part of this program.
-- Ranked 3 in the Forbes list of The World's Best Regarded Companies for 2019 -- Won the United Nations Global Climate Action Award in the 'Climate Neutral Now' category -- Recognized as a leader in Gartner Magic Quadrant for IT Services for Communications Service Providers, Worldwide -- Recognized as a leader in Software Product Engineering Services PEAK Matrix(TM) Assessment 2019 by Everest Group -- Recognized as a leader in the DevOps Services PEAK Matrix(TM) Assessment 2019 by Everest Group -- Recognized as a leader in IDC MarketScape: Worldwide Intelligent Automation Services 2019 Vendor Assessment -- Recognized in HFS Top 10: Digital Front Office: CX Design, Sales, And Marketing -- Recognized in HFS Top 10: Banking and Financial Services (BFS) Sector Service Providers -- Recognized in HFS Top 10: Cloud Migration and Management Services 2019 -- Recognized as a Leader in NelsonHall's Smart IT Services in Utilities -- Recognized in HFS SAP SuccessFactors Services Top 10 Report -- Recognized as 2019 Working Mother & AVTAR Best 100 Companies for Women in India and '2019 Champion of Inclusion' in the Most Inclusive Companies in India Index -- Won the 2019 Oracle Excellence Award for Global Partner of the Year in CX - Sales Cloud -- Won the Oracle Excellence Award for NA partner of the Year for Emerging Technologies -- Recognized as the 2019 Global Alliance SI Partner of the Year by Microsoft -- Recognized as the Microsoft US Service Partner ACR Winner for the FY20 Microsoft One Commercial Partner Winners Circle program