Infosys Limited American Depositary Shares

Ladies and gentlemen, good day and welcome to the Interest 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. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone telephone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sandeep Mahendru. Thank you and over to you, sir.

Thanks, Karuna. Hello, everyone, and welcome to Infosys Earnings Call to discuss Q1 FI20 Earnings Relief. I'm Sandeep from the Investor Relations Team in Bangalore. Joining us today on this call is CUNMD Mr. Farel Parekh, CEO Mr. Praveen Rao, CFO Mr. Nilanjan Roy, along with other members of the Senior Management Team. We'll start the call with some remarks on the performance of the company followed by comments from Praveen and Nilanjan. Subsequent to this, we'll open up the call for questions. Please note that anything which you say which refers to our outlook for the future is a forward-looking statement, which must be read in conjunction with the risks that the company faces. A full statement explanation of these risks is available in our filings with the SEC, which can be found on www.sec.gov. I'd now like to pass it on to Salil.

Thank you, Sandeep. Good afternoon and good morning to everyone on the call. Thank you for joining us today. Infosys has delivered a strong quarter and I'm pleased with our overall performance as we continue to demonstrate our increasing relevance to clients. Our constant currency growth year on year for Q1 was 12.4%, which is the third consecutive quarter of double digit growth. Our digital revenue growth was 41.9% and our digital revenue now accounts for 35.7% of our overall business. Large-deal TCV was the highest ever at $2.7 billion. Our operating margin for Q1 was at 20.5%. We saw broad-based growth across our industry segments, service lines, and geographies. In constant currency year-on-year, our telco segment grew 22.6%, our North America geography 13.5%. We continue to benefit from building deeper capabilities across our digital portfolio, especially in the areas of experience, data, analytics, cloud, SaaS, IoT, cybersecurity, AI, and machine learning. Our overall deal pipeline witnessed growth in Q1, and we can see that we're winning market share in this competitive environment. While there are many aspects of our strategy that came together to make these impressive first quarter results possible, I want to focus on how we are scaling our digital business with a few examples. For a telecom major, we are helping to build a new digital customer experience for their clients, which bring together channels such as Alexa, mobile apps, chatbots, online and contact centers in an omni-channel mode and provide improved customer engagement. We work with a large automotive client to help them navigate their digital transformation journey, delivering for them future-ready, scalable digital hybrid cloud platform that is supportive of their digital workspace. We have been engaged to deliver cutting-edge digital capabilities for a leading U.S. insurance company. We are partnering with them to build a digital policy administration services leveraging Infosys McCamish platform. We're enabling a large utility to build advanced planning and engineering systems to forecast the dynamic nature of future electricity demand to help them plan and build their grids and leverage green energy policies to make sure there's efficient distributed energy resources. I'm particularly pleased that we've opened another digital experience design and innovation studio, which was last month in Shoreditch in London, where we're able to co-create digital experiences with our clients. I'm delighted to share that our employee reskilling program, Lex, our learning platform, now covers a near 100% of our employees globally, with employees already leveraging the Lex app each week to develop their skills. I also want to touch upon some external recognition we've received. Infosys has been recognized as a leader in the SAP S4 HANA services by Nelson Hall for global API strategy by the Forrester Wave and in the public cloud infrastructure managed services area in the Gartner Magic Quadrant. Now that we see our clients' confidence in us increasing with increased market share gains, We are focusing as well on operational efficiency and cost discipline. We have now completed all our investments that we outlined last year when we started our strategic direction program. All future investments will come from within our P&L and they're not specific as one of investments that we outlined last year. Over the coming quarters, I'm looking forward to see the benefits of these operational improvements reflect in our business. Given the evolution of our business outlook, we are now changing our revenue guidance. We move from 7.5% to 9% in constant currency to 8.5% to 10% in constant currency. We retain our margin guidance at 21% to 23% for the full year. Later on in the call, Milanjan will share with you a new capital return policy. With that, let me hand it over to Praveen.