Infosys Limited American Depositary Shares

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. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone telephone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sandeep Mahindru. Thank you and over to you, sir.

Hello, everyone, and welcome to the Infosys Earnings Call relating to proof for industry 20 earnings relief. This is Sandeep from the Investor Relations Team in Bangalore. The only guest today on this call is the UNM Minister, Salil Parekh, CEO, Mr. Praveen Rao, CEO for Mr. Nilanjan Rao, along with other members of the senior management team. We'll start the call with some remarks on the performance of the company by Salil, Praveen, and Nilanjan before opening up the call for questions. Finally, note that anything which we say which refers to our outlook for the future is a forward-looking statement which must be read in conjunction with the risk that the company faces. A full statement and explanation of these risks is available in our file with the SEC, which can be found on www.sec.gov. I'd now like to pass it down to Salil.

Thank you, Sandeep. First, apologies from us for starting this off late. Good evening and good morning to everyone on the call. I trust each of you and your loved ones are safe in these extremely different times. The financial year that just ended ended very well for us. It was an exceptional year. We grew at 9.8% in constant currency, delivered 21.3% operating margin, grew our digital revenue by 38%, and for a For the digital revenue now, in Q4, has become 42% of our overall business. We did this with $9 billion of large deals for the full year. Our earnings per share grew at 8.3% in dollar terms. We had, in fact, the highest cash collection for the quarter and for the full year in our history. In Q4 itself, we grew our business 6.4% year-on-year in constant currency and delivered 21.1% operating margin with $1.6 billion of large deals, some of which in the last few weeks of the quarter. We closed the year with an extremely strong cash position of $3.6 billion and no debt on our balance sheet. As the last two to three weeks of March saw, the impact of COVID was significant. We had already activated our business continuity plans with an intense focus on employee safety and client service delivery. Today we have 93% of our employees working remotely, a task that was performed with incredible efficiency and tremendous hard work by all of our teams. Praveen will share with you more color on this later in the call. In addition to that, we have added financial security of the company and absolute focus on liquidity and cash. We have now activated a comprehensive program for cost control and reduction. Lajan will share some preliminary highlights of this later in the call. We, of course, anticipate near-term challenges in the business environment across a whole set of industries. However, we see increased interest from our clients in cloud virtualization, workforce transformation, and cost reduction programs. Our discussions with clients indicate they would like to consolidate their work with a strong player like us, with exceptional service delivery, agility to reach 93% remote working, and an extremely strong balance sheet. I think those trends will hold us in good stead in the medium term. Let me spend a few minutes to share with you what we are doing outside of work supporting our communities that we live and work in. Via our foundation, we have dedicated rupees 100 crores towards relief efforts, including half of it to the Prime Minister Cares Fund in India to help enhance hospital capacity, provide treatment, ventilators, testing kits, PPEs for frontline health workers. In the US, we've opened Pathfinders Online Institute, an online learning platform for teachers, school children, and their families, so they can access high-quality computer science education from home for free. Coming back to business, given the uncertain environment with the global pandemic and client business being marred by volatility, we do not feel it will be appropriate for us to provide guidance for this financial year. As a result, we are suspending providing guidance on revenue growth and operating margin for financial year 21. Given our strong performance in the just concluded financial year and our strong cash position, we are pleased to announce our final dividend for the financial year at Rs. 950 per share, bringing the total dividend for the financial year to Rs. 1750%. I'm extremely grateful to our employees for their diligence through this stressful period and proud of the work they have delivered for our clients. While we are unsure about what lies immediately ahead, we have enormous strengths that we believe will help us navigate this period and emerge stronger from it. We have a sustained focus on client relevance and we are now re-pivoting our efforts in terms of what clients are looking for and we see good traction in that. Our ability to work with clients across the entire spectrum of their needs, including accelerating their digital journey and extreme automation for cost efficiencies. A highly skilled workforce of 240,000 people passionately working towards making accounts successful, unparalleled delivery capabilities, $3.6 billion in cash on a debt-free balance sheet, which gives us ample liquidity. With that, I'll pause my comments and hand it over to you, Praveen. Over to you.