Infosys Limited American Depositary Shares

Ladies and gentlemen, good day and welcome to the Infosys earnings conference call. As a reminder, all parts and 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 10-0 on your touchtone phone. 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.

Thanks, Margaret. Hello, everyone, and welcome to InfoSafe's earnings call to discuss Q2 FY21 financial results. I'm Sandeep from the investor relations team in Bangalore. Joining us today on this call is CEO and MD Mr. Salil Parekh, CEO Mr. Praveen Rao, CFO Mr. Nilanjan Roy, along with other members of the senior management team. We'll initiate the call with some remarks on the performance of the company by Salil, Praveen, and Nilanjan on the most recently concluded quarter before opening up the call for questions. Please 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 risks that the company faces. A complete statement and 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.

Thanks, Sandeep. Good evening and good morning to everyone on the call. I trust each of you are safe and healthy. We've had an exceptional quarter in the second quarter across multiple dimensions, client impact, revenues, digital scaling, large deal wins, continued account expansion, operating margin expansion, strong cash flows, and reduction in employee attrition. I'm grateful to our clients for their continued trust in us and I'm proud of our team for their incredible commitment to our clients. Let me share with you some of the highlights for Q2. Revenues in constant currency grew at 2.2% year on year and 4% sequentially on the back of a very strong Q1. Our growth for H1 over H1 was 1.9% in constant currency terms. Digital revenues grew at 25.4% year-on-year in constant currency and now accounts for 47.3% of our revenues. We delivered operating margin of 25.4%, which is an expansion of 370 basis points year-on-year and 270 basis points sequentially. This was achieved after rewarding our employees with variable pay at 100%, and awarding a one-time special bonus. Large deal wins, which are wins of work above US$50 million in TCV per contract, were at $3.15 billion. Large deal pipeline remains strong as clients look at accelerating digital transformation programs and continuing their focus on automation and cost-efficiency. Our voluntary attrition in IT services is at 7.8%. Our operating cash flow was at $793 million, a 52% increase year-on-year. Our balance sheet remains strong with cash and investments positioned at $4.6 billion with no debt. Our industry-leading performance over the first half of this year has been due to the immense commitment of our over 240,000 employees. Recognizing the continuing stellar contribution from our employees during these times, we are paying out a variable pay for the quarter at 100%. We will pay a one-time special incentive in Q3 for our junior-level employees. The salary increase process will restart now and will be effective as of January 1, 2021. We restarted promotions in the last quarter at our junior levels. This will now be expanded across all levels. I'm thankful to each one of our employees for staying deeply committed to serving our clients as they themselves navigated their own personal challenges associated with the ongoing COVID situation and the remote operating model. We launched Infosys Cobalt, where we brought together all our cloud services, platforms, and solutions to support our clients in accelerating their cloud journey and reducing the risk to their cloud programs. Cobalt has 200 industry templates and 14,000 cloud components available to our clients for their cloud-first programs. Cobalt is built with strong partnerships with leading SaaS, PaaS and Infra as a Service companies across public, private, and hybrid cloud environments. In Q2, we took another large step in our local hiring plans in the US. In the past three years, we've launched six digital centers in the US and hired over 13,000 US workers. We now announce plans to hire an additional 12,000 US workers over the next two years bringing our hiring commitment in the U.S. to 25,000 over five years. We believe our localization approach is a significant market differentiator and will help us better navigate regulatory changes. The sustained localization investments will ensure that we are able to continue servicing our clients across markets with a combination of local and global talent. The past three months also saw us announce three acquisitions, GuideVision focused on ServiceNow, Blue Acorn focused on Adobe, and Kaleidoscope focused on medical product design. Our service delivery continues to be exceptional. The feedback from clients remains positive, and the dedication of employees is tremendous. Today, 99% of our workforce continues to work from home. Our results in Q2 are a combination of a continued focus on the needs of our clients, steady execution, and a clear strategy to build a digital and cloud aligned company. Looking ahead, we continue to see strong traction in our business. We increase our revenue guidance for the full year, from 0% to 2%, moving it to 2% to 3% growth in constant currency year over year. We increase our operating margin guidance for the full year, from 21% to 23%, moving it to 23% to 24% for the full year. Thank you. And now let me request Praveen to update you on our operations. Over to you, Praveen.