Infosys Limited American Depositary Shares

Good day and welcome to the Infosys earnings conference call. As a reminder, all participant lines will be in 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 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.

Hello everyone and welcome to Infosys ONIX call for Q3 FI24. Let me start by wishing everyone a very happy new year. Joining us on this call is CEO and MD Mr. Salil Parekh, CFO Mr. Nilanjan Roy, and other members of the leadership team. We'll start the call with some remarks on the performance of the company for Q3, subsequent to which we'll open up the call for questions. Please note that anything we say that refers to our outlook for the future is a forward-looking statement. that must be written in conjunction with the risk that the company faces. A full 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 on the call to Salil.

Thanks, Amit. Good evening and good morning to everyone on the call. Wish you a happy new year. Our Q3 revenue declined by 1% quarter-on-quarter and 1% year-on-year in constant currency terms. For the first three quarters, our revenue grew by 1.8% over the same period last year in constant currency. We see lower traction for digital transformation programs and more activity for cost and efficiency programs and increasing interest in generative AI programs. Our operating margin was at 20.5%. We delivered this outcome while managing through one-off business disruptions. Nilanjan will provide more detail for this. Large deals were at $3.2 billion. 71% of this was net new. This included one mega deal. With this, a large deal value for the first three quarters stands at $13.2 billion, of which 55% is net new. This is the highest ever large deal value for the first three quarters in the fiscal year for us. We see that with our large deal wins, we continue to win market share and strengthen our position through our leading capabilities in helping clients with cost, efficiency, automation programs, and by leveraging generative AI, digital, and cloud. We have seen impact in financial services, telco, and high-tech segments. We see strength in manufacturing, energy utilities, and life sciences segments. We are seeing strong traction for generative AI programs leveraging our topaz capability. We've integrated our generative AI components into our service line portfolio, creating impact for our clients. We have 100,000 employees trained in generative AI areas. a range of use cases and benefit scenarios across different industries for our clients. Some of these areas are related to client analytics, process optimization, sales, marketing, knowledge analysis, software development, self-service, and personalization. Some examples of the work we're doing in these areas. We are working with a large global bank to support them in their risk analysis program by using a large language model for them. We are working with a global food supplier to personalize food experience for their customers and to make their operations efficient using artificial intelligence. We are working with a global retail company in defining their AI-first business transformation strategies. Our clients are leveraging all these generative AI capabilities in Topaz combined with the cloud capabilities in Cobalt to help them navigate through this current business environment and setting up for the future. A margin improvement program continues to gain traction. The five pillars, the large organization mobilization and steady execution are creating impact. Based on the performance in the first three quarters and our outlook for Q4, we are tightening our revenue growth guidance for financial year 24 to 1.5% to 2% in constant currency. Our operating margin guidance for financial year 24 remains unchanged at 20% to 22%. As you probably know, Nilanjan is leaving Infosys at the end of this financial year. I want to thank Nilanjan for the excellent work he has done and the strong position he has put Infosys in. In addition, I also want to thank him for his partnership and his friendship over the past several years. We wish him all the best in his future plans. With that, let me hand it over to Nilanjan.