Infosys Limited American Depositary Shares

Ladies and gentlemen, good day and welcome to Infosys Limited Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. After today's presentation, there will be an opportunity for you to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star, then two. Please note that this conference is being recorded. And now I hand the conference over to Mr. Sandeep Mahindra. Thank you, and over to you, sir.

Hello, everyone, and welcome to Infosys Earnings Call for Q4 and FY24. Joining us on this call is C&MD Mr. Salil Parekh, CFO Mr. Jai Sangrajka, and other members of the leadership team. We'll start the call with some remarks on the performance of the company, subsequent to which we'll open up the call for questions. Kindly note that anything we say that 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 on the call to Salil.

Thanks, Sandeep. Good evening and good morning to everyone on the call. For the financial year 24, our revenue growth was at 1.4 percent in constant currency terms. Our operating margin for the full year was 20.7 percent. For large deals, we had an excellent year in the fourth quarter. For the full year, we were at $17.7 billion in large deals, comprising of 90 deals. For Q4, we had $4.5 billion in large deals. This is the highest ever large deal value in a financial year for us. This is a reflection of the trust our clients have in us. We see good traction in cost efficiency and consolidation deals. For Q4, our year-on-year revenue growth was flat in constant currency and declined by 2.2% quarter-on-quarter. Our operating margin for Q4 was 20.1%. We had a one-time impact in Q4 that Jayesh will comment on. We're seeing excellent traction with our clients for generative AI work. We're working on projects across software engineering, process optimization, customer support, advisory services, and sales and marketing areas. We're working with all market-leading open access and closed large language models. As an example, in software development, we've generated over 3 million lines of code using one of generative AI large language models. In several situations, we've trained the large language models with client-specific data within our projects. We've embedded generative AI in our services and developed playbooks for each of our offerings. We committed to ethical and responsible use of artificial intelligence. We became the first IT services company globally to achieve the ISO 42001-2023 certification. testifying to a commitment to excellence in AI management. All of our work in AI is part of our Topaz offering. Our cloud work is growing well. We continue to work closely with the major public cloud providers and on private cloud programs for clients. Cloud with data is the foundation for AI and generative AI, and Cobalt encompasses all of our cloud capabilities. Data is the other foundation for AI and generative AI. We see data structuring, access, assimilation critical to make large language models and foundation models to work effectively. And we see good traction in our offering to get enterprises data ready for AI. We are delighted to announce a strategic acquisition of a company in the engineering services space this quarter. Some examples of the work we are doing For a large US company, we've engineered an enterprise-grade generative AI platform that has been rolled out to over 60,000 users. We're working with a large bank and helping them roll out an internal enterprise-wide company-specific generative AI instance of a knowledge assistant. We continue our focus on our margin program. We saw good impact of this during the financial year. Our employee attrition was low at 12.6%, down from 20.9% in the previous year. As we look at the start of the financial year 25, we see the discretionary spending and digital transformation work at the same level. We see focus on cost efficiency and consolidation continuing. Our large deal wins in the prior financial year will help us in financial year 25 for our revenue. We also see normal seasonality as we plan this financial year in terms of guidance. With that, our revenue growth guidance for financial year 25 is 1% to 3% growth in constant currency. Our operating margin guidance for the financial year 25 is 20% to 22%. With that, let me hand it over to Jaish.