Infosys Shows Strong Growth In FY20; Girding For COVID-19 Impact

IT outsourcing giant Infosys announced impressive results for their fiscal year ending March 31, 2020. The firm showed 8.3% growth, and an operating margin over 21%. The results don’t include recent effects of the Coronavirus COVID-19 Pandemic, however the company assured that it is “prioritizing employee well-being, assuring services for business continuity and strategizing offerings to improve business resilience for its clients, while also supporting community initiatives.

Salil S. Parekh, Chief Executive Officer and Managing Director, Infosys, India capture during the Session: The Global Business Context at the Annual Meeting 2018 of the World Economic Forum in Davos, January 23, 2018  Copyright by World Economic Forum / Sikarin Thanachaiary

Salil S. Parekh, Chief Executive Officer and Managing Director, Infosys, India capture during the Session: The Global Business Context at the Annual Meeting 2018 of the World Economic Forum in Davos, January 23, 2018.
Copyright by World Economic Forum / Sikarin Thanachaiary

The company stated that 93% of its workforce is enabled to work from home in countries still under lockdown.

“I am proud of the Infosys team that has worked exceptionally well to achieve 93% remote working today, and ensuring consistent service delivery for our clients in this rapidly changing environment. Our focus on the health of our employees and our commitment to our clients helped us navigate the past few weeks,” said CEO Salil Parekh.

“We had an exceptional year in financial year 2020 with growth of 9.8% and operating margin of 21.3%. While the immediate short term will be challenging, looking ahead we can see that there is a strong interest to consolidate with partners with high-quality and agile service delivery and strong financial resilience. I am confident we will emerge from this stronger,” he added.

FYE March 31, 2020 IFRS

  • Revenues: $12,780 million, 8.3% YoY growth
  • Operating profit: $2,724 million, growth of 1% YoY; 21.3% Operating margin
  • $0.565 EPS reflecting growth of 8.3% YoY growth

The company had several significant wins the last year. For example, German engineering firm Siemens selected Infosys’ enterprise digital learning platform for its 385,000 employees.

GE Appliances, a division of Haier contracted with Infosys’ managed IT services and support, including service desks, end user computing, applications, and IT infrastructure.

Reckitt Benckiserm the manufacturer of Lysol & many other brands has contracted with Infosys to rework completely its infrastructure and IT applications, including implementation of automation and artificial intelligence.

“We completed a satisfying year on multiple counts – growth in all verticals and geographies, significant increase in large deal wins, good client mining and operational discipline,” said Pravin Rao, the Chief Operating Officer of Infosys. “The impact cause by COVID-19 since the last few weeks of March has led to significant displacement in the operating model while severely testing business continuity plans of companies. We demonstrated what a ‘Live Enterprise” truly is by improving the infrastructure and technology enablement for our employees in a short time span and ensuring business continuity for clients.”

 

Headline photo credit: Indianhilbilly / CC BY-SA

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