Infosys in FY21 Annual Report said that in this current business environment, the company delivered exceptional results. The IT major reported industry-leading growth in FY21 at 5% in constant currency and won over US$14 billion of large deals in the past year, the highest in their history.
Infosys continued to gain market share. Salil Parekh, CEO and MD, Infosys said, “As I look ahead, I am more optimistic than ever of the enormous opportunity ahead of us. Technology, especially digital and cloud, continue to be at the center of change for large enterprises globally.”
He further said, “Our clients have been expanding their work with us, especially in the areas of digital and cloud. The capabilities that we have built over the past three years, including differentiated offerings like Infosys CobaltTM, are what large enterprises are looking for. Our market-leading capabilities in data and analytics, cybersecurity, AI, automation, and IoT are enabling us to be a critical partner for our clients.”
JP Morgan: Maintain Overweight, Target at 1740/share. No material impact on delivery from India’s second Covid wave. There is optimism on medium term growth outlook and FY22 revenue guidance of 12-14% CC growth and margin guidance of 22-24% remains intact.
INFOSYS ANNUAL REPORT FY21: HIGHLIGHTS
*Large enterprises looking for differentiated offerings like Infosys CobaltTM
*Clients have been expanding work especially in areas of digital and cloud
*Our acquisitions in the past year – GuideVision, Blue Acorn, Kaleidoscope, and Carter Digital
*Acquisitions in past year have helped further strengthen our digital portfolio
*Technology, esp. digital and cloud continues to be center of change for large enterprises globally.
*Cloud will be the foundational pillar to drive digital journeys for large enterprises.
* Automation & AI services grew on the back of our alliances with leading Robotic Process Automation (RPA)
*Engaging with clients to modernize their core legacy technology and process landscapes.
*Revenue from digital technology-related services and solutions has more than doubled in 3 yrs, forms 48.5% of total revenue
FY21 HIGHLIGHTS
*Continued to gain market share; reported industry-leading growth in FY21 at 5% in constant currency
*Won over US$14 billion of large deals in the past year, the highest in our history.
*Announced Buyback of Rs 9200 cr (USD 1.2bn) at buyback price of Rs 1750/share via open market route
*FY21 dividend of US$1.5bn
*FY22 revenue growth guidance 12% to 14% in CC terms and FY22 operating margin guidance 22-24%
COMPETITION
*Seeing intense competition in traditional services, see rapidly-changing marketplace with new competitors
* Expect increased competition from firms that offer technology-based solutions to business problems,
*See competition from cloud providers and from firms incumbent in those market segments.
* Insourcing of technology services by the tech departments of our clients is another ongoing competitive threat
RISKS
*FY21 revenue impact due to Covid pandemic was not significant
*Risks related to the markets in which we and our clients operate
ON TALENT AND REMOTE WORKING
*Need to attract and retain quality talent globally & reimagine cost structures
*Expanded our local workforce in the US, the UK, Europe, Japan, China and Australia
*As of March 31, 2021, 96.5% of our employees were working remotely
