BANGALORE, July 14, 2017 /PRNewswire/ --
Q1 revenues grew sequentially by 3.2% in USD terms; 2.7% in constant currency terms
Q1 revenues grew 6.0% year-on-year in USD terms
Q1 operating margin at 24.1%, flat as compared to Q1 17
Utilization excluding trainees increased by 2% to 84%
FY 18 revenue guidance retained at 6.5%-8.5% in constant currency. FY 18 operating margin guidance retained at 23%-25%
Operating cash flow was $ 644 million, as compared to $ 547 million in Q4 17
Liquid assets including cash and cash equivalents and investments were $6,091 million as on June 30, 2017 as compared to $5,979 million as on March 31, 2017
Consolidated results under International Financial Reporting Standards (IFRS) for the quarter ended June 30, 2017
- Revenues were $2,651 million for the quarter ended June 30, 2017 QoQ growth of 3.2% in reported terms; 2.7% in constant currency terms YoY growth of 6.0% in reported terms; 6.3% in constant currency terms - Operating profit was $638 million for the quarter ended June 30, 2017 QoQ growth of 0.7%; YoY growth of 6.0% - Net profit was $541 million for the quarter ended June 30, 2017 QoQ decline of 0.4%;YoY growth of 5.8%
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"Our persistent focus on execution in Q1 is reflected in broad-based performance on multiple fronts- revenue growth, resilient margins despite multiple headwinds, healthy cash generation and overall business results. I am encouraged by the uptick in revenue per employee for six quarters in a row, and the strong momentum in our new high growth services and software, as we accelerate our focus on innovation-led growth." said Dr. Vishal Sikka, CEO. "The widespread adoption of our grassroots innovation and education initiatives continue to fuel our transformation, and I am proud to see Infoscions embrace and drive Infosys toward becoming a next-generation services company."
"We had broad-based growth across geographical and industry segments. Our initiatives on operational discipline led to record levels of utilization and better realization during the quarter." said U B Pravin Rao, COO. "Our new services and software offerings are helping us strengthen our positioning in the market."
"Our relentless focus on strong cash generation led to a healthy operating cash flow. Further, our continued emphasis on operational efficiencies enabled us to mitigate the impact of margin headwinds during the quarter." said M. D. Ranganath, CFO. "We successfully navigated yet another quarter of significant currency volatility through our hedging"
The Company's outlook (consolidated) for the fiscal year ending March 31, 2018, under IFRS is as follows:
- Revenues are expected to grow 6.5%-8.5% in constant currency*; - Revenues are expected to grow 7.1%-9.1% in USD terms based on the exchange rates as of June 30, 2017**
*FY 17 constant currency rates - AUD/USD - 0.75; Euro/USD - 1.09; GBP/USD - 1.30
**Currency rates as of June 30, 2017 - AUD/USD - 0.77; Euro/USD - 1.14; GBP/USD - 1.30
In Q1, we continued to help clients drive automation and innovation into the core of their businesses leveraging our renewed traditional services, our new services in areas such as Cloud Ecosystem, Big Data and Analytics, API and Micro Services, Data and Mainframe Modernization, Cyber Security and IoT Engineering Services, and our software-led offerings, especially our next-generation Artificial Intelligence (AI) Platform Nia. We also continued to drive our cultural transformation through education and learning, leveraging Zero Distance to drive our grassroots innovation culture, introducing new curriculum and training programs for in-demand skills of the future, and building on our strategy to leverage our global talent with the best local talent in the key markets in which we operate.
In April, we launched Infosys Nia, building on and accelerating, our work over the last 2.5 years to help clients embrace AI. With 160+ engagements across 70+ clients, Nia continues to be central to all our conversations with clients as we work with them to transform their businesses.
We further enhanced our global footprint this quarter, in line with our strategy to establish global competency centers, employ the best talent in the market and bring our education and training capabilities closer to our clients. In April, we opened a new Development Center focused on Engineering Services in Croatia. In May, we announced our commitment to hire 10,000 American workers over the next two years and establish four technology and innovation hubs in the U.S. The first will open in Indiana in August 2017 and the second hub will be opened in North Carolina. Additionally, we recently expanded our presence in China with a new campus in Shanghai, to create an ecosystem of local talent training, new tech labs and an incubator for startups.
In Q1, we worked closely with clients to renew their traditional IT services and infrastructure, including modernizing their mission critical applications, with key engagements with Edgewell Personal Care, and more.
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