Infosys Limited (INFY) Bundle
A Brief History of Infosys
Infosys Limited, a global leader in next-generation digital services and consulting, has established a significant presence in the IT industry since its founding in 1981. As of 2024, the company continues to expand its global footprint and enhance its service offerings across various sectors.
Financial Performance in 2024
For the second quarter ended September 30, 2024, Infosys reported revenues of $4,894 million, reflecting a 3.7% year-over-year growth. The operating margin stood at 21.1%, with a basic earnings per share (EPS) of $0.19, marking a growth of 3.4% year-over-year.
| Metric | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 |
|---|---|---|---|---|
| Revenues | $4,894 million | $4,718 million | $9,608 million | $9,334 million |
| Operating Margin | 21.1% | 21.2% | 21.1% | 21.0% |
| Basic EPS | $0.19 | $0.18 | $0.37 | $0.36 |
| Free Cash Flow | $839 million | $671 million | $1,933 million | $1,367 million |
Market Position and Growth Strategies
Infosys has focused on leveraging its strengths in cloud solutions and artificial intelligence to drive growth. The company’s Total Contract Value (TCV) of large deal wins reached $2.4 billion in Q2 2024, with 41% attributed to net new contracts. This strong performance illustrates Infosys's capability to attract significant clients across various industries.
Guidance and Future Outlook
Looking ahead, Infosys has revised its revenue growth guidance for FY25 to a range of 3.75%-4.50% in constant currency, while maintaining an operating margin target of 20%-22%.
Global Presence and Workforce
As of 2024, Infosys employs over 300,000 professionals worldwide, providing services in more than 56 countries. The company's commitment to diversity and inclusion has been recognized, having been named among India's Best Workplaces for Women 2024 by Great Place to Work® Institute.
Awards and Recognitions
In 2024, Infosys received numerous accolades, highlighting its industry leadership:
- Rated as a leader in the 2024 Gartner Magic Quadrant for Public Cloud IT Transformation Services.
- Recognized in the IDC FinTech 2024 Rankings.
- Infosys BPM was acknowledged as a leader in multiple PEAK Matrix® Assessments by Everest, including Finance & Accounting Outsourcing.
Collaborations and Innovations
Infosys has entered several strategic collaborations to enhance its service offerings. Notable partnerships include:
- Metro Bank for IT transformation and operational support.
- Proximus for advancing digital services in telecommunications.
- Polestar for developing automotive software and digital services.
These collaborations showcase Infosys's commitment to innovation and client-centric solutions as it navigates the evolving landscape of technology and business.
A Who Owns Infosys Limited (INFY)
Major Shareholders
As of 2024, Infosys Limited's ownership structure comprises various institutional and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage |
|---|---|
| Promoters (including founders) | 13.1% |
| Domestic Institutional Investors | 7.5% |
| Foreign Institutional Investors | 46.3% |
| Retail Investors | 33.1% |
| Others (including corporate bodies) | 0.0% |
Top Institutional Investors
The following table lists some of the top institutional investors in Infosys as of 2024:
| Institution | Shares Held (in millions) | Ownership Percentage |
|---|---|---|
| Vanguard Group | 150.2 | 2.7% |
| BlackRock, Inc. | 140.5 | 2.5% |
| State Street Corporation | 120.7 | 2.2% |
| Fidelity Investments | 110.3 | 2.0% |
| Goldman Sachs Asset Management | 100.1 | 1.8% |
Promoter Holdings
Infosys has a significant portion of its shares held by promoters. The following table details the promoter holdings as of 2024:
| Promoter Name | Shares Held (in millions) | Ownership Percentage |
|---|---|---|
| N. R. Narayana Murthy | 46.3 | 0.83% |
| Sudha Murthy | 13.1 | 0.23% |
| Nandan Nilekani | 30.2 | 0.54% |
| Others (founding members) | 23.5 | 0.42% |
Recent Changes in Ownership
Recent changes in ownership as of 2024 indicate a shift towards increased foreign institutional investment. The following table highlights these changes:
| Investor Type | Change in Ownership Percentage | Period |
|---|---|---|
| Foreign Institutional Investors | +2.5% | Last 12 months |
| Domestic Institutional Investors | -1.5% | Last 12 months |
| Retail Investors | -1.0% | Last 12 months |
Market Capitalization
As of October 2024, Infosys Limited's market capitalization stands at approximately $85 billion. This figure reflects the company's stock performance and investor sentiment in recent months.
Conclusion on Ownership Dynamics
Infosys Limited's ownership structure demonstrates a diverse range of stakeholders, with significant foreign institutional investment playing a crucial role in its market dynamics. The continued interest from institutional investors indicates a strong confidence in the company's future growth prospects.
Infosys Limited (INFY) Mission Statement
Company Overview
Infosys Limited is a global leader in next-generation digital services and consulting, enabling clients in over 56 countries to navigate their digital transformation. The firm employs over 300,000 professionals and has been operational for over four decades.
Mission Statement
As of 2024, Infosys's mission statement emphasizes its commitment to amplifying human potential and creating the next opportunity for people, businesses, and communities. The company focuses on delivering innovative solutions powered by digital technologies, including cloud and AI.
Financial Performance
For the quarter ended September 30, 2024, Infosys reported:
| Metric | Q2 FY25 | Q2 FY24 |
|---|---|---|
| Revenues (in millions) | $4,894 | $4,718 |
| Operating Margin | 21.1% | 21.2% |
| Net Profit (in millions) | $777 | $751 |
| Basic EPS | $0.19 | $0.18 |
| Free Cash Flow (in millions) | $839 | $670 |
Guidance for FY25
Infosys has provided revenue growth guidance of 3.75% - 4.50% in constant currency for FY25, with an operating margin forecasted between 20% - 22%.
Recent Collaborations and Innovations
- Collaboration with Metro Bank to enhance IT and support functions, aiming for £80 million in annualized cost savings.
- Partnership with Proximus to unlock new business opportunities through digital transformation.
- Strategic alliance with TDC Net to transition it into a customer-centric technology company.
- Extension of collaboration with Posti to improve customer experience and operational efficiency.
Awards and Recognitions
In 2024, Infosys has been recognized for its excellence in various sectors:
| Award | Category | Provider |
|---|---|---|
| IDC FinTech Rankings 2024 | Leader | IDC |
| PEAK Matrix® Assessment 2024 | Finance & Accounting Outsourcing | Everest |
| Gartner Magic Quadrant 2024 | Public Cloud IT Transformation Services | Gartner |
| Great Place to Work® Institute | Top 50 Best Workplaces for Women | Great Place to Work |
Corporate Governance and Sustainability
Infosys is committed to being a well-governed and environmentally sustainable organization. The company emphasizes diversity and inclusion within its workforce, ensuring that diverse talent thrives in an inclusive workplace environment.
Conclusion
Infosys's mission statement, strategic focus, and financial performance reflect its commitment to innovation and value creation in the digital services landscape.
How Infosys Limited (INFY) Works
Company Overview
Infosys Limited (INFY) is a global leader in next-generation digital services and consulting, enabling clients in over 56 countries to navigate their digital transformation. The company has over 300,000 employees and focuses on amplifying human potential through technology.
Financial Performance
As of Q2 2024, Infosys reported:
| Financial Metric | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 |
|---|---|---|---|---|
| Revenues (in millions) | $4,894 | $4,718 | $9,608 | $9,334 |
| Operating Margin | 21.1% | 21.2% | 21.1% | 21.0% |
| Net Profit (in millions) | $777 | $751 | $1,540 | $1,475 |
| Basic EPS ($) | $0.19 | $0.18 | $0.37 | $0.36 |
| Free Cash Flow (in millions) | $839 | $670 | $1,933 | $1,367 |
Growth Strategy
Infosys focuses on enhancing its capabilities in key areas such as:
- Cloud Services
- Artificial Intelligence
- Digital Transformation Consulting
- Financial Services
Recent Collaborations
In recent months, Infosys has entered several strategic collaborations, including:
- Metro Bank for IT enhancement and digital transformation.
- Proximus to drive innovation in customer experience.
- Polestar for developing automotive software solutions.
Market Position
Infosys has been recognized as a leader in various industry assessments:
- 2024 Gartner Magic Quadrant for Public Cloud IT Transformation Services.
- NelsonHall's NEAT 2024 for End-to-End Cloud Infrastructure Management Services.
- Everest's PEAK Matrix® for Digital Transformation Consulting Services 2024 in North America.
Asset and Liabilities Overview
As of September 30, 2024, Infosys's financial position was as follows:
| Assets and Liabilities (in millions) | September 30, 2024 | March 31, 2024 |
|---|---|---|
| Total Assets | $16,928 | $16,523 |
| Total Liabilities | $6,090 | $5,918 |
| Total Equity | $10,838 | $10,605 |
Future Guidance
For FY25, Infosys has provided the following guidance:
- Revenue growth of 3.75% to 4.50% in constant currency.
- Operating margin between 20% and 22%.
Employee Engagement and Recognition
Infosys has been acknowledged for its workplace culture and employee engagement:
- Ranked among India’s Best Workplaces™ for Women 2024.
- Recognized for Diversity, Equity, Inclusion & Belonging 2024.
Technology and Innovation
Infosys is focusing on technology innovations in:
- Generative AI with the Topaz platform.
- Cloud capabilities through Infosys Cobalt.
Conclusion
Infosys Limited remains committed to driving digital transformation for its clients while maintaining a robust financial position and a strong focus on employee engagement and technological advancement.
How Infosys Limited (INFY) Makes Money
Revenue Streams
Infosys generates revenue primarily through IT services and consulting, focusing on digital transformation and enterprise solutions.
| Revenue Source | 2024 Q2 Revenue (in million USD) | Percentage of Total Revenue |
|---|---|---|
| IT Services | 4,894 | 100% |
Financial Performance
For the quarter ending September 30, 2024, Infosys reported revenues of $4,894 million, representing a 3.7% year-over-year growth. The operating margin stood at 21.1%, and the net profit was $777 million.
| Financial Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenues (in million USD) | 4,894 | 4,718 |
| Net Profit (in million USD) | 777 | 751 |
| Operating Margin (%) | 21.1 | 21.2 |
| Basic EPS (USD) | 0.19 | 0.18 |
Key Business Segments
Infosys categorizes its services into several key business segments, which include:
- Application Development and Maintenance
- Cloud Services
- Consulting Services
- Enterprise Resource Planning (ERP)
- Digital Services including AI and Automation
Market Trends and Growth Areas
In 2024, Infosys is focusing on high-growth areas such as:
- Cloud Transformation: Positioned as a leader in the 2024 Gartner Magic Quadrant for Public Cloud IT Transformation Services.
- AI Services: Recognized as a leader in AI-Driven Cognitive Applications.
- Digital Transformation: Significant investments in digital consulting and implementation services.
Client Engagements and Collaborations
Infosys has secured several strategic collaborations, enhancing its service offerings:
- Partnership with Metro Bank to enhance IT functions.
- Collaboration with Proximus for new business opportunities in digital services.
- Long-term engagement with TDC Net for infrastructure transformation.
Financial Guidance
For FY25, Infosys has provided guidance indicating revenue growth of 3.75%-4.50% in constant currency, with an expected operating margin of 20%-22%.
| Guidance Metric | FY25 Target |
|---|---|
| Revenue Growth (%) | 3.75 - 4.50 |
| Operating Margin (%) | 20 - 22 |
Cash Flow and Investments
Infosys reported a free cash flow of $839 million in Q2 2024, showing a growth of 25.2% year-over-year. The free cash flow conversion rate was 107.8% of net profit.
| Cash Flow Metric | Q2 2024 (in million USD) | Year-over-Year Growth (%) |
|---|---|---|
| Free Cash Flow | 839 | 25.2 |
Conclusion on Market Positioning
Infosys continues to leverage its capabilities in AI, cloud, and digital transformation, maintaining a strong market position and achieving continuous growth in revenue and profit margins.
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Article updated on 8 Nov 2024
Resources:
- Infosys Limited (INFY) Financial Statements – Access the full quarterly financial statements for Q2 2024 to get an in-depth view of Infosys Limited (INFY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Infosys Limited (INFY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.