Infosys Limited (INFY) Q4 2022 Earnings Call Transcript

For the period ending March 31, 2022

April 13, 2022 8:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Ladies and gentlemen, good day, and welcome to Infosys Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions]. Please note that this conference is being recorded.

I now hand the conference over to Mr. Sandeep Mahindroo. Thank you, and over to you, sir.

Sandeep Mahindroo

Thanks, Margaret. Hello, everyone, and welcome to this earnings call to discuss Q4 FY22 earnings release. I'm Sandeep from the Investor Relations team in Bangalore. Joining us today on this earnings call is CEO and MD, Mr. Salil Parekh; CFO, Mr. Nilanjan Roy; along with other members of the senior management team. We'll start the call with some remarks on the performance of the company by Salil and Nilanjan. Subsequently, we'll open up the call for questions.

Please note that anything that 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 full statement and explanation of these risks is available in our filings with the SEC, which can be found on www.sec.gov.

I'll now turn it over to Salil.

Salil Parekh

Thanks, Sandeep. Good morning, good afternoon and good evening to everyone joining on the call. Thank you for taking the time to join us today. We've had an exceptional year with annual growth of 19.7% in constant currency terms, which is the fastest growth we've seen in 11 years. We're gaining market share. We're building on a leadership in cloud and digital, and we are a part of more and more programs that our clients are looking at digital transformation.

Growth was broad-based across business segments, service lines and geographies. Each of our business segments grew in double digits. The top 3 grew in high teens. U.S. and Europe grew over 20%. The North America region crossed $10 billion in revenue, while Financial Services crossed $5 billion in revenue milestones. Our digital revenues now account for 59.2% and grew at 41.2% for the year. Our digital revenues crossed $10 billion annualized on a run-rate basis.

Within digital, our cloud work is growing faster, and our Cobalt cloud capabilities have seen significant traction with our clients. Our growth has been accompanied by robust operating margins of 23%. We delivered these margins while maintaining focus on our employees with increased compensation and benefits. Our large deal wins were at $9.5 billion for the full year and were $2.3 billion for Q4. Our net new percentage was 40% for the year and 48% for Q4, helping us set up a strong growth foundation for financial year '23.