Infosys Limited (INFY) Q1 2024 Earnings Call Transcript

Infosys Limited (NYSE:INFY) Q1 2024 Earnings Conference Call July 20, 2023 8:30 AM ET

Company Participants

Sandeep Mahindroo - IR

Salil Parekh - CEO & Managing Director

Nilanjan Roy - CFO

Conference Call Participants

Kawaljeet Saluja - Kotak Institutional Equities

Yogesh Aggarwal - HSBC

Ankur Rudra - JPMorgan

Apurva Prasad - HDFC Securities

Kumar Rakesh - BNP Paribas

James Friedman - Susquehanna

Abhishek Bhandari - Nomura

Moshe Katri - Wedbush Securities

Mukul Garg - Motilal Oswal Financial Services

Surendra Goyal - Citigroup

Prashant Kothari - Pictet

Bryan Bergin - TD Cowen

Nitin Padmanabhan - Investec

Vibhor Singhal - Nuvama Equities

Operator

Ladies and gentlemen, good day, and welcome to the 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

Hello, everyone, and welcome to Infosys earnings call for Q1 FY ‘24. Joining us here on this call is CEO and MD, Mr. Salil Parekh; CFO, Mr. Nilanjan Roy and other members of the senior management team. We will start the call with some remarks on the performance of the company for the quarter by Salil and Nilanjan, subsequent to which the call will be opened up for questions.

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

I would now like to pass it on to Salil.

Salil Parekh

Thanks, Sandeep. Good evening, and good morning to everyone on the call. Thank you for joining us. We had a strong quarter in Q1. Our Q1 growth was solid at 4.2% year-on year and 1% quarter-on-quarter in constant currency. We have 21% growth in manufacturing, 14% in life sciences. Our Europe region grew by 10%. Our operating margin for the quarter was strong at 20.8%. We generated robust free cash flow of $699 million in Q1.

Our large deals value for Q1 was $2.3 billion, 56% of this was net new. We had one mega deal win in Q1. Our value of deals for financial services was 50% of the overall large deal value in Q1. We announced a mega deal of $2 billion value after the close of Q1, and before our results report today. With a strong large deal and mega deal wins, we are building well for the future. Our pipeline of large deals is strong and we continue to have mega deals in our pipeline.