Q4 2021 Infosys Ltd Earnings Press Conference

April 14, 2021

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Right.

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Well very good evening and thank you for joining and focus of fourth quarter financial results I am Rajeev and on behalf of Infosys I'd like to welcome you to our press conference today.

Rishi Basu: A very good evening, and thank you for joining Infosys' Q4 financial results. I am Rishi, and on behalf of Infosys, I'd like to welcome you to our press conference today. Before we commence, I want to take a moment to mention a few guidelines. Our friends from media, you will be on mute by default throughout the press conference. You will be requested to unmute yourself when we announce you for your question. We request one question from each journalist so that we can accommodate everyone over the next hour. In case you are disconnected, please rejoin using the same link that was sent to you by our teams. With that, let me invite our Chief Executive Officer, Mr. Salil Parekh, for his opening remarks. Over to you, Salil. Thanks, Rishi. Good afternoon, everyone, and welcome. Thank you for joining us for this session.

Before we commence I want to take a moment to mention of fuel guideline on.

Our friends from media you will be on mute by default throughout the country.

Will be requested to on mute your sales when we announce Q4 of your Opex and.

On the request one question from each day in mid <unk>.

We can accommodate everyone over the next hour.

In case, we are disconnected. Please rejoin you would think the same link back to expense.

Are you by our team.

With that let me invite our chief executive of also permits the tallied Paris for his opening remarks.

Are you selling.

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I appreciate the good afternoon, everyone and welcome.

Thank you for joining us for the session.

Salil Parekh: I trust you and your families are well and safe. We've had an exceptional year and an exceptional quarter. Our year-on-year constant currency growth was at 9.6% for Q4. For the full year, our growth was 5% in constant currency. Our digital business grew by 34% year-on-year in Q4, and now representing 51.5% of our overall revenue. On large deal wins, our large deal wins were at $14 billion for the full year, a growth of 57% over the previous financial year, and delivered at $2.1 billion for Q4. Within the full year large deals, 66% were net new, helping us to set up a very strong foundation for the next financial year. With these exceptional results, we had industry-leading growth in financial year 2021.

Just you idea of family.

Good day.

We had an exceptionally well on an exceptional quarter.

The yield on your constant currency growth was at 96 per day from Q4.

The total accordingly.

Loans was five per se in golf the tonnage.

Our data to the business grew by 34% year on year.

Q4, and now representing 51 five per bed.

Overall revenue.

On a lot of the ratings a lot of the Ravenswood 14 billion, while the wood.

Our goal of 57 per day over the previous financing I.

I believe at a two point of 1 billion for Q4.

Within the total year last views of 66% net new sales being asked to step out of debt a strong foundation on the.

The next financial year.

With these exceptional results we have in the street in D zone.

Thailand, Chile earthquake.

Salil Parekh: We continue to gain market share, and I'm grateful for the trust our clients have put in Infosys as we partner with them for their digital transformation programs. Our growth was broad-based, with several of our industry segments showing strong growth year-on-year, and it stems from our market-leading capabilities in digital, cloud, cybersecurity, and in data analytics, which allow us now to work with our clients' most aspirational digital transformation activities. Our operating margin for FY21 improved by 320 basis points to reach 24.5% for the full year. For the quarter as well, it was at 24.5%. I'm extremely proud of our employees and their enormous commitment, especially during this past year, but in general, across the years. We launched our second compensation review in a phased manner starting in July 2021.

You can engineer on Blue gained market share.

I'm grateful for the trust, our clients or force Infosys as we partner with them on.

The digital transformation programs.

Our growth was broad based.

All of which several of our industry segments, showing strong growth year on year.

It stems from our market leading capabilities.

The cloud cyber security.

The data and analytics.

The <unk> allow us now of the work we've got clients.

As to the snow digital transformation activities.

Our operating margin in fall of quite of Brandywine.

By the Jeep brand.

The basis points through the family bought one five per se.

All of the full year.

On the quarter as well it was everybody borgwarner of 5%.

I'm extremely proud of all of them.

The only needs and the enormous.

In the August committed made especially during this past year, but in general across the yields.

We launched a second compensation from you in the.

The macro started in July and relevant brand as well.

Our employees and the entire leadership team.

Salil Parekh: Our employees and our entire leadership team worked cohesively and for the benefit of our clients. This approach, which we call One Infosys, has really enabled us to have a very strong FY21 and allowed us to look ahead with success. Now, looking ahead, we see continued strong demand from our clients, especially in digital, in cloud, in data, and we have a strong foundation of large deals. With that, our constant currency full year revenue guidance for FY22 is growth between 12% and 14%. For operating margin, our superior performance in FY21 was in part because of improvement in several strategic cost levers and in part because of cost avoidance and deferment. With normalcy returning gradually across the world, we anticipate some of those costs to return.

Each of the and for the benefit of our clients.

This approach, which we call one of Infosys has really enabled us to have of getting strong I mentioned adverse event and allowed us to look ahead with the success.

Now looking ahead, we see the engineered strong demand from our clients, especially in digital and cloud and data.

The average strong foundation of large deals with that are constant currency total.

Revenue guidance for financial year of greatness.

Growth basically 12 per bed and 14%.

Well, the operating margin, our superior performance and financially with the Pentagon or.

In part because of the.

In February the strategic cost fevers.

On the impart because of avoided having been involved with with.

With all of those see the interest.

Gradually across the world, we anticipate some of those costs will go down with.

Salil Parekh: With that, our operating margin guidance for the full year, FY22, is between 22% and 24%. In keeping with our capital allocation policy, we propose an increase to the total dividend per share by 54% over the previous year for a full year dividend at INR 27. In addition, we propose a buyback of equity shares of up to INR 9,200 crores, which is approximately $1.2 billion. We will use the open market method for this buyback. Thank you very much. With that, let me pause and let's open it up for questions. Back to you, Rishi.

With that out of operating margin guidance level.

Financing during 'twenty two.

Between 22% adequately for per Se.

In keeping with the capital allocation policy.

Proposals and increased the total dividend per share by the 54% over the previous year.

Full year dividend.

Sure.

In addition, we propose a buyback of X.

Sure.

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It was the OLED market method for the buyback.

Thank you very much of with that let me bars and that's all the way to ask four questions asked of you Rishi.

Thank you Kelly.

Rishi Basu: Thank you, Salil. We now open the floor for questions. With Salil, we have Mr. Pravin Rao, Chief Operating Officer, Infosys, and Mr. Nilanjan Roy, Chief Financial Officer, Infosys. With this, we open with the first question. The first question is from Sharad Dubey, CNBC Awaaz, who joins us on video. Sharad, please unmute yourself and ask your question. Sharad, you'll have to unmute yourself, please.

We now open the floor for questions.

With the study we have Mr. Pravin Rao, Chief operating officer of Infosys, and Mr. Neyland, and ROI of Chief Financial Officer of Infosys.

Okay.

With this we open with the first question.

And the first question is from Shred Boobie, CNBC Airlines, who joined US on video Cherokees on mutual sales and ask your question.

Sharon do you like the on mute yourself.

Yeah.

Sharad Dubey: I'm audible?

And most of them yes. Please go ahead.

Sharad Dubey: I'm audible?

Rishi Basu: Yeah. Please go ahead.

Sharad Dubey: Yeah. I have a question to Salil. The constant currency growth, you know, if you take it for the Q4 itself, it came at almost 2%, and the expectations were almost 3% to 3.5%. What can be the reasons, you know, attributable for this, and, you know, what goes ahead in the outlook? One more query I have for Pravin, sir, is the attrition which has actually increased, you know, by almost 5%. It came in at almost 15% for the Q4. Do you expect the numbers in the attritions to increase in FY22? And what will the hiring outlook looking like?

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Good day.

Salil Parekh: Let me start with the revenue. I think for the quarter, as you mentioned, the revenue growth was at 2%. We had very strong volume growth at 4.5%. We had a big move from on-site to offshore, which caused some of the change. Some of the third-party costs which normally come in did not come in Q4. However, our full year growth guidance remains very strong at 12% to 14% for FY22. We continue to see very good demand in what we are seeing from our clients today.

So let me start with video revenue I think for the quarter as you mentioned the revenue growth was at the 2% of we had very strong volume growth at the fall more than 5% of <unk>.

The number based more from the.

On the site to offshore which caused some of the change and sell all of the third party costs of which the I'll, let you comment.

Income in Q, However, our full year.

The items remained very strong at 12% to 40 per day, while financing their R&D growth and we've continued to see very good Nevada.

We are seeing from our clients.

On the accretion.

Pravin Rao: On the attrition front, attrition has increased from 10% to 15.2%. This attrition, annual attrition of IT services, is something we had anticipated, and it's a reflection of the strong demand that we are seeing in the market. Having said that, we are increasing our efforts to retain our talent. We had the first round of compensation increase effective January. We have announced one more round, the normal cycle, with effective date of July. In between, any other interventions that are required to retain some of our best talent, we'll continue to do that. Over the past year also we have engaged our people. We provide a very strong value proposition in terms of engagement and enablement.

Attrition at the increase from 10% of the two 2% attrition and the likes of Beacon.

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And do something.

I anticipate that.

It's.

The reflection of the strong demand that we're seeing in the market.

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To date of July.

And in between like any other income items that are required to retain some of our best talent that we continue to do that and all of the pacbio until we have engaged them of people.

Providing very strong value proposition in terms of engagement and enablement.

Pravin Rao: There is a lot of focus on continuous learning, lot of important projects people get to work on. There is lot of career advancement opportunity and so on. In the past year or so during COVID, we have really done extremely well in terms of engaging with people, engaging their families, providing a lot of support. We have had more than 900+ interventions and so on, and we have received very, very positive feedback. We're very confident that with these measures, we should be able to navigate through this. The attrition is likely to remain at this level for next 1 or 2 quarters given the demand. We are very confident of managing through this and meeting our client commitments.

That is non of focus on continuous learning.

Importantly, the projects that people get the walk on the there's lot of Gilead at once in the topic.

So on the posture of outflow during COVID-19.

The extremely well in terms of and getting the people and giving the families providing lot of support we have had more than the hidden the intervention and so on from there.

Very very positive feedback.

Very confident that with these merchants that we should be able to navigate through the debt.

The accretion is likely to remainder of this level of next one or two quarters given the demand, but we are very confident of managing through the spend that we think the landing zone.

Okay.

Thank you Sharon.

Rishi Basu: Thank you, Sharad. The next question is from Sajeet Manghat from BQ Prime.

The next question is from true deep Mangal from Bloomberg Quint.

Good evening gentlemen.

Sajeet Manghat: Good evening, gentlemen. Season's greeting to you all. My first question is to Pravin with respect to the guidance which has been given, especially the margins part of it. You know, you entered the year with 24.5% operating margins, and your guidance is in the range of 22% to 24%. What is the kind of headwind that you're seeing in terms of guidance or in terms of margin that, you know, that you've been very conservative in giving a guidance which is much. I mean, your upper end is also not matching the full year guidance which you did for this financial year. The second one is with respect to the deal wins, $2.4 billion in Q4.

She just speaking to you on my first the he needs to Praveen, which the aspect to the guidance, which has been given especially on the module part of it.

You ended the year of 24, 5% of operating margins in your guidance guidance I think the Ranger could equal degree of.

The 4% on.

What is the kind of headwind that you're seeing in terms of guidance. The guidance. What do you think the margin that has no debt.

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I'll put in Naples, and the Mackie.

Full year guidance, but you did put the financial year.

The second one the statistic to the deliveries of $2 4 billion Q O Q4, but if you did.

Sajeet Manghat: It seems that, you know, your run rate has slowed down towards the end of Q4. Is it because some of the deals have been pushed to the next financial year? If you can give some color on the Financial Services business segment as a whole as well.

It has slowed down equal at the end of Q4. The data is it because some of the dates have been pushed to the lease financing here.

And if you can give us some color on the financial services business segment is or is it.

Okay.

Pravin Rao: Okay. I will start with the large deals and financial services, then I'll pass it on to Nilanjan or Salil to respond on the margin guidance. On the large deals, we had 25 large deal wins this quarter, $2.1 billion. For the year it was $14.1 billion, which is a record in Infosys history. Even in Q4, 52% of large deal wins was net new, and for the year it's 66%. In fact, the net new for the year, $9.4 billion, is higher than all the large deal TCV that we did in whole of FY20. Obviously this large deal is not something.

I will start with the large deals and financing then I'll pass.

Was it on to <unk>, a lethal at the point on the margin guidance.

On the large deals we.

We had a 25 not believing that this quarter of $2 $1 billion and part of the year at about $14 1 billion instead of calling into this the street.

And you have been part of what's the total percent of not building net.

And by the added that's been.

And in fact that the net new for the $9 4 billion.

On the large piece of your debt we'd been on off price.

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Obviously with the large deal is not something.

And then you've got some volatility in terms of not being brought many of the games reached the six month loans yet.

Pravin Rao: I mean, there is some volatility in terms of large deals because many of the deals take 3 to 6 months for closure. There are times when we are able to close many deals in a given quarter. There are times when it gets pushed out. But we have a very strong foundation getting into the next year, FY22. I mean, given that we have about $14 billion with 66% net new, we are pretty comfortable with where we are. In terms of financial services, we had record growth, industry-leading growth in the past few quarters. That continues in this quarter as well.

When we are able to close many beams on the DRAM our term.

There are times when it gets pushed out but we have a lot on them.

Yeah of about 14 million in the Pacific.

We are of very very strong on based on getting into into the next year FY 'twenty two.

But they've been aligned with many of the out.

In terms of financing services, we had record financials that we reported.

What the industry leading growth in the past two quarters.

Continue that in this quarter as well.

Salil Parekh: For the year, we had 25 large deals wins in the space. In this quarter itself, six of the wins was in financial services. We are really well positioned for this sector to continue this strong performance in FY22 as well. In terms of demand areas, we are seeing, of course, lot of large transformational programs around mortgage transformation, lending services, front to back digitization, customer experience modernization, then call center technologies and operations transformation and so on. We are very, very optimistic about this segment.

Pravin Rao: For the year, we had 25 large deals wins in the space. In this quarter itself, six of the wins was in financial services. We are really well positioned for this sector to continue this strong performance in FY22 as well. In terms of demand areas, we are seeing, of course, lot of large transformational programs around mortgage transformation, lending services, front to back digitization, customer experience modernization, then call center technologies and operations transformation and so on. We are very, very optimistic about this segment.

For the years on we had when we pay a lot built into the space.

And in the quarter itself some of the important financing services.

But we've got Andy event will become part of the sector continued its strong performance in the bank of India and in terms of demand area that we are paying a.

Lot of Lockdown from National Lab program around what the gate transformation lending services.

And to back the <unk>.

The estimated billions of modernization.

On the content.

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And so on.

The really optimistic about the segment.

So I'll take the commodity.

Nilanjan Roy: I'll take the margin question. If you see our margins, actually, you have to go back to FY20, and we ended FY20 with 21.3% margin, and we've ended FY21 with 24.5%. That's a 3.2% margin growth. That kind of growth we have not seen in the recent past. Like we've told you over the last few quarters as well, that the margin improvement of 320 basis points has come about with two or three reasons. One, of course, has been the cost deferment which Salil mentioned. Because last year, of course, we delayed the entire pay cycle, number one. We also had cut back on our promotion cycles.

If you see on margins actually you have to go back to why when T.

And we ended FY 'twenty with 21, 3% margin and we've ended FY 'twenty one.

24, 5% so that's the three 2%.

Margin growth on that kind of growth we have not seen in the recent past.

Like we've told you over the last few quarters as well that the margin improvement of 320 basis points.

It has come about with towards the reasons. One of course has been the cost of deferment, which I Didnt mentioned because last year of course, we delayed the entire pay cycle number one we also had cut back on the promotion cycles.

Nilanjan Roy: In addition, we had done aggressive cost cutting in things like travel, of course, which naturally had stopped, on marketing, et cetera. Of course, we also did a lot of work on our strategic cost levers around pyramid and onsite offshore automation. All these three helped us during the year to come to the 24.5%. Cost tailwinds, which were the most, definitely costs would come back in FY22. The first pay hike, which was in January, has been announced. Of course, as Salil just mentioned, we also now are looking at the second pay from 1 July. As the year progresses in H2 and the vaccine starts promulgating across, we think travel, et cetera, will open up, and some of these costs at the tail end will come up.

In addition, we had done an aggressive cost cutting and things like travel of public naturally had stopped.

On marketing et cetera, and of course, we also did a lot of work on our strategic cost lever.

On pyramid onsite offshore automation all of these three helped us during the year to come to the 24, 5%.

Thanks.

The daily range, which was the bulk of it would come back in the financial year 'twenty two.

So the first day hike, which was in the January has been announced.

Again and of course as Alan just mentioned, we also now on looking at the second.

From first of July as the year progresses in the second half and the X gene starts from on.

Getting it from US you think travel et cetera will open up and some of these costs at the tail end will come up so we think.

Nilanjan Roy: We think 22% to 24% is a very comfortable rate. It's important to keep in mind as well that the pre-pandemic period on FY20, our guidance was 21% to 23%. Now in that sense, we are 1% higher in the new range of 22% to 24%. We remain quite comfortable with that.

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Important to keep in mind as well that the pre pandemic. The you guys on.

Slide 20 on guidance was when you went from 23, so now in that sense, we are now 1% higher.

When you do the 24, so we remain quite comfortable with debt.

Thank you Sandeep.

Rishi Basu: Thank you, Sajeet Manghat. The next question is from Kushal Gupta from Zee Business.

The next question is from the from the business.

Yes, I alluded in the mill. So I have two questions. One is with regards to the digital revenue share of lake considering the Forex.

Kushal Gupta: Yeah. Hello, gentlemen. So, I have two question. One is with regards to the digital revenue share. Like, considering, like, before, last quarter, like in Q3, we saw that it crossed more than 50%. So, going forward, like by the end of FY22, what's the thing, what's the real trajectory we are expecting for digital contracts? How much share could we end up with by in FY22? Secondly would be on the regional front, like, for example, North America and Europe, how are we seeing that the business shaping up there? Is there second wave? Are we done away with that? The kind of considerations, how is the client spending going to be for FY22 from your IT clients' perspective?

The last quarter of like in the jewelry, we saw the cross more than 2% so going forward by the end of the fiber need or whats the whats the abuse of the three we would expect inquire of distal contract how much share could be.

And the bit by FY 'twenty two.

He will be on the regional translator of for example, North America and Europe of how are we seeing that debt.

Business shaping up on that.

The second wave.

That number EBITDA guidance.

The consolidation so how is the client spending going to be quite a bike range due from your.

Perspective. So these are the major wishes.

Kushal Gupta: These are my two questions.

Salil Parekh: Thanks. Let me start with the digital one, and then come to the geography and if Pravin may add something on the geography as well. On digital, we are seeing tremendous growth. We have 34% growth in this Q4. We see all of our clients are on different stages of their digital transformation activities. What is good for us is our clients are trusting Infosys to work with them in many different parts of the digital transformation. For example, in cloud, data, and analytics, in cybersecurity, and many other areas. Given the trajectory of growth we've been seeing recently, and given the demand and the pipeline, we believe this is the sort of growth will continue.

So let me start with the day until one day.

So I mean the AD.

And on the job.

As well.

Thank you.

On digital we are seeing tremendous growth yet of 34% growth.

This quarter of ball and D C.

All of our clients on <unk>.

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The interest Djs of debt.

The transformation activities.

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The drastic influencers to work with them in many different parts of the digital transformation of for example in cloud data and analytics.

The security and many other areas.

The business the geometry of growth, we've been seeing recently and given the demand at the mine.

We believe this is the sort of broad clearly continue the door to have a specific number while at the end of the year percentage that the COVID-19.

Salil Parekh: We don't have a specific number for the end of the year percentage that digital will be, but we feel comfortable that we are gaining market share and growing quite fast in digital. In terms of geography, the demand in US clients, European clients is strong. What we are seeing is with the vaccine rollouts, the US is already starting to see some resumption of normalcy over the next maybe three, four months. Europe also has progressed quite a lot and they will come maybe just a little bit after that. UK is also in a good shape from that perspective, with their lockdown being starting to ease, as we saw yesterday. We think that will also come into good shape with all the stimulus that each of those governments have provided.

But we feel comfortable that they are gaining market share and growing quite fast.

In terms of geography.

Pete.

The demand in <unk>.

Net clients the European clients.

From what we're seeing is with the vaccine rollouts the U S.

It's already starting to see some of the resolve of sharing of Dalton.

The year over the next maybe three four months in Europe also has the best quite a lot of neighborhood of government made the exist from the EBIT after that.

He is also a good share from that perspective.

On the lockdown will be starting to ease as you saw yesterday.

And we think that that could also accounts and the loss share.

On the distributors than each of those elements of provided.

Salil Parekh: Something similar for us in the Asia Pacific business, especially as it relates to Australia, New Zealand, and Singapore. Overall, the demand environment is starting to improve in most of these places.

Thanks, and then on hurt obviously of any share of Pacific interest.

Especially as it relates to Australia.

At the single malt. So overall the demand environment is starting to being true in most of the spaces.

Thank you.

Rishi Basu: Thank you. The next question is from Mugdha Variyar, from CNBC-TV18.

The next question is from will become barrier from CNBC TBA.

Hi, everyone will be of doing very good to see you again.

Mugdha Variyar: Hi, everyone. Hope you're doing well. Good to see you again. Salil, I want to first ask you about the factors that you've considered for the FY22 guidance. You know, which sectors is it going to come from?

I Wonder if I could ask you about the fact that you've kind of north Florida.

For the FY 'twenty two guidance.

The other is it going to come from are you looking at the new Adi We had Dcs day yesterday that they're looking at disrupting the consulting business are you looking at.

Poonam Saney: At new areas. You know, we had TCS say yesterday that they're looking at disrupting the consulting business. Are you looking at, you know, increasing your, addressable market as well? Any new areas that you could look at? On deal wins, you know, could you explain why, there was a sharp decline, in the deal wins from the last quarter? Is this the run rate that we can expect going forward in the, coming quarters as well? Now, Pravin, of course, you know, there's been a sharp spike in attrition. You've talked about the fact that-

Mugdha Variyar: At new areas. You know, we had TCS say yesterday that they're looking at disrupting the consulting business. Are you looking at, you know, increasing your, addressable market as well? Any new areas that you could look at? On deal wins, you know, could you explain why, there was a sharp decline, in the deal wins from the last quarter? Is this the run rate that we can expect going forward in the, coming quarters as well? Now, Pravin, of course, you know, there's been a sharp spike in attrition. You've talked about the fact that-

Pleasing yard exactly.

The addressable market as well any of you.

I think you can look at the event.

What are you buying they want a sharp decline in the dividend from the last quarter is just the vans.

Great that we can expect going forward.

The coming quarters as well.

Net.

I think you talked about the fact.

Some of the claim.

Salil Parekh: Please come in.

Poonam Saney: because of the demand. We did see that TCS has reported an all-time low attrition for the quarter. What can Infosys do differently? In FY22, you know, what are the wage hikes that we can expect? Are you going to be hiring more? What are the hiring plans for FY22? Nilanjan, then are you factoring wage hikes and more hiring in the margin pressure as well?

Mugdha Variyar: because of the demand. We did see that TCS has reported an all-time low attrition for the quarter. What can Infosys do differently? In FY22, you know, what are the wage hikes that we can expect? Are you going to be hiring more? What are the hiring plans for FY22? Nilanjan, then are you factoring wage hikes and more hiring in the margin pressure as well?

On the demand.

Welcome to the only thing no attrition for the quarter, so what kind of Infosys gone differently and.

It's like 90 day one.

So the best you can expect are you going to be hiring more of what are the hiring that's what it's like when you and the number and then I used the.

Think of the diet the mod hiding in the the.

The margins I sort of thing.

So price, let me start with the guidance on revenue.

Salil Parekh: Thanks. Let me start with the guidance on revenue. I think 12% to 14% growth is an extremely strong guidance and indication that we see very good demand. We also see that this is coming across a strong foundation from what was achieved in the previous financial year. The demand is coming in a broad-based way. We are seeing almost all of our industries are providing good outlook for demand, so it's not in any one space or the other. The disruption question that you asked. Our focus is really on the digital transformation that our clients are driving, and one of the biggest components of that is cloud.

Revenue of 40% growth.

Extremely strong diverse had indication that we see very good demand and the oil.

On sourcing and this is coming across the strong foundation of work was achieved in the previous financing or the.

The demand is coming to the broad base.

We are seeing almost all of our industry, providing the outlook for the back so it's not in any one of the specialty auto.

On the disruption. The question then to US our focus in the JV on the digital transformation that are clients of driving at one of the biggest components of that is cloud.

Salil Parekh: As you will recall, we've launched our Infosys overall cloud capability last year, and that is one of the strongest areas that are tracking with our clients for the growth. Of course, there are other components of digital which looks at experience, which relates to how our clients are looking to use the technology in digital, and then data and analytics and cybersecurity. Those are the areas that we are seeing. With the level of confidence we have, we are saying the growth guidance will be 12% to 14%. In terms of what we are seeing on the deal wins, as Pravin was sharing, large deal wins are typically somewhat volatile in a given quarter. For a given year, they're quite a good indicator. This last financial year we had $14 billion of large deal wins.

We will go onto the balance sheet, our infosys overall without getting the ability.

And that inbound the strong.

The area that I'm tracking with our clients overall and of course, the ASIC of governance of the digital which looks at experience, which relates to how our clients are looking to use the technology. That's true and then the data.

And size of the Chicago. So those are the areas of their team.

The level of confidence we are seeing the growth guidance will be developed competitor 14%.

In terms of what we are seeing on the deliveries of the lead.

One share of a large deal.

Typically somewhat volatile given the water, but isn't quite the good indicator.

This class of financial year of the at $14 billion of large gains.

Salil Parekh: The previous financial year, we had $9 billion. It's a huge step up on an annual basis, and we see the demand in this financial year to be quite strong, that we will continue to do well with our large deal wins. With that, let me pass it on to Pravin Rao.

The previous financing, we added 90 day <unk>.

The step up on an annual.

The basis, and we see the demand in this financial year to be quite strong.

Continue to do well with the large wins a weighted out there let me pass it on the pro.

And the.

Pravin Rao: We historically have an average attrition of about 13% to 15%. What we are seeing now at 15% is probably at the high end of the average that we have seen. It's similar to what we saw about four quarters back. Obviously, it's higher than what we saw in the previous quarter. As I mentioned earlier, there are many interventions that we are doing to retain the best of our employees. We have a very compelling value proposition, and with the compensation interventions, with promotions and with many other initiatives that we have in place. We are very confident to sustain around this level going forward and without compromising on any client requirements.

We historically have an average of debt pension of about 13% to 15%.

What we're seeing on the team.

Percentage, probably at the high end of the average debt we have seen.

And the similar to what we talked about for the bank, obviously higher than what the findings in the previous quarter.

We intend to EMEA.

The amendment and delinquent slightly of the ability to retain the best of our employees.

The compelling value proposition.

<unk> taken the intervention of motion and that with many of the initiatives like the <unk>.

We're very confident of sustained around this level going forward.

The third complementing on any plans of plantings.

Pravin Rao: In terms of hiring, this year, we added about close to 21,000 freshers from campus, both in India and overseas. In the coming year, we are looking at over 25,000, again, both India and overseas.

And in terms of hiring this year that we added about that growth.

Most of the 21, both ends of that.

From campus Bogging down the road and in the coming year. We are looking at all of them if I back on again moving downward.

Okay.

Nilanjan Roy: Yeah. On margins, absolutely, the guidance we have factored in the second pay hike from July. Also, we've talked about certain headwinds in the latter part of the year with travel opening up and other overhead costs, which we have squeezed a bit in the last year. That, of course, both have been factored in the margins. But we remain quite comfortable in the 22% to 24% range.

Yeah. So on markdown the margins absolutely the guidance, we have factored into the second day from July on also we talked about certain headwinds in the latter part of the flow of its travel opening up of other overhead costs are aware of it.

We have squeezed a bit the last year and that of course of both have been factored into the margins, but we remain quite comfortable in the 'twenty to 'twenty four range.

Thank you.

Rishi Basu: Thank you. The next question is from Poonam Saney from ET Now. Poonam, can you unmute yourself and ask your question?

The next question is from Puneet <unk> from <unk>.

One of them coming on mutual sales and ask your question.

Poonam Saney: Yes. Thank you so much for this opportunity. Some of my question to you is, if I'm looking at the kind of estimates that most of the analysts were working with, especially in terms of the buyback, when the buyback expectation was INR 11,000 to 15,000 odd crores. On an average of 12,000 crore was the expectation there. You have announced a buyback of INR 9,200 crore. That is below expectations from an analyst perspective. Any reason for the same, if you could give us more color on the same. Also, I would want to understand that, what is the progress in terms of the Daimler deal while the revenue growth as well as the margin guidance is fairly in line with expectations.

Thank you so much present the opportunity.

Some of the my question to you is.

If I'm looking at the day end of the estimates that the the most of the assets of working with the kingdom the buyback.

The buyback expected.

Some of those hit in thousands of the 10000 articles.

On an average of 12000 equivalent the expectation day.

We have announced about hyper growth.

Sure.

So that is the.

The night, thank patients from that perspective.

Any reason for the statements of the clinic more collateral.

Also.

The one to understand that what is the progress in terms of the combined 90 91 net growth.

Guidance of spending in line with the expectation when you blend it all.

Poonam Saney: We wanted to understand how the Daimler deal will start contributing to the revenues as well as in terms of profitability. If we could also get more color in terms of the margin trajectory, we would see some of the costs returning. How would those costs shape up and impact the margin trajectory?

The next level.

At the start contributing net.

News as the lines in terms of top of the mid teens.

We could also on debt.

Yeah.

In terms of the margins that took place.

Yeah, we would see some of the cross with that also.

Those are the Cros.

Hey, Bob.

To put the pool.

Attacks on what it means on the buyback.

Salil Parekh: Thanks. Let me start with the buyback. Nilanjan Roy might have some points to add to that. Pravin Rao will take the Daimler question and back again to Nilanjan Roy for the margin. On the buyback, our approach has been to work with our capital return policy. Our capital return policy has been quite clearly stated a couple of years ago, where we plan to return 85% of cash back to shareholders. There are two components to this. One which relates to dividends, one which relates to possible buybacks. Keeping all those factors in mind, the board decided that this was the amount that made sense.

It might Atlanta from clients to asking that the day after having been the.

The other question that I get the the London for the margin.

On the buyback.

<unk> share game to work on.

The weighted.

Capex for the year.

Let's see and on top of the dividend policy.

Right.

From a clearly stated a couple of years ago.

The <unk>.

Standard on 85% cash.

Cash back to shareholders at the right.

Duke of owners.

While on the vision is to dividends.

Which relates to possibly impact sort of keeping all of those factors in mind.

The <unk> decided that as of the allowance that makes sense.

Salil Parekh: We have a very clear view in terms of how this will support the capital return policy across a five-year period and how we'll be able to return 85%, which is our target amount. That's really the rationale for the INR 9,200 crore that we've announced as a buyback. Let me pass it to Nilanjan first if there's anything else on the buyback, and then to Pravin.

A very clear view in terms of how this in support of the capital return policy across the idea of a period and all of them being able to the total 85%, which is the target demand of that.

That's really the rationale for the ninth housing market growth that we've announced the buyback.

The Canadian assets.

So there is anything else on the buyback and then Bobby.

Nilanjan Roy: Sure. Just to add to Salil's comments. If you actually see our payouts of the last two years' dividend, we've declared INR 6,400 crores of dividend, and INR 9,200 crores of buyback. Our cumulative payout for FY21 and FY20, which are the first two years of the capital allocation policy, we would have paid out 83% of the 85%. In that sense, I think this is completely in line with our policy and, you know, that's what the board also considered when deciding the amount of buyback. I think we're quite transparent and actually working in line with a clearly articulated forward-looking policy, as well. That's on the buyback. I think on the margins, quickly to finish that.

So just to add to some of them. The comments. So if you actually see a payout of the last two years dividend.

So we've declared the 6000.

And of course of dividend on and the 9002 on the cause of <unk>.

Back on cumulative payout for FY 'twenty, one and FY 'twenty. We've got the first two years of the capital allocation policy. We would have paid on 83 per cent of the 85%. So in that sense. I think this is completely in line with our policy and you know on.

That's what the board also considered when deciding the amount of buyback. So I think the quite transparent and actually working in line with clearly articulated forward looking policy as well. So that's the on the buyback I think on the margin could be the finished that absolutely.

Nilanjan Roy: Absolutely, you know, like I said, we've been talking about it during the last year, that our margin run-up has, some of them, have come from the deferment of costs and the cost deferrals, and we are very, very cognizant of that, and we've been calling that out that these will become headwinds during FY22. We factor that into our 22 to 24 guidance. Having said that, this will still be 100 basis points above our pre-COVID guidance, which was last at 21 to 23. In that sense, this is a step up in our underlying margin trajectory.

Like I said and we've been talking about it during the last year that Biogen.

Some of them have come from the department of costs and the cost deferrals and we were very very cognizant of that and we've been calling that out of these will become headwinds.

During FY 'twenty two and.

And we factored that into our 'twenty to 'twenty four guidance, but having said that this was going to be a 100 basis points above our pre COVID-19 guidance, which was <unk> 21 for 23 so on.

This is a step up in the underlying margin trajectory.

On the bandwidth of the amendment, we have big Bang on.

Pravin Rao: On the Daimler program, obviously it's a complex program with many elements. We have started planning for the same. We have started ramping up. We have started getting into details of contracts that we need to migrate. We have also started looking at making offers because there's a rebadging element as well. A lot of preparatory stuff and other work is going on, and it's going on as per schedule.

Plex program the net.

On the elements that we have.

Net.

Our planning from the same spot.

It's not that the ramping up.

It started by getting into the details of contracts that we need to wait.

We have also started looking at making offers to the rest of EBIT being in the maintenance than the lot of the essentially it's another work that's going on and what's going on that but the deal.

Rishi Basu: Thank you. The next question is from Shilpa Phadnis from The Times of India.

Thank you.

The next question is from sales pump on the Miss from the timing of India.

Good evening gentlemen.

Shilpa Phadnis: Good evening, gentlemen. Sir, you set yourself a 3-year roadmap to turn around Infosys. What's next for Infosys, especially from a strategic standpoint, when the pandemic has gone from, you know, threat to opportunities to support your clients' transformation agenda? The second question is about how, though cloud adoption is driving a multi-year tech cycle, with the ramp-up in cloud deals, how do you see the pricing? Will it only get better? Coming from the recent ISG commentary, they talk about how the cloud ACVs are moderating. So what are some of the specific challenges in terms of acceleration in cloud migrations? My third question is on the deal front. You've won a $14 billion TCV, you know. But largely, is it on renewals, restructuring? Is there a challenge in terms of the new scope trajectory?

Tell me tell us of three.

Our roadmap to turnaround Infosys Infosys is next especially from a strategic standpoint, then the pandemic had gone from you know objective opportunities, partly our clients' transformation agenda and the second question is about how the cloud deduction of driving of might be our tech cycle, although the ramp up in cloud deals how do you see.

The pricing will it only gets better.

Coming from the Dod decent ISG commentary they don't come on how the cloud Acd's are moderating.

So what that is.

The big challenges in terms of the acceleration in cloud migration.

My third question is on the day from them.

You're one of $14 billion.

ETE.

But largely is it on renewal restructuring is that of challenge in terms of the news Corp.

If you can help us of the desktop.

Shilpa Phadnis: If you can help us with this, sir. Thank you.

The talents of the correction.

Salil Parekh: Thanks for the questions. I'll start off with the first one on our three-year program and how we look ahead. We think we've had an extremely successful three-year journey. Some of the elements are how we've really reshaped and become a digital services company. Today, digital is more than 50% of our business. The large deals that you mentioned are at $14 billion. There's also a tremendous amount of work we've done in reskilling all of our employees, in looking at automation, and a variety of steps within the company. The way we've transformed to a live enterprise, a complete change in the way Infosys is working with clients and working with employees today. Now as we look ahead, what we see is real intense capabilities around digital.

I'll start off with the first one on.

The goal.

And how we look ahead.

We think we've added the extremely successful CEO of.

Germany some of the elements of how.

The exchange at the kind of digital services company, the agent model, 15% of our business the.

A lot of teams that Jim mentioned at 40 billion, but there's also a tremendous amount of the work we've done.

In the scanning all of our employees and looking at automation.

Did I hear of steps within the company the way.

The transformed to a library of enterprise growth.

The change in the way of Infosys is working with clients working with employees took.

I think look ahead, what we see is.

In case of capabilities and our digital and there the main focus of their name.

Salil Parekh: There the main focus remains around cloud, around data and analytics, around cybersecurity. With the launch of Infosys Cobalt, the Infosys Cobalt cloud capability set, we are again in a leading position to work with clients on their cloud journeys. We feel quite comfortable in the path we've taken and how we're looking ahead in partnering with our clients on their digital transformation journeys. On the large deals, Pravin will elaborate. One point I wanted to make was with the $14 billion number that you referenced, 66% is net new. In many ways, that is the driver. Of course, we are also very strong with renewing what is going on, and those are the factors that are coming into play as we look at the future, the guidance for the future.

<unk> of our cloud.

The down out of it.

<unk> brought on cyber security and with the launch of Gogo on the forces Colo cloud capability set on the other.

And the leading position to work with clients on the cloud journeys. So we feel quite comfortable in the path. We've taken on our way of looking ahead.

They're dealing with our clients on their digital transformation journeys.

On.

On the large deals.

Regarding the one point I wanted to make was the.

14 billion number that youre afraid of <unk>.

The 66%.

So in many ways that is the driver of of course, the answer very strong.

The elite volume's going on and those are the factors.

Okay.

We look at the future the guidance for the future.

Salil Parekh: Let me pass it on to Pravin Rao, if you want to add in.

Let me pass it on two of our primary.

The children.

And I think thats the impact.

Pravin Rao: I think as Salil said, the overall of the $14 billion, 66% is net new and even in Q4, 52% was net new. Last year when we did the $9 billion of large deal TCV, only about 30% was net new.

Now all of the $14 billion of percentage net new and even in Florida for the.

Three 2% of net.

Last year than we did the $9 billion of liabilities TV enabled 30% growth.

Salil Parekh: This actually varies. I mean, there is some volatility in net new, but it's equally important. I mean, we have to win renewals because we can't afford to lose whatever we have present. At the same time, we also have to capture market share, and that's where net new comes in. We have a good balance out there. I think this year, given that 66% of what we have won is net new, it gives a very, very strong base for, you know, getting into FY22.

Pravin Rao: This actually varies. I mean, there is some volatility in net new, but it's equally important. I mean, we have to win renewals because we can't afford to lose whatever we have present. At the same time, we also have to capture market share, and that's where net new comes in. We have a good balance out there. I think this year, given that 66% of what we have won is net new, it gives a very, very strong base for, you know, getting into FY22.

So this the activity varies from embedded.

No and the Asa.

Well, let him at the net.

Equally important I mean, yes.

The when the renewal when we kind of per booth, whatever we have presence at the same time, we held back the capture of market share.

And that's meant to net income so we have a good.

Good balance out debt ending the.

And I think that if you had I think that you'll end up the physics of center.

What we have on this net.

Even when you're ready from day one.

The heading into FY 'twenty the.

Shilpa Phadnis: Sir, on the cloud ramp-ups, if you can just help us with that question in terms of the pricing and given the background of the recent ISG commentary on how the cloud ACVs are decelerating. What are some of the challenges when it comes to cloud migration programs?

On the counter ends up till we can get the help us of the bad question in terms of the pricing given the background of the E.

Commenting on how the cloud ATV side accelerating so what are some of the challenges when it comes to the cloud migration program.

So on cloud.

Salil Parekh: On cloud, the migration work is one part of it. In the cloud area, and again, ISG also pointed this out, there are multiple facets of the cloud work that we are engaged in or clients are looking at. There is a piece which is on migration, but there is a piece which relates to how our clients are adopting public cloud or private cloud. There's a piece within our Cobalt structure which relates to how clients are looking at SaaS providers and rolling out that capability within their ecosystem. Our experience is that actually cloud programs are quite large. Today, what we have seen in FY21 within our $14 billion is very strong cloud capability programs that we are working with clients on.

The migration work.

One part of it sort of in the cloud.

And again I of Geos of pointed this out there are multiple facets of the cloud work that we are engaged in our clients are looking at there is a piece of the general migration, but there is a piece which relates to what our clients are adopting public cloud private cloud and then the.

Within our four walls structure, which the latest to our clients are looking at SaaS providers and building on that capability within their ecosystem.

The experience is that actually cloud.

<unk> are quite large and today, what we have seen in <unk>.

The answer the breakeven within our 14th EBITDA is very strong cloud capability programs entity of working with clients on so we don't see the that the scale of science.

Salil Parekh: We don't see that scale or size of cloud deals is gonna be separate. In terms of margins, there are different profiles of different things on the cloud, depending on whether you're working on the public cloud or you're working on SaaS. In general, we do have a view on our digital margin, which is on average higher than the average margin of the company.

<unk> is one of the sick of it.

Of margins is there on the central.

So buyers of different things on the cloud.

I think of whether Youre working on the public cloud on Youre working on SaaS engender. The we'll do the hours that you won't have delivered to the market.

On the average.

And the average margin of.

Thank you Bob.

Rishi Basu: Thank you, Shilpa. The next question is from Ayushman Baruah from Mint.

The next question is from Irishman barrel of oil from demand.

Hi, Sal.

Ayushman Baruah: Hi, Salil. Two simple things actually. One is, as remote working becomes the new norm, right? As we also gear up maybe for a potential second lockdown, do you feel the whole concept of on-site working versus offshore is getting redundant as employees can work from anywhere now? How do you plan to deal with that? That's first. Secondly, what's your acquisitions strategy for FY22, given that last year you made a lot of acquisitions, so in which areas would these acquisitions be in the digital cloud space, et cetera? Thank you.

Two simple things actually so one of the as remote working becomes the new norm right on as we also Europe, maybe for the potential second lockdown.

So do you feel the concept of the whole concept of on site working on.

The offshore is getting redundant of employees can work from anywhere now how do you plan to deal with debt.

But secondly Ah.

What's your acquisition strategy for FY 'twenty to even the last year, you made a lot of acquisitions.

The areas with the acquisitions being in the deep into the cloud space et cetera.

So there.

Salil Parekh: Thanks for the questions, Ayushman. The first one relating to work from home. What we've been clear, and I think Pravin has shared this, during our past earnings calls as well, is to say that first we have a very strong work from home approach that is working really well, thanks to the infrastructure that we built up within the company and the rapid speed at which we moved our people to work from home. What we've now learned, as you've seen, the on-site share stats, the on-site mix has moved significantly to offshore in the last financial year, much more rapidly than it had done in the previous several years. We think that some of this is the way our clients are looking at the business.

Types of other questions on average.

The.

First one relating to work from home.

The clear and I think the we initiated this during our past earnings calls as well.

Easter stays on the whereas Seattle very strong learn from all of the.

Of which that is working really well.

Thanks to the infrastructure and reduce debt.

Debt within the company the rapid speed at H B.

People on the work force.

Now.

As you've seen the.

The other didn't share the stats on.

On site mix has moved significantly the offshore in the last might actually are much more rapidly than it does in the standard.

Over the years are we seeing that some of this is the way of clients are looking at the business.

Salil Parekh: However, there's also a lot of use and work that we do in our digital centers in Europe, in US, in Australia, and Singapore. Those type of work will continue even if that becomes a hybrid model, which means partially working from home, partially working from a work location. Having said all of that, we still think that there will be a need to build up some social capital, and some of that will be built when people start to come back to the office. There are two things at play here, the hybrid model and the shift in the onsite-offshore mix, and there are different ways we feel those will play out, and we'll see how that looks in the next few quarters and really the next few years.

There's also a lot of use average.

Work that we do look at us in different sectors the order.

In the U S people straight debt Singapore.

Those type of World will continue it really of that becomes a hybrid model, which means partially working from home partially working appropriate work location.

Second of all of that we still think that 78 $2 billion sub social capital.

Some of the activities of daily life.

Simple start to come back to the office the two things at play here of the hybrid volume.

The shift on the on site offshore mix and then on there.

The thing with the field.

The health and well see how that unfolds in the next few quarters EBIT.

True.

On M&A.

Salil Parekh: On M&A, we will continue with our focus on digital and cloud acquisition opportunities. We will continue to look with the cultural fit, the strategic fit, and, of course, price of the asset that we are looking to acquire. With all of those things coming into play, we hope to continue with our M&A activity in this year as well.

We'll continue with our focus on digital and cloud.

The acquisition opportunities.

Continuing to look with the cultural fit the strategic fit.

Cost guidance of the <unk>.

I've said that we're looking to acquire with all of those things coming into play of the hope to continue with either the activity the chairs.

Thank you.

Rishi Basu: Thank you. The next question is from Ayan Pramanik from The Economic Times. Ayan is joining us on audio. Ayan, kindly unmute yourself and ask your question.

The next question is from the money from the economic times by Andrew joining us on audio.

I am kind of you're on mute yourself and ask your question.

Hi.

Ayan Pramanik: Hi. Congratulations, Salil, on a good set of numbers. I have two small questions actually. If I look at the attrition number, it seems significantly higher. We hear that there are some, a few hundred vacant roles across some key clients. Could you please elaborate on that if there are some supply side issues for some key clients? Yeah, that's the first question. Second part is if you look at the revenue per employee, consolidated, which has grown, which is $55.2.

Congratulations the Linda.

On a good set of numbers.

Right.

The small question actually.

You kind of look on that number on it.

The significantly higher growth.

And we hear the data.

The few hundreds of beacon ghouls across some key clients.

Please.

Robert on back of better of some supply side issues of course.

Some key clients and the.

Yes, that's the first question and second part is really kind.

The revenue per employee consolidated which is which has grown which is could be five to 10.

Rishi Basu: You know, US dollar thousand. Do you see that improving going forward?

Ayan Pramanik: You know, US dollar thousand. Do you see that improving going forward?

He was on the podium.

So do you see that the improving going forward.

So first let me start on the.

Salil Parekh: First, let me start on the question you had about roles on client projects. We have a tremendous capability of fulfilling demand. We believe that that is going extremely well. As Pravin was sharing, some of the points on attrition and what we're doing in terms of real strong employee engagement. But there are two factors I also want to highlight. We are making sure that we have huge levels of recruitment, both from college campuses in India, outside India, and also laterally. The main reason we are seeing a lot of this focus on the Infosys employees is also because our training is probably the best training in the industry, and we are extremely proud of that training.

Question, you added on a client.

Those on client projects of the App.

The tremendous capability of fulfilling the demand of the belief that that is going extremely well.

Probably the more shedding some of the clients on the attrition and what we're doing in terms of the strong employee engagement, but I do a factor of that also.

We are making sure that the are huge.

Huge levels of recruitment growth from our college campuses.

In India on outside and get on it.

So luxury.

The main reason we are seeing a lot of this august on the.

Of course is that volume is also because of training is probably the best training in the industry that can be on it.

Certainly proud of that training on <unk>.

Salil Parekh: We believe that that's the training that's right for what we want to do in terms of digital programs with our clients, and that's where we are making sure that all of the effort is put in how we are fulfilling all of the work for our clients. In the other question, let me just check, Nilanjan, if you wanna address that, please.

Believes that that is the training that Australia, but whatever you want to look in terms of digital programs with the clients.

We are making sure that all of the Fms case, Okay, and how theyre from thinking all of the work for our clients.

The other question Jack on lower.

The largest entry one of the debt that please.

Yeah on the revenue per employee to go back in the industry, it's largely been flat in reflection of two things there of client pricing, but because of the downward pressure and the other hand, you start putting in automation, which actually ties to negate some of that client.

Nilanjan Roy: Yeah. On the revenue per employee, to go back in the industry, it's largely been flat, and it's a reflection of two things. That is client pricing, so which is a downward pressure. On the other hand, you start putting in automation, which actually tries to negate some of that client discounts and rate negotiations. So if you see that the secular trend line has largely been flat, but of course, you know, we continue to see drive initiatives like digital pricing, and we know that, you know, our digital side of the business is giving us higher margins and higher RPP. But at the same time, there is some downward pressure on the core side of the business which offsets that. But our intent continues to remain to command, you know, a larger and larger premium for our digital side.

The discount rate negotiation. So if you see that the secular trend line has likely been flat but of course, we continue to see die of initiatives like digital pricing and we know that the.

As you can.

Side of the business is giving us higher margins and high RVP, but at the same time data some of <unk>.

Downward pressure on the cost side of the business, which offsets of that but our intent continues to remain to come on the.

Northern log of premium for our digital site.

Nilanjan Roy: Secular trends have been largely flat as of now as a combined portfolio.

But secular trends have been the might be flat as of now are the combined portfolio.

Rishi Basu: Thank you, Nilanjan. If I take a cue from that, if I may just ask one question. Are there still requests from clients for discounts like we had seen last year, March?

Ayan Pramanik: Thank you, Nilanjan. If I take a cue from that, if I may just ask one question. Are there still requests from clients for discounts like we had seen last year, March?

Thank you and the London, if I if I. Thank you from that if I may just ask one question. So are there still of more request from clients for discounts like we have seen last few months.

Nilanjan Roy: Yeah. Div, that's a continuous process. I don't think we've seen any acceleration. You know, and like we mentioned last year also during COVID, wherever clients had come during that initial period, we were actually happy to extend anything. But now clients, you know, come and ask for productivity gain, but nothing unusual. This is quite normal of what we're seeing.

Yes.

That's the continuous process, it's I don't think we've seen any acceleration.

And on like we mentioned last year also during Covid.

Clients have come during the initial period, we have of actually happy to extend anything but now.

Thank you.

It takes time.

From an ASP of productivity gains.

But nothing unusual this is quite normal of what we see.

Thank you Anne.

Rishi Basu: Thank you, Ayan. The next question is from Supriya Roy, who joins us from TechCircle.

The next question is from superior ROI, who joins us from Tech circle.

Supriya Roy: Hi, everyone. I hope everyone in the call and company is safe. I have two quick questions. The first one has to do with I want to know what's the percentage of salary hikes that's been given across. What percentage of employees on a total basis? And within the same, how many have gone on hybrid? And among the addition of employees who are hybrid in this particular year, 2021, how many of those are offshore? And again, the other same question is then how it's concentrated, the percentage concentration also which delivery units it is concentrated towards and which locations it is concentrated towards. My second question is, obviously, I've seen some of the great profit, the great operating margins. Now, in the landscape, we're seeing the landscape change rapidly. You have...

And of the one angle ended on the process needs.

These sales.

The question.

Moving.

How are you.

Thanks.

Yeah.

Wow.

Okay.

Thanks.

The thing Nathan.

Yeah.

Okay.

Thank you.

The one.

Okay.

Thank you.

The what you needed.

Okay.

Yeah.

Great.

The only thing.

Yeah.

Things can change rapidly.

Supriya Roy: It's no more a case of Infosys going to a client and trying to show them something that they need, but more so Infosys.

The amount of tickets.

Okay.

Moving the needle enforces the comparison.

Rishi Basu: Supriya, I'm sorry. Your voice is very muffled. We are unable to get any of the questions clearly.

I'm sorry, your voice is very my third we are unable to get any of the questions clearly.

Yes.

Supriya Roy: Excuse me?

Rishi Basu: No, we can't hear you clearly at all. Gentlemen, are you able to understand the questions?

No we can share you clear to all of the gentlemen.

The bill too.

Understand.

I Couldnt hear on the.

Salil Parekh: I could not hear the question too clearly. Could you try maybe again or from another audio source, maybe?

The question too clearly.

Could you try and be again all of them.

But all of the audio source maybe.

Supriya Roy: Yeah.

Okay.

Some of them.

Salil Parekh: It's going up and down.

It's going up and down yes unfolds the pizza.

Rishi Basu: Yeah. Unfortunately, Supriya, the audio is very muffled. If there's time towards the end, we'll come back to you. Otherwise, we'll connect with you.

The audio is very muffled.

First time towards the end, we'll come back to you on the way we will connect the pending.

Supriya Roy: I'll put that in email.

Thank you.

Rishi Basu: Thank you. The next question is from Chandra from Moneycontrol.

Thank you.

Next question please.

From Chandra from money control.

Thank you hope on the few all well and safe.

Chandra R Srikanth: Thank you. Hope all of you are well and safe. Salil, you know, I know you addressed this consulting question at the beginning, but my question is, the way different companies are approaching it seems to be very different. While some of them are taking the acquisition route, you know, others are talking about the organic route in terms of how they will leverage expertise of both the company as well as the client, to kind of build out an end-to-end solution. Now, Infosys has tried acquisitions in the past. What would your own approach be to sort of, you know, upsell IT services? Is this an area that you're looking at seriously? Do you think Infosys can do what a McKinsey or an Accenture are doing today in this area? The other question was for Nilanjan.

Well I'll address the consulting question at the beginning but I, but my question is the we've just seen companies on the approaching until the very distant but some of them are taking the acquisition tool.

Talking about the organic growth in tons of holiday will net niche expertise of sport.

Anthony balance decline of the kind of been delving into any solution.

Try to ask the question in the box.

What's the thought of.

And it is all the pools.

Is this an area that youre looking at Stephens, Inc.

Infosys can do what Mackenzie on the next thing Sean are doing to be in the Andy on the other question what's been the luncheon.

Chandra R Srikanth: You know, while a lot of people are talking about the buyback premium, they're talking about a gap up opening for the stock tomorrow. 25% I think is higher than what people were expecting. What did you factor in while deciding on the buyback price? Pravin, a couple of questions for you. You said that, you know, you will look at a number of incentives. Would expanding the ESOP pool be one of them? Because, you know, you're also competing with startups and hyperscalers to acquire talent. Why did you put off this second compensation review till July? I mean, shouldn't you have done it perhaps now or next month, considering your attrition is at 15%, your utilization is at 88%. What would your comfort level be on utilization also going forward? Thank you.

People are talking about the buyback female they're talking about the GAAP up opening for the stock the mono ethylene from fans.

I think it's higher than what people were expecting from what did you factor in while deciding on.

On the buyback side.

No questions.

That said you know you Wouldnt look up on number of incentive.

Expanding the thoughtful the one thing.

You're also competing with the start up and type of scheme to acquire timing on why did you put on.

The second compensation debt you to July I mean.

So these are organic perhaps now on next month on something like this.

And of the 15%.

Patients at each of the thing.

On what would your comfort level the on utilization of the windfall. Please thank you.

Salil Parekh: Thanks for your question. Let me start with the first one. I think what we are seeing in the market is with all of the digital work, there is more and more decision-making that is in addition to the technology buyers, also the business buyers. What Infosys has done over the years is build a very strong consulting business. As you pointed out, through acquisitions, but also through organic means. Over the last couple of years, our consulting business is performing well and connecting very well with clients across different geographies and industries. Our approach is very much of the view that we need to work with business buyers, make sure that our consulting and technology teams are working hand in hand.

To answer the question, let me stop on the first one.

I think.

What we are seeing in the market is based on all of the digital work that is more and more on decision making on that.

In addition to their debt.

The buyers are to the business of one.

Infosys has done over the near term debt.

Eddie strong consulting business.

You pointed out.

The two acquisitions, but also through organic means that over the last couple of the out of the consulting business in many of them.

And connecting very well the client.

It's across different geographies and the industry.

So all of our approach is very much of the new.

We need to work with the big shoulder a consulting and technology teams are working out of it. If you look at some of the large and you do the transformation programs.

Salil Parekh: If you look at some of the large digital transformation programs we have started in the last year, if you take an example of Vanguard, that really is something that looks at business, issues and insights which are driven by our consulting team, and also industry needs which are driven by our industry team, and the technology and process operations capabilities, both coming from the tech and BPS. So it's really bringing all of these things together that's more important in our mind. The One Infosys approach that I referenced at the opening, as opposed to just doing one thing, let's say consulting, or another thing which is industry or something else on tech. So yes, we see many peers that you referenced doing those sort of things, but we are now well ahead of that.

In the last year, we've taken a doctor or the.

Back on.

That is.

Something that looks at the business issues of insights.

On the earn back I think team on.

Also in the key needs, which are the end of that industry.

And the technology.

The operations capability forthcoming from the tank at EPS.

It's really bringing all of the things together, that's more important and I admire the wildly enforces the approach that I referenced at the moment.

As opposed to just moving one thing that the consulting.

Within the industry or something else on debt. So that we see of any of our peers at two of our thing.

All of the <unk>.

Now well ahead of the yeah, I think there's more of their all of this is integrated as one of the infosys and things of that to the client.

Salil Parekh: We are in this mode where all of this is integrated as One Infosys and bring that to the client. Let me pass it to Pravin, I think, with respect to the second question.

And let me pass it to the United Bank with respect to the second.

Second question Yeah.

Nilanjan Roy: Yeah. On the attrition front, I mean, obviously, we had a salary increase effective 1 January. We felt that 1 July would be the right thing. Historically also, we have always had a phased approach to compensation increase, and we do it in a staggered manner. That's something we want to get back to a regular cycle in the coming year as well. We felt that July would be adequate. In the interim, as I said earlier, and if there are any other interventions required in terms of retention, we'll be happy to do that, and we are already doing it. In terms of RSUs, we already for 10 to 15% of our promising people in the middle level, we have already. I mean, it's not something new.

Pravin Rao: Yeah. On the attrition front, I mean, obviously, we had a salary increase effective 1 January. We felt that 1 July would be the right thing. Historically also, we have always had a phased approach to compensation increase, and we do it in a staggered manner. That's something we want to get back to a regular cycle in the coming year as well. We felt that July would be adequate. In the interim, as I said earlier, and if there are any other interventions required in terms of retention, we'll be happy to do that, and we are already doing it. In terms of RSUs, we already for 10 to 15% of our promising people in the middle level, we have already. I mean, it's not something new.

The on the accretion.

Obviously, we have the <unk>.

Is the Emory plant.

And so we spent the night would be the right thing and historically also eliminate the advanced ethanol the compensation increase in reducing of Baghdad manner.

And that's something out of you want to get back to the regular cycle.

On Indiana, and we think that day that would be I think net and in the interim I think that the EMEA.

In the middle of an annual order.

I mean, it's not something new in the last two years.

Nilanjan Roy: In the past two years, we have been issuing RSUs, and that program continues.

Pravin Rao: In the past two years, we have been issuing RSUs, and that program continues.

True.

Program.

On the buybacks.

Chandra R Srikanth: On the buyback.

Salil Parekh: On the price, yeah. Go ahead, Nilanjan.

The price here.

Yes.

Nevertheless, the paddock zone.

Nilanjan Roy: Nilanjan, you have noted? Yeah. On the buyback price, I think first thing is this is an open market buyback, unlike the other buybacks which you have seen in the recent past, which are tender buybacks, where the price is fixed. Our premium of 25%, give or take, versus INR 1,400 is the maximum buyback price. That's number one. It's not the price at which we'll buy. That's the maximum price, since we'll be buying. This is a more longer drawn process in terms of timing, because firstly, this needs shareholder approval at the AGM, which is scheduled for June, and then there's a longer process during which we buy. This will go on for the next 6 to 7 months, if not more.

And then there is no debt.

Yeah, so on the buyback price of refocusing on open market buyback on like the other buyback, which you have seen in the recent past with our tender buyback where the price of fixed.

Premium of 25% give or take versus 1400 is the maximum buyback price. That's number one so it's not the per.

I said between the buyback the maximum price.

Since the pre buy.

He looked more longer drawn process in terms of timing.

Because firstly the speeds the.

Shareholder approval at the AGM, which is on a per se.

Volume for June and then there's a longer process during which we buy so this.

We will go on for the next six to seven months, if not more and considering both the factors, we think that a maximum price of $70 50 of quite fair.

Nilanjan Roy: Considering both these factors, we think that a maximum price of INR 1,750 is quite fair.

Thank you.

Rishi Basu: Thank you. The next question is from Shivani Shinde from Business Standard, who joins us on audio. Shivani, please unmute yourself.

The next question is from Trevor on insulin based on business standard who joined us on audio.

On mutual sales.

Shivani Shinde: Hi. Good evening, gentlemen. I hope I am audible.

Good evening, gentlemen, I hope I am out of it yes, Hey, Rami. Please go ahead.

Salil Parekh: Yes, Shivani, please go ahead.

Shivani Shinde: A couple of questions have been asked, but let me just get more clarification. Salil, you, as you know, you just replied, completed 3 years of the entire restructuring plan that you started in April 2018. Are you happy or not happy, but yeah, are you happy to see where Infosys is? You've spoken that digital is going to be the focus, you know, going ahead roadmap. Call out 3 really important aspects in digital that you would want Infosys to be ready with. I'm looking at a roadmap of 5 years. Where do you see Infosys in the next 5 years? Also, please give us a color on the core business aspect which has been going down. Where do we see that bottoming out? Nilanjan, a hygiene question.

So a couple of questions have been.

And let me just get more current conditions of some of you as you.

Just a slight completed three years of the entire restructuring plan that you talk of in April of 2018.

Are you happy.

But yes, I am happy to see that Infosys is you spoke on the.

Digital is going to be the focus.

Going ahead roadmap scholar.

Yes.

Horton aspects and the reason that you would want in fee to the.

The ready when and I'm looking at the road map of price and where do you see infosys in the next five years also please give us the color on the call.

Business aspect, which.

It has been going down so they the we see that bottoming out.

Yeah in the London of Hygiene question FY 'twenty two in terms of Capex, what do we expect from Infosys work from home sales continues to be debt. So if you could talk a little bit more color on that on.

Shivani Shinde: FY22, in terms of CapEx, what do we expect from Infosys? Work from home still continues to be there. If you could throw a little bit more color on that. Pravin, a lot of questions asked on salary hikes and attrition. The quantum of hikes, if you could give us. Campus hiring, you said that you're hiring almost similar or slightly more. Are you giving the geography breakup as well? Thank you, gents.

I mean, the lot of questions asked on Saturday and attrition or the.

Quantum of the hikes, if you could.

The risks and the campus hiring you said that you are adding on more similar effect anymore.

Given the geography based defense of that thank.

Thanks again.

Salil Parekh: Thanks for those questions. Let me start, Shivani. What we have done over the three years, we talked a little bit earlier about, I think, a huge way both within the company and with how we connect with clients on their digital journeys. There's been a huge change there. Now looking ahead, as you said, on a five-year horizon, I think the thing really to keep in mind is one of the biggest opportunities in front of us, because our clients are going there, is really the cloud opportunity. It's very, maybe simple to say cloud, because it encapsulates a variety of things. That's part of the reason why we launched Infosys Cobalt. It really goes into a lot of specific elements which relate to different parts of the cloud.

Time is one of those questions, let me start Chicago.

What we have done all of the C. As we talked a little debt per unit.

I think as you and share the board.

Within the company on with how the connect with guidance on the digital journeys.

And as you sort of changed at all on looking at and as you said on the.

Five year horizon.

I think the.

<unk> are ready to keep in mind days per well.

One of the biggest opportunities in front of us because our clients are going.

The cloud opportunity.

Barry.

Maybe simple sales cloud because of encapsulates the IMT of debt. That's part of the reason why we launched overall.

It goes into the auto.

Specific elements, which relate to different parts of the cloud whether in the public cloud.

Salil Parekh: Whether it's a public cloud, private cloud, of course in the hybrid environment, all of the SaaS capabilities, and then migrations and cloud-native development. These elements, each of them are huge capabilities that we have built up, and we think that this is gonna be a significant part of where our clients are driving their digital journeys. We think this will become a bigger and bigger part of our work going forward. Another area I would really focus on is data and analytics. It's something that's becoming more and more critical in how that is being developed with our clients in mind. It's an integral part of what we're doing in our digital transformation work with our clients. That will become large.

Managed cloud of course, and the hiring of advising all of the SaaS capabilities, and then migration of the cloud data and the better.

Of these elements each of the IHT.

Huge capabilities that we have been stopped and we think of this is going to be on a significant part of where our clients are driving.

Earnings per ads.

So the thing that should they come on.

There's a part of our work going forward.

Another area, where really the focus on his data and analytics is something that in the coming more and more critical all of that.

On being developed.

The clients.

And it's an integral part of what we're doing that relate to the transformation work with our clients. So that will pick up of large than on a couple.

Salil Parekh: There are a couple of other places where we are also making huge inroads, and which we will talk more and more about as we go ahead into the next five years. We are well positioned to capture what our clients are looking to drive in their spend, and therefore become closer partners with them. With that, let me pass it very first to Nilanjan Roy on the CapEx, then back Pravin Rao with the salary discussion.

A couple of other places, where the onshore making huge inroads from Richard.

We will talk more and more of them out as we go through.

Through the next five years, but we are well positioned to capture all of our clients are looking to try them in the expand and therefore become those of us.

As with debt.

With that let me assets.

So the volume of Capex spent.

Bank of <unk>.

With the.

Saturday discussion.

Okay. So on Capex as you know in FY 'twenty, one pretty much shut down on the on infrastructure Capex.

Nilanjan Roy: Yes. On CapEx, as you know, in FY21, pretty much we shut down our infrastructure CapEx, as everybody was working from home. In fact, repurposed a lot of spend on work from home enablement, which was about laptops, communication, security. Going into next year, some of these in-flight projects we think will start back, and we will continue to focus like on enablement of work from home. There will be some ramp-up of CapEx versus the prior year, but it will still be below the pre-pandemic levels.

As everybody was working from home and in fact repurpose a lot of spend on the work from home enablement, which was about laptops communication security.

Going into next year. Some of these in flight projects, we think will stock back.

And we will continue to focus on enablement of work from home. So there will be some ramp up of capex versus the prior year, but it is still be below the pre pandemic levels.

On the compensation of the quantum will be as per the industry none of it.

Pravin Rao: On the compensation, the quantum will be as per the industry norms. Obviously, we'll be targeting segments where the attrition is higher. In terms of campus hires, this year we had 21,000 campus hires. Over 19,000 in India and about 2,000 outside India. In the coming year, we are talking about close to 25,000 plus. About 24,000 in India and maybe a couple of thousand outside India.

Lee will be targeting segments of that attrition.

And in terms of campus.

We had.

21000 campus.

The over 19000 in India in 2000, and the outside of India in the coming year, we are talking about close.

Close to 25000.

The 24% in India, and maybe add a couple of thoughts on outside of India.

Thank you.

Rishi Basu: Thank you. The next question is from Sankalp Phartiyal from Reuters News. Sankalp, just unmute yourself, please. Yeah, perfect.

The next question is from and culture of our P&L.

From Reuters news from just a neutral sales.

Perfect.

Sankalp Phartiyal: Hi. Good evening, everyone. Salil Parekh, my question is to you. I mean, you know, whenever you give an update guidance, you say that there is good demand coming in from the clients. That's one statement that we've heard across the quarters. It's true because amid the pandemic, such is the demand for digitization. But I was wondering if you could go a little bit granular on that and give me some color in terms of what is it that the clients are exactly demanding. Because again, we've also heard you say that you want to be a partner in the digital transformation of clients. Could you give us a little more color on that, please? I heard Pravin Rao say that you all are going to hire 25,000 people, freshers from India and overseas.

Hi.

<unk>.

The one.

Some of my question is to you I mean.

You gave a given upbeat guidance you would say that there is good demand coming in from the clients and that's one statement that we put across the quarters on its true because of mix.

On to make such as the demand for Digitization, but I was wondering if you could go up a little bit granular on that on give me. Some color in terms of what is it that the clients have exactly the demanding because again. We've also heard you say that you want to be a partner on the digital transformation of time, So could you give us a little more color than that.

I heard from being saying that youre going to hire 25000 people, especially those from India on overseas.

Sankalp Phartiyal: I wanted to ask about the change in the US administration and if that's gonna have any effect on the visas, the whole working environment for software services exporters like yourselves. Just those two. Thank you.

I wanted to ask about the change in the U S administration, and if that's going to have any effect on.

The visa the whole booking environment for software services exporters like yourselves.

Thank you. So thanks for the question I think of it.

Salil Parekh: Thanks for the question. I think to give you some color on the sort of demand we are seeing. Today, if you look, we have work which we're doing, for example, in the retail sector. We are working with clients who are changing what they're doing with how their end customer, the consumer, is connecting with them through different channels for buying products, for connecting with giving feedback on what is going on. Their sales teams are using different channels to connect with the different credit structures. All of this is being built on a cloud ecosystem, and it's also being built with a new set of technology, which requires leverage, whether it's all of our capabilities on cloud.

Some color on this.

The sort of demand we had sales.

If you look.

The outflow of triggering for example.

Retail sector, where we are working with the flying levels.

Changing the name all of them.

The end customer of the consumer disconnecting the root zone two different childhoods.

Buying sort of export connecting with getting feedback on what is paid off.

The sales teams are using different channels to connect with the dividend debt structure.

All of this is being built on a.

The cloud ecosystem and it's also being basic grid of another set of technology our ratio is at the.

<unk> net.

Whether it's on all of our capabilities.

Sure.

Salil Parekh: For example, in many cases, they're using new ways, agile ways to build new software, using the experience capabilities of our digital studios to design the way this technology works, or even roll it out across the cloud into usage worldwide at the same time. Though that's one example of the type of project, but these are several different per industry, whether you look at insurance business, look at the utilities business, look at the consumer products business, or the banking business. In each of those areas, there are new ways that our clients are looking to connect with their customers to grow their business.

In many cases, they're using the good wins per agile based.

Software using the Expedia and scalability of the bucket.

The guidance is the way in this technology, but our EBIT of the OLED.

Cost of power.

<unk> worldwide and at the same.

So that's one example of the type of projects the visa central distributor for the industry, but in total.

The insurance business look at the utilities and the look.

The consumer products business, the banking business and each of those areas that are new wins the that clients are looking to connect with their customers all day.

Salil Parekh: that makes it more and more critical for them to drive these projects faster, because by doing that, they are able to impact their own growth, their own market share, which is where our support comes in. All of that really translates to a good demand, and that good demand is translating for us to a very strong revenue guidance of 12% to 14%.

That makes it more and more critical momentum to drive these projects after because by doing that they are able to impact there on their own market share, which is where our support comes in.

So all of that really translate into a good demand.

Good day by day strong taken for us to a very strong there within the guidance of 12% to 14%.

Thank you.

Rishi Basu: Thank you. Go ahead. Sorry, Gopi. Please go ahead.

Yes, its very good people to help us.

Pravin Rao: Yeah. On the visa front, obviously, our strategy is to be less dependent on visas, and this is something we have been embarking on for the past two, three years. Today, more than 69% of our US workforce are locals. To that extent, we are less and less dependent on the visa regime. Having said that, the early indications are Biden administration seems to be much more business-friendly, much more immigration-friendly. We have seen many of the restrictions introduced by Trump administration has either been deferred or they have allowed it to lapse. Even the salary increase, one of the amendments around compensation increases, salary increase has also been put off by more than a year. It's early days. We have to remain to be seen.

Yeah on the.

The something on with me.

The applebee's to be.

Net is dependent on the sales and it's something that we have been embarking on the path to the us.

Today more than 69% up on workforce on both of them.

And so does that make sense.

The thing Thats dependent on the B type of game.

He said that.

Because the bonds.

The net new system seems to be much more.

But the more indications in the have been many of the.

This takes some piece of the system.

But in the states and the laser beam.

All right out of that.

Out of them I noticed the net even the path and the increase.

I don't think the amendment around compensation increases.

And the Pinnacle has also been supported by more than the year.

I need it.

The amount of Brazil, but some of the in place the day we are in.

Pravin Rao: From an employee's perspective, we are less and less dependent on visas. We have a fairly robust model, and a lot of focus on localization.

Some of that's dependent on defense.

And the robust model and lot of focus on localization.

Thank you.

Rishi Basu: Thank you. The next question is from Saritha Rai from Bloomberg.

The next question is from Federico Rey from Bloomberg.

Good evening.

Saritha Rai: Good evening, gentlemen. My first question is to Sreeni. Sreeni, you talked this evening about the acceleration to offshore in your onshore-offshore hybrid model. You also talked about, you know, digital design studios, the acceleration of cloud, all of it can be served from your offshore centers. I just wondered what is gonna happen to your localization plan. What is going to happen to the development centers that you are going to set up in the US especially and also in Europe? How does the plan change? My second question is about the coming challenges. You talked today about hiring 25,000 people from the campuses in the coming year, maybe 26,000, if my math is right after what Praveen just said.

Hmm on spot.

First question as to some of them.

So this evening about the opportunities.

Offshore.

On sort of hybrid Martin.

And you want to talk to that because of digital.

Once the deal is the activation of <unk>.

With the owners.

The listener from.

Most of the centers.

I just wondered what can happen to you on localization.

What it can happen to the development centers.

Thank you live in the setup.

None of them.

Part of the plan.

My second question is about the common challenges.

<unk> today.

Non current inventory.

Income comes from.

In the coming year, maybe between the 6000.

My math is right on.

I mean, you can stack so.

Saritha Rai: There's going to be a lot of demand not just for fresh graduates, of which, you know, India produces millions, but also in the middle and or top levels of talent. I wonder if that is going to be a constraint for growth and if you see any other challenges facing the industry, if you could elaborate on those two things.

This could be a lot of.

Demand from the digital cash bandwidth.

And the producers.

But also in the Midland.

So the time I.

I wonder.

That is going to the income stream.

On.

I'm just thinking the industry.

On this.

Turning to the questions any therapy.

Salil Parekh: Thanks. Thanks for your question, Saritha. The first one on what we see as the mix. I think what we are starting to see in the last financial year was a big shift on the offshore side with the on-site mix coming down. Having said that, we still have a huge amount of work that we do from our digital centers, from our design studios, from our proximity centers, whether it's in Europe, US, North America, in Canada or in Asia Pacific, in Australia and so on. So those are things which are very much part of what is going on with our clients. Some of that discussion was on if the hybrid model will become part of our future. Even those centers, those digital studios, those digital delivery centers will have hybrid model working, but in those geographies.

First one on the what we see is the mix I think.

But we are starting to see the last financial year of was it did shift the.

Offshore side of the onsite mix coming out of it.

We still have.

Huge amount of work that day.

From a digital sectors of the design studios from a proximity centers, whether it's in the audio.

North America, and Canada coordination of Pacific in Australia.

So those are things, which are very much auto markets moving on with that client.

Some of that discussion going on all the hybrid partly from the accounts.

From a future even those centers the digital studios those digital delivery centers.

I think Walter working.

Salil Parekh: Two trends are working here, which we see. One is that there is some shift to offshore that we saw over last year in terms of delivery, and we've shared some of the stats in how the on-site mix has evolved. The second one is much more hybrid. Wherever the work is going on, hybrid in that sense, work from home, whether it is going on in the European market, the US market, or in the Asia Pacific market. Of course, when we're doing that in India, when it's on campus, work from home. Our sense is both of those trends will play out, and we will see how those trends play out. All of the work we've done in terms of building local delivery centers will help us.

Sure.

On all of the staff and all of the onsite mix has evolved and the.

Second one is much more of rigs that ever the work is going on hybrid.

Cash flow from all revenues growing on the European market, the U S market and the.

Asia Pacific market, but of course, when we are doing that.

The niche on catfish the broker.

Okay.

The <unk> both of those trends will play out and we will see our strength payout. So all of the world. We've thought of in terms of building on local delivery centers. We can have the bus but also on the fact every day.

Salil Parekh: Also the fact that we've built a capability that can allow our employees to work in this hybrid mode, work from home and work from office, will also help us as we move ahead. In terms of recruitment, as Pravin was sharing, we are looking at in the range of 36,000 campus hires, 2,000 which will be outside India, about 24,000 which will be in India. As you pointed out, we have within India a large number of college graduates that we can look at for that recruitment. Of course, there's also a lateral recruitment that we will continue with. In terms of what the constraints could be, we feel that the demand environment is extremely strong. We believe that we have the ability through recruitment, training to fulfill that demand.

The ability to aggregate of our escalates to look at this I believe the work from all of them and work from office.

So help us as we move ahead.

In terms of recruitment.

From English sharing the I'm looking at it in the range of 36000 campus hires.

Our capital of housing, which would be outside of India.

For the housing which is the India.

And as you pointed out.

Within the large number of college graduates that we can no debt for that recruitment, but on the cost the launch of lateral the recruitment that we will continue.

Terms of what the kind.

The change could be of reaching them in the lab environment.

The strong.

Believe that reality of particularly through the recruitment and training of fulfillment.

That demand as of today from our perspective, we see quite optimistic on.

Salil Parekh: Today, from our perspective, we see quite an optimistic view of where the market is, where the clients are, and not really so many constraints in how we drive that business.

Where the market is where the client and the Australia for so many constraints and average Jonathan drive breakfast.

Thank you.

Rishi Basu: Thank you. The next question is from Rukmini Rao from Business Today, who joins us on audio.

The next question is from the look many routes from business today, who joined us on audio.

Rukmini Rao: Rishi, sir, two questions. One, you've been able to add an incremental revenue of INR 780+ million in a very difficult year. What would you say Infosys has done differently, given that we've seen your peers add less than about INR 150 million in the whole of last year. Two, we also heard them say that the large deals are not coming at, you know, great margins. Want to get your thoughts on it to see what the correlation might be with the guidance that you have given for the coming year. Thank you.

The thing.

The two questions. One you have been able to add seven an incremental revenue of 780 plus million in the very difficult. What would you see infosys has done differently given that we've seen the appeal and about 100 net at about 100 million in the whole of last year and we also see that the.

Non <unk> deal the not coming at.

<unk> margin.

Want to get the on call Tonight to see what the code the relation might be.

With the guidance that you have given for the coming at thank you.

So first I think on the revenue.

Salil Parekh: First, I think on the revenue, we are really extremely proud and delighted with the trust of the clients. Because we have, as you point out, 5% growth in this extremely difficult financial year that just completed. We see that really because the way we have built the capabilities of digital, the way our clients have given us many on those projects. We talked at the start of the year for some consolidation. We've seen that in this last financial year. There's also been extreme focus on automation and cost capabilities. There again, we believe we have a leading capability in terms of automation that our clients have really engaged with us.

The extremely proud and delighted with the charter of the clients because the as you point out of 5% growth in this.

Simply difficult financial areas.

Okay.

And we see that EBIT because.

The way the David that came from the disease of did you train the range.

Many of our client sales given that.

As many of those projects.

At the start of the neuro or some consolidation.

From that in the SaaS production here and there will also be an extreme focus on automation and cost.

And then again.

Yeah.

Getting into the details of the automation that our clients are very engaged with us. So we see that gain of market share differentiate the acquisition versus the <unk>.

Salil Parekh: We see that gain of market share differentiate and position Infosys as the industry-leading growth company in terms of this IT services business worldwide. Now, the way we see what we're seeing on large deals, we see good traction. The large deals really come when clients are looking at very strategic digital transformation programs, which start with business, technology, and operations together. Or look at business, technology, and cloud, which drives a lot of that change. We've also shared that in general, our digital margins on average are higher than the company average margins. Of course, we are not specifically looking at large deal margins that we share externally, but our margin guidance is extremely robust between 22% and 24%.

The industry, leading gold company in terms of all of these items.

What are the right.

Now the way, we see what we are seeing on large seasons.

We see good traction.

Large deals really come when clients are looking at very strategic digital transformation programs, which safran business based on the gene you add operations together on Luke.

The advanced technology cloud rich Giants of lot of that change.

Also share that generally true.

Digital margins on average of higher in the coming.

The average margins of course.

We are not specific to the looking at large do you the biogen that'd be share externally, but our margin guidance is extremely robust.

The two percentage 24 per share and we feel comfortable with the winner of the last day Saturday of Guangdong every day.

Salil Parekh: We feel comfortable with the way the large deals that we've worked on, that we will deliver to that guidance, in the current year.

Deliver to the guidance in the current.

Thank you.

Rishi Basu: Thank you. The next question is from Sai Ishwar from Informist.

The next question is from site issuance from the impairments.

Oh hi.

Sai Ishwar: Hello. Hi. One question to you, Salil. TCS in their commentary yesterday had told that they are seeing unusually high demand for smaller deals. If I go through your numbers, even you've seen now a 10-15% increase compared to last year in your $1 million and $10 million brackets. Could you actually tell us, could you actually give us a color on the deal size you're getting. The size of the deals you won till now, and where do you see the smaller deals receding. When do you see it receding. One question for you, Pravin sir.

So one question.

Hum.

So.

Dcs indeed, mainly.

We had total debt DSD unusually high demand for smaller deals. So if I go through your numbers, even youll see how day, 10% increase.

Compared to the Lockdown in Europe of $1 million on $10 million package. So could you actually turning the tide.

Uh huh.

Could you actually give us a comment on the deal signs of getting the ease of the deals are you on one day and we do see the smaller deals of the deceiving when do you see the C D and on one question to kind of into it.

Sai Ishwar: In the same time last year, we saw a lot of sectors like retail, manufacturing, and travel getting affected because of the pandemic. Right now, globally, I think at least in India, we're back to square one in terms of the pandemic. Could you give us some color on these sectors which are directly affected by the pandemic? What is your outlook on these sectors? Thank you.

In the same time last year, we saw on auto.

Like the retail manufacturing and travel of getting affected because of the pandemic.

Right now globally I think at least in India on the back to school had on in terms of the momentum and could ease of use some comfort on the sectors, which are directly affected by the pandemic. What is your outlook on the sector. Thank you.

So.

Salil Parekh: Thanks for those questions. On the first one, we are seeing good demand both for large deals and for midsize deals. We don't see that there is less demand for one or the other. Overall, we see good demand across all of that spectrum. Pravin mentioned the composition of our large deals, the number of the large deals that we have, and it's spread across different size buckets, even in those large deals. What we are seeing today really is based on the capabilities that we have built up. We see good traction for small, medium, and large deals from our client base, and that's helping us to see this very strong outlook for growth for the next year. Let me pass it to Pravin for the other one.

Cash flow of those pressures on the first one.

Gordon.

The demand growth for large theaters and four of mid size deals. So we don't see that there is lots of demand for one of you on the overall really good demand across all of that spectrum.

The.

The REIT fashion the composition of allows a number of the last thing that's the app.

In Australia across different size buckets on EBIT and those that from.

What we have seen today that really is the.

Based on the capabilities that the stock.

The good traction for smaller ADM and lot of beans from our client base and that's helping us to achieve the very strong outlook for growth of overlap.

Yeah.

And the main power sector protein per kilo.

Yeah.

In terms of some of the debt.

Pravin Rao: In terms of some of the distressed sectors like retail or manufacturing, I think let me take retail for starters. Obviously, retail was one of the sectors which was majorly impacted by the pandemic. Many of the sub-segments of retail continue to be impacted. However, from our perspective, barring Q1 of last year, in the last three quarters, we are seeing gradual increase in uptick in demand from a retail segment. We have ended Q4 with a good performance in retail. On the back of this increasing performance as well as some of the net new large deal wins we had in H2 of last year, we feel fairly positive about retail in the coming year.

Like retail or manufacturing.

I think let me take retail.

Obviously retail up on on the sectors of the adjusted mainly impacted by the pandemic.

Many of the sub segments of retail continued to be impacted.

From our perspective.

In the first quarter of last year in the last three quarters, the I've seen gradual increase.

Given the uptick in demand from the retail segment. We had the fact that we are in the quarter four with that good performance in retail sales.

On the back of this.

The increasing performance.

One of the net new non deal we had that in the second half of last year.

Last name the positive of our retail in the coming year.

Pravin Rao: Likewise in manufacturing, this was again one of the sector which was majorly impacted. They had challenges both on the supply side constraints as well as on the demand side. With the economy opening, we have slowly started seeing some uptick in demand in industrial and to some extent in auto space. Aerospace, we still see softness, and it may take several quarters for it to recover. Again, in this space, we have done extremely well. In fact, last quarter, we won one of the largest deal in the history of Infosys. We have industry leading performance in this segment, and we remain very optimistic in the coming year as well in terms of growth and increasing market share.

My question the manufacturing that is not again on a positive.

The sector results that made the leap that down in the both on the supply side and the same type of lift from the demand side.

But with the economy of opening we have slowly started seeing some uptick in demand in the SPL tend to some extent in auto sales.

Aerospace, we still see south of methane it takes several quarters quite the ecolab, but again in the past that we have done extremely well in fact.

One of the largest deal last quarter. The one one of the largest deal in the history.

So we have to be best of leading performance in the segment and that we remain very optimistic that in the coming at us in terms of growth.

The increasing market share.

Pravin Rao: Travel and hospitality again continues to be challenged with multiple waves and so on. Here again, I mean, in general, I think while many sectors are distressed, there is a need for them to invest in technology to build resilience and to increase their connect with consumers and employees in the virtual world. While that distress comes on one hand, there seems to be continued investment on technology on the other hand, and that's something we have started seeing in the travel and hospitality as well. Though in a small sense, not as big as what we are seeing in some of the other sectors like financial services.

And then hospitality again and he used to be dealing with multiple of ASM thought but here again.

The planned seven engender like BYD manufacturers.

Yes.

There is a net positive lifting technology to build the affiliate income too.

The increase the connect with consumers.

Obviously in the agenda.

Right.

So some of that.

On one hand, it seems to be continued investment on technology on their debt and that's something we have started seeing in the found enough of that GAAP blend of <unk> not assets that we got what we are seeing in some of the other sectors like financial services.

Thank you.

Rishi Basu: Thank you. Penultimate question from ET Prime, Jochelle Mendonca, who joins us on audio.

And ultimate question from Prime Josh Helman, <unk>, who joined the audio.

Jochelle Mendonca [Senior Assistant Editor: Hello, sirs.

Jochelle Mendonca: Hello, sirs.

Rishi Basu: Introduce yourself.

Net income jumped house.

Jochelle Mendonca [Senior Assistant Editor: Hello, sirs. Good evening. I will stick to one question. We've seen, you know, net new deals in the large deals be 60% this year compared to 30% last year. Have you made changes in how you chase large deals that will account for this kind of massive jump in the net new quantum? Are you expanding the large deal scheme to, you know, to address the increasing demand we're seeing on the client side?

Jochelle Mendonca: Hello, sirs. Good evening. I will stick to one question. We've seen, you know, net new deals in the large deals be 60% this year compared to 30% last year. Have you made changes in how you chase large deals that will account for this kind of massive jump in the net new quantum? Are you expanding the large deal scheme to, you know, to address the increasing demand we're seeing on the client side?

Hello, guys, good evening and I'll stick to one question.

We've seen net new deals on the large deals the 60% of the sales compared to 30% of our scale have you made changes and how you changed large data sets will account for this kind of massive jump in the net new of one of them and are you expanding the logic of your steel you have to address the increasing demand we're seeing on the client.

Salil Parekh: Jochelle, thanks for your question. I think we are continuously looking at better ways to connect with our clients. In that light, every quarter and every year, we make some refinements to how we approach the market. That's part of the ongoing way that our business is evolving, especially on large deals, but in many other areas of the company. In terms of what we are seeing in expansion, there as well, we feel there's good outlook in terms of what we see in the demand. Also there's an overall expansion that we are looking on how we build our go-to-market capabilities, whether that's for large deals, overall CSG and sales, new account openings, or the account expansion approach.

Turning to the share of managerial question I think.

Yeah, great sales.

Lee looking at better ways to connect with our clients.

That's the line every quarter.

Maybe kind of some of their client base throughout the approach the market, but that's part of the ongoing.

This is evolving.

Can you on land is better.

Hey, guys.

Of the company.

In terms of what we're thinking of expansion.

That is right on the valve.

As for the outlook in terms of of what we've seen the demand.

Overall on the expansion that we're looking on.

We've been at both the market capabilities, whether that's from large jeans overall ESG and sales of your Condor placed all of the account expansion approach. So overall the season.

Salil Parekh: Overall, we feel there's more ways that we will have to connect with clients.

The small base that is the lack of connect.

The conference.

Thank you.

Rishi Basu: Thank you. We have Supriya's questions online, and in the interest of time, I'm going to quickly read it out to you gentlemen, then we come to the close of this Q&A session. She's Supriya from TechCircle, has requested us to read out her questions to you. For Pravin Rao, what is the percentage of salary hikes that were offered across bands or levels of employees? Were there particular concentrations in any geographies or type of delivery units? And how many employees have been hired in 2021 so far, and how much of these were freshers? And for Salil Parekh, with rising potential in digital transformation, do we see Infosys' M&A strategy anytime in your tenure as CEO from capturing foreign market shares to capturing new IPs to drive product innovation beyond what competition will keep adapting towards?

We had some payoffs questions online and in the interest of time I'm going to quickly read it out to you gentlemen, then we'll come to the close of the Q&A session.

As you could pay out from the extra delays requested us to read out the questions to you.

The provision what is the percentage of salary hikes debt were offered across the bank to levels of employees for their particular concentrations in the geographies are a type of delivery of units and how many employees have been hired in 2021, so far and how much of the refresh of and forcefully with rising potential in digital transformation.

Infosys is M&A strategy anytime in the yard tenure as CEO from capturing foreign market share to capturing new IP to drive product innovation beyond what competition will keep adapting towards.

Okay.

Pravin Rao: Okay. I will start first with the salary hike. We did one salary hike effective January. The quantum was similar to what we have done historically. The quantum of salary hike also varies from geography. It's different in India, it's different in other geographies. Even within these geographies, we normally tend to have higher compensation increase at lower levels and lower compensation increase at higher levels. That's something that we have really done in the January cycle. Now in terms of number of hires, this year, we have hired about 36,500 people. Out of it, about 21,000 people are freshers. I'm talking about FY21.

Stock plus per day.

We did one fine day hike effective January <unk>.

Somewhat similar to what we have done historically.

On the quantum of salary hike also varies from geography.

The printing the index, depending on other geographies and even within this geography the.

Nominally tend to pay out.

The tend to have higher compensation increase at lower level of that lower compensation increase of 10 11. So that's something that of course, we have.

Then in the in the Denver.

Denver is making.

Now in terms of the number of hype.

This year, we ever had.

But the 6000 per 100 people out of.

About 21000 people off price yes.

And I'm talking about the pipeline deal.

Thank you.

Salil Parekh: Thank you, Pravin.

Salil Parekh: In terms of the M&A, focus will remain on what we are seeing in the digital space. There is more and more that we are seeing that we can scale up, whether it's on cloud, on cybersecurity, data and analytics. We're also looking at areas which are related to Internet of Things. We are looking at other parts of our business which can also help us to be part of the digital transformation agenda for our clients, whether that's in the area which relates to business, marketing, to sales, technology, engineering services, and other areas. Those are all the places where we are looking in terms of what we could look for M&A. There is no fixed sort of an approach in terms of geography.

Sales of the anything.

The focus will remain on the what we are seeing in the.

Digital space.

There is more and more debt, we are seeing that we could scale up of.

Whether it's on the cloud cyber security data and analytics and also looking at.

As with John related to Internet of things.

Again other parts of our business, which can also help us to be part of the digital transformation agenda for our cash.

Whether that Cindy the average should be a true business marketing to sales technology engineering services and other assets. So those are all of the places where we are looking in terms of what the quick look.

M&A, there's no fixed sort of an approach in terms of geography.

Salil Parekh: We are always looking to see what we can do in services, but where we can have IP that supports that for our clients, we are open to that as well. Primary focus is really on digital and expanding our services team.

We are on the way of looking to see what they can do it services, but where we can have IP that supports that product clients. They're all book of that isn't the primary focus of the journey on digital and expanding services.

Thank you Phil and thank you per beam and with that we come to a close the Q&A session. We thank our leaders. Thank you Felipe. Thank you provision and thank you and the London for joining us today.

Rishi Basu: Thank you, Salil. Thank you, Pravin. With that, we come to a close of this Q&A session. We thank our leaders. Thank you, Salil. Thank you, Pravin, and thank you, Nilanjan, for joining us today.

Salil Parekh: Thank you, everyone.

Thank you everyone.

Thank you our friends from media on for being part of this press conference before we conclude please note that the archived webcast of this press conference will be available on the Infosys website and on our Youtube channel later today. Thank you once again for joining us.

Rishi Basu: Thank you, our friends from media, for being part of this press conference. Before we conclude, please note that the archived webcast of this press conference will be available on the Infosys website and on our YouTube channel later today. Thank you once again for joining us. Have a fantastic evening.

A fantastic evening.

Okay.

Thank you.

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[music].

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[music].

Q4 2021 Infosys Ltd Earnings Press Conference

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