Q3 2022 Infosys Ltd Earnings Press Conference
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[music].
A very good evening, everyone and thank you for joining in both of the third quarter financial results.
My name is Rishi and on behalf of Infosys I'd like to welcome you to operate.
We decided to meet you virtually this quarter keeping in mind be alarming ryzen, albeit and the needs to ensure necessary precautions. We hope you and your primarily are staying safe and keeping well.
Before we commence I want to take a moment to mention a few guideline.
Our friends from media you will be on mute by default throughout this press conference you will be prompted to a new geofence when we announced our name we request one question from each media so.
So that we can accommodate everyone over the next hour.
In case, you get disconnected please rejoin using the same link.
With that let me invite our chief Executive Officer, Mr. Sandeep Parikh for his opening remarks over to you.
Okay.
Yes.
Thanks Rishi.
Good evening.
You all a happy new year.
Just you and yours are well aware of it.
Thank you for making the sciences.
I am delighted to share with you we have had obviously a guidance.
A note on there.
<unk> was the fastest path in 11 years, the growth was broad based across industries service lines and geographies.
Driven by our differentiated digital and cloud capabilities.
This is a clear estimate.
In August sponsored avid us.
It's been accelerating that business transformations.
This outcome has been made possible by the relentless commitment from all of our employees through this challenging time.
Im extremely proud as well as well.
For their extraordinary efforts and delivering success for our clients.
Our growth has been accompanied by the Chilean operating margins at 23, 5%.
We've delivered these margins while we are in the forefront of focus on our employees with increased compensation and benefits.
Our digital business grew by 42, 6% and now is 58, 5% of our overall revenues.
Within digital cloud, we're growing faster and our COBOL cloud capabilities are resonating chip industry with backlogs.
The.
<unk> overall performance stems from all years.
<unk> strategic focus on areas of relevance for our clients with digital and cloud continuing this giving equal.
And deep relationships of trust that our clients.
Tom.
With the strong momentum in the business and the robust pipeline that we see we.
We are increasing our annual revenue guidance.
Guidance, which was previously 16, 5% 17, 5%.
We're increasing it to 19, 5%, 20% in constant currency.
Our operating margin guidance remains at 2%.
4%.
With that position back to you and that's half.
There are questions from everyone on the call.
[music].
Thank you Sally.
We will now open the floor for questions.
Joining Sally is missed in the London, drawing Chief financial Officer and focus.
We will now open with the first question.
Our first question is from initial JM from ETE now who joined US on video and ensure currently on mute yourself in osteoporosis.
Hi, gentlemen, thank you so much for the opportunity.
Hope you guys have a safe and happy 2022.
Do you have a two part question.
Obviously, the street would be very excited by the guidance upgrade that is coming down to the revenue but are.
Are you confident that the strong demand outlook will continue not only in the short term, but also in the medium term.
Are you understanding in terms of the client spend and the budget sector and does it also reflect another deal momentum going forward the.
The question itself one in London is actually on the margin picture I would want to understand the margin have been said even sell into now but with the increase in the supply side pressure is that what's the outlook basically on margin going forward and also how confident are you meeting the demand given the high attrition that we all see what's happening on the employee president.
That doesn't mean, <unk> 25, and a half of that.
Thank you.
So thanks for your question I think bus.
We've increased our guidance so that is the.
Tremendous confidence in what we're seeing with our clients. We had large gains of $2 5 billion 25 view in the quarter.
Our pipeline itself is very strong and we remain comfortable with the guidance for this financial year, which ends in March but overall the demand environment looks really strong as we are comfortable as we look out beyond March as well.
The demand outlook is going to the digital transformations are strong and our work in cloud and digital remains very good. We were also very strong with our supply capabilities and so we remain comfortable.
The work for our clients.
Let me pass it in London for the second.
Yes. So two questions you had in the first one on margins, we've been able to broadly hold up margins. This quarter, we were $23 six last quarter now we have $23 five and a broad walk would be about 80 basis points have got invested back into our employees either two corrections ultra promotions.
40 basis points, so you actually lost because of lower utilization.
Good news is the supply side as you know pressure builds up so our utilization coming down a little bit of good news on the other hand. This has been made up by about 20 basis points of rupee currency have you also made up about 40 basis points from SG&A or the one offs and 50 basis points from a very strong cost optimization program. So all in all that fixed.
Subsequent three five and our guidance for the year at the lowest 22 to 24, and we remain quite comfortable operating in that range.
Coming to be a supply side.
We've taken up our graduate hiring program to 55000 looking at the demand and of course, we are very very keenly looking at the attrition figure windup process with how do we bring the zoning.
Do you see that stability sort of coming into this quarter. Although some of our numbers are more on the LTM basis. So you would see those numbers inching up but I think quarterly we have seen some stabilization and we continue to focus on all of these employ interventions and at the same time, you don't want to let go of any demand and therefore, our hiring program.
<unk> Electric program continues.
Debated.
Thank you moving on to the next question.
The next question is from remarked in dual card from CNBC TB 18, Reimagined doesn't video.
Remarks, Randy on mute yourself and ask your question.
Yeah.
Gentlemen, good evening and congratulations on a very very strong set of numbers.
My first question is what changed in three months for you to give such a large upgrade to your guidance and secondly on deal wins, we have the large deal win number at 253 billion.
But increasingly the anecdotal evidence suggested we've seen a lot of short term deals. So could you give us some sense of the sub 50 million dollar deals how much higher is it today's say compared to three months ago or year ago, and even if you could tell us the deal pipeline how would it compare to say a year ago, how much higher would that number be.
Can you indicate it correctly that the last 12 months a patient does not accurately capture the attrition number so could you give us a sense of the quarterly annualized attrition how would that number change.
Has it been flat quarter on quarter do you think attrition has peak. Thank you.
Thanks. Thanks for the question I think first on the guidance.
Really in a situation where all of the choices that we've made over the last several years.
Typically building on digital on cloud on the new areas that our clients are the people on what clients are buying.
MVC that estimates with clients.
All of those digital transformation programs are very strong and we could see our execution remained group and that gave us a really deliberately increase our guidance even as we are in the fourth quarter. Here. We believe strongly that this is a solid growth in the market and we are fortunate with the trust of our clients.
Captain.
In terms of the pipeline it was $2 5 billion in large deals and perhaps larger.
Richie classifying work is being done.
The $1 in size and so this is a very strong indicator of how the business is evolving we had 25 years.
In that space, a $2 5 billion in overall pipeline today is larger than what we had at anytime.
And we remain comfortable with the pipeline.
Digital transformation programs are going well in alignment with our clients.
With that said we started in the lung.
Yes, so rebound the attrition like I said, we have very sharply focused on this figure and of course. This is an industry issue.
If I step back really I think b.
Volume growth for this industry has to come from pressure right because churn at one level is yesterdays news.
The first show season across the industry is just not an emphasis but at the feed into the industry. I think you will see this number inching down across all the players.
We have seen in this quarter why are we going to get a number of you have seen a stabilization and as we look ahead. We are seeing some drop off of that but we will have to wait and watch, but clearly as we ramp up the pressure into the system. I think you should see some benefits across so we're quite happy with where we are but I.
I agree that a number that high.
Thank you moving onto the next question.
The next question is from <unk> <unk> from Bloomberg.
<unk> joins us in video so these kind of on mute yourself and ask your question.
Good evening, gentlemen, Im happy new year to both of you.
My first question is too.
Basically on the growth, which you have been seeing you've guided for 20% growth for the full fiscal.
Do you see the momentum of <unk>.
And the negotiations that you have currently in the peak.
Continuing with a similar growth rate expected or you see some tapering happening as we go into FY 'twenty three.
Secondly.
A bit of color on the kind of transformation happening is it just digital transformation are now complete and also looking at other processes as well which makes sense.
Which company with companies like you can undertake going forward.
BFS high and industrials, how do you see.
The growth coming in from Deb do you see some bit of sluggish.
Sluggishness.
Coming in.
Especially Europe .
<unk> seen a good impact of.
Covid impact, which has happened in that region and for Lindon, you mentioned about the G&A and cost optimization with $40 $50 to be able to bring in.
Is it.
Was it a temporary two one on can you, bringing in subsequent quarters as well to maintain that margin.
Thanks.
First on the growth.
Yes, the guidance increases for this financial year.
The demand outlook is very strong the pipeline is.
Roger what we are working on today with clients on their transformation programs.
And looking very good for us of course, we don't give guidance for the next financial year desktop, but everything we've seen the demand environment is positive the types of work that we are seeing.
These relate to all aspects of large enterprises, where they're at.
They do how they are engaging with their customers.
They're engaging with their employees, how they're engaging with the ecosystem.
Essentially everything is becoming more and more driven by how do you make it.
For example, the Abbott platform called Equinox, which is essentially a platform, which anyone the use of consumer products.
It is a completely new commerce.
And we are seeing tremendous traction of this platform.
All of our clients, we have similar platforms in different industries, which we're seeing some benefit.
In terms of growth by region.
Europe was very strong at 7% in the quarter financial services also was strong for us at 15% in the quarter. So all of our markets are looking quite good in terms of growth.
Across both the strongest manufacturing, which was at about 48% growth in the <unk>.
Sure.
With that overview.
Yeah. So studies on your question on margins I think over the last few years, we have a very robust cost optimization program, which we run across the organization.
We have a number of levers, which we deploy across this you know the.
Onsite mix the offshore mix, a better met both onsite offshore automation, which remains a big part of our cost optimization and in fact, we've taken it to the next level by using bots at the extreme large scale.
And of course, the other mega like popcorn et cetera. So we deploy this over each quarter, sometimes some of them like this quarter the onsite offshore what negatively against us, but we were able to have other cost optimizations come into place, namely automation. We have also started looking at pricing in this high demand environment, it's important that we start pricing.
Talent correctly, as well and therefore, whether it's discounts et cetera, we are able to have some conversation now of course, we realize this is a long haul it doesn't happen overnight the existing.
Consolidated clients, but at least in new deal slowly this and start getting price and not only by us, but also by the entire market as these costs.
The industry. So we have a number of things, which we continuously doing and remain quite confident about this program as we look ahead.
Thank you.
Moving onto the next question.
We have pushed out from the <unk> business on video, which will finally on mute yourself and ask your question.
Good evening gentlemen.
So lindsay optically severely achy, how can they stay the same constant currency revenue growth decreased <unk> percent key optimism that growth.
So <unk> I think you are frequently remind me John legend.
Inorganic growth be declared.
Coffee salary company agile hedge for.
<unk> acquired cutting edge digital contracts good demand global activity create those sorts of Alameda are new lenders you said eager just made.
Abdicated attrition that battery is put back.
Back incrementally gastric out strategies.
<unk> average Calgary Apple complex achy anomalies with element.
Gives us somewhat.
So I'll leave at that.
Questions can be a really spectacular growth at 7% constant currency for the quarter.
See that momentum in good shape and demand environment, and what you mentioned about inorganic growth in terms of acquisition.
The acquisition of George remains very focused but we have a good pipeline of potential candidates.
Focus has been what can we acquire which can give us a boost as you were saying.
Chip do transformation.
Yes.
As relates to for example, cloud cyber security.
Sure.
All other areas with just supporting digital and when you look at different companies and that of course.
Combination of how will it fit culturally.
We believe the integration and what is the valuation, but this is an ongoing process and we have a good pipeline that we're evaluating in terms of acquisition opportunities.
London.
Alright. Thank you. So we sell lower Tricia questions May I think we have a three pronged strategy I think firstly about areas is how do we store more longer term career to all our employees.
That includes a cycle promotions progression so that people have a visibility on that.
Of course, as rewarding compensation to be competitively always benchmark decimal.
If I look back you've you've also rolled out special talent retention programs in this quarter as well and we will continue to do whatever is necessary going ahead and thirdly. It also re skilling that remains very very particularly in this market. That's just continuously upgrade.
<unk>. So we have this three pronged strategy across these aggregate confident that we will be able to.
I'll handle the attrition issue for now of course, there are a lot of market dynamics, but over a longer period definitely we will see that coming down.
Thank you moving to the next question.
We are parts of that carbon from CNBC hours.
<unk> currently on mute yourself and ask your question.
Good evening, gentlemen, then ratings for the new year it sounds great quarter for you. So I didn't know a simple snapshot.
Of course data then bottom as world today, making Jeremy made deals up low quality system or he may find key hubs, which leg quarters is quarter makeup, placing a lot of that that would get.
<unk> clients as other paths, our culture Nikos <unk>, our capital pricing combined cut part of him back in a deal signed because that.
All costs thoughts I'll pick on manufacturing may substitute other growth make nickel malia SEC totally I think I need to ask you since he got it going forward and the London margins, but <unk> margins going forward at least stable. If anything you can give some mix of travel kidney eye, especially bodies about sandbox.
<unk> costs Q4 on whats travel came back mitigating it.
With only drawn Kal will offset what I have.
But anyways.
A question.
Drug pricing <unk>, what we are seeing is not as.
Strong standoff large D and we are seeing the pricing environment is quite stable on one of the things that the London mentioned earlier, which is there is huge value. So a lot of the distributed work we had to wait.
I think that in MS. As we've discussed large move that with time and plans that are sensitive.
We will see that we ended up beating their four digits and helping them in that transformation. So we feel quite comfortable that one.
This quarter pricing was stable. So we will see something going ahead.
Yeah.
But that they communicate and what is the type of spend there are two.
<unk> 1000.
The needs are increasing their spend on what they want with group of digital transformation. So just as a percentage.
The revenue there.
Amount that they want to spend on technology and bring out the second is in many companies ESG that im looking at this also prom and Capex perspective from something they want to invest for the future is not just in Opex and we are seeing good traction in that sense on this.
And that's the available when companies decide to launch the digital transformation and we feel is going to be partnering with them on that journey.
The London.
Yes.
So I say that.
Travel question, absolutely I think we are as an industry entirely is.
They are not traveling and therefore, the benefit that you've seen versus the pre COVID-19 area, but even if you strip that out you have seen that improvement in our underlying margins of course is the next year progresses, we will have to see where that will open up and what states, but having said that we've also seen that we've been able to safely billions of dollars of deals pretty much virtually.
And in that sense that good news that we are able to work remotely.
A new environment.
Well the hopefully the as the world opens up we don't need to go back to the same kind of Mad rush. It we still have but I think that's something we will continue to look at these headwinds, whether it's travel or cost increases on our employees.
And like I said earlier, our cost optimization program continues to be really top gear and we have to work continuously to offset that so we remain quite confident in our.
22 to 24 range for this year.
Thank you.
The next question is from shuttered debate from eating out sluggish Charlotte joins us on video PWT and ask your question.
So there isn't an end of resolution, but it was stronger than Bolivia.
I want to look at it.
Sudan solution longevity, Youll take out any leases that extend strip out any of these items.
Looking at our nickel into segments up with this solution because of what the legacy business is out there.
A little of it is data center designation with FDA.
And that is a participant maintenance that's up a long term transformation, where they just move it.
Kidney indications.
Yes, but I would have said that they needed the most in demand in the business.
Good evening.
More importantly, I think as a margin issue I didn't get the heat that.
Meanwhile, the <unk> cost.
It's been Bob alluded, a tip up a little bit.
Yeah.
Does it.
I think look I submit that data available.
Okay.
Thank you Rob good question.
How have you seen is there is a lot of discipline.
And digital transformation going on in the sector. So one example was manufacturing which is growing at 48%. We are also seeing for example in the retail sector growth of 19, 8%, we are seeing financial services, which I mentioned earlier at 15, 5%.
Our communications segment is looking strong at over 22% growth life Science is also looking very strong.
What we see is across many industries companies are looking to launch their transformation and in doing that.
Exams, which we'll go through a long duration.
Many companies, which have seen what has happened in the last 18 months with all of US working in a different way are starting to realize the benefits of driving digital how do you get the better connect with customers. How do you make sure you have no internet is better.
How do you make sure more internal processes ongoing ambition because this is all aligning with customers to design their own group with employees to make sure that is a much more robust set of connection.
That's helping us to achieve digital transformation is different today really is broad based.
The strongest being manufacturing for Us life Sciences mutations and also region.
Yes, we said that.
See our portfolio if I look at the margin side, we have multiple number of deals were large deals which are entering the third 450 Arabia, bringing much more optimization there may be new deals entering the portfolio, which affects limited at in the sense of initially higher costs and when we look at the overall margin structure. That's all what we put together for the whole portfolio.
So what is happening these are getting much more profitable and maintain at one site new deals are coming in so thats one part of the overall margin management equation.
Secondly, like I said like we are putting a lot of cost optimization automation as one.
There is of course, the pyramid and the ratios like we said.
Got it.
<unk> lingus in quarter, maybe you've taken back 2% of that and that's helping at the bottom of the pyramid as well so the other number of lever in the coupon.
Deploying those which are more relevant.
For the business and they are helping us to make sure that these margins remained flat from quarter to quarter.
Thank you moving on to the next question we have.
Pascal for CLO from Reuters news from Culp giant doesn't videos and help speed up to your questions.
Okay.
So until we can go.
Hi.
Good evening everyone.
Southern I had two questions.
One is that you said the pricing environment is very stable, but.
The kind of uncertainty that the resurgence of Covid in the Omicron. Dave has brought about could you give me a sense of what the demand environment, the pricing and even the run side of business.
The traditional business looks like in your biggest markets.
That's one the other thing I wanted to ask Linzess.
But I was just attending the first press conferences about the forthcoming this.
We seem to see assuming that attrition is going to be a problem for the next few quarters, but perhaps will be moderate.
Go ahead and outline our plans some plans can you tell us what more you're doing to attract.
Talent to our company and make them stickier.
Because youre competing with startups that potentially offer more money than most sops and incentives.
And also if there's any change in.
During plans, but he is stepping up pressures in lateral lengths.
Thank you.
So thanks, thanks for those questions.
And then we will come back on the attrition on the Mega crews, which are very robust on the pricing.
What we discussed.
Yes.
Relatively stable environment and pricing if I look specifically at the view that in this year's quarter versus the quarter before that so we have not seen any big changes.
We are also.
Based on <unk> within the base that the London jet Olivia I wish to communicate.
Creating tremendous value for our clients.
And then we would see over time that there will be some benefits from pricing.
PFC, what's being done with compensation over the last 12 months with three different signs of increased competition and a very significant focus on that employees are those things will come.
And our position over time to get that sort of a pricing impact with our clients as well. So we feel quite comfortable today with a good demand environment relatively stable pricing and some initiatives, which are medium term, which will help us more value with respect to the digital world.
And in London.
Yes, so on the attrition question like I mentioned of course, we remain very very focused.
Absolutely critical for Us and this is fixed up a lot of our time.
Besides what's already mentioned in terms of the compensation interventions really the whole career progression career passing on many of these employees as we communicate our long term value proposition with emphasis from any of them I think thats something we are rolling out. We are also looking at differentiated talent.
If you are in our campus hires so digital specialists, who are with a different skill set coming into the company and thirdly of course, we skipping which remained very very core to our fundamental business model.
And how do we digitally skilled tag employees give them incentives to get rescheduled and new technologies.
The tour of things, which we are looking at consistently and collectively like I said today. This is an industry issue and this is not a pick any company issue and as more and more pressure that overall.
Overall across the ecosystem I think you will see this attrition across the industry and also with us coming down.
Thank you.
Moving onto the next question.
We have several niche in different business tendered with centers request symptom text, and gentlemen, I'm going to read it out.
Sure.
<unk> what impact do you see of the recent COVID-19 variance on business and operations and what happened to back to our plan.
Next she asked what happens to the overall focus not have anything at all and then lindon for use of Army US what has been the impact of currency and what has been the impact of currency on margin and what is the hiring target for FY 'twenty three.
So Pam cyclical question from Giovanni I think for us what we have seen.
<unk> will be promulgated.
In many ways.
All of the impact will probably be in this quarter, we've seen some of that startup costs in Europe , and we are seeing your drug.
<unk>, obviously being a big name in Australia as well.
We've built some estimations.
Based on what we think will be the industry leader.
In some ways it seems to be a shop operators shop down.
In many ways, maybe the impact of them.
You may not be the same number of days and equally we've built a very resilient processes.
Work from home has worked really well in the past and as we quickly put in place.
Already having said all of that and factor that in.
We build our guidance update so we are very comfortable with what we've seen in the work for our clients given what our estimate is as we look into situations and company.
What we do with this.
In terms of the office of discussion.
<unk> started to see a really good update on that in about a month or six weeks ago already.
In India and other parts of the World of course, given what is happening today.
We are very focused on employee safety and wellbeing and right now it's much more the woodworking and work from home, but as we have done.
<unk>, what we've seen in some other countries.
It could be a shorter.
Duration, and then hopefully towards the back part of the quarter. We can start to see more of the return to the office work that is completely flexible and then focus on what employee user might be I'm, making sure that all of the work clients is getting done.
Right.
Yes, so just to add to what Felipe said today about 83% of our employees in India, but I believe estimated another 10% have got a single dose of nearly 93% of it.
Workforce in India is vaccinated, so that is a metric, which we've been tracking and increasing.
The spirit coming back to the hiring plan in the past.
We have a very fluid passports officials and lateral in the year. We are like all other company has gone out to campuses to higher but I think one of the big advantages. During this time as we've been able to master both off campus hiring program and the campus hiring program. So we have the flexibility.
Both to higher during the off campus period as well as demand changes plus we have sort of a fixed demand, which we will go out in campus. So that gives us a lot of flexibility as we look into the year right.
Thank you before we proceed.
Finally request offense from media to restrict to one question in the interest of time, we just have partner left for the spectrum.
The next question is from Teresa arrived from Bloomberg, who joined Us on video.
Our mutual felt an octopus.
Thank you Richie Hello, Celine Hello, Milan team.
I wanted to ask you what Karen what signals you're reading from clients.
As we plan for the calendar year.
In terms of.
The traditional outsourcing are.
Yes.
Consulting and how do you see this balance skewing in favor of consulting as all of you.
Once that balanced.
Amy.
On the consulting side.
Suddenly you could take the question I'd love to hear from Atlanta.
Thanks.
I think what we have seen for the calendar year.
From clients is just continuing what we want to drive in terms of that change their digital changes the cloud changes and all of the programs at night. So we don't see that something has changed either gone up or gone down it remains at that same level of intensity in Spain.
Which has been fairly high.
As you have seen for the last few quarters.
In terms of consulting and.
Technology.
Our experience with clients in Germany. They are.
They need to build out the next phase of this technology environment.
Tremendous focus on modernization.
A lot of focus on making sure.
The infrastructure the technology infrastructure to the cloud.
Cloud infrastructure in place.
Is to help everybody.
This is.
Is cloud native and they are looking to.
Work with private cloud public cloud in many ways leveraging what we're doing in Houma to really the technology digital transformation is the center of what we are seeing with clients and in that we've been extremely well positioned because that is truly the strength of infosys.
As an empty livsey engine is extremely robust and we have a portfolio of indesit.
Services, which are focused on cloud and digital which are helping our clients transform of cost something as critical path with consulting is a critical part as it heads within the framework for this transformation the vast majority of what the client is not moving.
After the emissions and something that would be the technology spend and making all that work and we'll consulting business is growing extremely well in that sort of been joined up with with consulting and technology.
Thank you.
Moving to the next question.
We have tender agnostic from money controller, Sandra joins us on video.
Jim Zirconium mute yourself marketplace.
Hi, I'm an engine. Thank you Peter.
So I think it only leasing the ISG report spoke about how a majority of the deals were actually small deals and how enterprises are breaking up John's made a project because they want to execute it.
How do you see infosys bleeding and such.
<unk> are you seeing more of these smaller deals in the market.
Just a question on <unk>.
Sure.
I think key for hiking interest at least considering it's pretty much stagnated.
Being a hike of 8% to 9% in the last decade do you see a key for that.
I'd like to say look you can give us an update on the income tax returns.
<unk> ended in December and in some cases its been extended to March if you can give us an update on that thank you.
Thanks, Chuck I think in terms of what we have seen.
In terms of the deals.
The overall environment for large transformation programs is very robust we have seen 25 bps in this.
Water, which has reached about $50 million.
The average distance, which you've talked about before is what happened with what we call Mega deals, which are much more volatile or lumpy, we still see a good pipeline where clients are looking at that but those are not predictable in the sense. So whether the income this quarter on mix.
Our own experiences.
<unk>.
<unk> is very strong and robust.
In many cases that have transformation programs, which clients have launched there are new programs being launched by other clients and those programs need different kinds of capabilities all together.
We are helping to bring multiple service lines to help them and sometimes clients means that up into different phases. In many of these cases once one of these transformation programs fast and if things are going well, we continue on through different phases each of them being significant.
Our please.
Client perspective.
Let me address the income tax project and then the London.
Yes.
On the income tax projects that we are extremely proud of in that zone.
Number 31.
Yes.
<unk> reported.
5.8 per dollar return to fight through that time frame.
<unk>.
46 lakh tonnes were fine.
Headline and that means there was maintained.
And the way that the income tax department saw all of these things working and really all of them.
In the system. So all of that work we are extremely grateful that we can help and contribute in the vision or the digital India or that this is enabling going forward working across studies, we'll see.
Martin on the next set of areas and that will become part of this system as new modules are put together, but we're extremely happy and proud with how the December one.
Closing, Andy anything on that deadline, when when the pipeline it can order counts.
Yes, so talking about your question on the Fisher salary of course, we always continue to look at that we need to be competitive always looking at the overall demand and supply scenario.
This year, our digital specialist is something that you've looked at where therefore stack programmers, we've been able to take up salary for that set of.
New join us.
You are also aware of.
<unk> strong program of hiring training people in my sort of thoughts today.
So remains closed but we continue to still have four months of virtual training before people are put onto production. So all of this goes into the overall value proposition, which we are offering a new giant and like I said.
Have a target of about 55000 to 70 quite confident of meeting that.
Thank you.
Moving to the next question.
We actually talk about mix from the 9% beyond video Chill pack Eylea mutual self and ask your question.
Good evening gentlemen.
I think companies are looking at a blended rate to the balance sheet.
Makes sense.
Sales and technology.
Sure.
Look I think alignment because.
Some of the hospitals have gone up by 428%.
On one hand, you have supply side challenges.
Clients willing to pay the premium for being hospital, how long are you stopping these large deals that required these skills.
And then my second question is on how they integrated infrastructure needs.
Okay.
Companies are looking at the margin we as to how they can be backloaded for profitability. So as you can help us understand whether a dream.
I mean coming into play.
Thanks Bye.
I think.
On the pricing what we are seeing as you were pointing out is.
There is a lot of value that is created through the digital transformation work. We are seeing of course to this last year.
Kris and compensation cost and do that.
Those within our structure, we know that.
Large enterprises are looking at the world around them and for the first time in a very long time theyre seeing inflation that is engineered <unk> with all of those factors, we are now more and more comfortable.
It will be discussed with our clients the value through the development program and that translated into some pricing improvements over time.
In terms of the infrastructure work and platforms, but we are very much seeing that I think is large.
<unk> transformation that is in place with clients. We mentioned our digital business is growing at over 40% our cloud business, which is a subset of that is growing faster still.
And we see that being building out the new cloud ecosystem for our clients, whether they agree with public cloud whether they are going with private cloud whether it is in a SaaS partnership whether it is building new platforms, which are fully cloud native cloud first platform so ready.
Any credit driven.
Large fiber, where we see future growth.
Thank you.
Moving on the next question is from sort of the other volatile economic times. So it will be joined by the audio so there would be could you kindly on mute yourself and ask your question.
Right. Thanks for taking my question Hello, Mr. Mike I, just wanted to understand that.
Have raised your guidance by three basis points right. So what gives you the confidence and the timeline omicron injury.
Ranging across the world and.
Yes.
<unk> mean.
Uh huh.
Our opportunities for IP companies I mean.
Of course, it's in.
Health care crisis, but the pattern.
Putting that aside from a business point of view does that mean.
<unk> of opportunities for companies that can put it.
So thanks for your question I think in terms of raising the guidance.
The omicron situations et cetera that has come back to address it.
Obviously, a very serious concern when the health and safety.
Unemployed with everyone around the world.
Our guidance really came from the extremely strong performance that we saw in the third quarter with 7% growth.
During the quarter, a 20 or 21% growth year on year and the buy.
<unk> line that we see.
That we are working on.
And the large deals that we were.
That we converted in.
Q3, which is at $2 5 billion 25 deals across all of us at the door number factors that we believe space and then seeing that.
There is comfortable in.
Scaling up our capabilities and capacity in supplying what our clients need in service and providing the service that they need all of those factors didn't increase the guidance.
Zinc omicron.
Very important and serious and situations where.
We are extremely focused on the safety and wellbeing of our employees. We've already moved very quickly as we have done the last time on the work from home and the London share. Some statistics on a vaccination all around the world supporting our employees and we have estimated what could be a sound.
The impact on how that work will be executed for our clients and then factoring that in we haven't come up with the guidance, which we have increased.
Yes.
Okay. Another question I have is given the talent shortage in the industry.
How long are you one making sure that people who are the avenues and secondly, the skilling.
Skilling programs change like Mr. Roy mentioned that 55000 is the fresher hiring target for this year. So are you training them in a way that they can sort of make up for the shortage.
Lateral hiring hiring due to the crime.
Let me start.
And then I can add anything to add to that afterwards as well.
The main focus for US was to make sure. It is to make sure that everything we're doing with employees.
Is something that is supporting them, whether it be engagement with them looking after them. The scaling that is a big part of what Infosys has been doing all through these initiatives can impact the ongoing extending the support to comment.
Lots of interesting things, where even a neighborhood and a medical and other support.
And then making sure that <unk> been developing a long term career with inputs.
Enforcing building their skills and saw this past quarter in Q2, we added over 1400 <unk>.
Into the Infosys family and the London shared earlier that our plan for this financial year is to recruit 55000 colleague Jackie.
All of these things and making sure that we have with getting <unk>.
Through working on projects that our clients are looking to drive and then digital transformation and also helping to build a long term career all of the employees within.
Thank you.
The next question is from <unk> from the inform it.
Cynosure joined doesn't audio tightly that Nutrisystem ask your question.
Hi, Thanks for the opportunity.
So listen I just want to know.
The comment on your comment on slide 23 budgets.
Naomi six for FY 'twenty two from clients and also I think the FSA is your biggest bucket do you see.
Bob.
Yes.
<unk> client, especially pricing input Craig.
As a result interest rate hikes.
And then another question for you just a straight question can you also share.
The volume of people on our side basically campus.
Thank you.
So first in terms of the calendar year.
This is just started.
We don't give guidance beyond that but.
The view that we have today is.
All of our discussions with our clients is giving us good confidence that that digital transformation programs are continuing at the same page and that theyre moving forward across different industries with what they are flat.
In terms of financial services.
<unk>.
Increasing.
<unk>, indicating that they will increase the interest rates.
Our financial services growth was strong in jewelry, we continued to see a good pipeline of programs that we're working on there and also the digital transformation in the cloud World Green extremely spot at this stage, we are not seeing any of them Jim.
They're spending all their technology focus.
The fed interest rates of course, we will see how the year progresses, and if that makes any changes ongoing.
Yes. So the question on fresher hiring I think I just answered that I think we are in the college it as we speak.
But also as I said, we've built in the flexibility of having both the campus hiring model plus our off campus hiring model during the year, which gives us the flexibility as demand increases or decreases so I think thats, something which we have startup affected during this COVID-19 time. So we remain quite confident of meeting the overall demand requirements for next year.
Thank you.
The next question is from Jeff Shell Mendonca from Egypt, Brian Jellison into question on text and I must have read it out.
Actual specialist for used alone.
On the revenue per employee.
Our revenue per employee has driven from a year ago.
What's driving that and what is the breakup between net new and renewal in large deals.
So the revenue per employee I think is a very good indicator which shows.
How did you do work is changing.
<unk> separated out.
The parameter, but this gives us a good indication that the more digital we are doing.
So our revenue per employee will go up and with that now shipping growing at 14% and sitting at a very high level is whats reflecting in some of these parameters in terms of net new in the last week and met you was 42% in velocity and so again that gives us.
A good level of confidence that this can be used.
Revenue building momentum as we look ahead into the future.
Thank you.
The next question is from a vena money from Deccan Heroes.
And we now also central question on tax I haven't read it out.
How much are you going to invest on securing your system as a lot of the work. Your employees are doing is sensitive and systems are prone to cyber attacks.
Thanks for that question mentioned extremely critical point.
<unk> put in a tremendous amount of work within the company to ensure that what we are doing with cyber security is world class. We have a very dedicated team that focuses on the cybersecurity work across all of our projects within the company and how we interact with.
Entities outside the company outside so to speak our firewall.
Denny active.
One subcommittee on cyber security, which also looks at this on a quarterly basis.
In that sense. We are doing are not that is required to be done to make sure that all of our work is going on.
First as possible using the latest approaches of cyber security.
Thank you.
Moving to the last question for this evening.
The next question is from Omar <unk> from the New Indian Express Walmart joins an audio Mckinsey on mute yourself and ask your question.
And the need to migrate the.
The future of work is hybrid.
But he is not talking about hybrid so wanted to chime in there you'll see easing in this model and its going to be two years now so and what are the key enablers in adapting to this hybrid geography and also my second question is.
Looking at slide theaters, Malaysia everything.
Sure.
Can we expect more acquisitions in this particular space communications in future.
Thanks for your questions.
Is.
Tremendous amount of resolution and look geography over the past year and a half two years as we position to face the.
First there is a huge amount of flexibility that is now built.
Into our system, which allows.
Our employees to work remotely.
Any configuration.
It was hugely supported by <unk> and all the infrastructure that we have been.
A handoff.
We started hence us in good stead as we were able to swiftly.
Today, we are able to go back and forth with the current demand.
We also moved very quickly to remote working and work from home.
We will do over the next several quarters as we see the situation evolving is.
Naval employees, who work in a hybrid fashion and also open up the campuses.
When the medical safety allows us to do that but we want to make sure that we have tremendous flexibility around employees and then also support our clients, where we need to branded AD requirements, where do we work together for different parts of women.
And we engaged in building social capital that is being absorbed and this for this space. We've been able to next on this up and down as we've seen the last few weeks with the new rates coming in and we feel comfortable over time with more of that in the <unk>.
Medium and long term.
In terms of.
The discussion on the telecommunications space.
Our acquisition of Bushnell.
<unk>.
We've been focused on is the journey looking at what is going on within the digital ecosystem the cloud ecosystem, whether it's in cyber security.
News on Iot.
The areas that we put in the most focus and effort.
We're making sure that we look at a steady pipeline of situations in that what we have recently was a very strong partnership with <unk>, which is a longstanding clients.
For us and someone who has a lot of trust with Infosys in that situation. We expanded some of the work that we did the acquisition.
But we have in general and overall, what youre driving.
Acquisition.
The digital space and we will continue to do that across all of the sectors. We work.
Thank you.
With that we come to an end of the Q&A, we thank our friends from media for being part of this press conference.
Selling and thank you and the London for being here.
Thank you everyone stay safe time submission thanks, everyone for joining us and wish you all are happy with it.
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 to be thank.
Thank you once again for joining us and we hope to meet you in person next quarter stay safe and have a very good evening. Thank you.
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