Company Profile Infosys Limited - Benori Knowledge · 2020. 2. 6. · Company Profile Infosys...

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Company Profile

Infosys Limited

STANDARD

2020 © Benori Knowledge. All Rights Reserved

▪ Company Overview

- Snapshot

- Reporting structure

- Key personnel

▪ Financial Performance

- Company performance

▪ Key Developments

Contents


Company Overview


Company Overview

Business Segments

SegmentRevenue

ContributionDescription

Financial Services (FS) 32.0%Offerings include solutions for capital market, consumer banking, reconciliation, data migration and

management, cards and payments, commercial banking, governance, risk & compliance and mortgages

Retail 16.4%Includes retail, consumer goods and logistics industry; offerings include digital customer engagement, omni-

channel commerce and supply chain

Communication (COMM) 12.6%Includes clients in the telecom OEM, communication and media industry; offerings cover operations, processes,

digital transformation and screen convergence

Energy, Utilities, Resources and

Services (EURS)12.6%

Offerings include automation tools and remote monitoring solutions for mining; services based on automation,

analytics and artificial intelligence for oil and gas; and services for generation, transmission, distribution and

customer networks of utilities

Manufacturing (MFG) 9.9% Offerings include selling bundled services as an ‘outcome as a service’ solution

Hi-Tech 7.5% Offerings include engineering services and digital transformation

Life Sciences (LS) 6.3%Offerings include services for application portfolio rationalisation and digital marketing; examples of solutions

include data and document management, device connectivity, compliance and CRM

Others 2.8%Encompasses businesses operating in China, India, Japan, Infosys Public Services and other public services

enterprises

Snapshot (1/2)

Sources: Company website, Annual report 2019 Note: Offerings included are indicative in nature

Established in 1981, Infosys Limited (Infosys) offers consulting, technology, outsourcing and digital services. It operates through eight

segments and categorises offerings in core and digital. The company operates in 46 countries and is headquartered in Bangalore, India.

Snapshot


Company Overview

The geographic markets of Infosys include North America, Europe, Rest of the World and India, which contributed 60.5%, 24.1%,

12.9% and 2.5%, respectively, to the consolidated revenue in FY19. In total, the company has presence in 191 locations across 46

countries.

Ownership Structure

Key Facts

Headquarters Bengaluru, India

Founded 1981

Stock exchange NYSE, NSE and BSE

Number of employees 228,123

Website https://www.infosys.com

Snapshot (2/2)

Geographic Presence

Key Financials (FY19; US$ B)

Sales 11.8

Operating profit 2.7

Total assets 12.3

Market cap (as on 1 April 2019) 46.4

The promoter and promoter group includes 22 shareholders. The public owner category includes 9,19,009 shareholders. Key

entities holding majority of the shares within the public owner category include Deutsche Bank Trust Company Americas, Life

Insurance Corporation of India, HDFC Mutual Fund, SBI Mutual Fund and ICICI Prudential Mutual Fund.

Owner Category Common Stock Equivalent Held Total Shares Outstanding (%) Market Value (US$ B)

Promoter and Group 56,01,82,338 13.1 6.1

Public 3,67,65,75,155 86.4 40.1

Employee Trust 1,89,29,512 0.4 0.2

Sources: Company website, Annual report 2019

https://www.infosys.com/


Company OverviewReporting structure

CEO

Salil Parekh

CFO

Nilanjan Roy

President and Deputy COO

Ravi Kumar

COO

Pravin Rao

Executive VP Global Head, Talent and

Technology

Binod R. Hampapur

Executive VP Group Head, HR

Development

Krishnamurthy Shankar

Executive VP, Data and Analytics

Satish HC

Group General Council and CCO

Inderpreet Sawhney

President, Healthcare,

Insurance and LS

Mohit Joshi

Deputy CFO

Business Finance

Procurement and

Information

Services

Insurance

Financial

Services UK

Business Finance

and Revenue

Corporate Legal Retail, CPG and

Logistics

Business Portfolio

and Strategy

India Business

Cisco and

Delivery Cyber

Data Scientist

Digital

Talent

Acquisition US

Microsoft and

Digital

Experience

Infosys Public

Services

Sources: Company website, Annual report 2019, The Official Board


Company OverviewKey personnel

Executive Management

Nilanjan Roy (CFO) Nilanjan was appointed as the CFO in March 2019

He is responsible for managing financial planning,

financial risk, record-keeping and financial reporting

Prior to Infosys, he served as the Global CFO of Bharti

Airtel Ltd. and was responsible for overseeing the

finance function across India and Africa

U.B. Pravin Rao (COO and Whole-time Director) Pravin joined the company in 1986 and was appointed

as the COO in January 2014

He has overall strategic and operational responsibility

for the entire portfolio of Infosys offerings

Mohit Joshi (President) Mohit joined Infosys in December 2000 and he leads the

Healthcare, BFSI and Life Sciences domains

He is also responsible for company-wide sales operations

and reporting processes including top account growth

and large deal pursuits

Ravi Kumar S. (President and Deputy COO) Ravi joined Infosys in November 2002 and he leads

the Infosys’ delivery globally across all industry

segments

He is also responsible for the US talent model to

create a technology hub by collaborating with local

states, clients and academic ecosystem

Salil Parekh (CEO and MD) Salil was appointed as a CEO in January 2018

He handles the strategic direction for the company and offerings portfolio

Prior to this, he served as a member of the Group Executive Board at Capgemini

and as a Partner at EY

He has nearly three decades of experience in the IT service industry including

managing acquisitions and executing business turnarounds



Financial Performance


Financial PerformanceCompany performance (1/2)

Annual Revenue Trend FY17–19 (US$ B)

10.2

10.9

11.8

24.7% 24.3%22.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2017 2018 2019

Rev

enu

e (U

S$ B

)

Revenue Operating Profit Margin

In FY19, Infosys reported a revenue of USD$ 11.8 B by registering a

y-o-y growth of 7.9%. During FY16-19, the company’s revenue increased

at a CAGR of 7.5%. The growth in revenue can be attributed to:

Increase in the volume of business across major segments as

well as new solutions being offered to the clients

Addition of 345 new customers in FY19 compared to 283

customers in FY18

Operating margin decreased by 1.5 p.p. y-o-y in FY19 mainly due to

10.7% increase in total operating expenses

Net margin also decreased by 4.1 p.p. y-o-y in FY19 mainly due to:

Decrease in operating profit and increase in tax expenses by

0.9% on an annual basis

Reduced fair value of the disposal group ‘held for sale’ asset

resulted in decline of net profit

Revenue per employee decreased from US$ 54,602 in FY18 to US$

54,038 in FY19

Revenue from software services represented 94.8% of the total revenue

in both FY19 and FY18

Guidance (FY20): Revenue growth of 9%–10% in constant currency;

operating margin to be in 21%–23% range

Sources: Company website, Annual report 2019, Investor presentations


Financial PerformanceCompany performance (2/2)

Revenue Breakdown (by segment) FY17–19 (US$ B)

3.4 3.6 3.8

1.71.8

1.9

1.31.4

1.51.1

1.31.50.9

1.0

1.20.8

0.8

0.9

0.7

0.7

0.7

0.4

0.4

0.3

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2017 2018 2019

Revenue (

US$ B

)

FS Retail COM EURS MFG Hi-Tech LS Others

In FY19, all the operating segments except Life Sciences and Others

reported increase in revenue

Overall profitability across most of the segments decreased as

compared to FY18 mainly due to:

Cross-currency fluctuations, higher cost of technical sub-

contractors and investments in areas such as re-skilling of

workforce, investments in digital, localisation strategy and

increased sales and marketing expenses

EURS business segment reported the highest annual growth of 14.3%—

however, its profitability was lower on account of higher subcontractor

costs and higher third-party cost related to project specific

requirements

The MFG segment revenue increased by over 12% — profitability was

also up by 33.3% y-o-y due to an increase in offshoring as well as

booking contingency loss provisions on various projects

COMM segment profitability was lower on account of higher

subcontractor costs and due to ramp up and transition costs of large

deals

Retail segment revenue witnessed an annual increase of over 9.0% due

to increasing demand for digital services—the segmental profit also

increased by 12.7% compared to the previous year

The company reported 13 large deals with total contract value (TCV) of

US$ 2.7 B in FY19



Key Developments


Key DevelopmentsPress search (1/7)

Partnerships

Date Area Description

Dec 2019 PartnershipEdgeVerve Systems, a subsidiary of Infosys, announced partnership with Idego, a Peru-based digital transformation

consulting organisation, to drive RPA adoption in telecom and financial services companies across Latin America

Oct 2019 Partnership

Infosys partnered with SAP, a Germany-based enterprise application software provider, to accelerate enterprise digital

transformation for its customers, through a new strategic program named Innov8

In addition, both the companies are engaged in creating a joint go-to-market engagement model between the Innov8

program from Infosys and project Embrace from SAP

Jan 2019 Partnership

The company announced collaboration with Hewlett Packard Enterprise by adopting HPE GreenLake, an as-a-service

offering that offers on-demand infrastructure

The partnership is expected to help customers accelerate digital transformation by enabling them to pay for only

consumed services

Sources: Company website, News articles



New Products/Solutions


Dec 2019 New Applications

Launched three blockchain-powered distributed applications for government services, insurance and supply chain

management domains

These ready-to-subscribe business applications enable fast deployment, interoperability across different systems

involving multiple use-cases on technologies such as IoT and analytics

Nov 2019 Product Launch

Introduced Cyber Next platform-based offerings — the platform is enabled by Microsoft Azure Sentinel, a cloud-based

security solution

The new platform is expected to help customers in increasing threat detection and response capabilities

Nov 2019 App Launch

Launched ATP Tour App for the iOS and android devices in partnership with the Association of Tennis Professionals, a men’s

tennis governing body

The app will provide information such as news, live scores, stats, videos and personalised feeds for the tennis sports

fans

Sep 2019 Platform LaunchIntroduced McCamish NGIN platform for the life insurance and annuity industry, including functionalities across all insurance

product lines along with features for whole-life, term, annuities and universal life




Customer Acquisitions (1/3)


Dec 2019Customer

Acquisition

Selected by Telenet Group, a telecom services provider in Belgium, to drive digital and data transformation programs for

the next five years

Dec 2019Customer

Acquisition

Infosys Finacle, a digital banking solution suite from EdgeVerve Systems, was selected by Glory Farmer Development Bank, a

Myanmar-based private bank, to improve and transform its retail banking business

Nov 2019Customer

Acquisition

Selected by the Australian Federal Government’s Services to digitise welfare entitlements. The project includes

transformation of the entitlement calculation engine (ECE) through an agile and configurable Pega platform

Pega platform is a tool for scalable enterprise-wide, transformational deployments

Nov 2019Customer

Acquisition

EdgeVerve Systems was selected as a partner by WM Promus, a London-based IT software and service provider, to develop

and deliver an automation solution and assist enterprises in industries such as manufacturing, financial services, airlines and

retail to improve productivity and efficiency






Nov 2019Customer

Acquisition

Selected as a strategic IT partner by ARLANXEO, a synthetic rubber company, to deliver IT support and projects for S/4HANA

digital ecosystem

Infosys will also act as a preferred partner for the company-wide application development

Nov 2019Customer

Acquisition

Selected as a sole technology partner for digital transformation by Movement Mortgage, a US-based mortgage bank

Under this agreement, Infosys will provide IT-as-a-Service and will lead the digitisation of the company across 650

locations in 47 states

Nov 2019Customer

Acquisition

Partnered with Siemens Gamesa Renewable Energy (SGRE), to digitalise its IT landscape

Infosys would provide the end-to-end IT infrastructure transformation including the roll-out of a Software-Defined

Network (SDN), hybrid cloud transformation, digital workplace services and the set-up of an intelligent service desk

Oct 2019Customer

Acquisition

Selected by Volvo Cars, a unit of Volvo Group, to offer digital transformation services

Services offered will include next-generation application services through agile delivery, automation and other services

optimisation offerings for enterprise digital commercial operations, applications and products






Aug 2019Customer

Acquisition

Selected as a technology partner by Toyota Material Handling North America (TMHNA), a forklift sales company, for cloud-

based telematics solutions through Infosys’ diagnostics capabilities and remote monitoring services such as system

maintenance, vehicle access control, condition sensing and location tracking

July 2019Customer

Acquisition

EdgeVerve Systems was selected as a partner by Al Ahli Bank, a Kuwait-based bank, to enable Robotic Process Automation

(RPA) in operations and information security areas

April 2019Customer

Acquisition

EdgeVerve Systems was selected as a partner for Ahli United Bank, a Kuwait-based bank, to deploy RPA in the bank’s

operational processes, to improve the Service Level Agreement (SLAs), reduce errors and accelerate the turnaround time

March 2019Customer

Acquisition

Announced a three-year technology partnership with Roland-Garros, the venue that hosts the French Open

Under the partnership, Infosys will leverage its solutions in artificial intelligence, big data and analytics, mobility, virtual

and augmented reality to offer fans, players and coaches a new digital experience

March 2019Customer

Acquisition

Selected as a partner by Rolls-Royce Plc to provide digital solutions and engineering services to help achieve customers’

increasing needs for sustainable energy




Business Expansion


Nov 2019Business

Expansion

Opened a new digital innovation centre in Dusseldorf, Germany, to bridge the IT skill gap across Europe and support

customers to digitally transform businesses

The centre will focus on developing next-generation business suites, cloud-based services, 5G, IoT, Machine Learning and

AI for enterprises

Sep 2019Business

Expansion

Inaugurated a technology and innovation centre in Arizona, US. With the opening of this centre, it plans to hire 1,000

American workers in the state by the end of 2023

July 2019Business

Expansion

Established a new cyber defense centre in Bucharest, Romania, to provide real-time cybersecurity protection and

monitoring services to global and European businesses

June 2019Business

Expansion

Launched an experience design and innovation studio in London, to focus on the development of customer-centric

experience, collaboration and innovation by creating a design coupled with technologies such as 5G, IoT, AI and AR/VR

April 2019 Joint VentureEstablished a joint venture with three Japanese firms, i.e., Hitachi (diversified conglomerate), Panasonic Corporation

(electronics company) and Pasona Inc (staffing services company) to strengthen operations in Japan




Mergers & Acquisitions


Oct 2019 AcquisitionAcquired Eishtec, an Ireland-based 1,400-employee contact centre company. The transaction is expected to help in the

growth of its contact centre business as Eishtec and Infosys BPM share some key clients

May 2019 Acquisition

Infosys Consulting acquired 75.0% shareholding in Stater NV, a mortgage service provider and a subsidiary of ABN AMRO Bank

The acquisition is expected to strengthen its capabilities as a technology and business management provider for the

mortgage industry in Europe

April 2019 Acquisition

Acquired 81.0% voting interest in Hitachi Procurement Service Co., Ltd., (HIPUS), a subsidiary of Hitachi Ltd, through its

subsidiary Infosys Consulting Pte Limited (Infosys Consulting) for approximately US$ 30 M

The acquisition is expected to help in building local presence in the region



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Company Profile Infosys Limited - Benori Knowledge · 2020. 2. 6. · Company Profile Infosys...

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Transcript of Company Profile Infosys Limited - Benori Knowledge · 2020. 2. 6. · Company Profile Infosys...