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Master Of Execution
The transformation and digital strategy launched in January 2018 has been well received by their clients and leadership team has executed it well.
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FY20 is not just another fiscal year. Never has the transition between two financial years been as tumultuous for the global economy. The pandemic, no doubt, is a sobering reminder of how the world can change in unforeseeable ways. But things moved pretty steadily for Infosys, the country’s second largest software exporter which reported a total income of Rs 93,594 crore during the 12-month period ended March 31, 2020 against Rs 85,557 crore a year ago. It posted a net profit of Rs 16,594 crore in FY20 as against Rs 15,404 crore a year ago, while reporting an EPS of Rs.38.91 for FY20 as compared to Rs 35.38 for FY19.
“I am proud of the Infosys team that has worked exceptionally well to achieve 93 per cent remote working today and ensuring consistent service delivery for our clients in this rapidly changing environment. Our focus on the health of our employees and our commitment to our clients helped us navigate the past few weeks,” said Salil Parekh, CEO and MD. The company had an exceptional year in FY20 during which it grew 9.8 per cent and had an operating margin of 21.3 per cent.
“We continue to remain focused on execution excellence in a period of high uncertainty. Our relentless focus on liquidity will be supported by our strong balance sheet of $3.6 billion cash, backed by accelerated cost take-outs and operational rigour,” says Nilanjan Roy, CFO.
The company’s large transformation deals were pegged at $9 billion with earnings per share growth by 8.3 per cent in US dollar terms. The operating cash flow was $2.6 billion, which grew 15.4 per cent for the year. Infosys ended the year with $3.6 billion in cash on its balance sheet, and announced a dividend payout of $1.1 billion for the year. At the end of the year Infosys had over 2,42,000 employees.
DIGITAL STRATEGY: The transformation and digital strategy launched in January 2018 has been well received by their clients and leadership team has executed it well. A special programme was designed to be more conscious of costs and maintain a strong focus on conserving cash. A strong balance sheet, with $3.6 billion in cash and no debt puts Infosys in an excellent position.
What makes Infosys tick? The needs of the clients are central to Infosys’ decision making. Infosys was quick to pivot its attention to the new needs of clients — cloud, workplace transformation, cost efficiency and automation.
In many ways the recent crisis accelerated the clients’ move along the direction of digital and especially related to cloud activities. As a consequence of Infosys service delivery, it is also seeing a move by several of its clients to trust the company with greater responsibilities and consolidate their work with it.
While the company is extremely focused on its clients, employees, and shareholders, it has continued to support the communities around the world. In India, the Infosys Foundation continues to make tangible and lasting impact across a number of areas and also aims to grow its community work in the US. The post-cloud era characterised by increasingly intelligent, autonomous and selfhealing digital infrastructure has given the digital industry the opportunity to innovate faster. Infosys’s strong balance sheet, great growth momentum, scaled digital systems for its people to deliver collaboratively and an executive management team relentlessly focused on executing the digital strategy, uniquely positions them to deal with the challenges of the testing times and help their clients navigate to the next normal. “Looking ahead, I am optimistic of the opportunities of the work we are doing for our clients and the approach we have put in place with respect to digital and cloud services,” said Parekh.