Infosys Limited

19.4%

lients are placing with us and the strength of our digital and cloud capabilities. Our growth was 19.4% YoY and 6.3% QoQ in constant currency terms. I would like to thank the entire 280,000 employees

6.3%

cing with us and the strength of our digital and cloud capabilities. Our growth was 19.4% YoY and 6.3% QoQ in constant currency terms. I would like to thank the entire 280,000 employees of Infosys f

23.6%

th quarter this time last year. Our growth has been accompanied by resilient operating margins at 23.6%. We delivered these margins while we kept in the forefront our focus on employees with increased

42%

t our focus on employees with increased compensation and benefits. Our digital business grew by 42% and is now 56% of our overall revenues. Within digital, our cloud work is growing even faster, an

56%

employees with increased compensation and benefits. Our digital business grew by 42% and is now 56% of our overall revenues. Within digital, our cloud work is growing even faster, and our Cobalt cl

42.4%

a growth of 19.4% YoY and 6.3% sequentially in constant currency - Our digital business grew by 42.4% YoY and now constitutes 56.1% of our overall revenues. - We had broad-based growth across all o

56.1%

sequentially in constant currency - Our digital business grew by 42.4% YoY and now constitutes 56.1% of our overall revenues. - We had broad-based growth across all our sectors and service lines.

20.5%

s and service lines. All our sectors reported double-digit growth. - Financial Services grew by 20.5%. This is our largest sector and growing exceptionally well. Manufacturing grew at 42.5%, Retail b

42.5%

s grew by 20.5%. This is our largest sector and growing exceptionally well. Manufacturing grew at 42.5%, Retail by 17.2%, Life Sciences by 26.1%. - In terms of geography, North America grew by 23.1

17.2%

This is our largest sector and growing exceptionally well. Manufacturing grew at 42.5%, Retail by 17.2%, Life Sciences by 26.1%. - In terms of geography, North America grew by 23.1%, Europe by 19.6

26.1%

and growing exceptionally well. Manufacturing grew at 42.5%, Retail by 17.2%, Life Sciences by 26.1%. - In terms of geography, North America grew by 23.1%, Europe by 19.6%. 4 - Our large de

23.1%

2.5%, Retail by 17.2%, Life Sciences by 26.1%. - In terms of geography, North America grew by 23.1%, Europe by 19.6%. 4 - Our large deals were strong at $2.15 bn. - Our onsite mix moved to 2

“In H1 we on-boarded over 25,000 college graduates and for the full year, we have increased the college graduate hiring target to 45,000 globally.”

“We have a strong pipeline and expect steady performance for the segment in the coming quarters.”

“However, we remain confident of our ability to partially offset some of these cost headwinds through the structural cost efficiency improvement measures and deliver well within our margin guidance for the year.”

“With a strong H1 and a robust deal pipeline, we are increasing our revenue growth guidance for the year to 16.5% to 17.5% from 14% to 16% previously.”

“We reiterate our operating margin guidance of 22% to 24% for the full year.”

“Overall, clearly, very good results, it is nice to see the margin execution and the guidance upgrade.”

“To start off with Salil, if you could give us a sense about how you feel about demand visibility given where you see the increasing guidance, but we continue to see a drop in the large deals size.”

“With that, we feel good today to increase the revenue growth guidance and that is the clearest indication that the demand is looking quite good right now.”

“So overall, we are still in a good shape with the demand and feeling quite confident with the way we have increased the guidance.”

“But overall, I think for the margin guidance perspective, we are quite comfortable to stay within the 22% to 24%.”

Operating parameters continued to improve further

1

Moving to business segments

1

These were offset by

1

Operating parameters continued to improve further

- Utilization improved to a new all-time high of 89.2% - Onsite effort mix reduced further to a new low of 23.6% We won 22 large deals of over $50 mn totaling $2.2 bn TCV, 5 each in Financial Services and Energy, Utility, Resources and Services; 3 each in Retail and Manufacturing; 2 each in Communication and HiTech; and 1 each in Life Sciences and Others segments. Region wise 15 were from Americas, 6 were from Europe, and 1 from the Rest of the World. The share of the new deals in Q2 was 37%. Client metrics improved with over $100 mn client count increasing to 35, an increase of 5 YoY. We added 117 new clients in the last quarter. Voluntary last 12-months attrition increased to 20.1%. While attrition has increased on the back of high industry growth and supply tightness, especially in the niche skill areas, we continue to fulfill client commitments through increased hiring, talent reskilling and higher usage of subcons. We have stepped up our hiring program and have added more than 11,

Moving to business segments

6 Starting with Financial Services, I am happy to share that in the last quarter, Infosys was ranked #1 by HFS in the Banking and Financial Services Providers' top 10, 2021. As you are aware our YoY growth was over 20% on constant currency basis this quarter and this industry-leading growth has sustained over the past several quarters. We are seeing strong demand and momentum across all regions. North America, however, continues to lead growth as we execute on large transformation programs and win market share. Banks are increasingly focusing on virtual branches, improved customer experience through AI and analytics, and digital transformation led cost take out agenda. Our focused investments in building strong sub-vertical and platforms capabilities in regional banking, retirement services, mortgages, asset management, and payments are working as a differentiator in winning large deals and digital transformation programs. We are well positioned as full stack digital transformation pla

These were offset by

- 80 basis point benefit due to cost optimization and improvement in operating parameter, - a 50 basis points due to SG&A scale benefits, and - a 30 basis points benefit due to rupee and cross currency movement, Overall leading to a 10 basis points drop in sequential operating margins. Q2 EPS grew by 13% in dollar terms and 12.7% in rupee terms on a YoY basis. DSOs stood at 66 days, an improvement of four days versus the last quarter on the back of robust collection. Free cash flow for the quarter was healthy at $712 mn and as a percentage of net profit, was 97.1% for Q2 and 109.5% for H1. Yield on cash balance was 5.1% compared to 4.9% in Q1. We have completed the buyback of Rs. 9,200 crores on September 8 at an average price of approximately Rs.1,649 per share compared to a maximum buyback price of Rs.1,750 per share, leading to a 1.31% reduction in share capital. With this, the company has returned 9 approximately 82% of the free cash flow for FY20 and FY21 through dividends and buy