Company Profile Infosys Limited - Benori Knowledge Solutions
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Company Profile
Infosys Limited
STANDARD
2020 © Benori Knowledge. All Rights Reserved 1Contents
▪ Company Overview
- Snapshot
- Reporting structure
- Key personnel
▪ Financial Performance
- Company performance
▪ Key Developments
2020 © Benori Knowledge. All Rights ReservedCompany Overview
2020 © Benori Knowledge. All Rights ReservedCompany Overview
Snapshot (1/2)
Snapshot
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.
Business Segments
Revenue
Segment Description
Contribution
Offerings include solutions for capital market, consumer banking, reconciliation, data migration and
Financial Services (FS) 32.0%
management, cards and payments, commercial banking, governance, risk & compliance and mortgages
Includes retail, consumer goods and logistics industry; offerings include digital customer engagement, omni-
Retail 16.4%
channel commerce and supply chain
Includes clients in the telecom OEM, communication and media industry; offerings cover operations, processes,
Communication (COMM) 12.6%
digital transformation and screen convergence
Offerings include automation tools and remote monitoring solutions for mining; services based on automation,
Energy, Utilities, Resources and
12.6% analytics and artificial intelligence for oil and gas; and services for generation, transmission, distribution and
Services (EURS)
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
Offerings include services for application portfolio rationalisation and digital marketing; examples of solutions
Life Sciences (LS) 6.3%
include data and document management, device connectivity, compliance and CRM
Encompasses businesses operating in China, India, Japan, Infosys Public Services and other public services
Others 2.8%
enterprises
Sources: Company website, Annual report 2019 Note: Offerings included are indicative in nature
2020 © Benori Knowledge. All Rights Reserved 4Company Overview
Snapshot (2/2)
Key Facts Key Financials (FY19; US$ B)
Headquarters Bengaluru, India Sales 11.8
Founded 1981
Operating profit 2.7
Stock exchange NYSE, NSE and BSE
Total assets 12.3
Number of employees 228,123
Market cap (as on 1 April 2019) 46.4
Website https://www.infosys.com
The promoter and promoter group includes 22 shareholders. The public owner category includes 9,19,009 shareholders. Key
Ownership Structure 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
The geographic markets of Infosys include North America, Europe, Rest of the World and India, which contributed 60.5%, 24.1%,
Geographic Presence 12.9% and 2.5%, respectively, to the consolidated revenue in FY19. In total, the company has presence in 191 locations across 46
countries.
Sources: Company website, Annual report 2019
2020 © Benori Knowledge. All Rights Reserved 5Company Overview
Reporting structure
CEO
Salil Parekh
President and Executive VP Global Executive VP Group President,
Executive VP, Data Group General
CFO COO Head, Talent and Head, HR Healthcare,
Deputy COO Technology Development
and Analytics Council and CCO
Insurance and LS
Binod R. Krishnamurthy Inderpreet
Nilanjan Roy Ravi Kumar Pravin Rao Satish HC Sawhney Mohit Joshi
Hampapur Shankar
Deputy CFO Retail, CPG and Cisco and Infosys Public
Corporate Legal
Business Finance Logistics Delivery Cyber Services
Procurement and Business Portfolio Data Scientist
Information and Strategy Digital
Services India Business Talent
Insurance Acquisition US
Financial Microsoft and
Services UK Digital
Business Finance Experience
and Revenue
Sources: Company website, Annual report 2019, The Official Board
2020 © Benori Knowledge. All Rights Reserved 6Company Overview
Key personnel
Executive Management
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
U.B. Pravin Rao (COO and Whole-time Director) Nilanjan Roy (CFO)
Pravin joined the company in 1986 and was appointed Nilanjan was appointed as the CFO in March 2019
as the COO in January 2014 He is responsible for managing financial planning,
He has overall strategic and operational responsibility financial risk, record-keeping and financial reporting
for the entire portfolio of Infosys offerings 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
Ravi Kumar S. (President and Deputy COO) Mohit Joshi (President)
Ravi joined Infosys in November 2002 and he leads Mohit joined Infosys in December 2000 and he leads the
the Infosys’ delivery globally across all industry Healthcare, BFSI and Life Sciences domains
segments He is also responsible for company-wide sales operations
He is also responsible for the US talent model to and reporting processes including top account growth
create a technology hub by collaborating with local and large deal pursuits
states, clients and academic ecosystem
Sources: Company website, Annual report 2019
2020 © Benori Knowledge. All Rights Reserved 7Financial Performance
2020 © Benori Knowledge. All Rights ReservedFinancial Performance
Company performance (1/2)
Annual Revenue Trend FY17–19 (US$ B)
In FY19, Infosys reported a revenue of USD$ 11.8 B by registering a
11.8 y-o-y growth of 7.9%. During FY16-19, the company’s revenue increased
12.0 30.0%
10.9 at a CAGR of 7.5%. The growth in revenue can be attributed to:
10.2 Increase in the volume of business across major segments as
10.0 25.0% well as new solutions being offered to the clients
24.7% 24.3% Addition of 345 new customers in FY19 compared to 283
22.8% customers in FY18
8.0 20.0% Operating margin decreased by 1.5 p.p. y-o-y in FY19 mainly due to
10.7% increase in total operating expenses
Revenue (US$ B)
Net margin also decreased by 4.1 p.p. y-o-y in FY19 mainly due to:
6.0 15.0%
Decrease in operating profit and increase in tax expenses by
0.9% on an annual basis
4.0 10.0% 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$
2.0 5.0% 54,038 in FY19
Revenue from software services represented 94.8% of the total revenue
in both FY19 and FY18
0.0 0.0% Guidance (FY20): Revenue growth of 9%–10% in constant currency;
2017 2018 2019 operating margin to be in 21%–23% range
Revenue Operating Profit Margin
Sources: Company website, Annual report 2019, Investor presentations
2020 © Benori Knowledge. All Rights Reserved 9Financial Performance
Company performance (2/2)
Revenue Breakdown (by segment) FY17–19 (US$ B)
12.0 In FY19, all the operating segments except Life Sciences and Others
0.3 reported increase in revenue
0.7
0.4 Overall profitability across most of the segments decreased as
0.7 0.9 compared to FY18 mainly due to:
10.0 0.4
0.7 0.8 1.2 Cross-currency fluctuations, higher cost of technical sub-
0.8 1.0 contractors and investments in areas such as re-skilling of
8.0 0.9 1.5 workforce, investments in digital, localisation strategy and
Revenue (US$ B)
1.3 increased sales and marketing expenses
1.1 EURS business segment reported the highest annual growth of 14.3%—
1.5
6.0 1.4 however, its profitability was lower on account of higher subcontractor
1.3 costs and higher third-party cost related to project specific
1.9 requirements
1.8
4.0 1.7 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
2.0 3.6 3.8 COMM segment profitability was lower on account of higher
3.4
subcontractor costs and due to ramp up and transition costs of large
deals
0.0 Retail segment revenue witnessed an annual increase of over 9.0% due
2017 2018 2019 to increasing demand for digital services—the segmental profit also
increased by 12.7% compared to the previous year
FS Retail COM EURS MFG Hi-Tech LS Others
The company reported 13 large deals with total contract value (TCV) of
US$ 2.7 B in FY19
Sources: Company website, Annual report 2019 2020 © Benori Knowledge. All Rights Reserved 10Key Developments
2020 © Benori Knowledge. All Rights ReservedKey Developments
Press search (1/7)
Partnerships
Date Area Description
EdgeVerve Systems, a subsidiary of Infosys, announced partnership with Idego, a Peru-based digital transformation
Dec 2019 Partnership
consulting organisation, to drive RPA adoption in telecom and financial services companies across Latin America
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
Oct 2019 Partnership
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
The company announced collaboration with Hewlett Packard Enterprise by adopting HPE GreenLake, an as-a-service
offering that offers on-demand infrastructure
Jan 2019 Partnership
The partnership is expected to help customers accelerate digital transformation by enabling them to pay for only
consumed services
Sources: Company website, News articles
2020 © Benori Knowledge. All Rights Reserved 12Key Developments
Press search (2/7)
New Products/Solutions
Date Area Description
Launched three blockchain-powered distributed applications for government services, insurance and supply chain
management domains
Dec 2019 New Applications
These ready-to-subscribe business applications enable fast deployment, interoperability across different systems
involving multiple use-cases on technologies such as IoT and analytics
Introduced Cyber Next platform-based offerings — the platform is enabled by Microsoft Azure Sentinel, a cloud-based
Nov 2019 Product Launch security solution
The new platform is expected to help customers in increasing threat detection and response capabilities
Launched ATP Tour App for the iOS and android devices in partnership with the Association of Tennis Professionals, a men’s
tennis governing body
Nov 2019 App Launch
The app will provide information such as news, live scores, stats, videos and personalised feeds for the tennis sports
fans
Introduced McCamish NGIN platform for the life insurance and annuity industry, including functionalities across all insurance
Sep 2019 Platform Launch
product lines along with features for whole-life, term, annuities and universal life
Sources: Company website, News articles
2020 © Benori Knowledge. All Rights Reserved 13Key Developments
Press search (3/7)
Customer Acquisitions (1/3)
Date Area Description
Customer Selected by Telenet Group, a telecom services provider in Belgium, to drive digital and data transformation programs for
Dec 2019
Acquisition the next five years
Customer Infosys Finacle, a digital banking solution suite from EdgeVerve Systems, was selected by Glory Farmer Development Bank, a
Dec 2019
Acquisition Myanmar-based private bank, to improve and transform its retail banking business
Selected by the Australian Federal Government’s Services to digitise welfare entitlements. The project includes
Customer
Nov 2019 transformation of the entitlement calculation engine (ECE) through an agile and configurable Pega platform
Acquisition
Pega platform is a tool for scalable enterprise-wide, transformational deployments
EdgeVerve Systems was selected as a partner by WM Promus, a London-based IT software and service provider, to develop
Customer
Nov 2019 and deliver an automation solution and assist enterprises in industries such as manufacturing, financial services, airlines and
Acquisition
retail to improve productivity and efficiency
Sources: Company website, News articles
2020 © Benori Knowledge. All Rights Reserved 14Key Developments
Press search (4/7)
Customer Acquisitions (2/3)
Date Area Description
Selected as a strategic IT partner by ARLANXEO, a synthetic rubber company, to deliver IT support and projects for S/4HANA
Customer
Nov 2019 digital ecosystem
Acquisition
Infosys will also act as a preferred partner for the company-wide application development
Selected as a sole technology partner for digital transformation by Movement Mortgage, a US-based mortgage bank
Customer
Nov 2019 Under this agreement, Infosys will provide IT-as-a-Service and will lead the digitisation of the company across 650
Acquisition
locations in 47 states
Partnered with Siemens Gamesa Renewable Energy (SGRE), to digitalise its IT landscape
Customer
Nov 2019 Infosys would provide the end-to-end IT infrastructure transformation including the roll-out of a Software-Defined
Acquisition
Network (SDN), hybrid cloud transformation, digital workplace services and the set-up of an intelligent service desk
Selected by Volvo Cars, a unit of Volvo Group, to offer digital transformation services
Customer
Oct 2019 Services offered will include next-generation application services through agile delivery, automation and other services
Acquisition
optimisation offerings for enterprise digital commercial operations, applications and products
Sources: Company website, News articles
2020 © Benori Knowledge. All Rights Reserved 15Key Developments
Press search (5/7)
Customer Acquisitions (3/3)
Date Area Description
Selected as a technology partner by Toyota Material Handling North America (TMHNA), a forklift sales company, for cloud-
Customer
Aug 2019 based telematics solutions through Infosys’ diagnostics capabilities and remote monitoring services such as system
Acquisition
maintenance, vehicle access control, condition sensing and location tracking
Customer EdgeVerve Systems was selected as a partner by Al Ahli Bank, a Kuwait-based bank, to enable Robotic Process Automation
July 2019
Acquisition (RPA) in operations and information security areas
Customer EdgeVerve Systems was selected as a partner for Ahli United Bank, a Kuwait-based bank, to deploy RPA in the bank’s
April 2019
Acquisition operational processes, to improve the Service Level Agreement (SLAs), reduce errors and accelerate the turnaround time
Announced a three-year technology partnership with Roland-Garros, the venue that hosts the French Open
Customer
March 2019 Under the partnership, Infosys will leverage its solutions in artificial intelligence, big data and analytics, mobility, virtual
Acquisition
and augmented reality to offer fans, players and coaches a new digital experience
Customer Selected as a partner by Rolls-Royce Plc to provide digital solutions and engineering services to help achieve customers’
March 2019
Acquisition increasing needs for sustainable energy
Sources: Company website, News articles
2020 © Benori Knowledge. All Rights Reserved 16Key Developments
Press search (6/7)
Business Expansion
Date Area Description
Opened a new digital innovation centre in Dusseldorf, Germany, to bridge the IT skill gap across Europe and support
Business customers to digitally transform businesses
Nov 2019
Expansion The centre will focus on developing next-generation business suites, cloud-based services, 5G, IoT, Machine Learning and
AI for enterprises
Business Inaugurated a technology and innovation centre in Arizona, US. With the opening of this centre, it plans to hire 1,000
Sep 2019
Expansion American workers in the state by the end of 2023
Business Established a new cyber defense centre in Bucharest, Romania, to provide real-time cybersecurity protection and
July 2019
Expansion monitoring services to global and European businesses
Business Launched an experience design and innovation studio in London, to focus on the development of customer-centric
June 2019
Expansion experience, collaboration and innovation by creating a design coupled with technologies such as 5G, IoT, AI and AR/VR
Established a joint venture with three Japanese firms, i.e., Hitachi (diversified conglomerate), Panasonic Corporation
April 2019 Joint Venture
(electronics company) and Pasona Inc (staffing services company) to strengthen operations in Japan
Sources: Company website, News articles
2020 © Benori Knowledge. All Rights Reserved 17Key Developments
Press search (7/7)
Mergers & Acquisitions
Date Area Description
Acquired Eishtec, an Ireland-based 1,400-employee contact centre company. The transaction is expected to help in the
Oct 2019 Acquisition
growth of its contact centre business as Eishtec and Infosys BPM share some key clients
Infosys Consulting acquired 75.0% shareholding in Stater NV, a mortgage service provider and a subsidiary of ABN AMRO Bank
May 2019 Acquisition The acquisition is expected to strengthen its capabilities as a technology and business management provider for the
mortgage industry in Europe
Acquired 81.0% voting interest in Hitachi Procurement Service Co., Ltd., (HIPUS), a subsidiary of Hitachi Ltd, through its
April 2019 Acquisition 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
Sources: Company website, News articles
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