And question number two. Q2 EPS grew by 14.9% in dollar terms and by 20.8% in INR on a year-on-year basis. Thank you so much, and all the best. So it’s a combination. You did talk about how legacy is likely to kind of be taken out, the core gets modernized and therefore that trend of negative momentum that we have seen could continue, but we have seen in the last two quarters the pace of core decline accelerate. One, obviously, it’s the combination of the market, but it’s also how we have reacted to the pandemic, the focus that we have put in terms of employee welfare, a lot of engagement with the employees in the virtual world. We definitely see market share gain going on in that play. And secondly, in general, I think the IT spend is always a percentage of overall revenues and more often than not it remains the same steady percentage and people are able to fund some of the discretionary spend or digital spend by repurposing from — taking away from core. What is that target? I think what is also critical is as we see more and more growth that’s going on which relates to experience and how design is working through some of our digital studios, we see some of that work also expanding, and that work has benefits from having some proximity and this can also be done from an offshore perspective. Could you tell us how many of your employees are currently using visas in the U.S.? And even in fact wherever we are seeing some of our core shrinking, we also have a play because part of the core shrinking is also because we are proactively taking ideas to customer, taking cost out and other thing. Salil Parekh — Chief Executive Officer and Managing Director. GST Collections . They are one-timers in terms of deferrals. While we strive to produce the best transcripts, it may contain misspellings and other inaccuracies. So I think those are the combination of things which are sustaining us. We see a very good guidance increase on revenue. Please go ahead. And is it possible to understand how the new versus renewal ratio would be if we exclude Vanguard? We delivered operating margin of 25.4%, which is an expansion of 370 basis points year-on-year and 270 basis points sequentially. Thank you. So we’ve been very, very conscious that we need to get the stability in margins, which is why the 21% to 23% margin guidance was given in the prior two years. We believe our localization approach is a significant market differentiator and will help us better navigate regulatory changes. Yeah. We are paying 100% variable pay for quarter two along with the special incentive, which will be paid to employees in lower levels. Energy, Utilities, Resources & Services vertical is also under pressure due to constrained spending in the oil and gas, travel and hospitality and resources sector. And of course, a lot of it in our business, as you know well, is the steady execution, a continuous sort of traction to that. And given operating model, we can build a good business in them at our margin structure for the future. The Infosys Board announced an interim dividend of Rs 12 per equity share. No, no. In the past three years, we’ve launched six digital centers in the U.S. and hired over 13,000 U.S. workers. And congratulations to the management team on a fantastic quarter. Thank you. We have moved the bottom by two points, so it’s quite a big change in terms of revenue growth guidance. Categories Earnings Call Transcripts, Technology, Infosys Limited (NSE: INFY) Q2 2021 earnings call dated Oct. 14, 2020, Sandeep Mahindroo — Financial Controller and Head – Investor Relations, Salil Parekh — Chief Executive Officer and Managing Director, Pravin Rao — Chief Operating Officer and Whole-Time Director, Yogesh Aggarwal — HSBC Securities — Analyst, Keith Bachman — BMO Capital Markets — Analyst, Sandip Agarwal — Edelweiss Capital — Analyst, Kawaljeet Saluja — Kotak Securities — Analyst, Ladies and gentlemen, good day, and welcome to the Infosys Earnings Conference Call. We however remained cautious on this segment given continuing demand and liquidity issues and possibly increased furloughs in the coming months. Ladies and gentlemen, that was the last question for today. Operating margins expanded by 270 basis points sequentially to 25.4%. share . Recently the U.S. Department of Labor and Homeland Security issued two separate rules, restricting the H-1B Visa program on both scrutinizing qualifications and mandating significantly higher wages. Voluntary attrition for IT services declined to 7.8% and significantly lower than our comfort band of 14% to 15%. Yeah. The onsite offshore mix ratio is difficult to forecast in that sense. Did you just say that the renewals — renewal rates for bookings was I think 14% for the quarter, which is actually very good in terms of incremental new business? Are you seeing a lot more app modernization, cloud migration? But strategically, we have seen that coming down over a period of time and our intent remains to continue to see that onsite offshore mix changing. We continue to have a strong pipeline of deals in this segment and have won two large deals in the last quarter which should help in stabilizing performance for this segment. Jomy Pullokaran. And there is the further effect in Q3, as you know, a good — in Q4 typically, Infosys — historically, we’ve had a fairly muted quarter. Looking ahead, we continue to see strong traction in our business. Thank you. I think most of my questions have been discussed. Our industry-leading performance over the first half of this year has been due to the immense commitment of our over 240,000 employees. The deal pipeline remains at the healthy level and makes us hopeful of the future prospects. The company also informed that the record date of the divided will be Monday, 26th October, 2020, this means if any investor would like to receive the announced dividend, the investor require to purchase the stock of the company at least two working days prior to the record date.The dividend will be credited to the accounts of share holders on or after Wednesday, 11th November, 2020. Obviously, the IT spend is not increasing, so they are really funding this digital transformation initiatives by taking cost out from the core through automation and other means. Of course, it’s a possibility. This is despite the bonus and special incentives. Part of it will be the mix in offshore because clearly this last few months has also demonstrated what could be done in an offshore environment. We believe, obviously, it will work for the next several years. In terms of the offshore, is there a natural limit, I think there is certainly an ability for more of the work to be done offshore. Yeah, hi. For example, scaling our digital, working very focused way on looking at large deals. The hub strategy really helps us in calculating freshers from community colleges, etc. Infosys Limited NSE Symbol:INFY, BSE Security Code:500209 informed the stock exchange, that the Board of Directors of the company have declared an interim 240.00% dividend of Rs.12.00 per equity share of face value of Rs.5.00 for the fiscal year 2020-21. Analysts: Yogesh Aggarwal — HSBC Securities — Analyst Thank you. This is Salil. Results for the Second Quarter ended September 30, 2009. Yeah, yeah. We’re really excited with the way this quarter has played out. So as we mentioned, what we call visa-dependent employees in the U.S., currently we are at about 37%. We see for the Q3 and Q4 steadily improving quarter-on-quarter activity in different industries. When we look at your bid and proposal pipeline for the next six months to 12 months, would you say that the mix is different in terms of renewals versus new deals? Thanks, Ankur. Infosys Ltd. has declared 43 dividends since Oct. 25, 2000. And some of the acquisitions we are doing are also further strengthening already where we are good and where we can expand faster. I heard you quote a $50 million target that you were looking at for your strategic cost initiatives savings. In the past 12 months, Infosys Ltd. has declared an equity dividend amounting to Rs 21.50 per share. So there, Diviya, I think we add — if you look in the previous financial year numbers, growth numbers around 30, 35, in one of the quarters before that even higher, but there are two factors. One, given the fact that the M&A pace is accelerating, is there a way to quantify the expected contributions from M&A to your guidance for fiscal year ’21 in terms of gross? The next question is from the line of Nitin Padmanabhan from Investec. That’s a big — practically over $6 billion business growing at 25%, which is quite remarkable. And there are times when lot of renewals were due for — come due in a particular quarter, but it’s obviously very positive thing. Please go ahead. We’ll initiate the call with some remarks on the performance of the company by Salil, Pravin and Nilanjan on the most recently concluded the quarter before opening up the call for questions. Just as a follow-up to that. Our service delivery continues to be exceptional. This is Pravin here. Thank you. Please note that anything which we say which refers to our outlook for the future is a forward-looking statement, which must be read in conjunction with the risks that the company faces. And we are delighted with the growth we’ve seen overall and in digital and with the margin profile of our business. So the way to look at it is, you have — I mean, you have a pie IT spend. The next question is from the line of Sandip Agarwal from Edelweiss. Just two clarifications, if I may. Thanks a lot. such as mortgage servicing, call center technology and operations, lending services to cater to various government relief programs as well as pick-up of large digital transformation programs. The net new in the total liabilities is 86%. And should that — if I mean one assume as a more sustainable band going forward or any thoughts on this could be welcome? The notification read, "Fixed October 26, 2020 as record date for interim dividend … Free cash flow as a percentage of net profit was 103% for Q2 and 116% for H1. How do you see this in the next — in the rest of the year? So when do you think this will probably stabilize or you think it will continue for long in the same way? So as we’ve talked about the three-pronged approach, we will see some of this come back. Thank you. That absolutely helps. Thank you. Infosys Q2 result highlights: Net profit jumps to Rs 4,110 cr, dividend announced Infosys Q2 Results Highlights: The company said that it has witnessed a 'broad-based growth across all business segments and geographies during the quarter'. What is your understanding on the attrition level going forward? That’s number one. In terms of how are the clients funding it. It’s finally — I mean, we have got a healthy mix of both renewals as well as net new in the mix. Based on the strong performance in H1, we are increasing our guidance on revenue for FY ’21 to 2% to 3% in constant currency terms from the previously announced 0% to 2%. We are completely digital from the inside. You did mention that this time we had a one-time offshore shift because of travel restrictions. I know you said there was tension on some forces at work that would suggest more onshore work, but the cost advantage of offshore work in the quarter was 73.9. Do you think pandemic has put cloud on a faster acceleration than even digital now and we will see those benefits going forward?And also, if you can finally answer on the attrition. Cobalt is built with strong partnerships with leading SaaS, PaaS and infra-as-a-service companies across public, private and hybrid cloud environments. I trust each of you are safe and healthy. In the last quarter, we have been rated as leader in 11 services related capabilities across Digital Pentagon areas by industry analysts. Did you say how much the Vanguard deal was within the $3.15 billion of signings? [Operator Instructions]. On the back of cost optimisation this interim dividend payout is a 50 per cent on year increase Get more Personal Finance News and Business News on Zee Business. However, there are furlough impact in Q3 normally, and traditionally Q4 has always been a soft quarter for Infosys. 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Yield on cash balance improved to 6.33% in Q2 compared to 6.11% in the previous quarter. Infosys Limited (NYSE:INFY) Q2 2021 Earnings Conference Call October 14, 2020 8:30 A.M. We’ve generally modeled it from a view of what we’ve seen as a past view of the business plus the current deals that we have closed and the pipeline that we’re seeing, and we are seeing good traction all around, as we’ve described, and it’s a big change zero to two to two to three. In keeping with some of that and our own capabilities, we launched our own cloud, set of assets under the name of Infosys Cobalt. Indeed an exceptional performance all around. In the past 12 months, Infosys Ltd. has declared an equity dividend amounting to Rs 21.50 per share. Clearly this is an exceptional year in more ways than one with so many moving parts and variable element. Some of that is passed back to our clients as discounts and improve productivity and part of that is a margin improvement strategically. Thanks, Nilanjan. Just to clarify. Benefits from reduction in SG&A and other expenses were offset by increase in depreciation and amortization and cross-currency headwinds. So have you factored in any potential second wave of pandemic coming in the end user market or do you think that this is something which could be over and above to what you will estimate to us? On vendor consolidation, there is discussion. We don’t have a targeted percentage from M&A. Moving to business segments. The Infosys Board announced an interim dividend of Rs 12 per equity share. The company also declared an interim dividend of Rs 12 per equity share and fixed October 26, 2020, as the record date for interim dividend and November 11, 2020, as payment date. And the timing also will not be clear which one will happen first at what speed, but both of those are element points as we look ahead into the mix. Financial Services saw continued improvement in performance both on year-on-year and sequential basis. As well, of course, aspiration is always to improve margins, but in no way can we take the 23% to 24% as something which you can model and go ahead from. We did something in product design. Thank you. Sensex Today. Thank you. We are also focused — they are also focused — they also recognized that employees have been under stress. Number two is, in terms of inorganic, it’s very, very small portion, many of them have just kicked off in terms of the signing implementation. While there are disruptions for segment, we are seeing opening up of pockets, although the pace of recovery may remain sluggish. Check out why Infosys share price is falling today. And second, what kind of a macro environment are you building in your guidance given that the band also is now reduced? I wanted to ask first on margin sustainability. Is that the right way to understand that? Thank you. Number of visas currently at use of your employee base in the U.S. either net new or renewals that are — but just current number of employees out of your employee base that are subject to visas in the U.S.? Many thanks, guys. Part of it I think is some of the strategic choices we’ve made and investments we’ve made over the past several years. It’s slightly more moderated discount environment. But it’s premature to say that how much of this is sustainable. I don’t know there will be an acceleration. On the first one, Pravin, you want to go ahead? And for us that is the most critical part is to continue to show stability rather than exactly what you mentioned was a much more volatile. We added 96 clients during the quarter, while the number of 100 million clients increased by sequentially to reach 30 at the end of quarter two. Hiring in subsequent quarter, quarter four will obviously be dependent on the growth. We restarted promotions in the last quarter at our junior levels, this will now be extended across all levels. H1 EPS grew by 9.5% in dollar terms and 17.1% in INR on a year-on-year basis. And best of luck for next quarter. This is Salil. I think you are right. Thank you very much, and congratulations. The next question is from the line of Pankaj Kapoor from CLSA. And that’s really given us the confidence to increase both the revenue and the margin guidance. But at the end of the day for Infosys the margin band has kept on bouncing around quite a bit in the last three years to four years. Year-on-year growth continued to remain positive and increased further to 2.2% in constant currency. Thank you. You are absolutely right. The second, if Salil, you can take? Thanks for the opportunity. And then there are other areas, for example, on data, on experience, which are in good traction. So cloud is definitely something that’s working very. 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