Infosys: Broad based growth in H1 of 20.1% in constant currency; Q2 margins expand 150 bps sequentially

Highest large deal TCV of $2.7 bn in last 7 quarters; quarterly attrition declined for 3rd quarter in a row

Share buyback of ₹9,300 crores ($1.13 bn) and interim dividend of ₹6,940 crores ($0.85 bn) announced

BENGALURU,India,Oct. 13,2022 --Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY),a global leader in next-generation digital services and consulting,reported strong Q2 performance with year-on-year growth at 18.8% and sequential growth at 4.0% in constant currency. Year-on-year growth was in double digits across all business segments in constant currency terms. Digital comprised 61.8% of overall revenues and grew at 31.2% in constant currency. Operating margin for the quarter increased sequentially by 150 bps to 21.5%. Large deal TCV for the quarter was robust at $2.7 bn,highest in last 7 quarters. FY 23 revenue guidance is revised to 15%-16%; operating margin guidance is also revised to 21%-22%.

"Our strong large deal wins and steady all-round growth in Q2 reflect the deep relevance and differentiation of our digital and cloud solutions for clients as they navigate their business transformation," said Salil Parekh,CEO and MD. "While concerns around the economic outlook persist,our demand pipeline is strong as clients remain confident in our ability to deliver the value they seek,both on the growth and efficiency of their businesses. This is reflected in our revised revenue guidance of 15%-16% for FY 23," he added.

31.2% YoY

CC Digital growth

18.8% YoY

4.0% QoQ

CC Revenue growth

21.5%

Operating margin

(in $ terms)

11.5% YoY

Increase in EPS

(₹ terms)

$2.7 bn

Large deal TCV

1. Key highlights:

For the quarter ended September 30,2022

Revenues in CC terms grew by 18.8% YoY and 4.0% QoQ

Reported revenues at $4,555 million,growth of 13.9% YoY

Digital revenues at 61.8% of total revenues,YoY CC growth of 31.2%

Operating margin at 21.5%,decline of 2.1% YoY and increase of 1.5% QoQ

Basic EPS at $0.18,growth of 2.5% YoY

FCF at $589 million,decline of 17.3% YoY; FCF conversion at 78.6% of net profit

For six months ended September 30,2022

Revenues in CC terms grew by 20.1% YoY

Reported revenues at $8,999 million,growth of 15.7% YoY

Digital revenues at 61.4% of total revenues,YoY CC growth of 34.5%

Operating margin at 20.7%,decline of 2.9% YoY

Basic EPS at $0.34,growth of 0.8% YoY

FCF at $1,245 million,decline of 21.0% YoY; FCF conversion at 86.6% of net profit

"Operating margins in Q2 expanded sequentially by 150 bps,helped by our operational rigor. While supply side challenges are gradually abating as reflected in the reducing attrition rates,they continue to exert pressure on our cost structure," said Nilanjan Roy,Chief Financial Officer. "In line with the capital allocation policy,the Board has announced an interim dividend of ₹16.50 per share,an increase of 10% over FY 22 interim dividend and an open market share buyback of ₹9,300 crores," he added.

2. Capital allocation

The Board in its meeting held today approved the following:

Buyback of Equity Shares,from the open market route through the Indian stock exchanges,amounting to ₹9,300 crore (Maximum Buyback Size,excluding buyback tax) (app. $1.13 bn*) at a price not exceeding ₹1,850 per share (Maximum Buyback Price),subject to shareholders' approval.

Interim dividend of ₹16.50 per share (app. $0.20 per ADS*) vs. FY 22 interim dividend of ₹15. The total amount of interim dividend will be app. ₹6,940 crores (app. $0.85 bn*).

*USD-INR rate of 82.00

3. Client wins and Testimonials

Currys plc entered into a strategic collaboration with Infosys for technology and business process services,to help accelerate profitable growth of their business across key UK and European markets. "As part of our ongoing transformation,Infosys will help us design and deliver a next-generation Group Business Services capability. This collaboration will give us access to world-class digital operations across UK,Europe and India,benefitting our colleagues and customers with best-in-class technology,systems,and processes; and new sources of competitive advantage for our core business," said Bruce Marsh,Group CFO,Currys plc.

Infosys Cyber Next platform and Palo Alto Networks strengthened Bpost's security posture as part of the cloud transformation journey. Rony Monnaie,CISO,Bpost,said,"While we embarked on our cloud transformation journey,Infosys drove several well-considered cybersecurity initiatives to protect our environment and improve Bpost's overall security posture. Today,both our employees and customers benefit from the secure foundation we now have to deliver and track both mail and parcels."

Spirit AeroSystems entered into a five-year collaboration with Infosys to co-innovate Aerostructure and Systems Engineering Services by leveraging Infosys' next-gen technologies. "At Spirit AeroSystems,we believe our ability to continuously advance our offering at design and engineering levels is one of our competitive differentiators. Our longstanding collaboration with Infosys means we are well-positioned to co-innovate on critical stages of product development,ensuring we continue to pursue the highest standards in quality and airworthiness. This strategic agreement further reinforces our strengths and will leverage mutual synergies to accelerate the development of world-class,sustainable aerostructures and services across our commercial and aftermarket business segments," said,Dr. Sean Black,Senior Vice President and Chief Engineer,Engineering and Technology,Spirit AeroSystems.

Infosys collaborated with Telenor Norway to accelerate their IT modernization and establish Telenor as a product-based organization through a co-managed model. Commenting on this collaboration,Birgitte Engebretsen,CEO,Telenor Norway,"In current times,it is imperative for an organization like Telenor Norway to stay ahead of the curve and ensure that our customers are provided with superior service. To do this,we have to be future-ready. Staying true to our strategy of 'Beyond Connectivity',combined with our powerful collaboration with Infosys,we are excited to embark on this modernization journey that will empower us to serve our customers better."

"Infosys has been our technology partner for more than 5 years. Infosys has helped us transform not only our technology landscape,but also how we engage with students and colleagues helping us to develop new digital solutions and build new data platforms to gain real value and insights to better inform our decision-making," said Judi Turnbull,Director for Information Technology at Open University.

4. Recognitions

Infosys won the 'Most Outstanding Company in India – IT Services Sector' in Asia's Outstanding Companies Poll 2022. Asiamoney has designed this poll to acknowledge the listed companies that have excelled in areas such as financial performance,management team excellence,investor relations activities,and CSR initiatives

Recognized as India's Best Workplaces™ for Women 2022 by Great Place to Work®

Recognized as UK's Best Workplaces™ in Tech 2022 by Great Place to Work®

Recognized among Mexico's Best HR leaders of 2022 by Great Place to Work®

Positioned as a leader in Power & Utilities Industry - Services and Solutions 2022 by ISG Provider lens study in the US

Ranked as a leader in HFS Top 10: Sustainability Services,2022

Positioned as a leader in HFS Top 10: Capital Markets Services,2022

Positioned as a leader in End-to-End Cloud Infrastructure Management Services 2022 by NelsonHall

Ranked as a leader in IDC MarketScape: Asia/Pacific SAP Implementation Services Vendor Assessment,2022

Recognized as a leader in EMEA Service Providers for Energy Transition and New Business Models for Oil and Gas Companies 2022 Vendor Assessment by IDC

Positioned as a leader by NelsonHall in Supply Chain Transformation 2022

Ranked as a leader by NelsonHall in Mortgage & Loan Services 2022

Ranked as a leader in Data and Analytics (D&A) Services PEAK Matrix® Assessment 2022 by Everest

Recognized as a leader in System Integration (SI) Capabilities on Amazon Web Services (AWS) PEAK Matrix® Assessment 2022 by Everest

Recognized as a leader in ServiceNow Services PEAK Matrix® Assessment 2022 by Everest

Positioned as a leader in System Integration (SI) Capabilities on Microsoft Azure PEAK Matrix® Assessment 2022 by Everest

Ranked as a leader in Avasant's Digital Master's 2022 RadarView™

Positioned as a leader in Avasant's Freight and Logistics Digital Services 2022-23 RadarView™

Recognized as a leader in Avasant's Life Sciences Digital services 2022-23 RadarView™

Ranked as a leader in Constellation ShortList™ Blockchain Technology Services

Positioned as a leader in Constellation ShortList™ Campaign to Commerce: Best-of-Breed Commerce Platforms

Ranked as a leader in Constellation ShortList™ Digital Transformation Services (DTX): Global

Positioned as a leader in Constellation ShortList™ Public Cloud Transformation Services: Global

Ranked as a leader in Constellation ShortList™ AI-Driven Cognitive Applications

Recognized as a leader in Constellation ShortList™ Customer Experience (CX) Operations Services: Global

Recognized as a leader in Constellation ShortList™ Metaverse Design and Services

Infosys BPM recognized as LEADER in Everest Group Financial Crime & Compliance Operations – Services PEAK Matrix® Assessment 2022

Infosys BPM ranked as LEADER in Nelson Hall NEAT: Supply Chain Transformation 2022

About Infosys

Infosys is a global leader in next-generation digital services and consulting. Over 300,000 of our people work to amplify human potential and create the next opportunity for people,businesses and communities. With over four decades of experience in managing the systems and workings of global enterprises,we expertly steer clients,in more than 50 countries,as they navigate their digital transformation powered by the cloud. We enable them with an AI-powered core,empower the business with agile digital at scale and drive continuous improvement with always-on learning through the transfer of digital skills,expertise,and ideas from our innovation ecosystem. We are deeply committed to being a well-governed,environmentally sustainable organization where diverse talent thrives in an inclusive workplace.

Visit www.infosys.comto see how Infosys (NSE,BSE,NYSE: INFY) can help your enterprise navigate your next.

SafeHarbor

This Release contains 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933,as amended (the "Securities Act"),and Section 21E of the Securities Exchange Act of 1934,as amended (the "Exchange Act"),that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance and that are based on our current expectations,assumptions,estimates and projections about the Company,our industry,economic conditions in the markets in which we operate,and certain other matters. Generally,these forward-looking statements can be identified by the use of forward-looking terminology such as 'may','anticipate','believe','estimate','expect','continue','intend','will','project','seek','could','would','should' and similar expressions. Those statements include,among other things,statements regarding our business strategy,our expectations concerning our market position,future operations,growth,margins,profitability,attrition,liquidity,and capital resources,our ESG vision,our capital allocation policy,the effects of COVID-19 on global economic conditions and our business and operations,wage increases,change in the regulations including immigration regulation and policies in the United States,and corporate actions including timely completion of the proposed buy-back of our equity shares. These statements are subject to known and unknown risks,uncertainties and other factors which may cause actual results or outcomes to differ materially from those implied by the forward-looking statements. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31,2022. These filings are available at www.sec.gov. Infosys may,from time to time,make additional written and oral forward-looking statements,including statements contained in the Company's filings with the Securities and Exchange Commission and our reports to shareholders. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company unless it is required by law.

Infosys Limited and subsidiaries

Extracted from the Condensed Consolidated Balance Sheet under IFRS as at: (Dollars in millions)

September 30,2022March 31,2022ASSETS

Current assets

Cash and cash equivalents1,8282,305Current investments1,448880Trade receivables3,1222,995Unbilled revenue1,6351,526Other Current assets1,1781,159Total current assets9,2118,865Non-current assets

Property,plant and equipment and Right-of-use assets2,3392,429Goodwill and other Intangible assets1,0721,042Non-current investments1,5571,801Unbilled revenue174124Other non-current assets1,2871,294Total non-current assets6,4296,690Total assets15,64015,555LIABILITIES AND EQUITY

Current liabilities

Trade payables512545Unearned revenue855834Employee benefit obligations276288Other current liabilities and provisions2,9462,766Total current liabilities 4,5894,433Non-current liabilities

Lease liabilities685607Other non-current liabilities489521Total non-current liabilities1,1741,128Total liabilities 5,7635,561Total equityattributable to equity holders of the company9,8289,941Non-controlling interests4953Total equity9,8779,994Total liabilities and equity15,555Extracted from the Condensed Consolidated statement of Comprehensive Income under IFRS for:(Dollars in millions except per equity share data)

3 months ended

September 30,

20223 months ended

September 30,

20216 months ended

September 30,

20226 months ended

September 30,

2021Revenues4,5553,9988,9997,780Cost of sales3,1702,6756,3155,184Gross profit1,3851,3232,6842,596Operating expenses:

Selling and marketing expenses185167378336Administrative expenses221215439423Total operating expenses406382817759Operating profit9799411,8671,837Other income,net (3)6565145142Profit before income taxes1,0441,0062,0121,979Income tax expense295272574540Net profit (before minority interest)7497341,4381,439Net profit (after minority interest)7487331,4371,437Basic EPS ($)0.180.170.340.34Diluted EPS ($)0.180.170.340.34NOTES:The above information is extracted from the audited condensed consolidated Balance sheet and Statement of Comprehensive Income for the quarter and six months ended September 30,2022,which have been taken on record at the Board meeting held on October 13,2022.A Fact Sheet providing the operating metrics of the Company can be downloaded from www.infosys.com.Other Income includes Finance Cost.As the quarter and six months ended figures are taken from the source and rounded to the nearest digits,the quarter figures in this statement added up to the figures reported for the previous quarter might not always add up to the six months ended figures reported in this statement.IFRS INR Press Release: https://www.infosys.com/investors/reports-filings/quarterly-results/2022-2023/q2/documents/ifrs-inr-press-release.pdfFact Sheet: https://www.infosys.com/investors/reports-filings/quarterly-results/2022-2023/q2/documents/fact-sheet.pdf