Salil Parekh, Chief Executive Officer and Managing Director, Nandan Nilekani, Non-Executive Chairman and Pravin Rao, Chief Operating Officer along with couple of other Senior Management executives addressed the call.  

The revenue growth in the first nine months of fiscal 2018, as compared to first nine months of fiscal 2017 clocked 6.5% in dollar terms, 5.6% in constant currency terms and 2.1% in rupee terms. Volumes grew by 1.6% quarter-on-quarter, while realization declined by 0.3% in constant currency terms due to the impact of furloughs and lower working days. Overall realization for the first nine months of FY 2018 is flat due to constant currency compared to first nine months of FY 2017. Saw 1.9% increase in revenue per employee at 53.7K during the quarter.

Pricing realization for Q3 improved by 2.2% year-on-year in reported terms. On a year-on-year basis, for first nine months of this year as compared to the first nine months of last year, pricing realization improved by 0.8% in reported terms and was flat in constant currency terms.

Digital interruption is impacting all clients as the industry is undergoing massive change. Infosys has over 1100 clients. Growth in US affected due to furloughs in December quarter. Deal pipeline is strong. Growth expected to pick up in Calendar year 2018.

IT Industry witnessing opportunities in areas like Digital/Data and analytics/IOT/Cloud/digital customer experience/security/AI/Machine learning. Challenges in the sector continue. Overall sector shifting to business driven agenda. Players need to have agility.

Process to strengthen the board is underway. Board is completely united on the purpose of the company. Legacy matters (pertaining to the last year's fallout within top management) are a thing of the past. Everything is aligned. Focus is on the future.

Based on preliminary assessment, the impact of recent US tax reforms is expected to be neutral.

The company witnessing good success with NIA - a knowledge-based AI platform.

New CEO Salil Parekh has taken full charge on January 22018.

Variable pay-out highest in nine quarters.

Eight large deal wins during the quarter with a TCV of $779 million. While the large deals didn't increase sequentially, the share of renewals within the same was larger.

Share of new services and software improved to 11.6% compared to 11% last quarter- a sequential growth of 6.8%. Revenues from digital services also crossed 25% of overall revenues.

Growth in financial services was impacted in quarter three due to higher than normal furloughs, budget cuts in few large clients and transition underway in some large deals, which will generate revenues over time. Continue to see good traction and stability in spending. Growth expected to pickup in calendar year 2018.

Witnessed strong performance in insurance led by growth from top clients and ramp up of large deals won in previous quarters.

Retail and CPG vertical delivered a strong performance in quarter three, driven by new opportunity conversions leading to higher volumes, especially in the CPG sector. Overall, the sector continues to face sectoral challenges specifically in US, led by Amazon phenomena.

Growth in manufacturing vertical in quarter three was flat due to furloughs in the US, offset by growth in European business.

BPM services had another strong quarter with quarter-on-quarter growth of 4.5% and the year-on-year growth of 17% in the quarter done. Demand for BPM services remains moderate due to commoditization and automation.

Telecom sector is witnessing growing interest in cyber security, artificial intelligence, 5G and cloud computing.

In financial services, there are some signs of improvement in spending trends, led by increased discretionary spending. In Hi-Tech and insurance, management expects lot more focus on optimization of non-discretionary expense. In RCL and manufacturing, expect higher focus on transformational initiatives.

Spending is more visible in digital, cloud, IoT at the expense of traditional IT areas. Win rates in digital and analytics base in BPO space are strong.

See strong demand for digital services across markets. Many large transformation initiated globally are being led by digital.

Digital continues to remain top agenda, driven by tech disruptions.

Business activity is higher in Europe and US.

Financial Highlights:

Infosys Q3 revenues grew year-on-year by 8.0% in USD terms; 5.8% in constant currency terms; 3.0%in INR terms.

Q3 revenues grew sequentially by 1.3% in INR terms; 0.8% in constant currency terms

Q3 operating margin improved to 24.3% from 24.2% in Q2 18

Q3 EPS at Rs 22.55, year-on-year growth of 39.0% and sequential growth of 38.3%

Q3 EPS of Rs 22.55 include positive impact of Rs 6.29 from Advance Pricing Agreement (APA) with the US IRS

9 months year-on-year revenue growth at 2.1% in INR terms; 5.6% in constant currency terms

Q3 cash flow from operating activities were at Rs 4,257 crore, compared to Rs 2,831 crore in Q218

Utilization excluding trainees at all-time high of 84.9%

Q3 standalone attrition declined to 15.8% from 17.2% in Q2 18

The company's tender offer to buy back about 130 million equity shares received a good response from shareholders. The aggregate equity shares bought back by the company amounted to 4.92% of total equity shares outstanding.

FY 18 revenue growth guidance in constant currency retained at 5.5%-6.5%

The Company's outlook (consolidated) for the fiscal year ending March 31, 2018, under IFRS:

Revenues are expected to grow 5.5%-6.5% in constant currency*; Revenues are expected to grow 2.1%-3.1% in INR terms based on the exchange rates as of December 31, 2017**

*FY 17 constant currency rates - AUD/USD – 0.75; Euro/USD – 1.09; GBP/USD – 1.30, **Currency rates as of December 31, 2017 – 1 US $ = ` 63.88