uploads/2018/03/INFY_New-Client-Adds-2.png

Infosys Gains from Its Growing Client Portfolio

By

Updated

New client additions

Infosys (INFY) has a strong client portfolio triggered by higher global IT spending. The increased outsourcing trend in the European region, coupled with growing demand for digital transformation across all business segments, may boost its new client additions. In the last five quarters, Infosys added 358 new customers to its account at an average of around 70 clients per year.

In the graph above, we can see the addition of new clients in the last five quarters. In fiscal 3Q18, the company had 79 new customers in its portfolio. Infosys exited fiscal 3Q18 with a total of 1,191 active clients. At the end of fiscal 9M18, Infosys added 210 customers compared with 250 in 9M17.

Article continues below advertisement

The company finished fiscal 2017 with new client additions of 321 against 325 in fiscal 2016. In the last five years, Infosys added 1,340 clients at an average of nearly 268 customers per year. In the same period, its total active customer portfolio expanded at a CAGR[1. compound annual growth rate] of 9.9%.

Customer ticket size

The overall active client size increased 3.4% YoY (year-over-year) in fiscal 3Q18 while it grew at a CAGR of 0.8% in the last five quarters. For fiscal 2017, the active customers stood at 1,162, up 6.0% YoY. In the last five years, it grew at a CAGR of 9.9%.

At the end of fiscal 3Q18, Infosys recorded 110 clients with a ticket size of $50.0 million–$100.0 million. In the last five quarters, the $100.0 million customer portfolio grew at a CAGR of 2.7%, marking its highest growth compared to other customer categories.

The company’s latest partnership with Hewlett Packard Enterprise (HPE) and Adecco Group may boost the company’s client size going forward.

Advertisement

More From Market Realist