Revenue up 11.1% Year Over Year

Net Income up 163.3% Year Over Year

FUZHOU, China, Oct. 12, 2023 /PRNewswire/ — Shengfeng Development Limited (the "Company" or "Shengfeng"), a contract logistics company in China providing customers with integrated logistics solution services, announced today its unaudited interim financial results for the six months ended June 30, 2023.

Financial highlights for the First Half of 2023

Total revenue increased by approximately 11.1% to approximately $185.0 million for the six months ended June 30, 2023 from approximately $166.5 million for the six months ended June 30, 2022.

Gross profit increased by approximately 24.9% to approximately $22.8 million for the six months ended June 30, 2023 from approximately $18.2 million for the six months ended June 30, 2022.

Net income increased by approximately 163.3% to approximately $6.5 million for the six months ended June 30, 2023 from approximately $2.5 million for the six months ended June 30, 2022.

Mr. Yongxu Liu, Chairman and Chief Executive Officer of Shengfeng, commented, "I am pleased to share the progress we have made in the first half of 2023. Shengfeng Development Limited, as one of the leading contract logistics service providers in China, has been dedicated to providing exceptional logistics solutions to companies in need of storage and delivery assistance. We are pleased to report that our efforts have yielded positive results, reflected in our financial performance. Our total revenue increased by 11.1% YoY (year-over-year), while our gross profit increased by 24.9% YoY. Particularly noteworthy is the growth of our net income, which experienced an increase of 163.3% YoY. We believe that these achievements demonstrate the effectiveness of our experienced management team and our established management system and operation procedures. We are proud to have played a role in improving the transportation, warehousing, and time management efficiency of companies across China. Moving forward, we remain committed to our mission. We will continue to enhance our services and leverage our expertise to provide superior and customized solutions to our clients. By doing so, we aim to solidify our position as a trusted partner in the logistics industry and achieve sustained excellence. We would like to express our deep appreciation to our valued clients and partners for their trust and support. Your confidence in us has been instrumental in our success, and we do not take it for granted. Rest assured, we are fully dedicated to the pursuit of our mission, and our solid financial performance is evidence of our unwavering commitment. With your continued support, I am confident that Shengfeng Development Limited will continue to prosper and deliver outstanding results in the future."

Key Items of Financial Results the First Half of 2023

Revenue

Transportation services

Net revenues generated from our transportation services increased by approximately 12.5% from approximately $154.6 million for the six months ended June 30, 2022 to approximately $174.0 million for the six months ended June 30, 2023. The increase was mainly driven by increasing orders from a new client in the medical industry, as well as the growth of other existing clients’ businesses.

Warehouse storage management services

Net revenue generated from our warehouse storage management services decreased by approximately 12.0% from approximately $10.6 million for the six months ended June 30, 2022 to approximately $9.3 million for the six months ended June 30, 2023, primarily due to shutting down redundant warehouses and focusing on transportation services for the six months ended June 30, 2023.

Cost of revenues

Our cost of revenues was approximately $162.2 million for the six months ended June 30, 2023, increased by approximately 9.4%, from approximately $148.3 million for the six months ended June 30, 2022. Our cost of revenue did not increase proportionately with revenue since we successfully optimized cost structure by outsourcing transport services, reducing redundant departments, and incorporating workforce optimization practices for the six months ended June 30, 2023.

Gross profit

Our overall gross profit increased by approximately 24.9% from approximately $18.2 million for the six months ended June 30, 2022 to approximately $22.8 million for the six months ended June 30, 2023. For the six months ended June 30, 2023 and 2022, our overall gross margin was approximately 12.3% and 11.0%, respectively. The gross margin increased mainly due to our cost structure optimization accomplished by outsourcing transport service, reducing redundant departments, and incorporating workforce optimization practices for the six months ended June 30, 2023.

Operating expenses

Our operating expenses decreased by approximately 0.8% from approximately $14.4 million for the six months ended June 30, 2022 to approximately $14.3 million for the six months ended June 30, 2023 for the following reasons:

Selling and marketing expenses

Our sales and marketing expenses consist primarily of employee wages, rental expenses and benefits for sales and marketing staff, rental expenses, depreciation expenses and other daily expenses which are related to the sales and marketing functions. Selling and marketing expenses decreased by approximately $0.3 million from approximately $3.7 million for the six months ended June 30, 2022, to approximately $3.3 million for the six months ended June 30, 2023, which was attributable to decreased employee wages and benefits, due to workforce optimization practices. 

General and administrative expenses

Our general and administrative expenses consist primarily of employee wages and benefits for corporate employees, rental expenses, depreciation and amortization expense and other expenses which are related to the general corporate functions.

Our general and administrative expenses increased by approximately 2.1% from approximately $10.8 million for the six months ended June 30, 2022, to approximately $11.0 million for the six months ended June 30, 2023, which was attributable to the increase in employee salary and benefits due to increased headcount of the G&A department.

Income before income taxes

As a result of the foregoing, our income before income taxes increased by approximately $5.0 million, or approximately 178.6%, to approximately $7.9 million for the six months ended June 30, 2023 from approximately $2.8 million for the six months ended June 30, 2022.

Provision for income taxes

The effective income tax rate increased from approximately 13.1% for the six months ended June 30, 2022 to approximately 17.9% for the six months ended June 30, 2023. The increase in the effective tax rate is mainly due to increased profit made in subsidiaries that don’t have preferential tax treatment for the six months ended June 30, 2023.

Net income

As a result of the foregoing, our net income increased by approximately $4.0 million, or 163.3%, to approximately $6.5 million for the six months ended June 30, 2023 from approximately $2.5 million for the six months ended June 30, 2022.

About Shengfeng Development Limited

Shengfeng Development Limited is a contract logistics company in China providing customers with integrated logistics solution services. Established in 2001, the Company has developed extensive and reliable transportation networks in China, covering 341 cities across 31 provinces, as of June 30, 2023. The Company provides integrated logistics solutions comprised of B2B freight transportation services, cloud storage services, and value-added services. The Company applies well-established management system and operation procedures to assist companies in China to increase efficiency and improve their own management systems with respect to transportation, warehousing and time management. For more information, please visit the Company’s website: http://ir.sfwl.com.cn/. 

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements, including, but not limited to, the Company’s proposed Offering. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs, including the expectation that the Offering will be successfully completed. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar expressions in this report. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.

Source : Shengfeng Development Limited Announces First Half of Fiscal Year 2023 Unaudited Financial Results

This content was prepared by our news partner, Cision PR Newswire. The opinions and the content published on this page are the author’s own and do not necessarily reflect the views of Siam News Network

SINGAPORE, Oct. 12, 2023 /PRNewswire/ — Caravelle International Group (Nasdaq: CACO), a trailblazing global ocean technology company, is thrilled to announce the signing of a Bareboat Charter Agreement with Kanda Shipping Co. Ltd. This strategic move is not merely a fleet expansion; it marks the company’s drive to retrofit its newly leased bulk transport ship with the transformative Co-Tech wood drying equipment.

With a dedicated $4 million investment for these cutting-edge upgrades, the vessel is set for a comprehensive two-month modification. Once these modifications are complete, it will embark on its first commercial shipping journey, promising a notable uptick in revenue. Additionally, the innovative Co-Tech wood drying model alone presents an opportunity to add a substantial $19 million annually to Caravelle’s revenue stream. Remarkably, a significant portion of this is pure profit, as Co-Tech efficiently utilizes heat from the ship’s exhaust, ensuring minimal ongoing expenses. Maintenance costs, projected to be exceptionally low, are the only anticipated overheads for this operation.

Caravelle International Group’s Chairman shared his thoughts on this groundbreaking initiative, stating, "This venture signals a transformative chapter for Caravelle. The integration of our Co-Tech system is not only a strategic financial move but also showcases our unwavering commitment to innovative and sustainable solutions. Our dual aim of substantial financial growth coupled with an active role in the global battle against climate change showcases the essence of Caravelle’s mission."

Caravelle’s emphasis on its Co-Tech technology, beyond its evident commercial advantages, accentuates the company’s mission of environmental stewardship, merging profitability with a green initiative.

About Caravelle International Group

Caravelle is a global ocean technology company. Its business comprises of two sectors: the traditional business in international shipping, operated by the Topsheen Companies (Topsheen Shipping Group Corporation (Samoa) and its subsidiaries) and the new CO-Tech business under Singapore Garden Technology Pte. Ltd.  As the traditional business, Caravelle’s international shipping business has generated all revenues. The CO-Tech business is a new development building upon the existing shipping business. It enables wood desiccation during the maritime shipping process, with full utilization of the shipping time, space, and the waste heat of exhaust gas from the shipping vessels. Caravelle’s CO-Tech industry has no historical operations and has not generated revenue. Caravelle is headquartered in Singapore.

Forward Looking Statements

This announcement contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, including, without limitation, those with respect to the objectives, plans and strategies of the Company set forth herein and those preceded by or that include the words "believe," "expect," "anticipate," "future," "will," "intend," "plan," "estimate" or similar expressions, are "forward-looking statements". Such statements include, but are not limited to risks detailed in the Company’s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 20-F for the fiscal year ended October 31, 2022. These forward-looking statements involve a number of risks and uncertainties, which could cause the Company’s future results to differ materially from those anticipated. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. All information provided in this press release is as of the date of the publication, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Source : Navigating Future Profits: Caravelle's New Ship & Proprietary Carbon Reduction Tech Set to Surge Revenue and Profit Margins

This content was prepared by our news partner, Cision PR Newswire. The opinions and the content published on this page are the author’s own and do not necessarily reflect the views of Siam News Network

DIAMOND BAR, Calif., Oct. 12, 2023 /PRNewswire/ — As the cold season approaches, Bedsure 2023 is proud to unveil its enhanced collection of Wearable Blanket Hoodies, offering a new level of comfort and convenience. With the slogan "Zzzip into cozy mode," Bedsure brings an innovative range of wearable blanket hoodies that make it easier than ever to experience sleep-inducing comfort and warmth for wearers.

Zzzip into Cozy Mode with Bedsure Wearable Blanket Hoodie

Full Zipper Design as a game-changer

This year, Bedsure goes above and beyond with the introduction of a new full zipper series, which caters to the evolving needs of customers. The full zipper design is a game-changer, providing unparalleled convenience and coziness to wearers.

Bedsure’s full zipper series allows wearers to transform their wearable blanket hoodies into various garments, including pajamas, windbreakers, cotton coats, or regular coats, simply by zipping it up. Unzip it, and it becomes a functional blanket that can be used as a cushion or cover. Unfold it for sleeping, providing warmth, and wear it again when you get up, keeping the warmth with you wherever you go.

In addition, the added zipper ensures effortless wearing and removal without disrupting your hairstyle. When nature calls during the night, simply put it on lightly, eliminating the hassle of searching for the "hole" in the dark. This enhanced convenience will make bedtime rituals even more comfortable.

Fashion Meets Function

This year, Bedsure continues to offer various stylish and modern designs for Wearable Blanket Hoodies that effortlessly complement any wardrobe. Available in a wide range of colors and patterns, these hoodies allow wearers to showcase their personal styles while staying warm and comfortable.

The Bedsure Printed Wearable Blanket Hoodie brings a burst of liveliness to everyday attire with its playful printed designs. From avocados and strawberries to dinosaurs and Santa Claus, you can now wear these fun and colorful patterns to add a touch of whimsy to your home life. With both standard and grade-schooler sizes available, the whole family can join in the fun, dressing up and enjoying quality time together.

Besides, the Bedsure Sherpa Fleece Blanket Hoodie is a bestseller among wearable blankets, offering a stunning selection of 14 vibrant colors to choose from. The wide range of colors allows you to effortlessly match your style, making it a versatile addition to your wardrobe. Whether you’re looking for a cozy treat for yourself or a thoughtful gift for a loved one, this Blanket Hoodie is the perfect choice, offering warmth, comfort, and a pop of personality to brighten up the day.

Bedsure also comes up with its unique oversized series this year to help wearers dress up in a more playful and comfy way. Whether you want to seek more freedom with a zipper or would like to add a poncho characteristic, Bedsure has them all covered.

With the upgraded Wearable Blanket Hoodies collection, Bedsure has taken the concept of comfort to new heights. The new collection is designed to cater to the diverse needs of customers, ensuring that they can experience sleep-inducing comfort with utmost convenience. Bedsure is committed to enhancing your well-being and providing innovative solutions for a cozy and stylish lifestyle.

Bedsure’s 2023 Wearable Blanket Hoodies, including the new full zipper series, are now available for purchase. Experience the revolution in comfort with Bedsure’s Wearable Blanket Hoodies – where sleep-inducing comfort is always at your fingertips.

For more information about Bedsure Wearable Blanket Hoodies, please visit https://www.amazon.com/stores/page/877FBF1B-DFDF-4F65-9007-9CEC39B41E0D?ingress=0&visitId=b9c85673-1394-49dd-93d6-473cb61fd945&lp_slot=auto-sparkle-hsa-tetris&store_ref=SB_A0563673Z74UYD8C7FI5&ref_=sbx_be_s_sparkle_sccd_logo.

Source : Revolutionize Comfort with Bedsure's Wearable Blanket Hoodies: Sleep-Inducing Comfort at Your Fingertips

This content was prepared by our news partner, Cision PR Newswire. The opinions and the content published on this page are the author’s own and do not necessarily reflect the views of Siam News Network

HUNTSVILLE, Ala., Oct. 12, 2023 /PRNewswire/ — Discovery Life Sciences (Discovery), the Biospecimen and Biomarker Specialists, has moved to its new global headquarters at the HudsonAlpha Institute of Biotechnology campus in Huntsville, Alabama. Alongside this relocation, the company’s AllCells cell and gene therapy division has set up its new divisional headquarters in Alameda, California. In addition, Discovery is introducing Olink Explore HT proteomic services and debuting an all-new digital platform.

With support from the State of Alabama and HudsonAlpha, Discovery has opened its new 93,000-square-foot global headquarters building in Huntsville. This distinctive facility combines Discovery’s biospecimen products and multi-omic biomarker and analytics services under one roof. Discovery provides access to one of the world’s largest biospecimen inventories alongside leading genomic, proteomic, molecular pathology, flow cytometry, and cell biology technologies at a scale to serve R&D programs―from target assay validation to the largest global clinical trials, requiring either single or sequential technology assessments. The sample’s chain of custody remains within this single facility, ensuring top-tier quality and rigorous regulatory compliance.

The AllCells Division of Discovery has also moved into its new divisional headquarters at 1640 South Loop Rd Suite 250, Alameda, CA 94502. The new AllCells facility features:

A 20% increase in collection capacity for quicker, more efficient order fulfillment.

Cell manufacturing and processing cleanrooms that meet EU standards.

An improved donor experience with easy accessibility, abundant parking, and a contemporary and inviting atmosphere.

Discovery’s Proteome Center has integrated the Olink Explore HT platform into its services. Explore HT has the capacity to measure over 5,300 proteins while increasing processing throughput capacity to thousands of samples weekly and delivering data four times faster than prior generations. This technology significantly complements the Proteome Center’s existing capabilities, such as Olink Explore, Target, Focus, Flex, mass spectrometry, and Luminex-based services. 

Given its rapid growth and increasing client interest in its diverse offerings, Discovery launched a new company website designed to amplify the digital client experience. The new dls.com features a modernized design and an intuitive user interface to provide a more informative and streamlined digital experience that more accurately reflects the company’s mission and highlights the enhanced branded capabilities of its AllCells and Gentest Divisions.

"Following our acquisition of 13 companies over the last five years, these significant advancements mark the next growth phase in our journey," said Discovery CEO Glenn Bilawsky. "We are reshaping the life sciences laboratory services sector.  With these enhancements, we are even better equipped to advance science and accelerate our clients’ research and development of new diagnostics and therapies to improve patient care."

For more information on Discovery, visit the new www.dls.com.

About Discovery Life Sciences

Discovery Life Sciences is the company of Biospecimen and Biomarker Specialists. We combine a comprehensive commercial biospecimen inventory and procurement network with outstanding multi-omic biomarker service laboratories. Our offerings include genomic, tissue biomarker, proteomic, and cell-based services, accelerating the development of new therapies supported by biomarker and companion diagnostic programs for cancer, infectious disease, and other rare and complex conditions.

Through AllCells, our cell and gene therapy division, we maintain a substantial recallable donor pool, supplying Research Use Only (RUO) and clinical-grade fresh and cryopreserved human cellular materials to support cell and gene therapy programs at any phase of development and scale.

Motivated by leading scientific expertise and innovative application of current technologies, the Discovery team collaborates with customers to rapidly overcome obstacles and achieve results, aiding in making critical research and development decisions with unparalleled speed. We are Science at your Service! For more information, visit www.dls.com.

Source : Discovery Life Sciences Announces Major Strategic Expansions: New State-of-the-Art Facilities, Advanced Technologies, and Global Brand Enhancements

This content was prepared by our news partner, Cision PR Newswire. The opinions and the content published on this page are the author’s own and do not necessarily reflect the views of Siam News Network

DUBAI, UAE, Oct. 12, 2023 /PRNewswire/ — During UBBF 2023, Kim Jin, Vice President of Huawei’s Optical Business Product Line, delivered a keynote speech at the Green All-Optical Network Summit on "F5.5G Innovation, Accelerating New Growth". Based on the analysis of the connectivity upgrade requirements brought by thriving gigabit networks and deterministic 10Gbps experiences in the future, Huawei has released six technical upgrades for striding to F5.5G. These upgrades will aim to promote the overall improvement of experience, architecture, and efficiency, thereby helping operators accelerate the positive business cycle and achieve business success during the smooth evolution to F5.5G. Huawei also calls for all parties in the industry to jointly promote the maturity and application of F5.5G and gradually achieve "10Gbps Everywhere".

Kim Jin delivering a keynote speech

Upgrade from FTTR to FTTR-B, extending from homes to enterprises

FTTR has been deployed for around 10 million households. Huawei FTTR-B applies FTTR to enterprises to provide premium connections in various scenarios, such as commercial buildings, small and medium-sized stores, and small campuses, achieving 2Gbps bandwidth and 300 concurrent users.

Upgrade from premium Wi-Fi to premium broadband, accelerating experience monetization

Premium Wi-Fi has been deployed in more than 60 customer networks worldwide. After the upgrade, premium broadband implements accurate user awareness based on big data analysis, and proactively performs O&M. It improves precision marketing capabilities and users’ broadband satisfaction, and reduces the churn rate.

Upgrade from 10G PON to 50G PON, achieving smooth evolution to 10 Gbps experiences

Huawei, together with 85 operators has deployed more than 17 million 10G PON ports. Compared with the industry average, Huawei 50G PON increases the upstream bandwidth by 20% and reduces the latency from ms-level to us-level, meeting the QoS requirements of multiple services.

New upgrade to Alps-WDM Enhanced, accelerating all-service development

Alps-WDM has been deployed in more than 50 commercial and test networks around the world. Alps-WDM Enhanced improves all-optical switching modules and allows carriers to extend OTN to sub CO sites, meeting multi-scenario and multi-service requirements and improving live-network reuse and flexible deployment capabilities.

Upgrade from 400G to 800G, achieving ultra-large capacity and ultra-long distance backbone network transmission

Huawei has deployed 400G solutions on more than 100 networks around the world. By upgrading materials, algorithms, and structures, Huawei Super 400G/800G solution improves the transmission distance by 20% and reduces the power consumption by 50%. The Super C+L band WSS module implements all-optical switching of multiple bands on the same module, increasing the capacity of single-fiber and the equipment by 100%.

Upgrade from latency map to SLA assurance, accelerating network SLA monetization

Huawei OTN premium private lines provide reliable connections with deterministic latency for more than 10,000 enterprises. This upgrade uses the optimal path recommendation function to improve SLA monetization capabilities, shorten the service TTM to days, and achieve higher than 99.999% network reliability. In this way, it improves efficiency and increases revenue for users.

Six F5.5G technical upgrades promoting comprehensive improvement in terms of experience, architecture, and efficiency

Based on the eight F5.5G-oriented technological innovations released at UBBF 2022, Huawei continues to innovate and release additional six technical upgrades this time to fully improve network capabilities and further promote the industry to stride to F5.5G. Kim Jin said, "In the future, we will continue to develop the optimal solution oriented to F5.5G. We hope to work with global carriers and industry partners to promote the industry development, achieve the vision of OptiX to Everywhere and 10Gbps Everywhere."

Contact
Rita Peng
[email protected]  

Source : Huawei Launches Six F5.5G Technical Upgrades to Improve Network Capabilities and Create a Positive Business Cycle

This content was prepared by our news partner, Cision PR Newswire. The opinions and the content published on this page are the author’s own and do not necessarily reflect the views of Siam News Network

NAUGARD BIO-XL™ Rubber Curing Accelerator is Meeting the Performance Needs of Today’s Rubber Formulator

THE WOODLANDS, Texas, Oct. 12, 2023 /PRNewswire/ — SI Group, a leading performance additives company, announced today it will feature its NAUGARD BIO-XL™ ultra-accelerator for tires and technical rubber goods at the upcoming International Elastomers Conference (IEC). This important event for the rubber industry will be held on October 16-18 at the Huntington Convention Center of Cleveland, in Cleveland, Ohio.

NAUGARD BIO-XL offers enhanced sustainability without compromising performance in key rubber applications such as tires, belts, rubber hoses, footwear, and rubber-based medical devices. This cutting-edge product is formulated with over 85% bio-based content, free from substances of very high concern (SVHC) under REACH and does not generate harmful nitrosamines as listed in TRGS552. It was designed to address the rubber industry’s increased demand for materials that support improved sustainability goals. Customers have also found it to be an excellent alternative to DPG, or Diphenylguanidine, in rubber formulations.

NAUGARD BIO-XL has been well-received by the rubber industry since its introduction at Tire Tech in Hannover, Germany in March 2023. "We are extremely happy with the industry’s response to NAUGARD BIO-XL," said Robert Kaiser, VP Polymer Solutions and Managing Director, EMEA at SI Group. "It is the most recent of many innovations that we have planned to improve the sustainability of the rubber industry."

SI Group’s John Kounavis, Sr. Technical Service Manager for Rubber & Adhesives will be presenting at IEC and will highlight performance data and benefits of NAUGARD BIO-XL for the tire and technical rubber goods markets "Bio-sourced Rubber Curing Ultra-Accelerator for Tires & TRG Applications". Be sure to attend this presentation on Tuesday, October 17 at 1:55 PM EST in Room 26B, Ballroom Level.

SI Group representatives will also be available at booth #750 during IEC. Visit www.siigroup.com to read more about SI Group’s growing portfolio of innovative rubber solutions.

About SI Group
SI Group is a global leader in the innovative technology of performance additives, process solutions, active pharmaceutical ingredients, and chemical intermediates. SI Group solutions are essential to enhancing the quality and performance of countless industrial and consumer goods within the plastics, rubber & adhesives, fuels & lubricants, oilfield, and pharmaceutical industries. SI Group’s global manufacturing footprint includes 20 facilities on three continents, serving customers in 80 countries with approximately 2,000 employees worldwide. In 2021, SI Group received a gold award for corporate social responsibility by EcoVadis and is ranked among the top five percent of more than 50,000 worldwide companies. SI Group innovates and drives change to create value with a passion for safety, chemistry, sustainability, and extraordinary results. Learn more at  www.siigroup.com 

Media Contact:
Joseph Grande
ph: + 1.413.684.2463
[email protected]

Source : SI GROUP TO FEATURE NAUGARD BIO-XL™ AT INTERNATIONAL ELASTOMERS CONFERENCE

This content was prepared by our news partner, Cision PR Newswire. The opinions and the content published on this page are the author’s own and do not necessarily reflect the views of Siam News Network

Q2 growth at 2.3% sequentially with resilient margins of 21.2%. Revenue guidance revised to 1.0%- 2.5%

BENGALURU, India, Oct. 12, 2023 /PRNewswire/ — Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY), a global leader in next-generation digital services and consulting, delivered $4,718 million in Q2 revenues with year-on-year growth of 2.5% and sequential growth of 2.3% in constant currency. Large deal TCV for the quarter was $7.7 billion, with net new of 48%. Operating margin for the quarter increased by 40 bps sequentially to 21.2%. Attrition declined further to 14.6%. FY24 revenue guidance revised to 1.0%-2.5% and operating margin guidance retained at 20%-22%.

"We had our highest large deals value at $7.7 billion in Q2 spread across all verticals and geographies.  This, in an uncertain macro-environment, is a testament to our ability to pivot and stay relevant to the evolving client needs, by delivering the benefits of transformation as well as productivity and cost savings at scale", said Salil Parekh, CEO and MD. "Strong H1 performance with significant large deal wins, builds a solid foundation for the future. The growing adoption of our Generative AI offering, Topaz, is helping us deliver consistent value and expand market share", he added.

2.5% YoY
2.3% QoQ
CC Revenue growth

21.2%
Operating margin

$7.7 bn 
Large deal TCV

4.6% YoY 
Increase in EPS 
(₹ terms)

Guidance for FY24:

Revenue growth of 1.0%-2.5% in constant currency Operating margin of 20.0%-22.0%

1. Key highlights: 

For the quarter ended September 30, 2023

Revenues in CC terms grew by 2.5% YoY and 2.3% QoQ Reported revenues at $4,718 million, growth of 3.6% YoY Operating margin at 21.2%, decline of 0.3% YoY and increase
of 0.4% QoQ Basic EPS at $0.18, growth of 1.7% YoY FCF at $670 million, growth of 13.8% YoY;
FCF conversion at 89.2% of net profit

For six months ended September 30, 2023

 Revenues in CC terms grew by 3.3% YoY Reported revenues at $9,334 million, growth of 3.7% YoY Operating margin at 21.0%, growth of 0.3% YoY Basic EPS at $0.36, growth of 4.0% YoY FCF at $1,369 million, growth of 10.0% YoY;
FCF conversion at 92.8% of net profit

"Our Q2 operating margin of 21.2% demonstrates the early benefits of recently unveiled margin improvement plan and is a clear reflection of our ability to continuously identify opportunities for improving operational efficiencies", said Nilanjan Roy, CFO. "In line with our capital allocation policy, the Board has announced an interim dividend of ` 18 per share, an increase of 9.1% over last year", he added.

2.  Client wins & testimonials

Infosys extended collaboration with Liberty Global to help evolve and scale Liberty Global’s digital entertainment and connectivity platforms leveraging Infosys Topaz. Mike Fries, CEO, Liberty Global, said, "Strengthening and expanding our collaboration with Infosys gives our best-in-class solutions new scale with the ability to reach many more markets and bring positive experiences to more customers. And while it produces substantial central cost savings over time, it also provides excellent opportunities for our talent to grow their specialist skills and nurture impactful careers with Infosys. We look forward to working together to accelerate innovation and make our entertainment solutions even more powerful and engaging as new generations of digital-first customers continue to demand more from us all." Infosys collaborated with Microsoft to accelerate and democratize industry-wide adoption of generative AI. Nicole Dezen, Chief Partner Officer, Microsoft Corp, said, "We’re pleased to expand our collaboration with Infosys to deliver innovative solutions, utilizing Azure OpenAI Service and Azure Cognitive Services, that will help customers develop new business models, and realize new revenue streams. By harnessing the power of generative AI, Infosys will help customers accelerate growth and innovation." Infosys and NVIDIA collaborated to help enterprises boost productivity with generative AI. "Generative AI will drive the next wave of enterprise productivity gains," said, Jensen Huang, Founder and CEO, NVIDIA. "The NVIDIA AI Enterprise ecosystem is ramping quickly to provide the platform for generative AI. Together, NVIDIA and Infosys will create an expert workforce to help businesses use this platform to build custom applications and solutions." Infosys announced a strategic multi-year collaboration with STARK Group to drive technological advancements and provide seamless services to STARK Group’s offices across Europe, leveraging Infosys Topaz. Pernille Geneser, Group CIO, STARK Group, commented, "We at STARK Group are excited to announce our collaboration with Infosys as we embark on a transformation journey to deliver state-of-the-art and future-fit IT services to our colleagues in the Nordics, Austria, Germany and UK. With Infosys’ expertise, we look forward to enhancing the quality of our offerings and kickstarting many new innovations." Infosys together with Microsoft recently executed a strategic Enterprise Resource Planning (ERP) transformation program to help accelerate Talking Rain Beverage Company’s journey towards enhancing their core business capabilities and achieving business transformation. "By partnering with Microsoft and Infosys, we are aligning ourselves with leading technology and expertise in the industry," said, Luke Fisher, Chief Financial Officer, Talking Rain Beverage Company. "This collaboration ensures we can continually enhance our capabilities and drive our business forward. The new ERP system takes our organization to a whole new level, enabling us to access real-time data, make smarter decisions and scale effectively for years to come." Rich Products Corporation (RPC) selected Infosys for a key strategic transformation program to deploy SAP’s S/4HANA solution to simplify and harmonize their business processes, digitally upskill associates, and improve experience for associates and customers. Yexi Liu, Global CIO, RPC, said, "We are looking at this S/4 HANA based transformation to reimagine the way Rich’s operates its business and create unique and distinctive customer value. Our strong collaboration with Infosys will aim to help accelerate our business transformation, reduce technical debt and help shape industry standard business processes to drive operational excellence." Infosys recently launched the Infosys Cobalt Airline Cloud (ICAC), a first-of-its-kind industry cloud offering designed for commercial airlines to help them accelerate their digital transformation journey. Fernando Rocha, CIO, Aeroméxico Airline, said, "We are excited to collaborate with Infosys to leverage the solutions, reference architectures and blueprints of the Infosys Cobalt Airline Cloud. We believe that this platform will enable us to quickly adapt to changing market dynamics, enhance customer experiences, and drive profitable growth. Guaranty Trust Bank selected Infosys Finacle’s Digital Banking Suite for its multi-country digital banking transformation program. Segun Agbaje, Group Chief Executive Officer, Guaranty Trust Holding Company Plc, said, "We are delighted to be working with Infosys Finacle to create a superior, agile, and scalable core banking system that supports our vision of delivering seamless and connected experiences across every customer touchpoint. As an organization, we have always held that the future of banking is digital, largely driven by technology and customers’ preference for secure, convenient, and reliable channels. This is the thinking behind our innovation drive and history of firsts, offering best-in-class financial services across Africa. Infosys Finacle’s digital solutions will significantly transform our operations and facilitate our push towards more innovative, responsive banking." Infosys Public Services announced the opening of its new subsidiary in Canada to help accelerate digital transformation for public sector organizations across the country and provide them access to top tier IT talent and innovative solutions for better delivery of government services to Canadian citizens and businesses. Franco Chirichella, President and CEO, Innovapost, said, "As one of Innovapost’s key strategic partners, Infosys Public Services Canada has helped us successfully deliver IT initiatives to meet the demands of the evolving mail, courier and logistics industry. IPS Canada does a great job of bringing the breadth and depth of their global and Canadian capabilities to Innovapost to support us in meeting our business and technical needs." Infosys transformed Bendigo and Adelaide Bank’s customer and employee experience by helping the bank democratize data, improve data governance, and deliver better banking experience. Nathalie Moss, Practice Lead, Lending Technology at Bendigo and Adelaide Bank, said, "Our employees are now able to service customers faster and more easily due to the centralized document storage and common searchable access approach. The key to the program led by Infosys is findability. The faster we can find all relevant customer documents, the more deeply we understand the customer and the more personalized the service we offer becomes, every time we interact. Better operational flow equals more effective and empowered staff and builds on the award-winning customer experience our Bank consistently offers."

3.  Recognition

Featured in TIME’s World’s Best Companies 2023 list – Infosys was among the top 3 global professional services firms and the only brand from India in the Top 100 global rankings Ranked as one of the Top 3 brands in Kantar BrandZ Most Valuable Indian Brand Rankings 2023 Recognized as one of India’s Best WorkplacesTM for Women 2023 (Top 50 Large Organizations) by the Great Place to WorkTM Institute Ranked among the Top 10 Best Companies for Women in India (BCWI) in 2023 for the fourth year in a row, and as the ‘Champion of Inclusion’ in the Most Inclusive Companies Index (MICI) for the second year in a row, by Avtar and Seramount Honored with the Mahatma Award under the ‘ESG Excellence’ category Infosys Crescent campus in Bengaluru, India, has been recognized as one of the ‘100 Iconic Sustainable Buildings’ by The Bureau of Energy Efficiency, Ministry of Power, Government of India Positioned as a leader in the 2023 Magic Quadrant for Public Cloud IT Transformation Services by Gartner Recognized as a leader in Net Zero Consulting Services PEAK Matrix® Assessment 2023 by Everest Recognized as a leader in Cloud Services PEAK Matrix® Assessment 2023 – North America by Everest Recognized as a leader in Network Transformation and Managed Services PEAK Matrix® Assessment – System Integrators (SIs) 2023 by Everest Recognized as a leader in Data and Analytics (D&A) Services PEAK Matrix® Assessment 2023 by Everest Recognized as a Leader in the IDC MarketScape: Worldwide Finance and Accounting Business Process Services in the Cloud Vendor Assessment 2023 Positioned as a leader in HFS Horizons: Cards & Payments Services Providers 2023 report Positioned as a leader in HFS Horizons: Travel, Hospitality, and Logistics Service Providers, 2023 report Positioned as a leader in HFS Horizons: Enterprise Blockchain Services, 2023 report Positioned as a leader in Automation in Banking NEAT 2023 by NelsonHall Featured in the Constellation ShortList 2023: Customer Experience (CX) Operations Services: Global Featured in the Constellation ShortList 2023: Digital Transformation Services (DTX): Global Featured in the Constellation ShortList 2023: Public Cloud Transformation Services: Global Featured in the Constellation ShortList 2023: AI Services: Global Recognized as 2023 Google Cloud Industry Solution Services Partner of the Year – Supply Chain & Logistics and Google Cloud Specialization Partner of the Year for Application Development Received the Salesforce 2023 Partner Innovation Award in the industry solution awards category Infosys Finacle recognized as the Best Real Time Payments Provider at the MEA Finance Leaders in Payments Conference & Awards 2023 Infosys Finacle recognized as the Best SaaS Provider of the Year (Software) and as Outstanding Wealth Management Solution by a Vendor at the Global BankTech Awards 2023 Infosys recognized as a leader in Cyber Security – Solutions and Services 2023 ISG Provider LensTM study in US, US Public Sector, Australia, and Nordics regions Infosys recognized as a leader in Private Hybrid Cloud – Solutions and Services 2023 ISG Provider LensTM study in US and Australia Infosys recognized as a leader in IoT – Services and Solution 2023 ISG Provider LensTM study in US Infosys recognized as a Leader in ISG Provider Lens™ Retail & CPG Services reports – Managed Services in the US and Europe 2023 Rated as a leader in Avasant’s Digital Masters 2023 RadarView™ Rated as a leader in Avasant’s Canada Digital Services 2023-2024 RadarView™

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. We enable clients in more than 56 countries to navigate their digital transformation. With over four decades of experience in managing the systems and workings of global enterprises, we expertly steer clients, 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.com to see how Infosys (NSE, BSE, NYSE: INFY) can help your enterprise navigate your next.

Safe Harbor

Certain statements in this release concerning our future growth prospects, or our future financial or operating performance are forward-looking statements intended to qualify for the ‘safe harbor’ under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results or outcomes to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the execution of our business strategy, our ability to attract and retain personnel, our transition to hybrid work model, economic uncertainties, technological innovations such as Generative AI, the complex and evolving regulatory landscape including immigration regulation changes, our ESG vision, our capital allocation policy and expectations concerning our market position, future operations, margins, profitability, liquidity, capital resources, and our corporate actions including acquisitions. Important factors that may cause actual results or outcomes to differ from those implied by the forward-looking statements are discussed in more detail in our US Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2023.  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, 2023

March 31, 2023

ASSETS

Current assets

Cash and cash equivalents

1,892

1,481

Current investments

913

841

Trade receivables

3,403

3,094

Unbilled revenue

1,692

1,861

Other Current assets

1,379

1,349

Total current assets

9,279

8,626

Non-current assets

Property, plant and equipment and Right-of-use assets

2,424

2,516

Goodwill and other Intangible assets

1,058

1,095

Non-current investments

1,414

1,530

Unbilled revenue

171

176

Other non-current assets

1,343

1,369

Total non-current assets

6,410

6,686

Total assets

15,689

15,312

LIABILITIES AND EQUITY

Current liabilities

Trade payables

386

470

Unearned revenue

844

872

Employee benefit obligations

315

292

Other current liabilities and provisions

3,134

3,135

Total current liabilities

4,679

4,769

Non-current liabilities

Lease liabilities

798

859

Other non-current liabilities

441

460

Total non-current liabilities

1,239

1,319

Total liabilities

5,918

6,088

Total equity attributable to equity holders of the company

9,720

9,172

Non-controlling interests

51

52

Total equity

9,771

9,224

Total liabilities and equity

15,689

15,312

Extracted from the Condensed Consolidated statement of Comprehensive Income under IFRS for: 

(Dollars in millions except per equity share data)

3 months ended
September 30,
2023

3 months ended
September 30,
2022

6 months ended
September 30,
2023

6 months ended
September 30,
2022

Revenues

4,718

4,555

9,334

8,999

Cost of sales

3,271

3,170

6,481

6,315

Gross profit

1,447

1,385

2,853

2,684

Operating expenses:

   Selling and marketing expenses

213

185

429

378

   Administrative expenses

234

221

463

439

Total operating expenses

447

406

892

817

Operating profit

1,000

979

1,961

1,867

Other income, net (3)

60

65

117

145

Profit before income taxes

1,060

1,044

2,078

2,012

Income tax expense 

309

295

603

574

Net profit (before minority interest)

751

749

1,475

1,438

Net profit (after minority interest)

751

748

1,475

1,437

Basic EPS ($)

0.18

0.18

0.36

0.34

Diluted EPS ($)

0.18

0.18

0.36

0.34

NOTES:

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, 2023, which have been taken on record at the Board meeting held on October 12, 2023. A Fact Sheet providing the operating metrics of the Company can be downloaded from www.infosys.com. Other income is net of 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/2023-2024/q2/documents/ifrs-inr-press-release.pdf

Fact sheet: https://www.infosys.com/investors/reports-filings/quarterly-results/2023-2024/q2/documents/fact-sheet.pdf

Source : Infosys : Highest ever large and mega deal wins with TCV of $7.7 billion lay solid foundation for future

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