Infosys Announces Results for the Quarter Ended June 30, 2014

BANGALORE, India, July 11, 2014 /PRNewswire/ --

Q1 revenue growth at 7.1% YoY in USD terms;

Q1 EPS at $ 0.84; YoY growth of 15.1%;

FY 15 revenues expected to grow 7%-9% in USD terms

Financial Highlights

Consolidated results under International Financial Reporting Standards (IFRS) for the quarter ended June 30, 2014

Quarter ended June 30, 2014

  • Revenues were $ 2,133 million for the quarter ended June 30, 2014
    QoQ growth was 2.0%
    YoY growth was 7.1%
  • Net profit was $ 482 million for the quarter ended June 30, 2014
    QoQ growth was (1.0%)
    YoY growth was 15.3%
  • Earnings per share (EPS) was $ 0.84 for the quarter ended June 30, 2014
    QoQ growth was (1.2%)
    YoY growth was 15.1%
  • Liquid assets including cash and cash equivalents, available-for-sale financial assets, certificates of deposits and government bonds were $ 4,943 million as on June 30, 2014 as compared to $ 5,048 million as on March 31, 2014

     (Logo: http://photos.prnewswire.com/prnh/20130122/589162 )

Other Highlights

Infosys and its subsidiaries

  • Added 61 clients during the quarter
  • Added 11,506 employees (gross) during the quarter

161,284 employees as on June 30, 2014 for Infosys and its subsidiaries

"We continue to enjoy the confidence of our clients by demonstrating superior execution capability and value realization," said S. D. Shibulal, CEO and Managing Director. "As I transition the CEO mantle to Vishal, I am confident that he will leverage this strong foundation to take Infosys to greater heights. I wish him the very best."

"We saw positive trends in our large deal wins during the quarter. We believe that this momentum will hold us in good stead as we focus on increasing volumes," said U. B. Pravin Rao, COO. "Employee attrition rates are worrisome and we are implementing various initiatives to retain good talent."

"We improved operational performance as a result of our cost optimization initiatives and a focus on increasing productivity and utilization. This partially offset the impact of compensation increases for our employees this quarter," said Rajiv Bansal, CFO. "It will help us invest in areas that will accelerate growth."

Outlook*

The company's outlook (consolidated) for the fiscal year ending March 31, 2015, under IFRS is as follows:

  • Revenues are expected to grow 7%-9%

Business Highlights   

  • We partnered with a global automotive leader to engineer new concepts in driver awareness and safety telematics. The core principles of the proof of concept were to reduce driver distraction, manage driver load and allow passengers to enable drivers with online navigation capabilities
  • We launched a cloud-based version of our Clinical Trial Supply Management solution to help life sciences companies enhance the efficiency of clinical trial processes and drive greater collaboration between pharmaceutical companies and contract research organizations
  • Our consulting practice continues to deliver innovative solutions for our clients. A leading insurance company has engaged us to develop a smartphone app that allows parents to set up a simple app-based driving agreement with their teenage drivers. The app helps establish where, when and how fast the teen can drive and the teen driver can earn "safe mile" points that can be accumulated and redeemed for rewards
  • We continue to make significant progress in our efforts to accelerate the digital transformation of our clients. Our Cloud and Big Data business has executed over 260 engagements till date and won over 20 new engagements over the past quarter
  • We were engaged by a leading pharmaceutical company to develop a B2C Android app to promote their anti-nicotine initiative. A leading developer of video games partnered with us to design, build and sustain a platform for mobile gaming that presents gamers with a connected experience integrated with social networking platforms
  • Finacle™ sustained its growth momentum with 9 new wins and 13 go lives across the world. Eastern Bank, the largest and oldest mutually owned bank in the United States, selected Finacle e-banking, mobile banking, and enterprise alert solutions to make banking easier for its customers and drive growth. FONDEP, one of Morocco's leading microfinance institutions, chose Infosys Finacle for its strategic core banking transformation program
  • Infosys Public Services Inc. was engaged to improve member service for a National Medicaid and Medicare Plan and reduce operations costs by rationalizing their technology landscape. We migrated their Medicare Advantage administrative systems to the TriZetto FACETS™ platform in a managed capacity model  
  • Our products and platforms business has seen good traction over the quarter. A large Europe-based multinational financial services company, now opening its doors to digital consumers, selected BrandEdge to reassess its growth strategies. A leading sports apparel and accessories trading company in India selected InteractEdge to design and launch the first omni-channel eCommerce website in the country
  • We applied for 5 unique patents, in India and the USA, during the fourth quarter, adding to a total of 523 unique patent applications in various stages of patent prosecution in India, the USA and other jurisdictions. So far we have been granted 177 patents by the United States Patent and Trademark Office, 3 patents by the Luxembourg Patent Office and 1 patent by the Australian Patent Office

Awards and Recognition    

  • The Indo-American Chamber of Commerce recognized Infosys for Excellence in Innovation and Excellence in Environment, Health & Safety
  • Infosys Public Services won the 'Hottest Government Contractor' honor on June 24, 2014 at the 13th annual Northern Virginia Technology Council (NVTC) 'Hot Ticket Awards' for developing innovative solutions to help the government
  • Infosys Public Services was ranked 16th in the 2014 Healthcare Informatics 100, and in the top 20 for three years in a row, based on revenues from healthcare IT products and services
  • Infosys was recognized as a winner in the 2014 Simulating Reality contest organized by MSC Software. The winning team from Infosys used MSC's simulation technologies to better diagnose osteoporosis and accurately quantify fracture risk
  • Infosys was named a major player for providing professional services to the Oil and Gas Industry by IDC Energy Insights
  • During the quarter, Infosys Finacle™ won five international banking excellence awards in partnership with its clients at the annual Asian Banker Awards 2014. These included two awards each for core banking and channel solutions implementation, and one award for its treasury management implementation
  • Infosys BPO won the 2014 Golden Peacock National Training Award. It was also declared a winner at the National Institution for Quality and Reliability Awards in India
  • Infosys BPO and Procter & Gamble jointly won the 2014 Outsourcing Excellence Award
  • Infosys bagged four awards at the KCG Analyst Choice Awards

About Infosys Ltd   

Infosys is a global leader in consulting, technology and outsourcing solutions. We enable clients, in more than 30 countries, to stay a step ahead of emerging business trends and outperform the competition. We help them transform and thrive in a changing world by co-creating breakthrough solutions that combine strategic insights and execution excellence.

Visit http://www.infosys.com to see how Infosys (NYSE: INFY), with US$ 8.25 billion in annual revenues and 160,000+ employees, is Building Tomorrow's Enterprise® today.

Safe Harbor    

Certain statements in this release concerning our future growth prospects are forward-looking statements regarding our future business expectations 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 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 fluctuations in earnings, fluctuations in foreign exchange rates, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal or expiration of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. 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, 2014 and on Form 6-K for the quarter ended December 31, 2013. These filings are available at http://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. In addition, please note that the date of this press release is mentioned at the beginning of the release, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. 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   

Unaudited Condensed Consolidated Balance Sheets as of
(Dollars in millions except share data)   


                                                            June 30, 2014   March 31, 2014
    ASSETS
    Current assets
    Cash and cash equivalents                                       4,164            4,331
    Available-for-sale financial assets                               467              367
    Investment in certificates of deposit                              97              143
    Trade receivables                                               1,524            1,394
    Unbilled revenue                                                  493              469
    Derivative financial instruments                                   16               36
    Prepayments and other current assets                              483              440
    Total current assets                                            7,244            7,180
    Non-current assets
    Property, plant and equipment                                   1,354            1,316
    Goodwill                                                          359              360
    Intangible assets                                                  54               57
    Available-for-sale financial assets                               216              208
    Deferred income tax assets                                        109              110
    Income tax assets                                                 252              254
    Other non-current assets                                           37               37
    Total non-current assets                                        2,381            2,342
    Total assets                                                    9,625            9,522
    LIABILITIES AND EQUITY
    Current liabilities
    Trade payables                                                     17               29
    Current income tax liabilities                                    441              365
    Client deposits                                                     7                6
    Unearned revenue                                                  143              110
    Employee benefit obligations                                      175              159
    Provisions                                                         62               63
    Other current liabilities                                         811              792
    Total current liabilities                                       1,656            1,524
    Non-current liabilities
    Deferred income tax liabilities                                    10               11
    Other non-current liabilities                                      59               54
    Total liabilities                                               1,725            1,589
    Equity
    Share capital- `5 ($0.16) par value 600,000,000
    equity shares authorized, issued and outstanding
    571,402,566 each, net of 2,833,600 treasury shares
    each as of June 30, 2014 and March 31, 2014,
    respectively                                                       64               64
    Share premium                                                     704              704
    Retained earnings                                               8,895            8,892
    Other components of equity                                     (1,763)          (1,727)
    Total equity attributable to equity holders of the
    company                                                         7,900            7,933
    Non-controlling interests                                           -                -
    Total equity                                                    7,900            7,933
    Total liabilities and equity                                    9,625            9,522

Infosys Limited and subsidiaries    

Unaudited Condensed Consolidated Statements of Comprehensive Income  

(Dollars in millions except share and per equity share data)


                                                         Three months Three months
                                                       ended June 30,   ended June
                                                                 2014     30, 2013

    Revenues                                                    2,133        1,991
    Cost of sales                                               1,344        1,296
    Gross profit                                                  789          695
    Operating expenses:
    Selling and marketing expenses                                111          103
    Administrative expenses                                       142          124
    Total operating expenses                                      253          227
    Operating profit                                              536          468
    Other income, net                                             139          103
    Profit before income taxes                                    675          571
    Income tax expense                                            193          153
    Net profit                                                    482          418
    Other comprehensive income
    Items that will not be reclassified to profit or
    loss:
    Re-measurement of the net defined benefit
    liability/(asset)                                              (3)           1

    Items that may be reclassified subsequently to
    profit or loss:
    Fair value changes on available-for-sale
    financial asset                                                 3            -
    Exchange differences on translation of foreign
    operations                                                    (36)        (619)
    Total other comprehensive income, net of tax                  (36)        (618)
    Total comprehensive income                                    446         (200)

    Profit attributable to:
    Owners of the company                                         482          418
    Non-controlling interests                                       -            -
                                                                  482          418
    Total comprehensive income attributable to:
    Owners of the company                                         446         (200)
    Non-controlling interests                                       -            -
                                                                  446         (200)

    Earnings per equity share
    Basic ($)                                                    0.84         0.73
    Diluted ($)                                                  0.84         0.73
    Weighted average equity shares used in computing
    earnings per equity share
    Basic                                                 571,402,566  571,402,566
    Diluted                                               571,402,566  571,402,566

NOTE: 

1. The unaudited Condensed Consolidated interim Balance sheets and Condensed Consolidated interim Statements of Comprehensive Income for the three months ended June 30, 2014 have been taken on record at the Board meeting held on July 11, 2014    

2. A Fact Sheet providing the operating metrics of the company can be downloaded from http://www.infosys.com

Downloads 

Fact Sheet

INR Press Release

Contact 

Investor Relations
Sandeep Mahindroo
+91-80-3980-1018
Sandeep_Mahindroo@infosys.com

Media Relations
Sarah Vanita Gideon, India
+91(80)4156-3373
Sarah_Gideon@Infosys.com

Tara Kozak-Lindsay,
Golin Harris for Infosys
+1(212)373-6020
TKozakLindsay@GolinHarris.com

SOURCE Infosys Ltd




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