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
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Other Highlights
Infosys and its subsidiaries
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:
Business Highlights
Awards and Recognition
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
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
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