CHENNAI, April 24, 2015 /PRNewswire/ --
FY 16 revenues expected to grow between 10%-12% in constant currency terms
Dividend pay-out ratio increased to up to 50% of post-tax profits effective FY 15
1:1 bonus issue of equity shares and 1:1 stock dividend of American Depositary Shares
FY 15 EPS grew by 15.0% year on year
Operating margins expanded by 190 bps in FY 15 to 25.9%
Quarterly annualized attrition for Infosys Limited declined to 13.4% in Q4 compared to 23.4% in Q1
Announces definitive agreement to acquire Kallidus Inc. (d.b.a Skava) and invest in Airviz
Financial Highlights
Consolidated results under International Financial Reporting Standards (IFRS) for the year and quarter ended March 31, 2015
Year ended March 31, 2015
Quarter ended March 31, 2015
YoY growth was 7.8% in constant currency;
(Logo: http://photos.prnewswire.com/prnh/20130122/589162)
Other Highlights
"We see the industry going through a fundamental and structural transition. Despite being a challenging quarter, I am encouraged by the early successes in executing our Renew-New strategy, on a foundation of learning," said CEO & MD Dr. Vishal Sikka . "Our focused employee engagement initiatives over the last few months have resulted in containing employee attrition to one of the lowest in recent times. And our investments in innovation and in renewing our capabilities are helping to elevate our client relationships."
"Services growth in the fourth quarter was lower than we expected, though we saw healthy growth in Finacle and our Edge suite. Pricing continues to be under pressure due to increasing commoditization in the traditional outsourcing business, requiring us to ramp up productivity through automation, and enhance our differentiation in large engagements," said U.B. Pravin Rao, COO. "But we are well placed to pursue healthy overall growth in the new fiscal year."
"We were able to improve profitability during the year even as we made investments into our employees and other strategic areas. We have been able to achieve this because of increased operating efficiencies despite a difficult pricing environment", said Rajiv Bansal, CFO. "Consistent with our objective of increasing shareholder returns, the Board has approved an increase in the dividend pay-out ratio to 50% of post-tax profits. The Board has also recommended a 1:1 bonus issue of equity shares and 1:1 stock dividend of American Depositary Shares."
Outlook*
The Company's outlook (consolidated) for the fiscal year ending March 31, 2016, under IFRS is as follows:
*Conversion: AUD/USD - 0.76; Euro/USD - 1.08; GBP/USD - 1.48 for the fiscal 2016.
Business Highlights
As we continue to pursue our dual strategy of renewing the core and innovating into new frontiers, we have witnessed strong client additions this quarter. We have also enhanced our investments in new technologies and education to foster a culture of learning and creativity.
Client wins
Frank Slevin, Chairman, House of Fraser, said, "This program will help us realize faster time to market as we adopt new and advanced technologies to enhance our multichannel business. The benefits from this program will also allow us to achieve our business goals as we go global. We look forward to building a long term strategic relationship with Infosys."
Platforms
Infosys Information Platform (IIP) has seen increased traction in the market. IIP demonstrates our ability to create state-of-the-art platforms by bringing together domain expertise, learnability, the open source ecosystem, and a highly motivated team.
Carlos E. Amesquita, Chief Information Officer, The Hershey Company, said, "At its heart, Hershey is a knowledge company. Infosys and its new IIP platform bring enhanced capabilities and speed to ingest diverse data sets, harmonize and link them together to transform disparate data into actionable knowledge and insights."
Finacle
Finacle™ sustained its business momentum with 23 wins and 11 go-lives this quarter. Discover Financial Services, a leading U.S. direct bank and payment services company, which engaged Finacle last year, won the Celent Model Bank award for its core banking transformation program. During the quarter, an independent assessment of the top 1,000 world banks, revealed that banks powered by Finacle enjoy 50 percent higher return on assets, 30 percent higher return on capital, and 8.1 percent lesser cost to income than others. The research was conducted by Feedback Business Consulting based on the data published by 'The Banker' for top 1000 world banks[1].
[1]The Banker Top 1000 world banks -http://www.thebanker.com/Top-1000-World-Banks
EdgeVerve
EdgeVerve has seen growth both in terms of revenue and client base. We had 12 wins and three client go-lives in the quarter.
Acquisitions, Investments and Partnerships
Speaking about RWE AG's recent engagement with Infosys on design thinking, Peter Terium, Chief Executive Officer, RWE AG, said, "Our company, and in fact, our entire industry is in the midst of a massive transformation. Given the scale of the market disruption, RWE has chosen to go outside in order to better innovate from within when we started our innovation journey more than two years ago. In this change journey, RWE has also recently received the support of our long-term partner Infosys. Infosys helped to bring this exciting capability to life at RWE's Silicon Valley outpost. Our interactions with Infosys on Design Thinking have already yielded great value by increasing the scope of what we even thought of as possible. Through their unique relationship with d.Global and the faculty affiliated with the Stanford d.school, Infosys is helping us to accelerate our learning and to amplify the creativity and quest for excellence that has always been an integral part of RWE. I look forward to an increasingly strategic and collaborative partnership between our companies in the Silicon Valley and around the Globe."
Innovation Fund
This quarter, Infosys announced the creation of an 'Innovate in India Fund' from its $ 500 million Innovation Fund. The $ 250 million (INR 1,550 crore) Innovate in India Fund will be dedicated to investments in promising new Indian companies. These companies will be inducted into the global ecosystem of strategic partners that we are building.
As part of the Infosys Innovation fund, we are announcing the launch of the Infosys Incubator. This incubator will help identify, nurture and grow companies engaged in innovative, new, and disruptive technologies that can help our business, and create future growth areas. By guiding and mentoring these businesses early, we hope to have the first pick of new innovations that we can bring to market and scale, thus improving the chances of viability and long-term success for the startups involved.
Beyond Business
This fiscal Infosys pledged INR 254 crore towards Corporate Social Responsibility (CSR) which is primarily being carried out through the Infosys Foundation, its philanthropic arm.
For the quarter and year ended March 31, 2015, Infosys and its subsidiaries donated $ 11 million and $ 42 million to Infosys Foundation and to the Spark-IT program.
During the quarter, the Association for Computing Machinery (ACM) and the Infosys Foundation announced that Dan Boneh is the recipient of the 2014 ACM-Infosys Foundation Award in the Computing Sciences category. The award recognizes Boneh's ground-breaking contributions to the development of pairing-based cryptography and its application in identity-based encryption. The ACM-Infosys Foundation Award celebrates the finest recent innovations by young scientists and system developers in the computing field. An endowment from the Infosys Foundation provides financial support to the $ 175,000 annual award.
About Infosys Ltd
Infosys is a global leader in consulting, technology, outsourcing and next-generation services. We enable clients, in more than 50 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 165,000+ employees, is helping enterprises renew themselves while also creating new avenues to generate value.
Safe Harbor
Certain statements in this press 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 our Forms 6- K for the quarters ended June 30, 2014, September 30, 2014 and December 31, 2014. 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 April 24, 2015, 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 Interim Balance Sheets as of
(Dollars in millions except equity share data)
March 31, 2015 March 31, 2014
ASSETS
Current assets
Cash and cash equivalents 4,859 4,331
Available-for-sale financial assets 140 367
Investment in certificates of deposit - 143
Trade receivables 1,554 1,394
Unbilled revenue 455 469
Prepayments and other current assets 527 440
Derivative financial instruments 16 36
Total current assets 7,551 7,180
Non-current assets
Property, plant and equipment 1,460 1,316
Goodwill 495 360
Intangible assets 102 57
Investment in Associates 15 -
Available-for-sale financial assets 215 208
Deferred income tax assets 85 110
Income tax assets 654 254
Other non-current assets 38 37
Total non-current assets 3,064 2,342
Total assets 10,615 9,522
LIABILITIES AND EQUITY
Current liabilities
Trade payables 22 29
Derivative Financial Instruments - -
Current income tax liabilities 451 365
Client deposits 4 6
Unearned revenue 168 110
Employee benefit obligations 171 159
Provisions 77 63
Other current liabilities 927 792
Total current liabilities 1,820 1,524
Non-current liabilities
Deferred income tax liabilities 25 11
Other non-current liabilities 8 54
Total liabilities 1,853 1,589
Equity
Share capital- INR 5 ($0.16) par value 1,200,000,000
(600,000,000) equity shares authorized, issued and
outstanding 1,142,805,132 (571,402,566), net of
5,667,200 (2,833,600) treasury shares as of March
31, 2015 (March 31, 2014), respectively 109 64
Share premium 659 704
Retained earnings 10,090 8,892
Other components of equity (2,096) (1,727)
Total equity attributable to equity holders of the
company 8,762 7,933
Non-controlling interests - -
Total equity 8,762 7,933
Total liabilities and equity 10,615 9,522
Infosys Limited and subsidiaries
Unaudited Condensed Consolidated Interim Statements of Comprehensive Income
(Dollars in millions except share and per equity share data)
Three months Three months Year ended Year ended
ended March ended March March 31, March 31,
31, 2015 31, 2014 2015 2014
Revenues 2,159 2,092 8,711 8,249
Cost of sales 1,317 1,318 5,374 5,292
Gross profit 842 774 3,337 2,957
Operating expenses:
Selling and marketing expenses 118 104 480 431
Administrative expenses 169 136 599 547
Total operating expenses 287 240 1,079 978
Operating profit 555 534 2,258 1,979
Other income, net 141 139 560 440
Share in associate's profit /
(loss) - - - -
Profit before income taxes 696 673 2,818 2,419
Income tax expense 198 186 805 668
Net profit 498 487 2,013 1,751
Other comprehensive income
Items that will not be
reclassified to profit or
loss:
Re-measurement of the net
defined benefit
liability/(asset) (2) (10) (8) -
Items that may be reclassified
subsequently to profit or
loss:
Fair value changes on
available-for-sale financial
asset (2) (3) 14 (17)
Exchange differences on
translation of foreign
operations 53 228 (375) (616)
Total other comprehensive
income, net of tax 49 215 (369) (633)
Total comprehensive income 547 702 1,644 1,118
Profit attributable to:
Owners of the company 498 487 2,013 1,751
Non-controlling interests - - - -
498 487 2,013 1,751
Total comprehensive income
attributable to:
Owners of the company 547 702 1,644 1,118
Non-controlling interests - - - -
547 702 1,644 1,118
Earnings per equity share(*)
Basic ($) 0.44 0.43 1.76 1.53
Diluted ($) 0.44 0.43 1.76 1.53
Weighted average equity shares
used in computing earnings per
equity share(*)
Basic 1,142,805,132 1,142,805,132 1,142,805,132 1,142,805,132
Diluted 1,142,833,626 1,142,805,132 1,142,821,470 1,142,805,132
*Adjusted for 1:1 bonus issue in December, 2014
NOTE:
1. The unaudited Condensed Consolidated interim Balance sheets and Condensed Consolidated interim Statements of Comprehensive Income for the three months and year ended March 31, 2015 have been taken on record at the Board meeting held on April 24, 2015
2. A Fact Sheet providing the operating metrics of the company can be downloaded from http://www.infosys.com
IFRS-INR Press Release: http://multivu.prnewswire.com/prnehost/Infosys_INR_press_release.pdf
Fact Sheet: http://multivu.prnewswire.com/prnehost/Infosys_Fact_sheet.pdf
Contact
Investor Relations
Sandeep Mahindroo
+91 80 3980 1018
[email protected]
Media Relations
Sarah Vanita Gideon, India
+91 80 4156 3373
[email protected]
John Gallagher
Brunswick Group for Infosys, USA
+1 415 316 8060
[email protected]
Share this article