BANGALORE, January 14, 2016 /PRNewswire/ --
Q3 sequential revenue growth at 0.6% in USD terms and 1.1% in constant currency
Q3 yoy revenue growth at 8.5% in USD terms and 12.5% in constant currency
FY 16 revenue guidance increased to 12.8%-13.2% in constant currency and 8.9%-9.3% in USD terms on Dec 31st, 2015 exchange rates
Volume growth at 3.1% quarter on quarter
Attrition declined to 13.4% on standalone basis
Continued adoption of grassroots innovation and Aikido offerings
Financial Highlights:
Consolidated results under International Financial Reporting Standards (IFRS) for the quarter ended December 31, 2015
Quarter ended December 31, 2015
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"We are starting to see creative confidence blossoming within Infosys - David Kelley's beautiful idea that innovation is not specific to one department but is an ability within all of us, waiting to unleash our full creative potential. We are seeing Infoscions becoming innovators, bringing innovation and client value to each individual project. This confidence can only come from a culture of learning and empowerment, and this is the kind of company we are endeavoring to create," said Dr. Vishal Sikka, CEO and MD. "Alongside grassroots innovation, we continue to see growing adoption of our Aikido services, bringing the power of intelligent systems, automation and software to amplify the skills and imaginations of our people. This combination helped us deliver encouraging results despite the traditional seasonality of the quarter and the additional headwinds, and will strengthen the execution of our strategy towards consistent profitable growth."
"The healthy volume growth this quarter has been encouraging. The lesser working days and our investments into additional trainees resulted in softer pricing and utilization for the quarter," said U B Pravin Rao, President & COO. "Our continued focus on employee engagement is paying dividends resulting in lower attrition. We continue to simplify our policies and enable greater agility within the company, with the goal of boosting our productivity."
"We have been able to navigate the quarter, better than our earlier expectations," said M.D. Ranganath, CFO. "We will continue to focus on enhancing operational efficiency through multiple levers in the coming quarters."
Outlook*
The Company's outlook (consolidated) for the fiscal year ending March 31, 2016, under IFRS is as follows:
*Conversion: AUD/USD - 0.73; Euro/USD - 1.09; GBP/USD - 1.48
Investments and Acquisitions:
Business Highlights:
We continue to see a great opportunity to rethink the notion of services - bringing the best of human potential together with software and platforms, to drive the digital transformation of the world around us.
Investing in Artificial Intelligence
In December, we announced our participation in OpenAI, a non-profit organization dedicated to developing and advancing Artificial Intelligence, bringing the best AI talent in the world together in the interest of all of us. This initiative adds an important new dimension to our ongoing efforts in AI.
Increasing the Depth of Client Relationships
In Q3, we strengthened relationships with key clients, including renewing existing large scale contracts, opening new accounts and signing four large deals.
Delivering Grassroots Innovation through Zero Distance
Zero Distance, our program to drive innovation in every project, empowering all employees to be innovators, continued to grow in Q3. By the end of Q3, 90% of our delivery organization had done something innovative in an existing project, beyond the statement of work. As recognized in many client surveys the innovation quotient of the organization has improved and zero distance has been recognized in employee surveys as the most impactful and engaging movement in the company.
Matthew Pegge, Head of Service Delivery, TNT, said, "In the 12 months since we partnered with Infosys, they have consistently met or exceeded expectations. A seamless transition of over 721 applications in our complex application landscape, delivered by Infosys across 8 countries through more than 5500 SME sessions has helped establish a solid foundation for the partnership. Then as part of their Zero Distance initiative, Infosys pro-actively identified numerous opportunities to deliver additional value to TNT. For example, the non-invasive automation created for monitoring our mainframe based messaging app is enabling earlier detection and automated resolution of incidents - thus giving higher business stability. There are a number of additional developments in progress based around creating an 'interactive visibility dashboard' which will provide the business with greater insight to enable them to drive further service improvements and operational efficiencies. We are confident that our partnership with Infosys will help us deliver even more value for our business."
Driving Innovation through Aikido Service Offerings
We are seeing continued adoption of our Aikido service offerings across all industries, as clients look to us to help renew their IT landscapes non-disruptively (Ki); leverage new platforms and technologies to open new opportunities (Ai); and bring the power of Design Thinking to find the great problems to solve (Dō).
Infosys Information Platform (IIP) surpassed 200 engagements to date, with 30 in production.
Infosys Automation Platform (IAP) surpassed 121 engagements with 47 in production.
Panaya, Skava & Edge software products continue to see strong adoption.
We have had more than 151 Design Thinking engagements with clients to date, and more than 69,000 employees have been trained in Design Thinking.
Awards and Recognition:
*Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
Board Changes:
On January 14, 2016, the Board appointed Dr. Punita Kumar Sinha as an Independent Director with immediate effect
Ms. Carol M. Browner resigned as Member of the Board effective November 23, 2015. The Board placed on record its deep sense of appreciation for the services rendered by her during her tenure as a Director
The Board recommended the reappointment of Prof. Jeffrey S. Lehman, Independent Director of the Company for a term of two years with effect from April 14, 2016 to hold office upto April 13, 2018, and not be liable to retire by rotation. Prof. Lehman's current term of office as an Independent Director expires on April 13, 2016. The appointment is subject to the approval of the shareholder
Beyond Business:
For this fiscal, Infosys has pledged `270 crore towards Corporate Social Responsibility (CSR) that is primarily being carried out through the Infosys Foundation, its philanthropic arm.
In Q3, continuing on its mission, Infosys Foundation USA awarded several new grants that broaden access to Computer Science Education and coding across all US public schools so that students - especially women and those belonging to under-represented minorities - have equal access to acquire the digital skills needed by the workforce of tomorrow. To celebrate the Computer Science Education Week 2015, the Foundation awarded five new grants to non-profits across America and hosted 10+ computer science boot camps.
On November 13, 2015, The Infosys Science Foundation (ISF) announced the winners of the Infosys Prize 2015 across six categories: Engineering and Computer Science, Humanities, Life Sciences, Mathematical Sciences, Physical Sciences and Social Sciences.
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 www.infosys.com to see how Infosys (NYSE: INFY), with US$ 9.2 billion in LTM revenues and 193,000+ 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, 2015. 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. In addition, please note that the date of this press release is January 14, 2016, 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.
Contact:
Investor Relations
Sandeep Mahindroo
+91 80 3980 1018
[email protected]
Media Relations
Sarah Vanita Gideon, India
+91 80 4156 3373
[email protected]
Pilar Elvira Wolfsteller
+1 510 944 4596
[email protected]
Infosys Limited and subsidiaries
Unaudited Condensed Consolidated Interim Balance Sheets as of
(Dollars in millions except equity share data)
December 31,
2015 March 31, 2015
ASSETS
Current assets
Cash and cash equivalents 4,455 4,859
Available-for-sale financial assets 68 140
Trade receivables 1,641 1,554
Unbilled revenue 450 455
Prepayments and other current assets 747 527
Derivative financial instruments 8 16
Total current assets 7,369 7,551
Non-current assets
Property, plant and equipment 1,517 1,460
Goodwill 560 495
Intangible assets 157 102
Investment in Associates 16 15
Available-for-sale financial assets 255 215
Deferred income tax assets 78 85
Income tax assets 718 654
Other non-current assets 101 38
Total non-current assets 3,402 3,064
Total assets 10,771 10,615
LIABILITIES AND EQUITY
Current liabilities
Trade payables 20 22
Derivative Financial Instruments 1 -
Current income tax liabilities 448 451
Client deposits 5 4
Unearned revenue 211 168
Employee benefit obligations 192 171
Provisions 73 77
Other current liabilities 980 927
Total current liabilities 1,930 1,820
Non-current liabilities
Deferred income tax liabilities 40 25
Other non-current liabilities 24 8
Total liabilities 1,994 1,853
Equity
Share capital- `5 ($0.16) par value 2,400,000,000
(1,200,000,000) equity shares authorized, issued
and outstanding 2,285,619,380 (1,142,805,132), net
of 11,325,284 (5,667,200) treasury shares as of
December 31, 2015 (March 31, 2015), respectively 199 109
Share premium 570 659
Retained earnings 10,550 10,090
Other reserves - -
Other components of equity (2,542) (2,096)
Total equity attributable to equity holders of the
company 8,777 8,762
Non-controlling interests - -
Total equity 8,777 8,762
Total liabilities and equity 10,771 10,615
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 Nine months Nine months
ended ended ended ended
December 31, December 31, December 31, December 31,
2015 2014 2015 2014
Revenues 2,407 2,218 7,055 6,552
Cost of sales 1,512 1,360 4,435 4,057
Gross profit 895 858 2,620 2,495
Operating expenses:
Selling and marketing expenses 130 124 388 362
Administrative expenses 166 142 482 430
Total operating expenses 296 266 870 792
Operating profit 599 592 1,750 1,703
Other income, net 121 136 362 419
Share in associate's profit /
(loss) - - - -
Profit before income taxes 720 728 2,112 2,122
Income tax expense 196 206 593 607
Net profit 524 522 1,519 1,515
Other comprehensive income
Items that will not be
reclassified to profit or loss:
Re-measurement of the net defined
benefit liability/(asset) 1 (2) (1) (6)
Items that may be reclassified
subsequently to profit or loss:
Fair value changes on
available-for-sale financial asset 1 8 3 16
Exchange differences on
translation of foreign operations (69) (169) (448) (428)
Total other comprehensive income,
net of tax (67) (163) (446) (418)
Total comprehensive income 457 359 1,073 1,097
Profit attributable to:
Owners of the company 524 522 1,519 1,515
Non-controlling interests - - - -
524 522 1,519 1,515
Total comprehensive income
attributable to:
Owners of the company 457 359 1,073 1,097
Non-controlling interests - - - -
457 359 1,073 1,097
Earnings per equity share
Basic ($) 0.23 0.23 0.66 0.66
Diluted ($) 0.23 0.23 0.66 0.66
Weighted average equity shares
used in computing earnings per
equity share
Basic 2,285,619,380 2,285,610,264 2,285,614,573 2,285,610,264
Diluted 2,285,732,052 2,285,654,792 2,285,715,960 2,285,630,846
NOTE:
1. The unaudited Condensed Consolidated interim Balance sheets and Condensed Consolidated interim Statements of Comprehensive Income for the three months and nine months ended December 31, 2015 have been taken on record at the Board meeting held on January 14, 2016
2. A Fact Sheet providing the operating metrics of the company can be downloaded from www.infosys.com
3. Previous period share count and EPS has been restated due to issue of bonus shares in Jun-15
IFRS-INR Press Release: http://multivu.prnewswire.com/prnehost/Q3-2016-IFRS-INR.pdf
Fact Sheet: http://multivu.prnewswire.com/prnehost/Q3-2016-fact-sheet.pdf
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