PR Newswire/Les Echos/ Infosys Limited CIN : L85110KA1981PLC013115 Regd. Office: Electronics City, Hosur Road, Bangalore 560 100, India. Website: www.infosys.com ; email: firstname.lastname@example.org ; T: 91 80 2852 0261 ; F: 91 80 2852 0362 Audited financial results of Infosys Limited for the quarter ended
June 30, 2014. (in INR crore, except share and per equity share data) Particulars Quarter ended Quarter ended Quarter ended Year ended June 30, March 31, June 30, March 31, 2014 2014 2013 2014 Income from software services and products 11,319 11,366 9,959 44,341 Expenses: Employee benefit expenses 6,234 6,053 5,567 24,350 Deferred consideration pertaining to acquisition 57 59 52 228 Cost of technical sub-contractors 617 640 579 2,596 Travel expenses 340 285 347 1,287 Cost of software packages and others 268 305 174 920 Communication expenses 92 85 75 329 Professional charges 47 136 95 474 Depreciation and amortization expense 192 309 250 1,101 Other expenses 467 409 307 1,630 Total expenses 8,314 8,281 7,446 32,915 Profit from operations before other income 3,005 3,085 2,513 11,426 Other income 790 802 563 2,576 Profit before tax 3,795 3,887 3,076 14,002 Tax expense 1,075 1,004 826 3,808 Net Profit for the period 2,720 2,883 2,250 10,194 Paid-up equity share capital (par value INR 5/- each fully paid) * 286 286 287 286 Reserves and surplus ** 41,806 35,772 35,772 35,772 Earnings per share (par value of INR 5/- each) Basic 47.60 50.44 39.19 178.39 Diluted 47.60 50.44 39.19 178.39 Total Public Shareholding # Number of shares 38,98,49,697 39,02,57,428 41,01,01,111 39,02,57,428 Percentage of shareholding 67.89 67.96 71.41 67.96 Promoters and Promoter Group Shareholding Pledged / Encumbered Number of shares - - - - Percentage of shares (as a % of the total shareholding of promoter and promoter group) - - - - Percentage of shares (as a % of the total share capital of the company) - - - - Non - encumbered Number of shares 9,15,08,078 9,15,08,078 9,20,85,078 9,15,08,078 Percentage of shares (as a % of the total shareholding of promoter and promoter group) 100.00 100.00 100.00 100.00 Percentage of shares (as a % of the total share capital of the company) 15.94 15.94 16.04 15.94 * net of treasury shares ** Represents the previous accounting year balance as required under Clause 41 of the Listing Agreement. #Total public shareholding as defined under Clause 40A of the Listing Agreement excludes shares held by founders and American Depositary Receipt Holders. Notes: 1. The audited financial statements for the quarter ended June 30, 2014have been taken on record by the Board of Directors at its meeting held on July 11, 2014. The statutory auditors have expressed an unqualified audit opinion. The information presented above is extracted from the audited standalone financial statements. 2. Changes to the Board a) On June 14, 2014the Board appointed Dr. Vishal Sikkaas an Additional Director and the Chief Executive Officer and Managing Director (Designate) for the period between June 14, 2014to July 31, 2014and as the Chief Executive Officer and Managing Director from August 1, 2014to June 13, 2019. An Extra-ordinary General Meeting of the shareholders of the Company has been convened and will be held on July 30, 2014to approve his appointment. b) The Board elevated U. B. Pravin Rao, President and whole-time director, as the Chief Operating Officer of the Company effective June 14, 2014. c) Narayana Murthyand S. Gopalakrishnan voluntarily stepped down as the Executive Chairman and Executive Vice Chairman respectively, effective June 14, 2014. In order to facilitate a smooth transition of responsibilities, they will continue on the Board as the Non-executive Chairman and Non-executive Vice Chairman respectively until October 10, 2014. Narayana Murthywill be designated as the Chairman Emeritus effective October 11, 2014in recognition of his contributions to the Company. d) S. D. Shibulalwill step down as the Chief Executive Officer and Managing Director with effect from end of business hours on July 31, 2014. The Board expresses its deep sense of appreciation for the services rendered by Shibulal as a co-founder of the company and in his several roles, including as CEO and Managing Director, over the last 33 years. e) Srinath Batni, a whole-time director of the company will step down from the Board with effect from end of business hours on July 31, 2014. The Board expresses its deep sense of appreciation for the services rendered by Srinath as the head of delivery excellence and as a member of the Board. f) K.V. Kamathhas been elected as the Chairman of the Board with effect from October 11, 2014. g) B.G. Srinivas, Whole-time director resigned from the Board and services of the Company effective June 10, 2014. The Board placed on record its deep appreciation for the services rendered by B. G. Srinivasduring his tenure. h) Ann M. Fudgeretired as a Member of the Board effective June 14, 2014. The Board placed on record its deep appreciation for the services rendered by Ann M. Fudgeduring her tenure as a director. 3. Edgeverve Systems LimitedOn June 14, 2014, the shareholders approved the related party transaction relating to transfer of the Product, Platform and Solutions Business unit to Edgeverve Systems Limited(the Company's wholly owned subsidiary). This business has been transferred for a consideration of $70 million(approximately 421 crore) based on an enterprise valuation done by independent valuers. The transfer is effective July 1, 2014. 4. During the quarter ended June 30, 2014, based on internal and external technical evaluation, management reassessed the remaining useful life of assets, primarily consisting of buildings and computers with effect from April 1, 2014. Accordingly, the useful life of certain assets required a change from the previous estimates. If the Company had continued with the previously assessed useful lives, charge for depreciation for the quarter ended June 30, 2014would have been higher by INR 127 crorefor the assets held as at April 1, 2014. 5. Information on dividends for the quarter ended June 30, 2014(in INR ) Particulars Quarter ended Quarter ended Quarter ended Year ended June 30, March 31, June 30, March 31, 2014 2014 2013 2014 Dividend per share (par value INR5/- each) Interim dividend - - - 20.00 Final dividend - 43.00 - 43.00 Total dividend - 43.00 - 63.00 The final dividend of INR43/- per equity share for fiscal 2014 was approved by the shareholders at the Annual General Meeting of the company held on June 14, 2014and the same was paid on June 16, 2014. 6. Other Information (in INR crore) Particulars Quarter ended Quarter ended Quarter ended Year ended June 30, March 31, June 30, March 31, 2014 2014 2013 2014 Particulars Staff costs 6,234 6,053 5,567 24,350 Items exceeding 10% of aggregate expenditure - - - - Details of other income: Interest received on deposits with banks and others 608 581 497 2,135 Dividend received on investment in mutual fund units 49 29 31 137 Miscellaneous income, net 6 6 6 26 Gains ! (losses) on foreign currency, net 127 186 29 278 Total 790 802 563 2,576 7. Information on investor complaints pursuant to Clause 41 of the Listing Agreement for the quarter ended June 30, 2014Nature of complaints received Opening balance Additions Disposal Closing balance Non-receipt of dividend / Annual Report related - 130 130 - 8. Segment reporting (Standalone-Audited) (in INR crore) Particulars Quarter ended Quarter ended Quarter ended Year ended June 30, March 31, June 30, March 31, 2014 2014 2013 2014 Particulars Revenue by industry segment Financial Services and Insurance (FSI) 3,896 3,923 3,467 15,374 Manufacturing (MFG) 2,439 2,410 2,111 9,434 Energy & utilities, Communication and Services (ECS) 2,289 2,309 1,979 8,862 Retail, Consumer Packaged Goods and Logistics 2,062 2,064 1,826 8,106 (RCL) Life Sciences and Healthcare (LSH) 633 660 576 2,565 Total 11,319 11,366 9,959 44,341 Less: Inter-segment revenue - - - - Net revenue from operations 11,319 11,366 9,959 44,341 Segment profit before tax and depreciation Financial Services and Insurance (FSI) 1,141 1,239 1,012 4,553 Manufacturing (MFG) 676 656 531 2,405 Energy & utilities, Communication and Services (ECS) 602 726 600 2,717 Retail, Consumer Packaged Goods and Logistics (RCL) 638 607 476 2,231 Life Sciences and Healthcare (LSH) 140 166 144 621 Total 3,197 3,394 2,763 12,527 Less: Other unallocable expenditure 192 309 250 1,101 Add: Unallocable other income 790 802 563 2,576 Profit before tax 3,795 3,887 3,076 14,002 Notes on segment information: Primary segments Effective quarter ended March 31, 2014, the Company reorganized its segments consequent to which the primary reportable segments of the company are as set out above. The previous period figures, extracted from audited financial statements, have been presented after incorporating necessary reclassification adjustments pursuant to changes in reportable segments. Segmental capital employed Assets and liabilities used in the company's business are not identified to any of the reportable segments, as these are used interchangeably between segments. The Management believes that it is not practicable to provide segment disclosures relating to total assets and liabilities since a meaningful segregation of the available data is onerous. By order of the Board for Infosys Limited S.D. Shibulal Bangalore, India Chief Executive Officer July 11, 2014 and Managing Director Certain statements in this results 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 Commissionfilings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2014.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 Commissionand our reports to shareholders. In addition, please note that the date of this results is July 11, 2014, 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. 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