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Infosys Announces Results for the Quarter Ended December 31, 2012
BANGALORE, India, January 11, 2013 /PRNewswire/ --
Q3 Revenues Grow by 6.3% Quarter on Quarter
Financial Highlights
Consolidated results under International Financial Reporting Standards (IFRS) for the
quarter ended December 31, 2012
- Revenues were $1,911 million for the quarter ended December 31, 2012;
QoQ growth was 6.3%
YoY growth was 5.8%
- Revenues excluding Lodestone were $1,872 million;
QoQ growth was 4.2%
YoY growth was 3.7%
- Net income after tax was $434 million for the quarter ended December 31, 2012
against $431 million for the quarter ended September 30, 2012
- Earnings per American Depositary Share (EPADS) was $0.76 for the quarter ended
December 31, 2012 against $0.75 for the quarter ended September 30, 2012
- Liquid assets including cash and cash equivalents, current available-for-sale
financial assets, investment in certificates of deposits and government bonds were
$4.1 billion versus $4.3 billion as on September 30, 2012
Other highlights:
- The company won 8 large outsourcing deals amounting to US$ 731 million of
total contract value
- 14 new wins for Infosys' products and platforms
- Infosys and its subsidiaries added 53 clients during the quarter
- Gross addition of 7,499 employees (net addition of 977) for the quarter by
Infosys and its subsidiaries.
- 155,629 employees as on December 31, 2012 for Infosys and its subsidiaries
- Completed the acquisition of Lodestone Holding AG, a leading management
consultancy based in Switzerland
- Infosys American Depositary Shares (ADS) have started trading on the New York
Stock Exchange (NYSE) under the ticker symbol 'INFY'. The company is in the process of
listing its ADS on the Paris and London exchanges of NYSE Euronext.
"We have done well in this quarter despite an uncertain environment," said S. D.
Shibulal, CEO and Managing Director. "We continue to gain confidence from a strong
pipeline of large deals. However, the broader economic environment remains difficult. Even
so, we remain cautiously optimistic about the January-March quarter," he added.
"We were able to maintain our margins through efficiency improvements despite
increased operating expenses. We remain focused on making the right investments for
profitable and sustainable growth in the longer term," said Rajiv Bansal, Chief Financial
Officer.
Outlook*
The company's outlook (consolidated) for the fiscal year ending March 31, 2013, under
IFRS is as follows:
Revenues** are expected to be at least $7,450 million;
Earnings per American Depositary Share (EPADS) is expected to be at least $2.97;
* Exchange rates considered for major global currencies: AUD / USD - 1.04; GBP / USD -
1.62; Euro / USD - 1.32 for rest of fiscal 2013
** Includes $104 million from Lodestone
Business Highlights
- The company won 8 large outsourcing deals amounting to US$ 731 Mn of total
contract value
- Our offerings in the Products and Platforms space continue to see good
momentum. This quarter we had 14 wins across industries and geographies. Infosys
products and platforms (excluding Finacle(TM)) are now adopted by more than 70 global
clients.
- A Blue Cross Blue Shield Plan selected us as a strategic partner to provide
enterprise-wide testing services and establish a Test CoE within its IT organization,
aimed at creating testing processes and frameworks to support the company's ongoing
transformation due to US healthcare reform. Another Blue Cross Blue Shield Plan is
leveraging Infosys iTransform(TM) product and services to help its ICD-10 migration,
mandated by the U.S. federal government.
- Our focus on Cloud as a new growth area continues to yield results and the
Cloud business currently has more than 190 engagements and 3,500 experts. Over the
last quarter, we won more than 15 engagements across Cloud services, Big Data and
Security. Our vision of being a Cloud Ecosystem Integrator has gained increasing
acceptance with clients and we are working with more than 30 partners to help clients
create and manage their unified hybrid cloud environments.
- During the third quarter, Infosys applied for seven patent applications in
India and the U.S. With this, it has 525 patent applications in India, the U.S. and
other jurisdictions, and has been granted 71 patents by the United States Patent and
Trademark Office and two patents by the Luxembourg patent office.
Awards and Recognition
Infosys has been consistently honored by influencers
- We were declared the winners of 2012 Asia's Most Admired Knowledge
Enterprises (MAKE) study by Teleos, in association with The KNOW Network for the 10th
time, for developing knowledge based products and services.
- Infosys BPO Ltd. has been awarded the prestigious 2012 Optimas Award for
'Managing Change', recognizing exemplary achievements in workforce management and for
successfully integrating new employees from around the globe into the organization.
- Infosys BPO Ltd. won the Gold Award for Marketing Excellence in the category
of 'Marketing with Social and Interactive Media' at the Information Technology
Services Marketing Association (ITSMA) Awards 2012.
- We have received the Microsoft Platform Modernization Award for sales
achievement for our Legacy Modernization solution, which helps customers migrate to
Microsoft platforms.
- We were awarded the National Energy Conservation Award 2012 for our energy
conservation efforts at our campuses in Jaipur and Pune.
- We have been awarded the global No. 1 position for our corporate governance
practices by IR Global Rankings (IRGR).
- Finacle(TM) from Infosys has been ranked as a long-term leader in The
Forrester Wave(TM): Global Banking Platforms, Q4 2012
About Infosys Ltd
Infosys partners with global enterprises to drive their innovation-led growth. That's
why Forbes ranked Infosys 19th among the top 100 most innovative companies. As a leading
provider of next-generation consulting, technology and outsourcing solutions, Infosys
helps clients in more than 30 countries realize their goals.
Visit http://www.infosys.com and see how Infosys (NYSE: INFY), with its 150,000+
people, is Building Tomorrow's Enterprise(R) today.
Safe Harbor
Certain statements in this release concerning our future growth prospects are
forward-looking statements, 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, 2012 and on Form 6-K for the quarter ended December 31,
2011, June 30, 2012 and September 30, 2012. 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. 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.
INR Press Release:
http://www.multivu.prnewswire.com/mnr/prne/operations/INR-press-release-Version-4.pdf
Fact Sheet:
http://www.multivu.prnewswire.com/mnr/prne/operations/Factsheet-Q3-2013.pdf
Infosys Limited and subsidiaries
Unaudited Condensed Consolidated Balance Sheets as of
(Dollars in millions except share data)
December 31, March 31,
2012 2012
ASSETS
Current assets
Cash and cash equivalents $2,740 $4,047
Available-for-sale financial assets 1,339 6
Investment in certificates of deposit - 68
Trade receivables 1,266 1,156
Unbilled revenue 405 368
Prepayments and other current assets 335 300
Total current assets 6,085 5,945
Non-current assets
Property, plant and equipment 1,115 1,063
Goodwill 368 195
Intangible assets 72 34
Available-for-sale financial assets 2 2
Investment in government bonds 12 -
Deferred income tax assets 77 62
Income tax assets 191 204
Other non-current assets 33 32
Total non-current assets 1,870 1,592
Total assets $7955 $7,537
LIABILITIES AND EQUITY
Current liabilities
Derivative financial instruments - $9
Trade payables 13 5
Current income tax liabilities 227 207
Client deposits 12 3
Unearned revenue 146 107
Employee benefit obligations 109 98
Provisions 39 26
Other current liabilities 562 482
Total current liabilities 1,108 937
Non-current liabilities
Deferred income tax liabilities 16 2
Other non-current liabilities 18 22
Total liabilities 1,142 961
Equity
Share capital- `5 ($0.16) par value
600,000,000 equity shares authorized, issued
and outstanding 571,402,566 and 571,396,410,
net of 2,833,600 treasury shares each as of
December 31, 2012 and March 31, 2012,
respectively 64 64
Share premium 704 703
Retained earnings 7,223 6,509
Other components of equity (1,178) (700)
Total equity attributable to equity holders
of the company 6,813 6,576
Non-controlling interests - -
Total equity 6,813 6,576
Total liabilities and equity $7,955 $7,537
Infosys Limited and subsidiaries
Unaudited Condensed Consolidated Statements of Comprehensive Income
(Dollars in millions except share and per equity share data)
Three Three Nine Nine
months months months months
ended ended ended ended
December December December December
31, 2012 31, 2011 31, 2012 31, 2011
Revenues $1,911 $1,806 $5,460 $5,233
Cost of sales 1,203 1030 3,376 3,077
Gross profit 708 776 2,084 2,146
Operating expenses:
Selling and marketing
expenses 99 88 277 275
Administrative expenses 118 128 355 386
Total operating expenses 217 216 632 661
Operating profit 491 560 1,452 1,485
Other income, net 92 82 308 266
Profit before income taxes 583 642 1,760 1,751
Income tax expense 149 184 479 498
Net profit $434 $458 $1,281 $1,253
Other comprehensive income
Fair value changes on
available - for-sale
financial asset, net of
tax effect - - - $(2)
Exchange differences on
translating foreign
operations (250) (442) (478) (1,004)
Total other comprehensive
income $(250) $(442) $(478) $(1,006)
Total comprehensive income $184 $16 $803 $247
Profit attributable to:
Owners of the company $434 $458 $1,281 $1,253
Non-controlling interests - - - -
$434 $458 $1,281 $1,253
Total comprehensive income
attributable to:
Owners of the company $184 $16 $803 $247
Non-controlling interests - - - -
$184 $16 $803 $247
Earnings per equity share
Basic ($) 0.76 0.80 2.24 2.19
Diluted ($) 0.76 0.80 2.24 2.19
Weighted average equity
shares used in computing
earnings per equity share
Basic 571,400,086 571,377,084 571,398,129 571,356,602
Diluted 571,400,417 571,396,560 571,399,018 571,394,949
NOTE:
1. The unaudited Condensed Consolidated Balance sheets and Condensed Consolidated
Statements of Comprehensive Income for the three months and nine months ended December 31,
2012 has been taken on record at the Board meeting held on January 11, 2013
2. A Fact Sheet providing the operating metrics of the company can be downloaded from
http://www.infosys.com
Infosys
CONTACT: Investor Relations: Avishek Lath, India, +91 (80) 4116 7744, avishek_lath@infosys.com ; Sandeep Mahindroo, US, +1 (646) 254 3133, sandeep_mahindroo@infosys.com ; Media Relations: Sarah Vanita Gideon, India, +91 (80) 4156 4998, Sarah_Gideon@infosys.com ; Danielle D'Angelo, USA , +1 (510) 859 5783, Danielle_Dangelo@infosys.com
Infosys Announces Results for the Quarter Ended December 31, 2012
BANGALORE, India, January 11, 2013 /PRNewswire/ --
Q3 Revenues Grow by 6.3% Quarter on Quarter
Financial Highlights
Consolidated results under International Financial Reporting Standards (IFRS) for the
quarter ended December 31, 2012
- Revenues were $1,911 million for the quarter ended December 31, 2012;
QoQ growth was 6.3%
YoY growth was 5.8%
- Revenues excluding Lodestone were $1,872 million;
QoQ growth was 4.2%
YoY growth was 3.7%
- Net income after tax was $434 million for the quarter ended December 31, 2012
against $431 million for the quarter ended September 30, 2012
- Earnings per American Depositary Share (EPADS) was $0.76 for the quarter ended
December 31, 2012 against $0.75 for the quarter ended September 30, 2012
- Liquid assets including cash and cash equivalents, current available-for-sale
financial assets, investment in certificates of deposits and government bonds were
$4.1 billion versus $4.3 billion as on September 30, 2012
Other highlights:
- The company won 8 large outsourcing deals amounting to US$ 731 million of
total contract value
- 14 new wins for Infosys' products and platforms
- Infosys and its subsidiaries added 53 clients during the quarter
- Gross addition of 7,499 employees (net addition of 977) for the quarter by
Infosys and its subsidiaries.
- 155,629 employees as on December 31, 2012 for Infosys and its subsidiaries
- Completed the acquisition of Lodestone Holding AG, a leading management
consultancy based in Switzerland
- Infosys American Depositary Shares (ADS) have started trading on the New York
Stock Exchange (NYSE) under the ticker symbol 'INFY'. The company is in the process of
listing its ADS on the Paris and London exchanges of NYSE Euronext.
"We have done well in this quarter despite an uncertain environment," said S. D.
Shibulal, CEO and Managing Director. "We continue to gain confidence from a strong
pipeline of large deals. However, the broader economic environment remains difficult. Even
so, we remain cautiously optimistic about the January-March quarter," he added.
"We were able to maintain our margins through efficiency improvements despite
increased operating expenses. We remain focused on making the right investments for
profitable and sustainable growth in the longer term," said Rajiv Bansal, Chief Financial
Officer.
Outlook*
The company's outlook (consolidated) for the fiscal year ending March 31, 2013, under
IFRS is as follows:
Revenues** are expected to be at least $7,450 million;
Earnings per American Depositary Share (EPADS) is expected to be at least $2.97;
* Exchange rates considered for major global currencies: AUD / USD - 1.04; GBP / USD -
1.62; Euro / USD - 1.32 for rest of fiscal 2013
** Includes $104 million from Lodestone
Business Highlights
- The company won 8 large outsourcing deals amounting to US$ 731 Mn of total
contract value
- Our offerings in the Products and Platforms space continue to see good
momentum. This quarter we had 14 wins across industries and geographies. Infosys
products and platforms (excluding Finacle(TM)) are now adopted by more than 70 global
clients.
- A Blue Cross Blue Shield Plan selected us as a strategic partner to provide
enterprise-wide testing services and establish a Test CoE within its IT organization,
aimed at creating testing processes and frameworks to support the company's ongoing
transformation due to US healthcare reform. Another Blue Cross Blue Shield Plan is
leveraging Infosys iTransform(TM) product and services to help its ICD-10 migration,
mandated by the U.S. federal government.
- Our focus on Cloud as a new growth area continues to yield results and the
Cloud business currently has more than 190 engagements and 3,500 experts. Over the
last quarter, we won more than 15 engagements across Cloud services, Big Data and
Security. Our vision of being a Cloud Ecosystem Integrator has gained increasing
acceptance with clients and we are working with more than 30 partners to help clients
create and manage their unified hybrid cloud environments.
- During the third quarter, Infosys applied for seven patent applications in
India and the U.S. With this, it has 525 patent applications in India, the U.S. and
other jurisdictions, and has been granted 71 patents by the United States Patent and
Trademark Office and two patents by the Luxembourg patent office.
Awards and Recognition
Infosys has been consistently honored by influencers
- We were declared the winners of 2012 Asia's Most Admired Knowledge
Enterprises (MAKE) study by Teleos, in association with The KNOW Network for the 10th
time, for developing knowledge based products and services.
- Infosys BPO Ltd. has been awarded the prestigious 2012 Optimas Award for
'Managing Change', recognizing exemplary achievements in workforce management and for
successfully integrating new employees from around the globe into the organization.
- Infosys BPO Ltd. won the Gold Award for Marketing Excellence in the category
of 'Marketing with Social and Interactive Media' at the Information Technology
Services Marketing Association (ITSMA) Awards 2012.
- We have received the Microsoft Platform Modernization Award for sales
achievement for our Legacy Modernization solution, which helps customers migrate to
Microsoft platforms.
- We were awarded the National Energy Conservation Award 2012 for our energy
conservation efforts at our campuses in Jaipur and Pune.
- We have been awarded the global No. 1 position for our corporate governance
practices by IR Global Rankings (IRGR).
- Finacle(TM) from Infosys has been ranked as a long-term leader in The
Forrester Wave(TM): Global Banking Platforms, Q4 2012
About Infosys Ltd
Infosys partners with global enterprises to drive their innovation-led growth. That's
why Forbes ranked Infosys 19th among the top 100 most innovative companies. As a leading
provider of next-generation consulting, technology and outsourcing solutions, Infosys
helps clients in more than 30 countries realize their goals.
Visit http://www.infosys.com and see how Infosys (NYSE: INFY), with its 150,000+
people, is Building Tomorrow's Enterprise(R) today.
Safe Harbor
Certain statements in this release concerning our future growth prospects are
forward-looking statements, 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, 2012 and on Form 6-K for the quarter ended December 31,
2011, June 30, 2012 and September 30, 2012. 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. 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.
INR Press Release:
http://www.multivu.prnewswire.com/mnr/prne/operations/INR-press-release-Version-4.pdf
Fact Sheet:
http://www.multivu.prnewswire.com/mnr/prne/operations/Factsheet-Q3-2013.pdf
Infosys Limited and subsidiaries
Unaudited Condensed Consolidated Balance Sheets as of
(Dollars in millions except share data)
December 31, March 31,
2012 2012
ASSETS
Current assets
Cash and cash equivalents $2,740 $4,047
Available-for-sale financial assets 1,339 6
Investment in certificates of deposit - 68
Trade receivables 1,266 1,156
Unbilled revenue 405 368
Prepayments and other current assets 335 300
Total current assets 6,085 5,945
Non-current assets
Property, plant and equipment 1,115 1,063
Goodwill 368 195
Intangible assets 72 34
Available-for-sale financial assets 2 2
Investment in government bonds 12 -
Deferred income tax assets 77 62
Income tax assets 191 204
Other non-current assets 33 32
Total non-current assets 1,870 1,592
Total assets $7955 $7,537
LIABILITIES AND EQUITY
Current liabilities
Derivative financial instruments - $9
Trade payables 13 5
Current income tax liabilities 227 207
Client deposits 12 3
Unearned revenue 146 107
Employee benefit obligations 109 98
Provisions 39 26
Other current liabilities 562 482
Total current liabilities 1,108 937
Non-current liabilities
Deferred income tax liabilities 16 2
Other non-current liabilities 18 22
Total liabilities 1,142 961
Equity
Share capital- `5 ($0.16) par value
600,000,000 equity shares authorized, issued
and outstanding 571,402,566 and 571,396,410,
net of 2,833,600 treasury shares each as of
December 31, 2012 and March 31, 2012,
respectively 64 64
Share premium 704 703
Retained earnings 7,223 6,509
Other components of equity (1,178) (700)
Total equity attributable to equity holders
of the company 6,813 6,576
Non-controlling interests - -
Total equity 6,813 6,576
Total liabilities and equity $7,955 $7,537
Infosys Limited and subsidiaries
Unaudited Condensed Consolidated Statements of Comprehensive Income
(Dollars in millions except share and per equity share data)
Three Three Nine Nine
months months months months
ended ended ended ended
December December December December
31, 2012 31, 2011 31, 2012 31, 2011
Revenues $1,911 $1,806 $5,460 $5,233
Cost of sales 1,203 1030 3,376 3,077
Gross profit 708 776 2,084 2,146
Operating expenses:
Selling and marketing
expenses 99 88 277 275
Administrative expenses 118 128 355 386
Total operating expenses 217 216 632 661
Operating profit 491 560 1,452 1,485
Other income, net 92 82 308 266
Profit before income taxes 583 642 1,760 1,751
Income tax expense 149 184 479 498
Net profit $434 $458 $1,281 $1,253
Other comprehensive income
Fair value changes on
available - for-sale
financial asset, net of
tax effect - - - $(2)
Exchange differences on
translating foreign
operations (250) (442) (478) (1,004)
Total other comprehensive
income $(250) $(442) $(478) $(1,006)
Total comprehensive income $184 $16 $803 $247
Profit attributable to:
Owners of the company $434 $458 $1,281 $1,253
Non-controlling interests - - - -
$434 $458 $1,281 $1,253
Total comprehensive income
attributable to:
Owners of the company $184 $16 $803 $247
Non-controlling interests - - - -
$184 $16 $803 $247
Earnings per equity share
Basic ($) 0.76 0.80 2.24 2.19
Diluted ($) 0.76 0.80 2.24 2.19
Weighted average equity
shares used in computing
earnings per equity share
Basic 571,400,086 571,377,084 571,398,129 571,356,602
Diluted 571,400,417 571,396,560 571,399,018 571,394,949
NOTE:
1. The unaudited Condensed Consolidated Balance sheets and Condensed Consolidated
Statements of Comprehensive Income for the three months and nine months ended December 31,
2012 has been taken on record at the Board meeting held on January 11, 2013
2. A Fact Sheet providing the operating metrics of the company can be downloaded from
http://www.infosys.com
Infosys
CONTACT: Investor Relations: Avishek Lath, India, +91 (80) 4116 7744, avishek_lath@infosys.com ; Sandeep Mahindroo, US, +1 (646) 254 3133, sandeep_mahindroo@infosys.com ; Media Relations: Sarah Vanita Gideon, India, +91 (80) 4156 4998, Sarah_Gideon@infosys.com ; Danielle D'Angelo, USA , +1 (510) 859 5783, Danielle_Dangelo@infosys.com