BENGALURU, India, July 13, 2018 /CNW/ -
- Digital revenues at $803 million
(28.4% of total revenues), sequential growth of 8.0% and
year-on-year growth of 25.6% in constant currency terms
- 1:1 bonus issue of equity shares and 1:1 stock dividend of
American Depositary Shares
- Q1 19 revenues grew year-on-year by 6.8% in USD terms; 6.0% in
constant currency terms
- Q1 19 revenues grew sequentially by 0.9% in USD terms; 2.3% in
constant currency terms
- Operating margins at 23.7%, at the upper quartile of the
guidance
- Large deal wins crossed $1
billion, of which over 40% was from Financial Services
- $ 100 mn clients increased
sequentially by 4 to 24
- Utilization (excluding trainees) at all-time high of 85.7%
- Free Cash Flow up sequentially by 32.1% in USD terms
- RoE increases to 25.5% as compared to 24.1% last quarter
- EPS grew by 3.9% on a year-on-year basis
- FY 19 revenue guidance in constant currency retained at 6%-8%;
FY 19 operating margin guidance retained at 22%-24%
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1. Financial Highlights
Consolidated results under International Financial Reporting
Standards (IFRS) for the quarter ended June
30, 2018
- Revenues were $2,831 million for
the quarter ended June 30, 2018
YoY growth of 6.8%; QoQ growth of 0.9%
- Net profit was $534 million for
the quarter ended June 30, 2018,
including impact of $39 million on
account of reduction in the fair value of Assets held for sale
YoY decline of 1.2%; QoQ decline of 6.5%
- Basic EPS was $0.25 for the
quarter ended June 30, 2018,
including impact of $0.02 on account
of reduction in the fair value of Assets held for sale
YoY growth of 3.9%; QoQ decline of 6.5%
"The strong revenue and margin performance in this quarter shows
that our dual emphasis on Agile Digital and AI-driven Core services
is resonating with our clients," said Salil Parekh, CEO and MD. "With our Agile
Digital business growing sequentially at 8% in constant currency
and increase in our large deal wins to over US$ 1 billion, we see good traction in the
market."
"Our emphasis on deepening client relationships resulted in
strong client metrics including increase in the number of $100
million+ clients to 24," said U B Pravin Rao, COO.
"Utilization excluding trainees reached an all-time high of
85.7%."
"We had broad-based financial performance on multiple fronts -
RoE crossed 25%, Free cash flow was up 32% quarter on quarter and
operating margins were at the upper quartile of our margin
guidance," said M.D. Ranganath, CFO. "While we continue to
make strategic investments to leverage the opportunities in
Digital, our relentless focus on operational efficiencies continued
in this quarter."
2. Bonus issue of equity shares
The Board in its meeting held on July 13,
2018 has considered, approved and recommended a bonus issue
of one equity share for every equity share held and a stock
dividend of one American Depositary Share (ADS) for every ADS held,
as on a record date to be determined. Consequently, the ratio of
equity shares underlying the ADSs held by an American Depositary
Receipt holder would remain unchanged. The Board approved and
recommended the issue of bonus shares to celebrate the 25th year of
Company's public listing in India
and to further increase the liquidity of its shares. The bonus
issue of equity shares and ADSs will be subject to approval by the
shareholders, and any other applicable statutory and regulatory
approvals.
The bonus shares once allotted shall rank pari passu in all
respects and carry the same rights as the existing equity
shareholders and shall be entitled to participate in full, in any
dividend and other corporate action, recommended and declared after
the new equity shares are allotted.
3. Addition to the Board
The Board appointed Michael Gibbs
as an Independent Director of the Company effective July 13, 2018 for a period of three years, based
on the recommendation of the Nomination and Remuneration Committee
of the Board.
4. Assets Held for Sale
During the three months ended June 30,
2018, on remeasurement, including consideration of progress
in negotiations on offers from prospective buyers for Panaya, the
Company has recorded a reduction in the fair value of Disposal
Group held for sale amounting to $39
million in respect of Panaya. Consequently, profit for the
three months ended June 30, 2018 has
decreased by $39 million resulting in
a decrease in Basic earnings per equity share by $0.02 for the quarter ended June 30, 2018.
5. Adoption of Ind AS 115 - Revenue from contracts with
customers
Effective April 1, 2018, the
Company adopted Ind AS 115 "Revenue from Contracts with Customers"
using the cumulative catch-up transition method which is applied to
contracts that were not completed as of April 1, 2018. Accordingly, the comparatives have
not been retrospectively adjusted. The effect on adoption of
Ind AS 115 was insignificant.
6. Voluntary delisting of American Depositary Shares from
Euronext Paris and London
In line with the announcement made on June 11, 2018, the Company has voluntarily
delisted its American Depository Shares ("ADSs") (ISIN
US4567881085) from Euronext Paris and London on July 5,
2018 and its ADS were removed from Euroclear France on
July 10, 2018. The primary reason for
voluntary delisting from Euronext Paris and London was the low average daily trading
volume of Infosys ADSs on these exchanges, which was not
commensurate with the related administrative expenses.
Infosys ADSs will continue to be listed on the NYSE under the
symbol "INFY" and investors can continue to trade their ADSs on the
New York Stock Exchange.
About Infosys
Infosys is a global leader in next-generation digital services
and consulting. We enable clients in 45 countries to navigate their
digital transformation. With over three decades of experience in
managing the systems and workings of global enterprises, we
expertly steer our clients through their digital journey. We do it
by enabling the enterprise with an AI-powered core that helps
prioritize the execution of change. We also empower the business
with agile digital at scale to deliver unprecedented levels of
performance and customer delight. Our always-on learning agenda
drives their continuous improvement through building and
transferring digital skills, expertise, and ideas from our
innovation ecosystem.
Visit http://www.infosys.com to see how Infosys (NYSE:
INFY) can help your enterprise navigate your next.
Safe Harbor
Certain statements mentioned 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, 2017. 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 unless it is required by law.
Infosys Limited and subsidiaries
Audited Condensed
Consolidated Balance Sheet
as at
Dollars in millions except equity share
data)
|
June 30,
2018
|
March 31,
2018
|
|
|
|
ASSETS
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
2,411
|
3,041
|
Current
investments
|
1,004
|
982
|
Trade
receivables
|
2,001
|
2,016
|
Unbilled
revenue
|
680
|
654
|
Prepayments and other
current assets
|
707
|
662
|
Derivative financial
instruments
|
5
|
2
|
|
6,808
|
7,357
|
Assets held for
sale[(3)]
|
273
|
316
|
Total current
assets
|
7,081
|
7,673
|
Non-current
assets
|
|
|
Property, plant and
equipment
|
1,781
|
1,863
|
Goodwill
|
349
|
339
|
Intangible
assets
|
54
|
38
|
Investment in
associate
|
-
|
-
|
Non-current
investments
|
821
|
883
|
Deferred income tax
assets
|
190
|
196
|
Income tax
assets
|
884
|
931
|
Other non-current
assets
|
246
|
332
|
Total non-current
assets
|
4,325
|
4,582
|
Total
assets
|
11,406
|
12,255
|
LIABILITIES AND
EQUITY
|
|
|
Current
liabilities
|
|
|
Trade
payables
|
117
|
107
|
Derivative financial
instruments
|
20
|
6
|
Current income tax
liabilities
|
297
|
314
|
Client
deposits
|
27
|
6
|
Unearned
revenue
|
340
|
352
|
Employee benefit
obligations
|
219
|
218
|
Provisions
|
76
|
75
|
Other current
liabilities
|
1,269
|
1,036
|
|
2,365
|
2,114
|
Liabilities directly
associated with assets held
|
|
|
for
sale[(3)]
|
50
|
50
|
Total current
liabilities
|
2,415
|
2,164
|
Non-current
liabilities
|
|
|
Deferred income tax
liabilities
|
74
|
82
|
Employee benefit
obligations
|
6
|
7
|
Other non-current
liabilities
|
49
|
42
|
Total
liabilities
|
2,544
|
2,295
|
Equity
|
|
|
Share capital- `5
($0.16) par value 2,400,000,000
|
|
|
(2,400,000,000)
equity shares authorized, issued
|
|
|
and outstanding
2,173,336,341 (2,173,312,301), net
|
|
|
of 10,790,750
(10,801,956) treasury shares as at
|
|
|
June 30, 2018 (March
31, 2018), respectively
|
190
|
190
|
Share
premium
|
253
|
247
|
Retained
earnings
|
10,907
|
11,587
|
Cash flow hedge
reserve
|
1
|
-
|
Other
reserves
|
294
|
244
|
Capital redemption
reserve
|
9
|
9
|
Other components of
equity
|
(2,792)
|
(2,317)
|
Total equity
attributable to equity holders of the
|
|
|
company
|
8,862
|
9,960
|
Non-controlling
interests
|
-
|
-
|
Total
equity
|
8,862
|
9,960
|
Total liabilities and
equity
|
11,406
|
12,255
|
Infosys Limited and subsidiaries
Audited Condensed Consolidated
Statement of Comprehensive
Income for the
(Dollars in millions except equity share and per
equity share data)
|
Three
months
|
Three
months
|
|
ended June
30,
|
ended June
30,
|
|
2018
|
2017
|
|
|
|
Revenues
|
2,831
|
2,651
|
Cost of
sales
|
1,819
|
1,692
|
Gross
profit
|
1,012
|
959
|
Operating
expenses:
|
|
|
Selling and marketing
expenses
|
149
|
138
|
Administrative
expenses
|
193
|
183
|
Total operating
expenses
|
342
|
321
|
Operating
profit
|
670
|
638
|
Other income,
net
|
107
|
127
|
Reduction in the fair
value of Disposal Group
|
|
|
held for
sale[(3)]
|
(39)
|
-
|
Share in net
profit/(loss) of associate,
|
|
|
including
impairment[(4)]
|
-
|
(11)
|
Profit before income
taxes
|
738
|
754
|
Income tax
expense
|
204
|
213
|
Net
profit
|
534
|
541
|
Other comprehensive
income
|
|
|
Items that will not
be reclassified subsequently
|
|
|
to profit or
loss:
|
|
|
Re-measurements of
the net defined benefit
|
|
|
liability/asset,
net
|
-
|
-
|
Equity instruments
through other comprehensive
|
|
|
income,
net
|
-
|
-
|
Items that will be
reclassified subsequently to
|
|
|
profit or
loss:
|
|
|
Fair valuation of
investments, net
|
(7)
|
4
|
Fair value changes on
derivatives designated as
|
|
|
cash flow hedge,
net
|
1
|
(10)
|
Foreign currency
translation
|
(468)
|
60
|
Total other
comprehensive income/(loss), net of
|
|
|
tax
|
(474)
|
54
|
Total comprehensive
income
|
60
|
595
|
|
|
|
Profit attributable
to:
|
|
|
Owners of the
Company
|
534
|
541
|
Non-controlling
interests
|
-
|
-
|
|
534
|
541
|
Total comprehensive
income attributable to:
|
|
|
Owners of the
Company
|
60
|
595
|
Non-controlling
interests
|
-
|
-
|
|
60
|
595
|
Earnings per equity
share
|
|
|
Basic
($)
|
0.25
|
0.24
|
Diluted
($)
|
0.25
|
0.24
|
Weighted average
equity shares used in computing
|
|
|
earnings per equity
share
|
|
|
Basic
|
2,173,328,621
|
2,285,657,604
|
Diluted
|
2,175,355,178
|
2,287,058,148
|
NOTES:
1. The audited condensed
consolidated Balance
sheet and Statement
of Comprehensive Income for the three months
ended June 30,
2018 have been taken on record at the
Board meeting held on July
13, 2018
2. A Fact Sheet providing the operating metrics of the
Company can be downloaded from
http://www.infosys.com
3. During the three months ended June
30, 2018, on remeasurement, including
consideration of progress in negotiations on offers from
prospective buyers for Panaya, the Company has recorded a reduction
in the fair value of Disposal
Group held for sale amounting to $39 million in respect of Panaya.
4. During the quarter ended June 30,
2017, the Company has written down the entire carrying value
of the investment in its associate DWA Nova LLC amounting to
$11 million
IFRS-INR Press Release:
https://www.infosys.com/investors/reports-filings/quarterly-results/2018-2019/q1/Documents/IFRS-INR-press-release.pdf
Fact Sheet:
https://www.infosys.com/investors/reports-filings/quarterly-results/2018-2019/q1/Documents/fact-sheet.pdf
SOURCE Infosys