Country for PR: United Kingdom
Contributor: PR Newswire Europe
Saturday, April 13 2019 - 00:32
Infosys: Second Consecutive Quarter of Double Digit Growth in Constant Currency
BENGALURU, India , Apr. 12, 2019/PRNewswire-AsiaNet/ --

    "We have completed the first year of our transformation journey with strong 
results on multiple dimensions including revenue growth, performance of our 
digital portfolio, large deal wins, and client metrics. This is a reflection of 
our increased client relevance stemming from our focus on digital, positioning, 
and long-standing client relationships," said Salil Parekh, CEO and MD. "Our 
planned investments have started yielding benefits. As we look ahead into 
fiscal 2020, we plan to deploy various measures of operational efficiencies 
across the business."


    41.1% YoY
    33.8% FY
    Digital CC growth

    11.7% YoY
    9.0% FY
    CC growth

    21.5% Q4
    22.8% FY
    Operating margin

    2.1% CC
    2.4% Reported
    QoQ growth

    $1.57Bn Q4
    $6.28Bn FY
    Large deal signings

    -  FY 19 revenues grew by 7.9% in USD; 9.0% in constant currency
    -  FY 19 operating margin at 22.8%
    -  Q4 19 revenues grew year-on-year by 9.1% in USD; 11.7% in constant
    -  Q4 19 revenues grew sequentially by 2.4% in USD; 2.1% in constant
    -  Q4 19 Digital revenues at $1,035 million (33.8% of total revenues),
       year-on-year growth of 41.1% and sequential growth of 9.7% in constant
    -  Announces final dividend of INR 10.50 per share
    -  FY 20 revenue guidance in the range of 7.5%-9.5% in constant currency
    -  FY 20 Operating margin guidance in the range of 21%-23%

1. Financial Highlights -Consolidated results under International Financial 
Reporting Standards (IFRS)

For the Quarter ended March 31, 2019

Revenues were $3,060 million, growth of 9.1% YoY and 2.4% QoQ

Operating profit was $658 million, decline of 5.1% YoY and 2.6% QoQ#
Basic EPS was $0.13, growth of 1.6% YoY and 15.5% QoQ

For the Year ended March 31, 2019

Revenues were $11,799 million, growth of 7.9% YoY

Operating profit was $2,696 million, growth of 1.4% YoY

Basic EPS was $0.51, decline of 8.2% YoY*@

# Includes additional depreciation and amortization expenses of $12 million for
Panaya and Skava for the quarter ended December 31, 2018.

* Includes reduction in fair value and carrying value of Panaya and Skava,
    respectively which resulted in reduction in EPS by $0.02

@ Includes impact on account of conclusion of an APA with the US IRS which has
    led to increase in EPS of $0.05 for the year ended March 31, 2018.

"We had another quarter of over $1.5 bn large deal TCV in Q4, as a result of
which FY 19 TCV doubled over FY 18. Realization per billed employee was steady
which reflects increasing usage of automation in core services and faster growth
in newer digital services," said Pravin Rao, COO. "Overall attrition remains
high and we are continuing our focus on arresting the same."

"Cash generation in FY 19 was strong and Dividend Per Share increased by 4.5%.
During the quarter, we completed the payout of special dividend in January and
initiated the share buyback program," said Nilanjan Roy, CFO. "We had another
quarter of forex gains thanks to our proactive hedging strategy."

2. Capital Allocation

    -  During Q4 19, completed payment of special dividend of INR 4 per share
       announced in January, 2019.
    -  Initiated buyback from March 20, 2019 after receiving all requisite
       approvals. Out of total buyback size of INR 8,260 crore, the company has
       bought back shares worth INR 1,546 crore so far.
    -  For the Financial Year 2019, the Board has recommended a final dividend
       of INR 10.50 per share ($0.15 per ADR*). After including the interim
       dividend of INR7 per share, the total dividend for Financial Year 2019
       will amount to INR17.50 per share.
*US$1 = INR 69.16 as at March 31, 2019

3. Client wins & Testimonials

    -  Siemens Gamesa Renewable Energy (SGRE), a world leader and a pioneer in
       the renewable energy industry, has signed a seven-year global
       partnership with Infosys to enable an end-to-end IT Transformation
       program towards a digital future and industry leadership.

Alan Feeley, SGRE CIO, said, "Infrastructure & applications outsourcing deals
are the norm in our business worlds already today. When considering our (SGRE)
desired IT operating model for the future, we were looking for a partner that
brings a careful balance of innovation, operational excellence and sustainable
commercial viability. With Infosys, we are very confident that these attributes
were at the core of their operating culture. We are very excited to partner with
Infosys on this journey of modernization and were impressed by Infosys Next
Generation Application & Infrastructure Management Framework, their agility &
focus on delivery excellence, and a clear understanding of our business

    -  With a vision to provide safe and reliable utility services and improve
       the customer service of about 800,000 people in the Indianapolis area,
       Citizens will transform its customer service by leveraging 'Infosys
       Preconfigured Accelerator for Customer Experience (PACE)', an industry
       leading framework tuned for Oracle Utilities Customer to Meter (C2M)

Curtis Popp, Vice President of Customer Operations at Citizens Energy Group,
said, "At Citizens Energy Group, we're excited to be working with Infosys and
Oracle to implement a new CIS and accomplish our strategic goals, including
improved customer satisfaction and employee engagement. The experience and
expertise of Infosys employees is paramount to the success of this complex

    -  Kraft Heinz has selected Infosys to deliver rich digital experience for
       their recipes and brands to their consumers.

"Kraft Heinz has partnered with Infosys to launch new capabilities delivering
rich consumer experience. We are becoming more relevant to our consumers by
enabling capabilities like Shoppable Recipes, Rich Brand Experience,
Personalized Recommendations, Seamless Social Media Integration. We are just
getting started.," said, Leandro Balbinot, CIO Global Digital Growth, Kraft
Heinz Company.

    -  "Movement Mortgage is committed to providing loan officers, real estate
        agents and our borrowers with technology and a digital infrastructure
        that delivers an innovative, user-friendly experience on every platform
        and in every channel, both today and in the future. We're pleased to
        have selected Infosys as our strategic partner across these key business
        functions. Infosys' expertise in Digital Transformation, Cloud
        Technologies and Mortgage and Retail Lending will help Movement continue
        to spearhead industrywide transformation that improves the mortgage
        experience for everyone and makes the dream of homeownership more
        accessible than ever before," said Casey Crawford, CEO, Movement
    -  "In partnership with Infosys, we are modernizing our collection
        processes with real-time insights into delinquency rates, better risk
        segmentations and customized contact & calling strategies." said Julie
        Signorille, Consumer Banking, Chief Operating Officer, Citizens Bank.


    -  Infosys positioned in HFS Top 10 Healthcare Services 2019
    -  Infosys positioned as a leader in SAP HANA and S/4 HANA Services - NEAT
    -  Infosys positioned as a leader in RPA & AI in Banking - NEAT 2019
    -  Infosys positioned in Customer Experience (CX) Shortlist (Constellation
        ShortList(TM) Global Customer Experience (CX) Services)
    -  Infosys positioned as a leader in Gartner's Magic Quadrant for Public
        Cloud Infrastructure Professional and Managed Services, Worldwide
    -  Infosys positioned as a leader in Advanced Digital Workplace Services -
        NEAT 2019
    -  Infosys Lex Wingspan shortlisted in Constellation ShortList(TM) Learning
        Marketplaces for Q1 2019
    -  Infosys positioned as a leader in IDC MarketScape: Worldwide IT Service
        Management Implementation Services 2019 Vendor Assessment
    -  Infosys positioned in HFS Top 10 High-tech sector service providers
    -  Infosys positioned in HFS Top 10 Microsoft AI Services 2019
    -  Infosys positioned in HFS Top 10 Enterprise Blockchain Services 2018

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 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 and our future business expectations are forward-looking statements
intended to qualify for the 'safe harbor' under the Private Securities
Litigation Reform Act of 1995. Such statements 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, 2018. These filings are available at 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 

                                                  March 31, 2019 March 31, 2018


    Current assets

    Cash and cash equivalents                             2,829           3,041

    Current investments                                     958             982

    Trade receivables                                     2,144           2,016

    Unbilled revenue                                        777             654

    Prepayments and other                                     
    current assets                                          827             662

    Income tax assets                                        61               -

    Derivative financial
    instruments                                              48               2

                                                          7,644           7,357

    Assets held for
    sale(A3)(A4)                                              -             316

    Total current assets                                  7,644           7,673

    Non-current assets

    Property, plant and
    equipment                                            1,931            1,863

    Goodwill                                                512             339

    Intangible assets                                       100              38

    Investment in associate

    Non-current investments                                 670             883

    Deferred income tax assets                              199             196

    Income tax assets                                       914             931

    Other non-current assets                                282             332

    Total non-current assets                              4,608           4,582

    Total assets                                         12,252          12,255


    Current liabilities

    Trade payables                                          239             107

    Derivative financial
    instruments                                               2               6

    Current income tax
    liabilities                                             227             314

    Client deposits                                           4               6

    Unearned revenue                                        406             352

    Employee benefit
    obligations                                             234             218

    Provisions                                               83              75

    Other current liabilities                             1,498           1,036

                                                          2,693           2,114
    Liabilities directly
    associated with assets
    held for sale(A3)(A4)                                                    50

    Total current liabilities                             2,693           2,164

    Non-current liabilities

    Deferred income tax
    liabilities                                              98              82

    Employee benefit
    obligations                                               6               7

    Other non-current
    liabilities                                              55              42

    Total liabilities                                     2,852           2,295


    Share capital- INR 5
    ($0.16) par value                   
    (2,400,000,000) equity
    shares authorized, issued
    and outstanding
    (2,173,312,301), net of
    20,324,982 (10,801,956)
    treasury shares as at
    March 31, 2019 (March 31,                               339             190
    2018), respectively

    Share premium                                           277             247

    Retained earnings                                    11,248          11,587

    Cash flow hedge reserve                                    3              -

    Other reserves                                          384             244

    Capital redemption reserve                               10               9

    Other components of equity                           (2,870)        (2,317)

    Total equity
    attributable to equity
    holders of the company                                9,391           9,960

    Non-controlling interests                                 9

    Total equity                                          9,400           9,960

    Total liabilities and
    equity                                               12,252          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 ended  Three months ended       Year ended      Year ended 
          March 31, 2019      March 31, 2018   March 31, 2019  March 31, 2018

    Revenues      3,060                2,805           11,799          10,939

    Cost of sales 2,028                1,793            7,687           7,001

    Gross profit  1,032                1,012            4,112           3,938

    Operating expenses

    Selling and 
    expenses       174                   147              638            552

    expenses       200                   172              778            727

    Total operating374                   319            1,416          1,279
    profit         658                   693            2,696          2,659

    Other income, 
    net (B3)        94                   100              411            513

    Reduction in 
    the fair value                   
    of Disposal Group                  
    held for
    sale(A3)        -                  (18)              (39)           (18)

    Adjustment in 
    respect of                   
    excess of                   
    carrying amount                   
    over recoverable                  
    amount on 
    from "Held
    for Sale"(A4)  -                    -                 (65)          - 

    Share in net 
    of associate,     
    impairment(A2) -                    -                 -              (11)

    Profit before 
    income taxes    752                  775               3,003        3,143

    Income tax 
    (A1)(B4)       171                  204                803            657

    Net profit     581                  571              2,200          2,486

    Other comprehensive income

    Items that will not be
    reclassified subsequently
    to profit or loss:

    Re-measurements of the net
    defined benefit liability/
    asset, net       -                    6                 (3)            
    Equity instruments through
    other comprehensive income,
    net                                  1                 10              1

    Items that will be
    reclassified subsequently
    to profit or loss:

    Fair valuation 
    of investments,
    net               3                 (2)                 -              -
    Fair value 
    changes on
    designated as 
    cash flow
    hedge, net      (2)                  -                  3              (6)

    Foreign currency 
    translation      74               (164)             (560)               18

    Total other 
    net of tax       75               (159)             (550)               22

    income          656                412              1,650            2,508

    Profit attributable to:

    Owners of 
    the Company     580                571              2,199            2,486

    interests         1                  -                  1                -

                    581                571              2,200            2,486

    Total comprehensive                  
    income attributable 
    Owners of 
    the Company     655                412              1,649            2,508

    interests         1                                     
                    656                412              1,650            2,508
    Earnings per equity share (A1) (A5)

    Basic ($)     0.13               0.13                0.51             0.55

    Diluted ($)   0.13               0.13                0.51             0.55

    Weighted average equity
    shares used in computing
    earnings per equity share(A5)

    Basic   4,347,129,592  4,346,554,120       4,347,130,157     4,510,664,644

    Diluted 4,353,023,863  4,349,617,024       4,353,420,772     4,515,147,740


A. Notes pertaining to previous quarters / periods

  1. During the quarter ended December 31, 2017, on account of the conclusion of
     an Advance Pricing Agreement ("APA") with the U.S. Internal Revenue Service
     ("IRS"), the Company has reversed income tax expense provision of $225
     million which pertains to previous periods.
  2. During the year ended March 31, 2018, the Company has written down the
     entire carrying value of $11 million in its associate DWA Nova LLC.
  3. In the three months ended March 2018, Kallidus and Skava (together referred
     to as "Skava") and Panaya, were classified as "Held for Sale" resulting in
     a reduction in the fair value amounting to $18 million and $39 million in
     respect of Panaya for the year ended March 31, 2018 and three months ended
     June 30, 2018, respectively.
  4. During the three months ended December 31, 2018, the Company declassified
     Panaya and Skava from "Held for Sale" and recognized an adjustment in
     respect of excess of carrying amount over recoverable amount of $65 million
     in respect of Skava during the year ended March 31, 2019.
  5. Share numbers and EPS have been adjusted for September 2018 bonus issue.

B. Notes pertaining to the current quarter

  1. The audited condensed consolidated Balance sheet and Statement of
     Comprehensive Income for the three months and year ended March 31, 2019
     have been taken on record at the Board meeting held on April 12, 2019.
  2. A Fact Sheet providing the operating metrics of the Company can be
     downloaded from
  3. Other income includes $7 million for each of the quarter and year ended
     March 31, 2019, and $41 million for the year ended March 31, 2018 towards
     interest on income tax refund.
  4. During the quarter ended March 31, 2019, on account of the conclusion of an
     Advance Pricing Agreement ("APA") in an overseas jurisdiction, the Company
     has reversed income tax expense provision of $14 million which pertains to
     previous periods.

    IFRS-INR Press Release:

    Fact Sheet:

    SOURCE: Infosys