Country for PR: United Kingdom
Contributor: PR Newswire Europe
Friday, July 12 2019 - 23:56
Infosys: Accelerated Double Digit Growth of 12.4%; Highest Ever Large Deal TCV at $ 2.7 Bn
BENGALURU, India, July 12, 2019/PRNewswire-AsiaNet/--

"We had a strong start to FY 20 with constant currency growth accelerating to 
12.4% on year over year basis and digital revenue growth of 41.9%. This was 
achieved through our consistent client focus and investments which have 
strengthened our client relationships," said Salil Parekh, CEO and MD. 
"Consequently, we are raising our revenue guidance for the year from 7.5%-9.5% 
to 8.5%-10%."

     Digital CC growth

     12.4% YoY
     CC growth

     2.8% QoQ
     CC growth

     Operating margin

     $2.7 bn
     Large deal signings

    --  Q1 20 revenues grew year-on-year by 10.6% in USD; 12.4% in constant 
    --  Q1 20 revenues grew sequentially by 2.3% in USD; 2.8% in constant 
    --  Q1 20 Digital revenues at $1,119 million (35.7% of total revenues), 
year-on-year growth of 41.9% and sequential growth of 8.6% in constant currency
    --  Increased FY 20 revenue growth guidance range to 8.5%-10% in constant 
    --  Maintained FY 20 operating margin guidance range of 21%-23%

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

    Revenues were $3,131 million, growth of 10.6% YoY and 2.3% QoQ

    Operating profit was $642 million, decline of 4.2% YoY and 2.3% QoQ. 
Operating margin was 20.5%.

    "We had a good quarter as we continue to leverage our digital navigation 
framework to help our clients build and nurture their live enterprise," said 
Pravin Rao, COO. "Large deal TCV was highest ever at $2.7 bn. Segment growth 
was robust with all large regions and most verticals growing at double digits 
yoy in constant currency."

    "Our first quarter results and continued focus on operational efficiencies 
gives us the confidence on our revenue and margin guidance for the year," said 
Nilanjan Roy, CFO. "Continuing our objective of improving shareholder returns, 
we have revised our capital allocation policy upwards to distribute ~ 85% of 
free cash flows cumulatively over a 5-year period."

    2. Capital Allocation

    --  The Company is on track towards completing its previously announced 
share buyback of INR 8,260 crore. The company has till date bought back shares 
worth `INR 5,934 crore.
    --  The Company's current policy is to pay up to 70% of the free cash flow  
annually by way of dividend and/or buyback. The Board has reviewed and approved 
a revised Capital Allocation Policy of the Company after taking into 
consideration the strategic and operational cash requirements.

        "Effective from Financial year 2020, the company expects to return 
approximately 85% of the free cash flow cumulatively over a 5-year period 
through a combination of semi-annual dividends and/or share buyback and/or 
special dividends, subject to applicable laws and requisite approvals, if any."

        Free cash flow is defined as net cash provided by operating activities 
less capital expenditure as per the consolidated statement of cash flows 
prepared under IFRS

        Dividend and buyback include applicable taxes

    3. Client wins & Testimonials

    --  We were selected by Finnish postal service Posti as a strategic partner 
for the digital transformation of its business and IT services to drive the 
modernization of its IT applications and infrastructure, helping it move to a 
flexible IT service model. This will also strengthen Posti's ability to respond 
to changes in customer needs with agility and provide a seamless customer user 
experience through a dedicated command center.
    --  We entered into long term strategic partnership with Toyota Material 
Handling Europe to help in its digital transformation journey by facilitating 
transformation to a scalable digital hybrid cloud platform, providing 
application services, digital workplace, infrastructure management and a 
dedicated data center operation.
    --  Infosys McCamish, a US based subsidiary of Infosys BPM entered into a 
partnership with Pan-American Life Insurance Group (PALIG), a leading provider 
of life, accident and health insurance to provide policy administration 
services for PALIG's new Global Assets Indexed Universal Life product.
    --  We have partnered with a leading consumer technology company to help 
them localize their virtual assistant by training their AI. Infosys is helping 
the client to define its overall global strategy for localization while 
analyzing data to identify patterns which can train the AI to respond better to 
the user command. This will improve their virtual assistant to provide a better 
user experience.
    --  Marc Schmidt, Head of SDD and GIT-ACI, BSH said, "At BSH GmbH, for the 
software Development Platform (SDD) which is used for developing thousands of 
micro to large scale applications, we wanted to deploy an auto-scaling 
Infrastructure on AWS Cloud that can handle millions of users across the world. 
Infosys leveraging its Agile and DevOps methodology and expertise, automated 
build and deployment which led to an overall 70% reduction in environment 
provisioning time, Zero downtime, 100% improvement in recovery time objectives."
    --  One of the world leaders in the manufacturing of connectivity and 
sensor products engaged Infosys to transform their delivery of Sales solutions 
needed for their globally dispersed sales team, leveraging Salesforce 
ecosystem. Infosys over the last 12 months has moved to a Highly Agile 
Capability based delivery model and helped in an estimated 40% improvement in 
time to market for solutions, shortened release cycles from once-a-quarter to 
on-demand releases and improvement in time to revenue of solutions by upto 25%


    --  Infosys positioned in HFS Top 10 Healthcare Services 2019
    --  Recognized as a Leader in NelsonHall's SAP HANA and S/4HANA services 
    --  Recognized as a Leader in the Enterprise Platform IT Services in BFS 
PEAK Matrix(TM) Assessment 2019
    --  Recognized in the HFS Top 10: Managed Security Services (MSS)
    --  Recognized in the HFS Top 10 Google AI Services
    --  Recognized as a Leader in The Forrester Wave(TM): Global API Strategy 
And Delivery Service Providers, Q2 2019
    --  Recognized as a Leader in the NEAT on Next-Generation Software Testing 
    --  Recognized as a Leader in the IDC MarketScape: Worldwide Microsoft
        Implementation Services 2019 Vendor Assessment
    --  Recognized in the NEAT on IoT in Digital Transformation
    --  Recognized in the HFS Top 10 Manufacturing Service Providers 2019
    --  Recognized in the HFS Top 10 Energy Services 2019
    --  Recognized as a Leader in Gartner Magic Quadrant for Public Cloud
        Infrastructure Managed Service Providers
    --  Awarded the "Most Valuable Partner - Commercial Cloud" Award by Oracle
    --  Won the Golden Peacock Environment Management Award
    --  Won the Pega partner excellence award in recognition of innovative
        practice development and continued investment in the growth of a strong
        delivery practice
    --  Recognized with the Global Partner of the Year Award for driving
        customer success at TIBCO NOW
    --  Recognized as MuleSoft Americas Growth & Emerging Partner of the Year 
2019 by MuleSoft
    --  Awarded 'System Integrator Partner of the year 2019 for Hybrid Cloud 
Solutions' by HPE at HPE Discover 2019

    About Infosys

    Infosys is a global leader in next-generation digital services and 
consulting. We enable clients to navigate their digital transformation, 
leveraging our teams from over 45 countries. 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 presentation 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, 2019. 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 data)

     	              June 30, 2019	   March 31, 2019
Current assets 		
Cash and cash 
equivalents	               2,266	         2,829
Current investments	         778	           958
Trade receivables	       2,290	         2,144
Unbilled revenue	         964	           777
Prepayments and other 
current assets	                 851	           827
Income tax assets	          38	            61
Derivative financial 
instruments	                  26	            48
Total current assets	       7,213	         7,644
Non-current assets
Property, plant and 
equipment	               1,903	         1,931
Right-of-use assets(B3)         540	             -
Goodwill	                 589	           512
Intangible assets	         207	           100
Non-current investments         548	           670
Deferred income tax assets	 204	           199
Income tax assets	         917	           914
Other non-current assets	 296	           282
Total non-current assets      5,204	         4,608
Total assets	              12,417	        12,252
Current liabilities 		
Trade payables	                 317	           239
Lease liabilities(B3)	          72	             -
Derivative financial 
instruments	                   3	             2
Current income tax 
liabilities	                 305	           227
Client deposits	                   4	             4
Unearned revenue	          408	           406
Employee benefit obligations 	  248	           234
Provisions	                  84	            83
Other current liabilities      2,022	         1,498
Total current liabilities      3,463	         2,693
Non-current liabilities 		
Lease liabilities(B3)	         483	             -
Deferred income tax liabilities 112	            98
Employee benefit obligations	   7	             6
Other non-current liabilities 	 115	            55
Total liabilities 	       4,180	         2,852
Share capital- `5 ($0.16) 
par value 4,800,000,000 
(4,800,000,000) equity 
shares authorized, issued 
and outstanding 4,271,404,014 
(4,335,954,462) equity shares 
fully paid up, net of 
20,094,430 (20,324,982) 
treasury shares as at 
June 30, 2019 
(March 31, 2019)	        334	          339
Share premium	                286	          277
Retained earnings 	      9,969	       11,248
Cash flow hedge reserve          -	            3
Other reserves	                432	          384
Capital redemption reserve	 15	           10
Other components of equity   (2,854)	        (2,870)
Total equity attributable 
to equity holders of 
the company	              8,182	         9,391
Non-controlling interests	  55	             9
Total equity	               8,237	         9,400
Total liabilities and 
equity                        12,417	        12,252


    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
                             June 30, 2019	      June 30, 2018

Revenues	                     3,131	           2,831
Cost of sales	                     2,122	           1,819
Gross profit	                     1,009	           1,012
Operating expenses		
   Selling and marketing expenses      169	             149
   Administrative expenses	       198	             193
Total operating expenses	       367	             342
Operating profit	               642	             670
Other income, net	               106	             107
Finance cost(B3)	               (6)	              -
Reduction in the fair value 
of Disposal Group held 
for sale(A1)	                        -	             (39)
Profit before income taxes	       742	             738
Income tax expense	               196	             204
Net profit	                       546	             534
Other comprehensive income 
Items that will not be 
reclassified subsequently to 
profit or loss: 		
Re-measurements of the net 
defined benefit 
liability/asset, net	               (3)	             -
	                              (3)	             -
Items that will be reclassified 
subsequently to profit or loss: 
Fair valuation of investments, 
net	                                2	             (7)
Fair value changes on derivatives
 designated as cash flow hedge, net   (3)	              1
Foreign currency translation	        17	           (468)
	                               16	           (474)
Total other comprehensive 
income/(loss), net of tax	        13	           (474)
Total comprehensive income 	       559	             60
Profit attributable to:
Owners of the Company                 546	            534
Non-controlling interests	         -	              -
	                               546	            534
Total comprehensive income 
attributable to:
Owners of the Company                 559	             60
Non-controlling interests	         -	              -
	559	60
Earnings per equity share(A2)
Basic ($)	                      0.13	           0.12
Diluted ($)	                      0.13	           0.12
Weighted average equity 
shares used in computing 
earnings per equity share(A2)
Basic	                        4,302,176,860	    4,346,657,242
Diluted                      	 4,308,286,160	    4,350,710,356


A. Notes pertaining to previous quarters / periods

    1. In the three months ended June 30, 2018, the Company had recorded a 
reduction in the fair value amounting to $39 million in respect of its 
subsidiary Panaya. The subsidiaries Kallidus and Skava (together referred to as 
"Skava") and Panaya, are collectively referred to as the "Disposal Group". 
Subsequently the company reclassified these subsidiaries as they did not meet 
the criteria for "Held for Sale".
    2. Share numbers and EPS have been adjusted for September 2018 bonus issue.

    B. Notes pertaining to the current quarter

    1. The audited interim condensed consolidated Balance sheet and Statement 
of Comprehensive Income for the three months ended June 30, 2019 have been 
taken on record at the Board meeting held on July 12, 2019.
    2. A Fact Sheet providing the operating metrics of the Company can be 
downloaded from
    3. On account of adoption of IFRS 16- Leases effective April 1, 2019.

    IFRS-INR Press Release:

    Fact Sheet:

    Source: Infosys