Infosys Announces Results for the Quarter Ended June 30, 2014

Bangalore, India (ots/PRNewswire) -

Q1 revenue growth at 7.1% YoY in USD terms;

Q1 EPS at $ 0.84; YoY growth of 15.1%;

FY 15 revenues expected to grow 7%-9% in USD terms

Financial Highlights

Consolidated results under International Financial Reporting
Standards (IFRS) for the quarter ended June 30, 2014

Quarter ended June 30, 2014

- Revenues were $ 2,133 million for the quarter ended June 30, 2014
QoQ growth was 2.0%
YoY growth was 7.1%
- Net profit was $ 482 million for the quarter ended June 30, 2014
QoQ growth was (1.0%)
YoY growth was 15.3%
- Earnings per share (EPS) was $ 0.84 for the quarter ended June 30, 2014
QoQ growth was (1.2%)
YoY growth was 15.1%
- Liquid assets including cash and cash equivalents, available-for-sale
financial assets, certificates of deposits and government bonds were $ 4,943 million
as on June 30, 2014 as compared to $ 5,048 million as on March 31, 2014

(Logo: http://photos.prnewswire.com/prnh/20130122/589162 )

Other Highlights

Infosys and its subsidiaries

- Added 61 clients during the quarter
- Added 11,506 employees (gross) during the quarter

161,284 employees as on June 30, 2014 for Infosys and its
subsidiaries

"We continue to enjoy the confidence of our clients by
demonstrating superior execution capability and value realization,"
said S. D. Shibulal, CEO and Managing Director. "As I transition the
CEO mantle to Vishal, I am confident that he will leverage this
strong foundation to take Infosys to greater heights. I wish him the
very best."

"We saw positive trends in our large deal wins during the quarter.
We believe that this momentum will hold us in good stead as we focus
on increasing volumes," said U. B. Pravin Rao, COO. "Employee
attrition rates are worrisome and we are implementing various
initiatives to retain good talent."

"We improved operational performance as a result of our cost
optimization initiatives and a focus on increasing productivity and
utilization. This partially offset the impact of compensation
increases for our employees this quarter," said Rajiv Bansal, CFO.
"It will help us invest in areas that will accelerate growth."

Outlook*

The company's outlook (consolidated) for the fiscal year ending
March 31, 2015, under IFRS is as follows:

- Revenues are expected to grow 7%-9%

Business Highlights

- We partnered with a global automotive leader to engineer new concepts in
driver awareness and safety telematics. The core principles of the proof of concept
were to reduce driver distraction, manage driver load and allow passengers to enable
drivers with online navigation capabilities
- We launched a cloud-based version of our Clinical Trial Supply Management
solution to help life sciences companies enhance the efficiency of clinical trial
processes and drive greater collaboration between pharmaceutical companies and
contract research organizations
- Our consulting practice continues to deliver innovative solutions for our
clients. A leading insurance company has engaged us to develop a smartphone app that
allows parents to set up a simple app-based driving agreement with their teenage
drivers. The app helps establish where, when and how fast the teen can drive and the
teen driver can earn "safe mile" points that can be accumulated and redeemed for
rewards
- We continue to make significant progress in our efforts to accelerate the
digital transformation of our clients. Our Cloud and Big Data business has executed
over 260 engagements till date and won over 20 new engagements over the past quarter
- We were engaged by a leading pharmaceutical company to develop a B2C Android
app to promote their anti-nicotine initiative. A leading developer of video games
partnered with us to design, build and sustain a platform for mobile gaming that
presents gamers with a connected experience integrated with social networking
platforms
- Finacle(TM) sustained its growth momentum with 9 new wins and 13 go lives
across the world. Eastern Bank, the largest and oldest mutually owned bank in the
United States, selected Finacle e-banking, mobile banking, and enterprise alert
solutions to make banking easier for its customers and drive growth. FONDEP, one of
Morocco's leading microfinance institutions, chose Infosys Finacle for its strategic
core banking transformation program
- Infosys Public Services Inc. was engaged to improve member service for a
National Medicaid and Medicare Plan and reduce operations costs by rationalizing their
technology landscape. We migrated their Medicare Advantage administrative systems to
the TriZetto FACETS(TM) platform in a managed capacity model
- Our products and platforms business has seen good traction over the quarter. A
large Europe-based multinational financial services company, now opening its doors to
digital consumers, selected BrandEdge to reassess its growth strategies. A leading
sports apparel and accessories trading company in India selected InteractEdge to
design and launch the first omni-channel eCommerce website in the country
- We applied for 5 unique patents, in India and the USA, during the fourth
quarter, adding to a total of 523 unique patent applications in various stages of
patent prosecution in India, the USA and other jurisdictions. So far we have been
granted 177 patents by the United States Patent and Trademark Office, 3 patents by the
Luxembourg Patent Office and 1 patent by the Australian Patent Office

Awards and Recognition

- The Indo-American Chamber of Commerce recognized Infosys for Excellence in
Innovation and Excellence in Environment, Health & Safety
- Infosys Public Services [http://www.infosyspublicservices.com ] won the
'Hottest Government Contractor' honor on June 24, 2014 at the 13th annual Northern
Virginia Technology Council (NVTC) [http://www.nvtc.org ] 'Hot Ticket Awards' for
developing innovative solutions to help the government
- Infosys Public Services was ranked 16th in the 2014 Healthcare Informatics 100
[http://www.healthcare-informatics.com/hci100/2014-hci-100-list ], and in the top 20
for three years in a row, based on revenues from healthcare IT products and services
- Infosys was recognized as a winner in the 2014 Simulating Reality
[http://www.infosys.com/Links/redirectlink.aspx?id=simulatingreality.aspx ] contest
organized by MSC Software. The winning team from Infosys used MSC's simulation
technologies to better diagnose osteoporosis and accurately quantify fracture risk
- Infosys was named a major player for providing professional services to the
Oil and Gas Industry by IDC Energy Insights
- During the quarter, Infosys Finacle(TM) won five international banking
excellence awards in partnership with its clients at the annual Asian Banker Awards
2014. These included two awards each for core banking and channel solutions
implementation, and one award for its treasury management implementation
- Infosys BPO won the 2014 Golden Peacock National Training Award. It was also
declared a winner at the National Institution for Quality and Reliability Awards in
India
- Infosys BPO and Procter & Gamble jointly won the 2014 Outsourcing Excellence
Award
- Infosys bagged four awards at the KCG Analyst Choice Awards

About Infosys Ltd

Infosys is a global leader in consulting, technology and
outsourcing solutions. We enable clients, in more than 30 countries,
to stay a step ahead of emerging business trends and outperform the
competition. We help them transform and thrive in a changing world by
co-creating breakthrough solutions that combine strategic insights
and execution excellence.

Visit http://www.infosys.com
[http://www.infosys.com/Pages/index.aspx ] to see how Infosys , with
US$ 8.25 billion in annual revenues and 160,000+ employees, is
Building Tomorrow's Enterprise(R) today.

Safe Harbor

Certain statements 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, 2014 and on Form 6-K for the
quarter ended December 31, 2013. 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. In addition, please note
that the date of this press release is mentioned at the beginning of
the release, 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.

Infosys Limited and subsidiaries

Unaudited Condensed Consolidated Balance Sheets as of

(Dollars in millions except share data)

June 30, 2014 March 31, 2014
ASSETS
Current assets
Cash and cash equivalents 4,164 4,331
Available-for-sale financial assets 467 367
Investment in certificates of deposit 97 143
Trade receivables 1,524 1,394
Unbilled revenue 493 469
Derivative financial instruments 16 36
Prepayments and other current assets 483 440
Total current assets 7,244 7,180
Non-current assets
Property, plant and equipment 1,354 1,316
Goodwill 359 360
Intangible assets 54 57
Available-for-sale financial assets 216 208
Deferred income tax assets 109 110
Income tax assets 252 254
Other non-current assets 37 37
Total non-current assets 2,381 2,342
Total assets 9,625 9,522
LIABILITIES AND EQUITY
Current liabilities
Trade payables 17 29
Current income tax liabilities 441 365
Client deposits 7 6
Unearned revenue 143 110
Employee benefit obligations 175 159
Provisions 62 63
Other current liabilities 811 792
Total current liabilities 1,656 1,524
Non-current liabilities
Deferred income tax liabilities 10 11
Other non-current liabilities 59 54
Total liabilities 1,725 1,589
Equity
Share capital- `5 ($0.16) par value 600,000,000
equity shares authorized, issued and outstanding
571,402,566 each, net of 2,833,600 treasury shares
each as of June 30, 2014 and March 31, 2014,
respectively 64 64
Share premium 704 704
Retained earnings 8,895 8,892
Other components of equity (1,763) (1,727)
Total equity attributable to equity holders of the
company 7,900 7,933
Non-controlling interests - -
Total equity 7,900 7,933
Total liabilities and equity 9,625 9,522

Infosys Limited and subsidiaries

Unaudited Condensed Consolidated Statements of Comprehensive
Income

(Dollars in millions except share and per equity share data)

Three months Three months
ended June 30, ended June
2014 30, 2013

Revenues 2,133 1,991
Cost of sales 1,344 1,296
Gross profit 789 695
Operating expenses:
Selling and marketing expenses 111 103
Administrative expenses 142 124
Total operating expenses 253 227
Operating profit 536 468
Other income, net 139 103
Profit before income taxes 675 571
Income tax expense 193 153
Net profit 482 418
Other comprehensive income
Items that will not be reclassified to profit or
loss:
Re-measurement of the net defined benefit
liability/(asset) (3) 1
Items that may be reclassified subsequently to
profit or loss:
Fair value changes on available-for-sale
financial asset 3 -
Exchange differences on translation of foreign
operations (36) (619)
Total other comprehensive income, net of tax (36) (618)
Total comprehensive income 446 (200)
Profit attributable to:
Owners of the company 482 418
Non-controlling interests - -
482 418
Total comprehensive income attributable to:
Owners of the company 446 (200)
Non-controlling interests - -
446 (200)
Earnings per equity share
Basic ($) 0.84 0.73
Diluted ($) 0.84 0.73
Weighted average equity shares used in computing
earnings per equity share
Basic 571,402,566 571,402,566
Diluted 571,402,566 571,402,566

NOTE:

1. The unaudited Condensed Consolidated interim Balance sheets and
Condensed Consolidated interim Statements of Comprehensive Income for
the three months ended June 30, 2014 have been taken on record at the
Board meeting held on July 11, 2014

2. A Fact Sheet providing the operating metrics of the company can
be downloaded from http://www.infosys.com

Downloads

Fact Sheet
[http://multivu.prnewswire.com/prnehost/PIV696784InfosysFactSheet.pdf
]

INR Press Release [http://multivu.prnewswire.com/prnehost/PIV6967
84InfosysINRPressRelease.pdf ]

Contact

Investor Relations
Sandeep Mahindroo
+91-80-3980-1018
Sandeep_Mahindroo@infosys.com

Media Relations
Sarah Vanita Gideon, India
+91(80)4156-3373
Sarah_Gideon@Infosys.com

Tara Kozak-Lindsay,
Golin Harris for Infosys
+1(212)373-6020
TKozakLindsay@GolinHarris.com

Photo:
http://photos.prnewswire.com/prnh/20130122/589162

ots Originaltext: Infosys Technologies Ltd.
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