Infosys (NASDAQ: INFY) Announces Results for the Quarter Ended September 30, 2014

Bangalore, India (ots/PRNewswire) -

Q2 revenues at $ 2,201 million. Growth of 3.1% QoQ; 6.5% YoY

Q2 constant currency revenue at $ 2,217 million. Growth of 3.9%
QoQ; 6.3% YoY

Q2 net profit at $ 511 million. Growth of 6.0% QoQ; 33.4% YoY

FY 15 revenue guidance maintained at 7%-9%

Interim dividend of INR 30 per share (app. $ 0.49 per ADS)

1:1 bonus issue of equity shares and 1:1 stock dividend of
American Depositary Shares, to increase liquidity of its shares and
expand the retail shareholder base

Financial Highlights

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

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

Quarter ended September 30, 2014

- Revenues were $ 2,201 million for the quarter ended September 30, 2014
QoQ growth was 3.1% in reported terms; 3.9% in constant currency terms
YoY growth was 6.5%
- Net profit was $ 511 million for the quarter ended September 30, 2014
QoQ growth was 6.0%
YoY growth was 33.4%
- Earnings per share (EPS) was $ 0.89 for the quarter ended September 30, 2014
QoQ growth was 6.0%
YoY growth was 32.8%
- Liquid assets including cash and cash equivalents, available-for-sale
financial assets, certificates of deposits and government bonds were $ 5,444 million
as on September 30, 2014 as compared to $ 4,943 million as on June 30, 2014.
- Infosys has pledged INR 254 crore ($ 42 million) for FY 15 towards Corporate
Social Responsibility (CSR) through the Infosys Foundation - its philanthropic arm.
The Infosys Foundation is engaged in several programs aimed at alleviating hunger,
promoting education, improving health, assisting rural development, supporting arts
and helping the destitute.

Other Highlights

- Infosys and its subsidiaries added 49 clients (gross) during the quarter.
- Gross addition of 14,255 employees during the quarter.
- 165,411 employees as on September 30, 2014 for Infosys and its subsidiaries.
- Declared an interim dividend of INR 30 per share (equivalent to interim
dividend of app. $ 0.49 per ADS at the exchange rate of INR 61.00). The record date
for payment of dividend is October 17, 2014.
- The Board in its meeting held on October 10, 2014 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.

"Digital transformation is reshaping the business of every one of
our clients. We see this as a great opportunity to help them renew
the core of their business as well as to expand into new frontiers
and are seeing early positive results," said Dr. Vishal Sikka, Chief
Executive Officer and Managing Director. "Our strategy is to apply
the same principles to our own business in order to capture this
opportunity and accelerate our growth, within our culture of lifelong
learning and purposeful work."

"On several fronts, our efforts to bring in operational
efficiencies yielded encouraging results during the quarter," said U.
B. Pravin Rao, Chief Operating Officer. "We have seen positive
results of some of our interventions on sales, margins and attrition,
and we will continue to focus on these areas."

"We have been able to improve our margins during the quarter and
feel confident of sustaining these within a narrow band," said Rajiv
Bansal, Chief Financial Officer. "This is giving us increased
confidence to make the investments required to meet our growth
aspirations."

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% in USD terms

Conversion: AUD / USD - 0.87; Euro / USD - 1.26; GBP / USD - 1.62
for rest of fiscal 2015 (exchange rates as of Sep 30th, 2014)

Business Highlights

- Signed a multi-year agreement with Daimler AG covering management of
infrastructure services and data centers.
- Consolidated IT and BPO operations for a major fashion retailer in the US as
part of a five-year Oracle Retail Support agreement. This will help the retailer
better focus on new brand acquisitions and global expansion.
- Designed an analytics-based solution to help one of UK's leading supermarket
chains drive targeted campaigns to enhance customer loyalty, acquire new customers and
improve revenues.
- Migrated, supported and enhanced an automated outbound dialer application for
a telecom service provider in the US. This will help the provider integrate Short
Messaging Service for end users by deriving information from multiple systems like
billing and provisioning systems.
- Infosys Public Services (IPS) has been engaged by a postal solution provider
in the US to reduce cost of operation and efficiently maintain its plant equipment and
vehicle fleet asset management system. IPS is also migrating the client's
business-critical applications to a new data center by utilizing proprietary
application assessment tools and migration approaches for rapid execution with zero
business disruption.
- Our products and platforms business, Edgeverve Systems, is seeing increased
momentum. A global sports brand has engaged Edgeverve to help build a responsive user
experience-based multi-channel ecommerce store in India.
- Expanded the scope of our strategic partnerships to deliver value to
businesses across cloud-based infrastructure, analytics and big data. We broadened our
partnership with:
- Microsoft to securely expedite movement to Azure and hybrid cloud
environments while optimizing cloud investments.
- Oracle to enhance support for a range of innovative solutions and services
on new technology platforms across digital marketing, big data and Oracle Cloud
Applications.
- Hitachi Data Systems to bring next-generation infrastructure and data
center transformation solutions to facilitate the smooth transitioning of IT
infrastructure to new cloud-based environments.
- Huawei to offer cloud, big data and communication solutions.
- Entered into a strategic relationship with the Institute for Computational
& Mathematical Engineering (ICME), Stanford University. Through this arrangement, we
will jointly develop curriculum in Data Science and Analytics focused on real-world
problem areas and will undertake joint research using Data Science to find solutions
to key industry issues.
- Working with faculty from the Stanford d.school and the d.Global initiative to
bring design thinking to our clients on a large scale.
- Extended the relationship with Oracle to enhance support for a range of
innovative solutions and services on new technology platforms.
- This quarter we made six unique patent applications in India and the US,
adding to a total of 505 unique patent applications in various stages of patent
prosecution in India, the US and other jurisdictions. Till date we have been granted
199 patents by the United States Patent and Trademark Office, three by the Luxembourg
Patent Office, one by the Australian Patent Office and one patent by the Intellectual
Property Office of Singapore.

Awards and Recognition

- Infosys was cited as a Leader and Star Performer in Life Sciences IT
Outsourcing in Everest Group's report; IT Outsourcing in Life Sciences Industry -
Service Provider Landscape with PEAK Matrix(TM) Assessment 2014.
- Infosys was positioned in the Winner's circle of the HFS Blueprint - SAP
Services.
- Infosys was named a Leader in the Magic Quadrant for Finance and Accounting
BPOby Gartner for the fourth consecutive year.
- Finacle emerged as a leader in a key industry assessment - The Forrester
Wave(TM): Customer-Centric Global Banking Platforms, Q3 2014. It was also judged a
winner by Juniper Research for the 2014 Future Mobile Awards in the mobile banking
category; and was rated by CEB TowerGroup analysts as 'Best in Class' for bank user
services and enterprise support.
- Infosys named a Leader in IDC MarketScape - Worldwide Oracle Implementation
Services Ecosystem 2014 report
[http://www.infosys.com/Oracle/case-studies/Pages/applications-systems-integrators.aspx ]
.

Changes to the Board

The members of the company at the Extra-ordinary General Meeting
held on July 30, 2014 approved the appointment of Dr. Vishal Sikka as
the Chief Executive Officer and Managing Director effective August 1,
2014.

Mr. Narayana Murthy will cease to be Non-Executive Chairman
effective October 10, 2014. He indicated that in line with the
company's high corporate governance standards and to avoid any
perceived conflicts, it would not be appropriate for him to be the
Chairman Emeritus of Infosys. The Board accepted Mr. Murthy's
decision and sincerely thanked him for his vision, leadership and
guidance in making Infosys a globally respected company.

Mr. S. Gopalakrishnan will cease to be the Non-Executive Vice
Chairman effective October 10, 2014. The Board expressed its deep
sense of appreciation for the services rendered by him during his
tenure at Infosys.

Mr. K.V. Kamath has been elected as the Chairman of the Board
effective October 11, 2014.

The company has been classifying its founders, Narayana Murthy,
Nandan Nilekani, S. Gopalakrishnan, S. D. Shibulal and K Dinesh along
with their immediate family members as promoters/promoter group of
the company in applicable disclosures with the stock exchanges and
other regulatory authorities.

With the last two founders, Narayana Murthy and S Gopalakrishnan,
remitting office, the founders have neither association with the
company nor exercise any control over the affairs of the company
after the current date. The founders have therefore requested the
company to seek appropriate classification of their revised status.
The company is in the process of seeking appropriate regulatory
guidance on the same.

Infosys Foundation

Infosys has pledged INR 254 crore ($42 million) towards Corporate
Social Responsibility through the Infosys Foundation - its
philanthropic arm. Infosys and its subsidiaries donated $13 million
and $21 million to Infosys Foundation for the quarter and half-year
ended September 30, 2014.

The Infosys Foundation executes several programs aimed at
alleviating hunger, promoting education, improving health, assisting
rural development, supporting arts and helping the destitute.

This quarter, Infosys Foundation constituted a corpus of INR 33
crore ($ 5 million) for the Chennai Mathematical Institute. This
corpus will be used to enhance faculty compensation and support
fellowship requirements for research students.

The Foundation also launched Spark-IT, a three-month program to
enhance the skill levels of unemployed engineering graduates in the
country. It has committed INR 9 crore ($ 1 million) for this program
which will help train 1,800 graduates in the fiscal year 2015.

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 June 30, 2014. 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 Interim Balance Sheets as of

(Dollars in millions except equity share data)

September 30, 2014 March 31, 2014
ASSETS
Current assets
Cash and cash equivalents 4,604 4,331
Available-for-sale financial assets 611 367
Investment in certificates of deposit 17 143
Trade receivables 1,464 1,394
Unbilled revenue 477 469
Prepayments and other current assets 447 440
Derivative financial instruments 7 36
Total current assets 7,627 7,180
Non-current assets
Property, plant and equipment 1,360 1,316
Goodwill 340 360
Intangible assets 49 57
Available-for-sale financial assets 213 208
Deferred income tax assets 108 110
Income tax assets 248 254
Other non-current assets 44 37
Total non-current assets 2,362 2,342
Total assets 9,989 9,522
LIABILITIES AND EQUITY
Current liabilities
Trade payables 22 29
Derivative Financial Instruments 4 -
Current income tax liabilities 434 365
Client deposits 4 6
Unearned revenue 136 110
Employee benefit obligations 165 159
Provisions 66 63
Other current liabilities 894 792
Total current liabilities 1,725 1,524
Non-current liabilities
Deferred income tax liabilities 9 11
Other non-current liabilities 63 54
Total liabilities 1,797 1,589
Equity
Share capital- INR 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 September 30, 2014 and March 31, 2014,
respectively 64 64
Share premium 704 704
Retained earnings 9,406 8,892
Other components of equity (1,982) (1,727)
Total equity attributable to equity holders of the
company 8,192 7,933
Non-controlling interests - -
Total equity 8,192 7,933
Total liabilities and equity 9,989 9,522

Infosys Limited and subsidiaries

Unaudited Condensed Consolidated Interim Statements of
Comprehensive Income

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

Three Three
months months Six months Six months
ended ended ended ended
September September September September
30, 2014 30, 2013 30, 2014 30, 2013

Revenues 2,201 2,066 4,334 4,057
Cost of sales 1,353 1,337 2,697 2,633
Gross profit 848 729 1,637 1,424
Operating expenses:
Selling and marketing expenses 127 120 238 223
Administrative expenses 146 158 288 282
Total operating expenses 273 278 526 505
Operating profit 575 451 1,111 919
Other income, net 144 81 283 184
Profit before income taxes 719 532 1394 1,103
Income tax expense 208 149 401 302
Net profit 511 383 993 801
Other comprehensive income
Items that will not be reclassified
to profit or loss:
Re-measurement of the net defined
benefit liability/(asset) (1) 5 (4) 6
Items that may be reclassified
subsequently to profit or loss:
Fair value changes on
available-for-sale financial asset 5 (4) 8 (4)
Exchange differences on translation
of foreign operations (223) (316) (259) (935)
Total other comprehensive income,
net of tax (219) (315) (255) (933)
Total comprehensive income 292 68 738 (132)
Profit attributable to:
Owners of the company 511 383 993 801
Non-controlling interests - - - -
511 383 993 801
Total comprehensive income
attributable to:
Owners of the company 292 68 738 (132)
Non-controlling interests - - - -
292 68 738 (132)
Earnings per equity share
Basic ($) 0.89 0.67 1.74 1.40
Diluted ($) 0.89 0.67 1.74 1.40
Weighted average equity shares used
in computing earnings per equity
share
Basic 571,402,566 571,402,566 571,402,566 571,402,566
Diluted 571,404,028 571,402,566 571,403,297 571,402,566

NOTE:

1. The unaudited Condensed Consolidated interim Balance sheets and
Condensed Consolidated interim Statements of Comprehensive Income for
the three months and six months ended September 30, 2014 have been
taken on record at the Board meeting held on October 10, 2014

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

INR Press release: http://multivu.prnewswire.com/prnehost/PIV70977
4-IFRS-INR-press-release.pdf

Factsheet:
http://multivu.prnewswire.com/prnehost/PIV709774-fact-sheet.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

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