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24.04.2015 – 13:54


Infosys (NYSE: INFY) Announces Results for the Quarter and Year Ended March 31, 2015

Chennai (ots/PRNewswire)

FY 16 revenues expected to grow between 10%-12% in constant currency terms

Dividend pay-out ratio increased to up to 50% of post-tax profits effective FY 15

1:1 bonus issue of equity shares and 1:1 stock dividend of American Depositary Shares

FY 15 EPS grew by 15.0% year on year

Operating margins expanded by 190 bps in FY 15 to 25.9%

Quarterly annualized attrition for Infosys Limited declined to 13.4% in Q4 compared to 23.4% in Q1

Announces definitive agreement to acquire Kallidus Inc. (d.b.a Skava) and invest in Airviz

Financial Highlights

Consolidated results under International Financial Reporting Standards (IFRS) for the year and quarter ended March 31, 2015

Year ended March 31, 2015

- Revenues were $ 8,711 million for the year ended March 31, 2015
  YoY growth was 7.1% in constant currency; 5.6% in reported terms
- Net profit was $ 2,013 million for the year ended March 31, 2015
  YoY growth was 15.0%
- Earnings per share (EPS) was $ 1.76 for the year ended March 31, 2015
  YoY growth was 15.0%

Quarter ended March 31, 2015

- Revenues were $ 2,159 million for the quarter ended March 31, 2015
  YoY growth was 3.2%; QoQ growth was (2.6%) in reported terms,

YoY growth was 7.8% in constant currency;

- Net profit was $ 498 million for the quarter ended March 31, 2015
  YoY growth was 2.3%; QoQ growth was (4.6%)
- Earnings per share (EPS) was $ 0.44 for the quarter ended March 31, 2015
  YoY growth was 2.3%; QoQ growth was (4.6%)
- Liquid assets including cash and cash equivalents, available-for-sale
  financial assets, certificates of deposits and government bonds were $ 5,214 million
  as on March 31, 2015 as compared to $ 5,532 million as on December 31, 2014 and $
  5,048 million as on March 31, 2014
- The Board in its meeting held on April 24, 2015 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
- The company's current policy is to pay dividends of up to 40% of post-tax
  profits. The Board has decided to increase the dividend pay-out ratio to up to 50% of
  post-tax profits effective fiscal 2015
- The Board of Directors recommended a final dividend of INR 29.50 per share for
  fiscal 2015 (equivalent to INR 14.75 per share effective after 1:1 bonus issue, if
  approved by shareholders). This translates to a final dividend of $ 0.47 per share
  pre-bonus and $ 0.24 per share post bonus (at USD-INR rate of 62.50)
- Infosys spent $ 42 million in FY 15, towards Corporate Social Responsibility
  (CSR) which is primarily being carried out through the Infosys Foundation, its
  philanthropic arm. The Infosys Foundation is engaged in several programs aimed at
  alleviating hunger, promoting education, computing literacy, improving health,
  assisting rural development, supporting arts and helping the destitute


Other Highlights

- Gross employee additions over 50,000 for the year
- Utilization (excluding trainees) expands 450 bps for the year
- Quarterly annualized attrition declines to 13.4% for Infosys Limited in Q4

"We see the industry going through a fundamental and structural transition. Despite being a challenging quarter, I am encouraged by the early successes in executing our Renew-New strategy, on a foundation of learning," said CEO & MD Dr. Vishal Sikka . "Our focused employee engagement initiatives over the last few months have resulted in containing employee attrition to one of the lowest in recent times. And our investments in innovation and in renewing our capabilities are helping to elevate our client relationships."

"Services growth in the fourth quarter was lower than we expected, though we saw healthy growth in Finacle and our Edge suite. Pricing continues to be under pressure due to increasing commoditization in the traditional outsourcing business, requiring us to ramp up productivity through automation, and enhance our differentiation in large engagements," said U.B. Pravin Rao, COO. "But we are well placed to pursue healthy overall growth in the new fiscal year."

"We were able to improve profitability during the year even as we made investments into our employees and other strategic areas. We have been able to achieve this because of increased operating efficiencies despite a difficult pricing environment", said Rajiv Bansal, CFO. "Consistent with our objective of increasing shareholder returns, the Board has approved an increase in the dividend pay-out ratio to 50% of post-tax profits. The Board has also recommended a 1:1 bonus issue of equity shares and 1:1 stock dividend of American Depositary Shares."


The Company's outlook (consolidated) for the fiscal year ending March 31, 2016, under IFRS is as follows:

- Revenues are expected to grow 10%-12% in constant currency terms;
- Revenues are expected to grow 6.2%-8.2% in USD terms

*Conversion: AUD/USD - 0.76; Euro/USD - 1.08; GBP/USD - 1.48 for the fiscal 2016.

Business Highlights

As we continue to pursue our dual strategy of renewing the core and innovating into new frontiers, we have witnessed strong client additions this quarter. We have also enhanced our investments in new technologies and education to foster a culture of learning and creativity.

Client wins

- ABN AMRO selected us as one of its strategic partners to drive business
  transformation. We will deliver services across application development and
  maintenance, testing and product implementation.
- Western Union Financial Services selected us for an 11 year turnkey project
  where we take complete ownership to modernize, maintain and support its worldwide
  settlement systems.
- We have been awarded a multi-year contract by House of Fraser 
  [] (recently acquired by Sanpower Group China), to
  transform its multichannel business and IT infrastructure.

Frank Slevin, Chairman, House of Fraser, said, "This program will help us realize faster time to market as we adopt new and advanced technologies to enhance our multichannel business. The benefits from this program will also allow us to achieve our business goals as we go global. We look forward to building a long term strategic relationship with Infosys."

- We have been chosen as a strategic partner by an American fashion retailer
  to manage its service desk, infrastructure and application support services. This
  solution will provide the client considerable cost savings, direct business benefits
  and innovation capabilities, thus enabling them to focus on strategic business
- A leading global express delivery company, selected us to simplify and
  transform its technology applications. As part of this engagement, we will provide
  application development and maintenance services, as well as provide digital
  technologies to reduce complexity and cost, while increasing customer engagement.


Infosys Information Platform (IIP) has seen increased traction in the market. IIP demonstrates our ability to create state-of-the-art platforms by bringing together domain expertise, learnability, the open source ecosystem, and a highly motivated team.

- Syngenta, a world leader in agribusiness, had application performance
  challenges in their Management Reporting Solution due to large volume of data. Infosys
  did a Proof of Concept with using the Infosys Information Platform to improve the
  performance of Management Reporting solution. The IIP could inject 19 Million records
  in 6 minutes compared to more than 1 hour for injecting half a million records.
  Similarly IIP could do report/dashboard navigation in less than 5 seconds as against
  more than a minute in the current platform.
- Syngenta, has leveraged the Infosys Automation platform to automate SAP user
  authorization requests, thereby saving $ 1 million per year on IT operations costs.
  Additionally, this has improved user productivity through speedy closure of
  authorization requests.
- The Hershey Company, a global confectionery leader, engaged us as a strategic
  partner for consulting and technology services. The company selected Infosys
  Information Platform (IIP) to turn diverse data into knowledge and insights as it
  places consumer, customer, market, and industry understanding at the center of its

Carlos E. Amesquita, Chief Information Officer, The Hershey Company, said, "At its heart, Hershey is a knowledge company. Infosys and its new IIP platform bring enhanced capabilities and speed to ingest diverse data sets, harmonize and link them together to transform disparate data into actionable knowledge and insights."


Finacle(TM) sustained its business momentum with 23 wins and 11 go-lives this quarter. Discover Financial Services, a leading U.S. direct bank and payment services company, which engaged Finacle last year, won the Celent Model Bank award for its core banking transformation program. During the quarter, an independent assessment of the top 1,000 world banks, revealed that banks powered by Finacle enjoy 50 percent higher return on assets, 30 percent higher return on capital, and 8.1 percent lesser cost to income than others. The research was conducted by Feedback Business Consulting based on the data published by 'The Banker' for top 1000 world banks[1].

- Qantas Credit Union was a significant win for Finacle this quarter in the
  Australian market. Commenting on the engagement, Scott King, Chief Executive Officer,
  Qantas Credit Union said, "Digitization is changing the banking environment rapidly.
  To effectively compete and keep pace with the evolving demand of our members, we need
  to transform our technology and operations. After many months on rigorous evaluation,
  we have partnered with Infosys. I am confident that Infosys with its globally
  successful Finacle platform will create the foundation for our future success and will
  help us deliver best-in-class banking services to our members."

[1]The Banker Top 1000 world banks -


EdgeVerve has seen growth both in terms of revenue and client base. We had 12 wins and three client go-lives in the quarter.

- Syngenta went live with TradeEdge Dealer Management System to manage
  distributors in two states in India. This will be rolled out to distributors across
  other states next year.
- Two marquee U.S. financial services giants selected our CreditFinanceEdge to
  support parts of their global portfolios. A large U.S. telecommunication company
  increased its AssistEdge footprint and took another step towards transforming its
  customer contact centers, improving customer experience and reducing customer service
  costs. AssistEdge is also being used for robotic process automation to enhance the
  order management process for a high-tech industry client.

Acquisitions, Investments and Partnerships

- This quarter, we completed the acquisition of Panaya, a leading provider
  of automation technology. Panaya's CloudQuality(TM) suite will enable us to leverage
  automation for several of our service lines through an agile SaaS model, and help
  mitigate risk, reduce costs and decrease time-to-market for clients.
- We have entered into a definitive agreement to acquire Kallidus Inc. (d.b.a
  Skava) and its affiliate, a leading provider of digital experience solutions,
  including mobile commerce and in-store shopping experiences to large retail clients.
  This acquisition is an all-cash deal for a total consideration of $120 million
  including retention bonus and a deferred component. Skava delivers a cloud hosted
  platform for mobile websites, apps, and other digital shopping experiences across
  mobile, tablet, desktop, in-store, and all emerging channels to large retail clients
  worldwide. The platform enables retailers to provide a mobile specific experience to
  their customers through an agile and flexible environment, enabling personalization
  and delivering customer analytics across multiple channels.
- We also entered into a definitive agreement for an early-stage investment of $
  2 million in Airviz, to acquire a minority share. Airviz is a personal air quality
  monitoring startup and spinout from Carnegie Mellon University. This investment was
  made out of the $ 500 million Innovation Fund earmarked for investments in disruptive
  new technologies, and positions us as a driving force in the fast-growing personal
  health monitoring market with a big data solution that provides indoor air pollution
  sensing and visualization. Airviz Speck, an affordable, fine particulate monitor,
  which uses patent-pending technology from Carnegie Mellon University, can empower
  individuals and communities to understand and identify health hazards related to air
- Our strategic endeavor to inject the design thinking philosophy across the
  organization continues. Till date, more than 25,000 employees across the company have
  been trained in design thinking. We have also established a design thinking training
  course for new joiners at the Infosys Global Education Center in Mysore. More than
  22,000 trainees are expected to undergo this training in FY16. An important aspiration
  is to extend this strategic capability with our clients. This quarter we have
  successfully conducted more than 20 design thinking engagements with our clients and
  the feedback from them has been very encouraging.

Speaking about RWE AG's recent engagement with Infosys on design thinking, Peter Terium, Chief Executive Officer, RWE AG, said, "Our company, and in fact, our entire industry is in the midst of a massive transformation. Given the scale of the market disruption, RWE has chosen to go outside in order to better innovate from within when we started our innovation journey more than two years ago. In this change journey, RWE has also recently received the support of our long-term partner Infosys. Infosys helped to bring this exciting capability to life at RWE's Silicon Valley outpost. Our interactions with Infosys on Design Thinking have already yielded great value by increasing the scope of what we even thought of as possible. Through their unique relationship with d.Global and the faculty affiliated with the Stanford, Infosys is helping us to accelerate our learning and to amplify the creativity and quest for excellence that has always been an integral part of RWE. I look forward to an increasingly strategic and collaborative partnership between our companies in the Silicon Valley and around the Globe."

- We are collaborating with universities like East China Normal University,
  University of California, Irvine and University of Wisconsin-Madison, which are the
  leading research universities in areas like massively parallel databases, big data and
  storage management. We will work closely with these universities, leveraging their
  expertise, executing joint projects, and validating these modern systems against
  industry use cases and workloads. This collaboration will significantly enhance our
  expertise and products (like IIP) in the rapidly evolving areas of big data,
  artificial intelligence, in-memory computing, and distributed storage, while
  accelerating the adoption of these innovations among our enterprise customers.

Innovation Fund

This quarter, Infosys announced the creation of an 'Innovate in India Fund' from its $ 500 million Innovation Fund. The $ 250 million (INR 1,550 crore) Innovate in India Fund will be dedicated to investments in promising new Indian companies. These companies will be inducted into the global ecosystem of strategic partners that we are building.

As part of the Infosys Innovation fund, we are announcing the launch of the Infosys Incubator. This incubator will help identify, nurture and grow companies engaged in innovative, new, and disruptive technologies that can help our business, and create future growth areas. By guiding and mentoring these businesses early, we hope to have the first pick of new innovations that we can bring to market and scale, thus improving the chances of viability and long-term success for the startups involved.

Beyond Business

This fiscal Infosys pledged INR 254 crore towards Corporate Social Responsibility (CSR) which is primarily being carried out through the Infosys Foundation, its philanthropic arm.

For the quarter and year ended March 31, 2015, Infosys and its subsidiaries donated $ 11 million and $ 42 million to Infosys Foundation and to the Spark-IT program.

During the quarter, the Association for Computing Machinery (ACM) and the Infosys Foundation [] announced that Dan Boneh is the recipient of the 2014 ACM-Infosys Foundation Award in the Computing Sciences category. The award recognizes Boneh's ground-breaking contributions to the development of pairing-based cryptography and its application in identity-based encryption. The ACM-Infosys Foundation Award [] celebrates the finest recent innovations by young scientists and system developers in the computing field. An endowment from the Infosys Foundation provides financial support to the $ 175,000 annual award.

About Infosys Ltd

Infosys is a global leader in consulting, technology, outsourcing and next-generation services. We enable clients, in more than 50 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 [] to see how Infosys , with US$ 8.25 billion in annual revenues and 165,000+ employees, is helping enterprises renew themselves while also creating new avenues to generate value.

Safe Harbor

Certain statements in this press 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 our Forms 6- K for the quarters ended June 30, 2014, September 30, 2014 and December 31, 2014. 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. In addition, please note that the date of this press release is April 24, 2015, 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)

                                                       March 31, 2015   March 31, 2014
Current assets
Cash and cash equivalents                                       4,859            4,331
Available-for-sale financial assets                               140              367
Investment in certificates of deposit                               -              143
Trade receivables                                               1,554            1,394
Unbilled revenue                                                  455              469
Prepayments and other current assets                              527              440
Derivative financial instruments                                   16               36
Total current assets                                            7,551            7,180
Non-current assets
Property, plant and equipment                                   1,460            1,316
Goodwill                                                          495              360
Intangible assets                                                 102               57
Investment in Associates                                           15                -
Available-for-sale financial assets                               215              208
Deferred income tax assets                                         85              110
Income tax assets                                                 654              254
Other non-current assets                                           38               37
Total non-current assets                                        3,064            2,342
Total assets                                                   10,615            9,522
Current liabilities
Trade payables                                                     22               29
Derivative Financial Instruments                                    -                -
Current income tax liabilities                                    451              365
Client deposits                                                     4                6
Unearned revenue                                                  168              110
Employee benefit obligations                                      171              159
Provisions                                                         77               63
Other current liabilities                                         927              792
Total current liabilities                                       1,820            1,524
Non-current liabilities
Deferred income tax liabilities                                    25               11
Other non-current liabilities                                       8               54
Total liabilities                                               1,853            1,589
Share capital- INR 5 ($0.16) par value 1,200,000,000
(600,000,000) equity shares authorized, issued and
outstanding 1,142,805,132 (571,402,566), net of
5,667,200 (2,833,600) treasury shares as of March
31, 2015 (March 31, 2014), respectively                           109               64
Share premium                                                     659              704
Retained earnings                                              10,090            8,892
Other components of equity                                    (2,096)          (1,727)
Total equity attributable to equity holders of the
company                                                         8,762            7,933
Non-controlling interests                                           -                -
Total equity                                                    8,762            7,933
Total liabilities and equity                                   10,615            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 months  Three months    Year ended    Year ended
                                 ended March   ended March     March 31,     March 31,
                                    31, 2015      31, 2014          2015          2014
Revenues                               2,159         2,092         8,711         8,249
Cost of sales                          1,317         1,318         5,374         5,292
Gross profit                             842           774         3,337         2,957
Operating expenses:
Selling and marketing expenses           118           104           480           431
Administrative expenses                  169           136           599           547
Total operating expenses                 287           240         1,079           978
Operating profit                         555           534         2,258         1,979
Other income, net                        141           139           560           440
Share in associate's profit /
(loss)                                     -             -             -             -
Profit before income taxes               696           673         2,818         2,419
Income tax expense                       198           186           805           668
Net profit                               498           487         2,013         1,751
Other comprehensive income
Items that will not be
reclassified to profit or
Re-measurement of the net
defined benefit
liability/(asset)                        (2)          (10)           (8)             -
Items that may be reclassified
subsequently to profit or
Fair value changes on
available-for-sale financial
asset                                    (2)           (3)            14          (17)
Exchange differences on
translation of foreign
operations                                53           228         (375)         (616)
Total other comprehensive
income, net of tax                        49           215         (369)         (633)
Total comprehensive income               547           702         1,644         1,118
Profit attributable to:
Owners of the company                    498           487         2,013         1,751
Non-controlling interests                  -             -             -             -
                                         498           487         2,013         1,751
Total comprehensive income
attributable to:
Owners of the company                    547           702         1,644         1,118
Non-controlling interests                  -             -             -             -
                                         547           702         1,644         1,118
Earnings per equity share(*)
Basic ($)                               0.44          0.43          1.76          1.53
Diluted ($)                             0.44          0.43          1.76          1.53
Weighted average equity shares
used in computing earnings per
equity share(*)
Basic                          1,142,805,132 1,142,805,132 1,142,805,132 1,142,805,132
Diluted                        1,142,833,626 1,142,805,132 1,142,821,470 1,142,805,132

*Adjusted for 1:1 bonus issue in December, 2014


1. The unaudited Condensed Consolidated interim Balance sheets and Condensed Consolidated interim Statements of Comprehensive Income for the three months and year ended March 31, 2015 have been taken on record at the Board meeting held on April 24, 2015

2. A Fact Sheet providing the operating metrics of the company can be downloaded from

IFRS-INR Press Release:

Fact Sheet:


Investor Relations
Sandeep Mahindroo
+91 80 3980 1018

Media Relations
Sarah Vanita Gideon, India
+91 80 4156 3373

John Gallagher
Brunswick Group for Infosys, USA
+1 415 316 8060


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