Q1 revenues grew by 13.6% year-on-year; 2.7% quarter-on-quarter
BANGALORE, India, July 12, 2013 /PRNewswire/ --
Financial Highlights
Consolidated results under International Financial Reporting Standards (IFRS) for the quarter ended June 30, 2013
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Other highlights:
"Despite facing an uncertain macro environment, changing regulatory regime and a volatile currency environment, we have done well in Q1 and are cautiously optimistic about rest of the year," said S. D. Shibulal, CEO and Managing Director.
"We maintained our margins and continued making investments in the business," said Rajiv Bansal, Chief Financial Officer. "We have announced compensation increases for FY 14 effective July which will affect our margins in the future quarters."
Outlook
The company's outlook (consolidated) for the quarter ending fiscal year ending March 31, 2014, under IFRS is as follows:
Business Highlights
Awards and Recognition
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About Infosys Ltd
Infosys is a global leader in business consulting and technology solutions. As a proven partner focused on building tomorrow's enterprise, Infosys enables clients in more than 30 countries to outperform the competition and stay ahead of the innovation curve.
Ranked in the top tier of Forbes' 100 most innovative companies, Infosys - with $7.4B in annual revenues and 150,000+ employees - provides enterprises with strategic insights on what lies ahead. We help enterprises transform and thrive in a changing world through strategic consulting, operational leadership and the co-creation of breakthrough solutions, including those in mobility, sustainability, big data and cloud computing.
Visit www.infosys.com to see how Infosys (NYSE: INFY) is Building Tomorrow's Enterprise® today.
Safe Harbor
Certain statements in this release concerning our future growth prospects are forward-looking statements, 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, 2013 and on Form 6-K for the quarters ended June 30, 2012, September 30, 2012 and December 31, 2012. These filings are available at 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. 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, 2013 | March 31, 2013 | |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | $3,556 | $4,021 |
| Available-for-sale financial assets | 412 | 320 |
| Trade receivables | 1,375 | 1,305 |
| Unbilled revenue | 449 | 449 |
| Prepayments and other current assets | 412 | 391 |
| Derivative financial instruments | - | 19 |
| Total current assets | 6,204 | 6,505 |
| Non-current assets | ||
| Property, plant and equipment | 1,124 | 1,191 |
| Goodwill | 350 | 364 |
| Intangible assets | 64 | 68 |
| Available-for-sale financial assets | 87 | 72 |
| Deferred income tax assets | 87 | 94 |
| Income tax assets | 186 | 201 |
| Other non-current assets | 28 | 44 |
| Total non-current assets | 1,926 | 2,034 |
| Total assets | $8,130 | $8,539 |
| LIABILITIES AND EQUITY | ||
| Current liabilities | ||
| Derivative financial instruments | $46 | - |
| Trade payables | 12 | 35 |
| Current income tax liabilities | 288 | 245 |
| Client deposits | 4 | 6 |
| Unearned revenue | 140 | 152 |
| Employee benefit obligations | 116 | 113 |
| Provisions | 36 | 39 |
| Other current liabilities | 598 | 568 |
| Total current liabilities | 1,240 | 1,158 |
| Non-current liabilities | ||
| Deferred income tax liabilities | 24 | 23 |
| Other non-current liabilities | 34 | 27 |
| Total liabilities | 1,298 | 1,208 |
| 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, 2013 and March 31, 2013, respectively | 64 | 64 |
| Share premium | 704 | 704 |
| Retained earnings | 7,776 | 7,666 |
| Other components of equity | (1,712) | (1,103) |
| Total equity attributable to equity holders of the company |
6,832 | 7,331 |
| Non-controlling interests | - | - |
| Total equity | 6,832 | 7,331 |
| Total liabilities and equity | $8,130 | $8,539 |
| Infosys Limited and subsidiaries Unaudited Condensed Consolidated Statements of Comprehensive Income |
||
| (Dollars in millions except share and per equity share data) | ||
| Three months ended June 30, 2013 |
Three months ended June 30, 2012 |
|
| Revenues | $1,991 | $1,752 |
| Cost of sales | 1,296 | 1,059 |
| Gross profit | 695 | 693 |
| Operating expenses: | ||
| Selling and marketing expenses | 103 | 86 |
| Administrative expenses | 124 | 118 |
| Total operating expenses | 227 | 204 |
| Operating profit | 468 | 489 |
| Other income, net | 103 | 87 |
| Profit before income taxes | 571 | 576 |
| Income tax expense | 153 | 160 |
| Net profit | $418 | $416 |
| Other comprehensive income | ||
| Items that will not be reclassified to profit or loss | ||
| Re-measurements of the net defined benefit liability/asset |
1 | - |
| Items that may be reclassified subsequently to profit or loss | ||
| Fair value changes on available-for-sale financial asset, net of tax effect | - | (1) |
| Exchange differences on translating foreign operations | (619) | (552) |
| Total other comprehensive income | $(618) | $(553) |
| Total comprehensive income | $(200) | $(137) |
| Profit attributable to: | ||
| Owners of the company | $418 | $416 |
| Non-controlling interests | - | - |
| $418 | $416 | |
| Total comprehensive income attributable to: | ||
| Owners of the company | $(200) | $(137) |
| Non-controlling interests | - | - |
| ($200) | $(137) | |
| Earnings per equity share | ||
| Basic ($) | 0.73 | 0.73 |
| Diluted ($) | 0.73 | 0.73 |
| Weighted average equity shares used in computing earnings per equity share | ||
| Basic | 571,402,566 | 571,396,551 |
| Diluted | 571,402,566 | 571,398,141 |
NOTE:
1. The unaudited Condensed Consolidated Balance sheets and Condensed Consolidated Statements of Comprehensive Income for the three months ended June 30, 2013 has been taken on record at the Board meeting held on July 12, 2013
2. A Fact Sheet providing the operating metrics of the company can be downloaded from www.infosys.com
Fact Sheet: http://www.multivu.prnewswire.com/mnr/prne/operations/fact-sheet.pdf
IFRS INR Press Release: http://www.multivu.prnewswire.com/mnr/prne/operations/IFRS-INR-press-release.pdf