INFOSYS LIMITED
Infosys Limited announced Results for the Quarter Ended September 30, 2011
Highlights
Consolidated results under IFRS
Ø Revenues were Rs.8,099 crore for Q2 FY2012; QoQ growth was 8.2%; YoY growth was 16.6%
Ø Net profit after tax was Rs.1,906 crore for Q2 FY2012; QoQ growth was 10.7%; YoY growth was 9.7%
Ø Earnings per share (EPS) was Rs.33.36 for Q2 FY2012; QoQ growth was 10.7%; YoY growth was 9.7%
Others
Ø 45 clients were added during the quarter by Infosys and its subsidiaries
Ø Gross addition of 15,352 employees (net addition of 8,262) for the quarter by Infosys and its subsidiaries
Ø 1,41,822 employees as on September 30, 2011 for Infosys and its subsidiaries
Ø Declared an interim dividend of Rs.15 per share (previous year interim dividend of Rs.40 per share including 30th Year special dividend of Rs.30 per share). The record date for the payment of dividend is October 21, 2011.
“The global macroeconomic environment is still uncertain. It is and should be a concern for the IT industry.” said S. D. Shibulal, CEO and Managing Director. “In this scenario, clients are looking for new opportunities for growth, accelerated innovation and increased returns on investments. Our strategic initiatives and organization structure will enable Infosys to build long term partnerships with our clients and help them drive their business objectives.”
Business outlook
The company’s outlook (consolidated) for Q2 FY2012 and for the fiscal year ending March 31, 2012, under IFRS is as follows:
Outlook under IFRS – consolidated
Quarter ending December 31, 2011
Ø Revenues are expected to be in the range of Rs.8,826 crore and `9,012 crore; YoY growth of 24.2% to 26.8%
Ø Earnings per share (EPS) is expected to be in the range of Rs.38.51 and Rs.39.20; YoY growth of 23.6% to 25.8%
Fiscal year ending March 31, 2012
Ø Revenues are expected to be in the range of Rs.33,501 crore and Rs.34,088 crore; YoY growth of 21.8% to 24.0%
Ø Earnings per share (EPS) is expected to be in the range of Rs.143.02 and Rs.145.26; YoY growth of 19.7% to 21.6%
* Conversion 1 INFOSYS$ = ` 48.98
Expansion of services and significant projects
Infosys is sharply focused on spurring growth, innovation and driving efficiency for its clients’ enterprises.
Consulting & System Integration
Infosys is helping a luxury lifestyle retail major transform and harmonize its product lifecycle business processes across various divisions and brands. Through this program it will create a next-generation design, product development and raw material management platform, increasing collaboration and reducing costs.
A major international bank selected Infosys as its end-to-end partner for the development and deployment of a global customer platform across 140 countries, to identify and profile its customer relationships across business units and geographies. The bank has also engaged Infosys as a partner in the development of an enterprise-wide data warehouse to ensure consistent disclosures and reporting.
A global wireless device major partnered with Infosys for the design and development of its next generation automotive range wireless chipsets and support for its go-to-market initiatives in emerging regions.
For a global semiconductor major, Infosys is developing a next generation Graphic Processor Unit (GPU) targeted at the smartphone, tablet and netbook markets, involving highly complex Very Large Scale Integration (VLSI) chip design.
BInfosysiness IT Services
Infosys is committed to delivering measurable additional business value by effectively optimizing our clients’ operations.
A global food and beverage major has partnered with Infosys to provide application support and maintenance for 400 legacy applications spanning across all business functions, over a period of three years to drive enterprise optimization.
A group of investment management companies chose to partner with Infosys to establish enterprise-wide Consistent Quality Management (CQM) practices. This program will focus on improving predictability and efficiency of delivering large business transformation initiatives.
A large European energy company chose Infosys as the partner for its B2C retail applications portfolio. Through a three year engagement, we will transform the client’s portfolio across consulting, innovation, corporate learning and quality services.
We helped standardize, streamline and improve business processes for a leading producer and distributor of system components for electronics, by establishing standards for global design to be used for roll-outs across the client’s future facilities.
Infosys BPO
Infosys BPO has seen traction in the insurance sector this quarter. An international general insurance major engaged Infosys to build an Insurance Centre of Excellence (CoE) to increase agility, increase cost savings, access to skills and create sustainable service.
A leading life insurance and annuity company selected Infosys to migrate policies from its existing platform to Infosys VPAS® (Variable Product Administration Systems). This was the first win for this platform outside the U.S. Another life insurance and annuity company selected Infosys for migration of certain legacy insurance platforms to a single VPAS® platform to bring efficiencies of operation and infrastructure.
Infosys was selected by a leading retailer in the United Kingdom to outsource its customer service functions to our operations in the Philippines.
Products, Platforms & Solutions
Finacle™
Finacle™ from Infosys has been positioned as a leader in the Gartner Magic Quadrant for International Retail Core Banking (IRCB) 2011. Gartner Inc. positioned vendors based on two broad parameters - ability to execute and completeness of vision. Finacle™ was positioned as a leader in the market among the 20 vendors evaluated.
Finacle™ continued its business momentum, adding 17 wins this quarter. Of these, two were from Europe, Middle East and Africa (EMEA) and 15 were from the Asia-Pacific (APAC) region. 12 client projects went live on Finacle™ in the quarter. Of these, seven went live in APAC, four in EMEA and one in the Americas.
Bank Administration Institute (BAI) and Finacle™ launched the first ever 2011 BAI – Finacle™ Global Banking Innovation Awards, which will recognize and support innovation in the retail banking industry. The awards will highlight best-in-class organizations from around the world that have demonstrated breakthrough innovations which have positively impacted customer and organizational profitability
Infosys also joined leading global banks and industry players in the Banking Industry Architecture Network (BIAN) this quarter. With its significant expertise in banking, addressing universal banking product requirements as well as interoperability and Service-Oriented Architecture (SOA) based integration aspects, Infosys will help accelerate development and adoption of the BIAN standards.
Infosys Edge™- Business Platforms in the Cloud
Infosys unveiled Infosys Edge™ suite of business platforms in the Cloud this quarter. Infosys Edge™ platforms are focus on accelerating business innovation for clients across functions. These platforms are powered by best-in-class domain expertise, intellectual property and delivered over the Cloud.
This quarter Infosys Edge™ signed ten strategic deals. Of these, four were from EMEA, four were from Americas and two were from the APAC region.
A large U.S. high-tech manufacturing company has selected Infosys to build a next generation employee collaboration platform to increase workforce productivity, enable co-creation and drive innovation across different departments. Infosys is driving the digital transformation initiative for a global pharmaceutical company. This initiative will allow employees across businesses and geographies to create, share, and re-use digital content. The platform will also enable the client to drive customer demand and engagement.
Cloud
Infosys continues to see strong momentum with its Cloud practice having delivered over 125 engagements till date. We continue to strengthen our Cloud ecosystem, with over 30 partners delivering a trusted system for our clients.
A large hi-tech client has selected Infosys to develop a Cloud-based monitoring solution, using technologies such as Hadoop and Exadata, to manage and meter its enterprise infrastructure. Infosys is working with a large railroad client in North America on its strategy to move mainframe-based legacy applications to the Cloud. A leading healthcare provider has selected Infosys as a partner to migrate its existing workload to Microsoft Office 365 as its primary messaging and collaboration platform. This provides the client productivity improvement and high asset optimization. For a large financial services major, we defined a technology modernization roadmap to migrate its mainframe-based loyalty platform to the Cloud.
Mobility
Infosys’ Mobility practice has been seeing strong growth. The practice is helping clients leverage the potential of mobility, and has completed over 100 enterprise implementations for more than 50 clients.
Infosys has developed an innovative tablet based solution for a leading North American retailer, for store associates to enhance the shopping experience of its customers. A large U.S. retailer partnered Infosys to optimize mobile quality assurance to bring in substantial scalability and cost-reduction. A leading European mobile network operator has engaged Infosys to transform and automate its sales process with an accelerated real-time mobile-based solution. Infosys is developing an innovative tablet-based credit card management solution for a leading financial services company. Infosys is defining and executing a mobility roadmap for a major management consulting firm by establishing a dedicated mobility
India Business Unit
Infosys continues to see success with the Income Tax Department’s Centralized Processing Center (CPC) which has processed over 1.2 crore Income Tax Returns (ITRs) since its launch.
Infosys has won a project to develop and implement a comprehensive Information and Communications Technology (ICT) system to increase the efficiency and effectiveness of the Income Tax Department in processing, accounting and reconciliation of the Tax Deducted at Source (TDS) statements filed by deductors.
Process Innovation
During the quarter, Infosys applied for 48 patent applications in India and the U.S. With this, Infosys has an aggregate of 424 patent applications (pending) in India and the U.S., and has been granted 30 patents by the United States Patent and Trademark Office.
Liquidity
As on September 30, 2011, cash and cash equivalents, including investments in available-for-sale financial assets and certificates of deposits was Rs.18,601 crore (Rs.17,388 crore as on September 30, 2010).
“The global currency market continues to remain highly volatile on the back of weak economic recovery in most of the developed markets,” said V. Balakrishnan, Member of the Board and Chief Financial Officer. “Our continued focus on adding measurable value to clients, coupled with our flexible financial model will enable Infosys to make the right investments without compromising on high-quality growth.”
| | Q2 FY12 | Q2FY11 | HY1FY12 | HY1 FY12 |
| Revenues | 8,099 | 6,947 | 15,584 | 13,145 |
| Cost of sales | 4,744 | 3,971 | 9,321 | 7,619 |
| Gross profit | 3,355 | 2,976 | 6,263 | 5,526 |
| Operating profit | 2,281 | 2,098 | 4,233 | 3,853 |
| Other income | 387 | 267 | 830 | 506 |
| Profit before income taxes | 2,668 | 2,365 | 5,063 | 4,359 |
| Income tax expense | 762 | 628 | 1,435 | 1,134 |
| Net profit | 1,906 | 1,737 | 3,628 | 3,225 |
| Earnings per equity share | ||||
| Basic (`) | 33.36 | 30.41 | 63.50 | 56.47 |
| Diluted (`) | 33.36 | 30.40 | 63.50 | 56.45 |
| Weighted average equity shares used in computing earnings per equity share | ||||
| Basic | 57,13,59,222 | 57,11,31,367 | 57,13,46,361 | 57,10,83,717 |
| Diluted | 57,13,92,924 | 57,13,58,817 | 57,13,94,391 | 57,13,45,695 |
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