Tuesday, May 1, 2012


Infosys Ltd

Results for the Quarter and Year Ended March 31, 2012

Q4 revenues declined by 4.8% sequentially;
FY12 revenues grew by 22.7%
FY 2013 revenues expected to grow by 13.9% to 16.0% in INR;
to grow by 8.0% to 10.0% in US dollars


Ø  Consolidated results under IFRS for the quarter ended March 31, 2012

Ø  Revenues were Rs.8,852 Cr for the Q/e Mar 31, 2012;  QoQ decline was 4.8%; YoY growth was 22.1%
Ø  Net profit after tax was Rs.2,316 Cr for the Q/e Mar 31, 2012;  QoQ decline was 2.4%; YoY growth was 27.4%
Ø  Earnings per share was Rs.40.54 for the Q/e March 31, 2012;  QoQ decline was 2.3%; YoY growth was 27.4%


Ø  52 clients were added during the quarter by Infosys and its subsidiaries
Ø  Gross addition of 10,676 employees (net addition of 4,906) for the quarter by Infosys and its subsidiaries
Ø  1,49,994 employees as on March 31, 2012 for Infosys and its subsidiaries
Ø  Board of Directors recommended a final dividend of Rs.22 per share for fiscal 2012 and a special dividend of Rs.10 per share on account of completion of 10 years of Infosys BPO operations.  

“The year ahead looks challenging for the IT services industry, with slow recovery in the global markets,” said S. D. Shibulal, CEO and Managing Director. “We are executing on our Infosys 3.0 strategy which is meant to deliver high quality growth in the medium to long term. We are making investments and have put in place a structure to deliver on this strategy.”

Business outlook

The company’s outlook (consolidated) for the quarter ending June 30, 2012 and for the fiscal year ending March 31, 2013, under IFRS is as follows:

Outlook under IFRS – consolidated*

Quarter ending June 30, 2012
Revenues are expected to be in the range of Rs.9,011 Cr and Rs.9,100 Cr;  YoY growth of 20.4% to 21.6% 
Earnings per share is expected to be Rs.36.89;  YoY growth of 22.4%   

Fiscal year ending March 31, 2013

Revenues are expected to be in the range of Rs.38,431 Cr and Rs.39,136 Cr;  YoY growth of 13.9% to 16.0%
Earnings per share is expected to be in the range Rs.158.76 to Rs.161.41;  YoY growth of 9.1% to 10.9% 

Outlook under IFRS - consolidated**

Quarter ending June 30, 2012

Revenues are expected to be in the range of $1,771 million and $1,789 million;  YoY growth of 6.0% to 7.1% . Earnings per American Depositary Share (EPADS) is expected to be $0.73;  YoY growth of 9.0%

Fiscal year ending March 31, 2013

Revenues are expected to be in the range of $7,553 million and $7,692 million; YoY growth of 8.0% to 10.0% . Earnings per American Depositary Share (EPADS) is expected to be in the range of $3.12 to $3.17; YoY growth of 4.0% to 5.7%

Consulting and Systems Integration
INFOSYS was chosen by an American public electric and water utility to help transform its legacy IT applications, thereby enabling greater efficiency and compliance, and improving its customer and employee satisfaction.

INFOSYS was engaged by a Middle East gas distributor as a strategic partner for its customer relationship management implementation, to drive operational efficiency, faster customer response time and effective governance through integrated customer operations. 

A U.S. cable multi-system operator selected Infy as its strategic partner to create a center of excellence for data integration to address the dynamic needs of its business users, resulting in cost optimization and faster time to market for new offerings. 

A U.S. based security systems corporation has engaged Infy as its single source IT services provider for global transformation and consolidation of its Oracle based business applications roadmap over the next five years.

Business IT Services
INFOSYS has been selected by a combination natural gas and electric utilities to modernize its data center, thereby helping it move to industry standard infrastructure, and implement robust disaster recovery and operational processes.

A North American telco chose Infy for a billing migration program to move customers from several billing systems onto one integrated system to provide better customer experience, and reduce costs and errors.

A European finance and insurance company has engaged Infy to support its global infrastructure services in order to improve quality of IT infrastructure, reduce costs and time to market, and establish best practices to be leveraged globally.
INFOSYS is working on a multi-year open source adoption program for a corporation which manufactures and sells machinery and engines, to reduce its licensing and infrastructure costs.
Infosys BPO

Infosys BPO continues to addresses its’ clients’ business challenges, unlocking business value by applying proven process methodologies, integrated IT and business process outsourcing solutions.

A high-end retailer of apparel, accessories and jewellery has engaged Infy to develop a comprehensive business process value solution to streamline its online digital channel operations.

INFOSYS has partnered with a corporation which sells, markets and distributes food products, to optimize its enterprise resource planning roll-out strategy. The solution includes streamlining the process of maintaining its master database, delivering clearly defined outcomes with a milestone based roadmap.
A brewing and soft drinks company selected us for two strategic transformation initiatives – to drive group wide procurement synergy benefits for direct material purchases, and to review its entire manufacturing and distribution footprint, as it consolidates its operations and distribution network.

INFOSYS was also chosen to assist an Australian engineering services firm with its offshore sourcing strategy, including identifying new sources of supply globally and enabling the necessary adaptations in the organization’s infrastructure to implement international supply chains.
Infosys Public Services

INFOSYS is partnering with public sector organisations in the U.S. to help them leverage the potential of technology to drive business value. A Medicaid managed care organization has engaged Infy for Medicaid claims processing services to be delivered from Infy’s U.S. BPO center in Atlanta. INFOSYS are customizing and testing a new trading partner system for a Blue Cross and Blue Shield health plan operator to transact with healthcare providers and other parties in compliance with the U.S. government mandates, and improve partner satisfaction.
Another Blue Cross and Blue Shield health plan operator implemented our iTransform™ product to fast-track compliance with the U.S. government International Classification of Diseases revision-10 (ICD-10) mandate and improve medical coder productivity. A health system provider has selected Infy to assess the impact of ICD-10 transition on its financial neutrality, contracts and clinical documentation.

Engineering services 

Infy’s engineering and technology services are seeing good traction. A semi-conductor chip manufacturer, partnered with Infy to develop and validate a path breaking Wi-Fi solution, built on a future tablet platform. INFOSYS is designing and developing a new wireless medical communication chipset, along with firmware, pre-compliance testing and prototype development for a medical device major in collaboration with its eco-system of labs and board manufacturing partners.

A provider of industrial productivity solutions has engaged Infy to improve the collaboration of its research and development centers across the globe, reduce time to market and product development costs through a transformational Product Lifecycle Management (PLM) implementation. The marine division of an independent safety assurance player selected Infy to develop knowledge based engineering solutions and tools to monitor the structural health and sea worthiness of its ships.

An aircraft manufacturer partnered with Infy to harmonize its design and PLM systems to overhaul performance and improve the time to volume for critical aircraft parts.
Products, Platforms and Solutions

INFOSYS had twelve client wins in this category this quarter, eight for Infosys Edge™ and four for our industry-focused products. 

Infosys Edge™ saw strong momentum across its platforms. Airtel, an integrated telecommunications company with operations in 19 countries across Asia and Africa, partnered with Infy to build India’s first-of-its-kind mobile wallet service.

The Infosys WalletEdge™ platform, with Finacle™ Digital Commerce solution at its core, will enable a ubiquitous mobile wallet service to support cashless payments and settlement needs of diverse customer segments.

A consumer packaged goods company has selected Infosys TradeEdge™ to improve data collection from distributors and retailers. The platform will use this data to help plan production, distribution and enhance the efficiency of its supply chain. 
A loan servicing and real estate niche player has chosen Infosys Credit Servicing Platform to integrate various business operations across geographies, driving business efficiency and visibility by streamlining loan servicing and real estate asset management processes.

The Infosys Digital Marketing Platform is driving the digital transformation initiative for a European consumer goods major, allowing its marketing teams to create, share, and re-use all forms of digital assets.  

Infy’s industry specific products are seeing traction across sectors. A European oil and gas company selected us to maintain the integrity of its pipeline system. The product offered by Infy will also provide damage assessment and 3D visualization of close to 500 kms of pipelines. A telecommunications company in the Middle East has chosen Infosys Flypp™ and mConnect™ to offer consumers a host of ready-to-use experiential applications across multiple devices.

Finacle™, our flagship offering for the banking industry, continued to grow its business with 14 client wins this quarter. Of these, six were from Europe, Middle East and Africa (EMEA) and eight were from the Asia-Pacific (APAC) region. 12 client projects went live on Finacle™ in the quarter. Of these, four went live in APAC, six in EMEA and two in the Americas.

ING Belgium selected Finacle™ universal banking solution to transform its core banking software, expanding Infosys’ footprint in the Benelux market.

Kotak Mahindra Bank, one of India’s fastest growing banks completed the successful implementation of Finacle™ across its 335 branches. The bank has already seen a 44% increase in the number of accounts added post the Finacle™ implementation.


INFOSYS continue to grow its Cloud business and currently have close to 140 engagements and 3,000 experts in  Cloud practice. INFOSYS is working with over 30 partners as INFOSYS strengthens its proposition as a Cloud Ecosystem Integrator. Over the last quarter, INFOSYS won 15 programs across Cloud services, Big Data and Security. 

INFOSYS were selected by a retail major in America to migrate its applications to the Windows Azure platform in a phased manner.

A manufacturing company based out of North America partnered with Infy for its Big Data journey, including the implementation of a reconciliation platform to store and process millions of transactions across the globe, at a fraction of the cost and time.

A railroad company in North America has selected Infy as the principal partner for a large technology modernization program to re-host its mainframe applications on Windows servers on a private Cloud. INFOSYS have been engaged in a program to revamp the reservations system of an international hotel chain using Cloud leveraged Big Data solutions to add agility to its sales and marketing functions.  


A resources conglomerate with interests in oil and gas, partnered with Infy to build a tablet based business intelligence solution to monitor energy consumption patterns and aid faster decision making to optimize energy consumption.

An oilfield services company has engaged us to build a mobile asset tracking solution to monitor and manage heavy equipment deployed on the field.

INFOSYS have created a tablet based sales lead management solution for senior executives of a Canada based insurer.

For an American retailer, INFOSYS are creating a gift catalogue application, combining the power of mobile and social media allowing its customers to choose products and share it as gift wish lists with their friend circles.  

Process Innovation

During the 4rth quarter, Infosys applied for 38 unique patent applications in India and the U.S. With this, Infosys has an aggregate of 474 unique patent applications (pending) in India, the U.S. and other jurisdictions, and has been granted 47 patents by the United States Patent and Trademark Office and 1 patent by Luxembourg patent office.

As on March 31, 2012, cash and cash equivalents, including investments in available-for-sale financial assets and certificates of deposits was Rs.20,968 Cr (Rs.16,810 Cr as on March 31, 2011).

“We had a very difficult quarter with revenues declining sequentially. Our focus on high quality growth coupled with strong financial discipline helped us to deliver on EPS guidance in US dollar terms,” said V. Balakrishnan, Member of the Board and Chief Financial Officer. “The global currency market volatility continues to be a challenge for the industry.”

Infosys Limited and subsidiaries
Consolidated Statements of Comprehensive Income

Comparison of Q4 FY 2012 vs Q4 FY 20122; and FY 2012 vs FY 2011 is given below :

(In Rs. Cr except share data)





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Profit before income taxes

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Net profit

Exchange differences on translating foreign operations




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Profit attributable to:

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Non-controlling interest




Total comprehensive income attributable to: 

Owners of the company  




Non-controlling interest




Earnings per equity share

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