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
Highlights
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%
Others
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™
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.
Cloud
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.
Mobility
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.
Liquidity
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)
Revenues
|
8,852
|
7,250
|
33,734
|
27,501
|
Cost of sales
|
5,199
|
4,234
|
19,808
|
15,916
|
Gross profit
|
3,653
|
3,016
|
13,926
|
11,585
|
Operating expenses:
|
||||
Selling & Mktg expenses
|
452
|
400
|
1,757
|
1,512
|
Admn expenses
|
554
|
514
|
2,390
|
1,971
|
Total oprtng expenses
|
1,006
|
914
|
4,147
|
3,483
|
Operating profit
|
2,647
|
2,102
|
9,779
|
8,102
|
Other income,
Net
|
652
|
415
|
1,904
|
1211
|
Profit before income taxes
|
3,299
|
2,517
|
11,683
|
9,313
|
Income tax expense
|
983
|
699
|
3,367
|
2,490
|
Net profit
|
2,316
|
1,818
|
8,316
|
6,823
|
Exchange differences on
translating foreign operations
|
(30)
|
13
|
169
|
49
|
Total other comprehensive
income
|
(30)
|
9
|
161
|
37
|
Total comprehensive income
|
2,286
|
1,827
|
8,477
|
6,860
|
Profit attributable to:
|
||||
Owners of the company
|
2,316
|
1,818
|
8,316
|
6,823
|
Non-controlling interest
|
-
|
-
|
-
|
-
|
2,316
|
1,818
|
8,316
|
6,823
|
|
Total comprehensive income
attributable to:
|
||||
Owners of the company
|
2,286
|
1,827
|
8,477
|
6,860
|
Non-controlling interest
|
-
|
-
|
-
|
-
|
2,286
|
1,827
|
8,477
|
6,860
|
|
Earnings per equity share
|
||||
Basic (Rs.)
|
40.54
|
31.82
|
145.55
|
119.45
|
*
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N D *
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