INFOSYS LTD - RESULTS FOR - Q1 FY 2013-14 - REVENUES UP 17.2%YoY; NET PROFIT UP 3.7% YoY - NEW OPTIMISM FOR FUTURE -

INFOSYS LTD

Q1 FY 2014 RESULTS

Infosys has announces Results for the Quarter ended June 30, 2013.

Financial Highlights

Consolidated results under International Financial Reporting Standards (IFRS) for the quarter ended June 30, 2013

 Revenues were Rs.11,267 crore for the quarter ended June 30, 2013

QoQ growth was 7.8% ;   YoY growth was 17.2%

 Net profit was Rs.2,374 crore for the quarter ended June 30, 2013

QoQ decline was 0.8%  ;  YoY growth was 3.7%

 Earnings per share (EPS) was Rs.41.54 for the quarter ended June 30, 2013

QoQ decline was 0.8%  ;  YoY growth was 3.7%

 Liquid assets including cash and cash equivalents, available-for-sale financial assets, and government  bonds were Rs.24,078 crore versus Rs.23,958 crore as on March 31, 2013.

Other highlights:

 Infosys and its subsidiaries added 66 clients during the quarter

 Gross addition of 10,138 employees (net addition of 575) for the quarter by Infosys and its  subsidiaries

 157,263 employees as on June 30, 2013 for Infosys and its subsidiaries

“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 fiscal year ending March 31, 2014, under IFRS is as follows:

 Revenues are expected to grow 13% to 17%

* Conversion 1 US$ = `59.39 for the rest of the fiscal year

Business Highlights

 We continue to see good momentum for our offerings in products and platforms space. Over nine clients, across countries have adopted Infosys products and platforms (excluding Finacle™).

 CareFirst BlueCross BlueShield awarded us a three-year managed services contract to create a costeffective delivery model and drive efficiencies in application support. Infosys Public Services will set up a secure facility within its newly established delivery center in Rockville, Maryland to service the contract and help CareFirst to consolidate IT support services currently managed by multiple vendors.

 We announced a partnership with IPsoft to offer autonomics-based managed IT service to clients.  IPsoft and Infosys will set up an Autonomics Center of Excellence and an Autonomics Lab at the Infosys Global Education Center in Mysore. The Center of Excellence will focus on developing technical competencies and training of Infosys employees; the Lab will develop proofs of concept and design autonomics solutions for clients.

 Our focus on Cloud and Big Data as new growth areas continue to yield results. The Cloud and Big Data business has executed over 100 engagements. Over the last quarter, Infosys won over 15 engagements across Cloud services and Big Data. Infosys was also invited to join the global Open Data Center Alliance (ODCA) as a contributing member to help define and strengthen worldwide industry standards to support enterprise cloud and big data requirements.

 Our clients continue to invest in using Mobility as a differentiator in their customer engagement, business and operations. Over 25 new engagements across various industries and areas like field services, customer engagement and enterprise efficiency, were started by us in the last quarter.

 Finacle™ sustained its business momentum in the last quarter with 15 new wins and 14 banks going  live on Finacle™ across the Middle East, Africa, Asia and Central America. This includes the first  Finacle™ customer in Mongolia and the first successful core banking implementation in recent times in Turkey.

 During the first quarter, Infosys applied for 18 unique patent applications in India and the U.S. With  this, it has 528 patent applications undergoing various stages in the patent approval process in India, the U.S. and other jurisdictions, has been granted 106 patents by the United States Patent and  Trademark Office and three patents by the Luxembourg patent office.

Infosys Limited And its Subsidiaries
Consolidated Statement of Comprehensive Income
(In Crores of Rs)			Q1FY14	Q1FY13	Yoy% Dif
Revenues			11,267	9,616	17.17
Cost of Sales			7,319	5,810	25.97
Gross Profit			3,948	3,806	3.73
Operating	expenses:
Selling&Mrktg			584	469	24.52
Administrative Exp			700	644	8.7
Total Oprtg Exp			1,284	1,113	15.36
Operating Profit			2,664	2,693	-1.08
Other Income Net			577	476	21.22
Profit before IT			3,241	3,169	2.27
Income Tax			867	880	-1.48
Net Profit			2,374	2,289	3.71
Comprehensive Income			2,569	2,352	9.23
E.P.S.
Basic	(Rs)		41.54	40.06	3.69

Overall, the performance of Infosys must be looked at , in the optimism that has returned to it, albeit a cautious optimism. The restructuring that Infosys is carrying out, is expected to give it added dynamism in its operations. The addition of New clients is brisk – 66 in the quarter.

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