Tuesday, April 15, 2014

INFOSYS LIMITED -Q4 FY 14 & FY 14 CONSOLIDATED RESULTS - VERY GOOD PERFORMANCE - REVENUE UP 24.2% YOY; OPTG MARGIN UP AT 25.5%; EPS Rs.186.35 ; good guidance for FY 15




INFOSYS Limited


Infosys Ltd has announced Results for the Quarter and Year ended March 31, 2014.
Ø  FY 14 revenue growth doubled to 11.5% in USD terms; increased to 24.2% in INR terms;
Ø  Q4 operating margins expand 50 bps sequentially to 25.5%;
Ø  Dividend pay -out ratio increased to 40% of post-tax profits;
Ø  FY 15 revenues expected to grow 7%-9% in USD terms; 5.6%-7.6% in INR terms
Financial Highlights

Consolidated results for the year and quarter Ended March 31, 2014

Year ended March 31, 2014

Ø  Revenues were Rs.50,133 crore for the year ended March 31, 2014 YoY growth was 24.2%
Ø  Net profit was  Rs.10,648 crore for the year ended March 31, 2014 YoY growth was 13.0%
Ø  Earnings per share (EPS) was Rs.186.35for the year ended March 31, 2014 YoY growth was 13.0%

Quarter ended March 31, 2014

Ø  Revenues were Rs.12,875 crore for the quarter ended March 31, 2014 QoQ decline was 1.2%; YoY growth was 23.2%
Ø  Net profit was Rs.2,992 crore for the quarter ended March 31,2014 QoQ growth was 4.1% ;YoY growth was 25.0%
Ø  Earnings per share (EPS) was Rs.52.36 for the quarter ended March 31, 2014 QoQ growth was 4.1% ; YoY growth was 25.0%

Liquid assets including cash and cash equivalents, available-for-sale financial assets, certificates of deposits and government bonds were Rs.30,251 crore as on March 31, 2014 versus Rs.27,440 crore as on December 31, 2013 and Rs.23,958 crore as on March 31, 2013 .
The Board of Directors recommended a final dividend of Rs.43 per share for fiscal 2014. The Register and Share Transfer Books of the Company will be closed from May 31, 2014 to June 14, 2014 (both days inclusive).
The Companys current policy is to pay dividends up to 30% of post -tax profits. The Board has Decided to increase the dividend pay-out ratio to up to 40% of post-tax profits effective fiscal 2014

Other highlights: 

Ø  Infosys and its subsidiaries added 50 clients during the quarter and 238 during the year .
Ø  Gross addition of 10,997 employees during the quarter and 39,985 during the year by Infosys and its subsidiaries .
Ø  160,405 employees as on March 31, 2014 for Infosys and its subsidiaries
“I am pleased that we have been able to double our growth rate for the full year compared to last year, though performance in the last quarter of FY 14 has been disappointing.” said S. D. Shibulal, CEO and Managing Director.
“We have guided for a revenue growth of 7%-9% next year and remain firmly focused on building the growth momentum by making all the necessary investments in our business.”
“Our cash and cash equivalents crossed Rs.30,000 crore during the quarter. We have increased the Dividend payout ratio to up to 40% of post-tax profits effective FY 14 to enhance returns for our shareholders.” Said Rajiv Bansal, Chief Financial Officer.

Outlook


The companys outlook (consolidated) for the fiscal year ending March 31, 2015, under IFRS is as follows:
Revenues are expected to grow 5.6%-7.6%
Conversion 1 US$ = Rs.60.00


Business Highlights


Large outsourcing agreements signed with enterprises across Energy, Communications, Financial Services, Government and Healthcare sectors .
Selected by Volvo Cars as a strategic supplier to provide application development services for its global operations.
Won an outsourcing deal from a large European bank to manage its overall Applications Portfolio.
Extended our contract with District of Columbia to implement the next phase of its health insurance marketplace (DC Health Link). This includes modernizing its legacy eligibility system and additional health and social programs.
Engaged by a top healthcare solution provider to enhance its flagship revenue cycle management product and help its customers comply with regulatory requirements.
Chosen by a French global manufacturing conglomerate to build an Agricultural Research Tool for its coffee platform and help the company monitor and report data around production and usage metrics.
Signed a 3-year contract to extend digital marketing support worldwide under a managed services model for a global grocery manufacturing and processing conglomerate.
Sustained business momentum across advanced technology solutions with 20 new deals signed for Cloud and Big Data offerings ;
15 new deals signed for mobility offerings and 12 new deals signed for Engineering Services .
Continued expansion of Infosys Finacle™globally with 7 new wins and 11 go-lives at banks across Europe, South America, Africa, Middle East and Asia Pacific.
Set up a 100 seat delivery center in Araraquara, Brazil to provide SAP Application Management services to Citrosuco, the worlds leading orange juice producer.
Commenced work on 4 new campuses in the Indian cities of Indore, Mohali, Noida and Nagpur .
Applied for 18 unique patent applications in India and the USA during the fourth quarter,adding to a total of 541 patent applications undergoing various stages of patent prosecution in India, the U.S. and other jurisdictions.
Granted 153 patents by the United States Patent and Trademark Office, 3 patents by the Luxembourg Patent Office and 1patent by the Australian Patent Office.

Board Changes

The Board appointed Ms Carol M Browner as an Additional Director of the Company. Her appointment shall be effective on the date Ms. Browner receives her Director Identification Number from the  Ministry of Corporate Affairs
Ms. Carol M. Browner served as Director of the White House Office of Energy and Climate Change Policy in the Obama administration from 2009 to 2011. She serves as a Distinguished Senior Fellow at the center for American Progress and as Counselor to the Albright Stonebridge Group. Ms. Browner previously served as Administrator of the Environmental Protection Agency (EPA) during the Clinton administration from 1993 to 2001 and was the longest - serving administrator in the history of the EPA . She graduated from the University of Florida and the University of Florida College of Law. Ms. Browner headed the Florida Department of Environmental Regulation from 1991 to 1993. Earlier in her career, she worked in the Florida House of Representatives and served as legislative assistant to US Senators Lawton Chiles and Al Gore. She serves as director and advisor to several non - profits and private companies, including as director on the boards of Bunge Limited, Center for American Progress and as chair of the Board for the League of Conservation Voters, as advisor to Harvest Power and Opower, as Commissioner of the Global Oceans Commission.

About Infosys Ltd

Infosys is a global leader in consulting, technology and outsourcing solutions. We enable clients, in more than 30 countries, to stay a step ahead of emerging business trends and outperform the competition. We help them transform and thrive in a changing world by co-creating breakthrough solutions that combine strategic insights and execution excellence.

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