INFOSYS LIMITED - RESULTS FOR - Q2 FY 2015 (SEP 14) - REVENUE UP 4.5%QoQ; NPT UP 7.3% QoQ-EXCELLENT IMPROVEMENT

INFOSYS LIMITED

VISHAL TIKKA, CEO & MD

CONSOLIDATED RESULTS

FOR SECOND QUARTER

ENDING SEP,2014

Infosys has announced EXCELLENT RESULTS for the Second Quarter ended September 30, 2014.

Ø Q2 Revenues : Rs.13,342 Cr. Growth : 4.5% QoQ;2.9%YoY 

Ø Q2 Net Profit : Rs.3,096 Cr. Growth : 7.3% QoQ; 28.6% YoY

Ø FY 15 revenue guidance maintained at 7%-9%

Ø Interim dividend of Rs.30 per share. The record date for payment of dividend is October 17, 2014.

Ø 1:1 bonus issue of equity shares and 1:1 stock dividend of American Depositary Shares, to increase liquidity of its shares and expand the retail shareholder base Bangalore, India

Ø Earnings per share : Rs.54.19; QoQ growth :7.3%;YoY : 28.7%

Ø Liquid assets including cash and cash equivalents, available – for-sale financial assets, certificates of deposits and government bonds were Rs.33,616 Cr as on September 30, 2014 as compared to Rs.29,748 crore as on June 30, 2014.

Ø Infosys has pledged Rs.254 Cr for FY 15 towards Corporate Social Responsibility (CSR) through the Infosys Foundation - its philanthropic arm. 

Ø Infosys and its subsidiaries added 49  clients (gross) during the quarter.

Ø Gross addition of 14,255 employees during the quarter.

Ø 165,411 employees as on September 30, 2014 for Infosys and its subsidiaries.

"Digital transformation is reshaping the business of every one of our clients. We see this as a great opportunity to help them renew the core of their business as well as to expand into new frontiers and are seeing early positive results ”, said Dr. Vishal Sikka, Chief Executive Officer and Managing Director.

“Our strategy is to apply the same principles to our own business in order to capture this opportunity and accelerate our growth , within our culture of lifelong learning and purposeful work."

“On several fronts, our efforts to bring in operational efficiencies yielded encouraging results during the quarter”,said U. B. Pravin Rao, Chief Operating Officer.

Outlook*

The company’s outlook (consolidated) for the fiscal year ending March 31, 2015, under IFRS is as follows:

 Revenues are expected to grow 6.7%-8.7% in INR terms

* Conversion 1 US$ = Rs.61.00 

Business Highlights

 Signed a multi-year agreement with Daimler AG covering management of infrastructure services and data centers.

 Consolidated IT and BPO operations for a major fashion retailer in the US as part of a five-year Oracle Retail Support agreement. This will help the retailer better focus on new brand acquisitions and global expansion.

 Designed an analytics-based solution to help one of UK’s leading supermarket chains drive targeted campaigns to enhance customer loyalty, acquire new customers and improve revenues.

 Migrated, supported and enhanced an automated outbound dialer application for a telecom service provider in the US. This will help the provider integrate Short Messaging Service for end users by deriving information from multiple systems like billing and provisioning systems.

 Infosys Public Services (IPS) has been engaged by a postal solution provider in the US to reduce cost of operation and efficiently maintain its plant equipment and vehicle fleet asset management system. IPS is also migrating the client’s business - critical applications to a new data center by utilizing proprietary application assessment tools and migration approaches for rapid execution with zero business disruption .

 Our products and platforms business, Edgeverve Systems, is seeing increased momentum. A global sports brand has engaged Edgeverve to help build a responsive user experience-based multi-channel ecommerce store in India.

 Expanded the scope of our strategic partnerships to deliver value to businesses across cloud-based infrastructure, analytics and big data. We broadened our partnership with:

O Microsoft to securely expedite movement to Azure and hybrid cloud environments while optimizing cloud investments.

O Oracle to enhance support for a range of innovative solutions and services on new technology platforms across digital marketing, big data and Oracle Cloud Applications .

O Hitachi Data Systems to bring next - generation infrastructure and data center transformation solutions to facilitate the smooth transitioning of IT infrastructure to new cloud – based environments.

O Huawei to offer cloud, big data and communication solutions .

 Entered into a strategic relationship with the Institute for Computational & Mathematical Engineering(ICME), Stanford University. Through this arrangement, we will jointly develop curriculum in Data Science and Analytics focused on real-world problem areas and will undertake joint research using Data Science to find solutions to key industry issues.

 Working with faculty from the Stanford d.school and the d.Global initiative to bring design thinking to our clients on a large scale.

 This quarter we made six unique patent applications in India and the US, adding to a total of 505 unique patent applications in various stages of patent prosecution in India, the US and other jurisdictions. Till date we have been granted 199 patents by the United States Patent and Trademark Office, three by the Luxembourg Patent Office, one by the Australian Patent Office and one patent by the Intellectual Property Office of Singapore.

Changes to the Board

The members of the company at the Extra-ordinary General Meeting held on July 30, 2014 approved the appointment of Dr. Vishal Sikka as the Chief Executive Officer and Managing Director effective August 1,2014.

Mr.Narayana Murthy will cease to be Non-Executive Chairman effective October 10, 2014.He indicated that in line with the company’s high corporate governance standards and to avoid any perceived conflicts, it would not be appropriate for him to be the Chairman Emeritus of Infosys. The Board accepted Mr. Murthy’s decision and sincerely thanked him for his vision, leadership and guidance in making Infosys a globally respected company.

Mr.S. Gopalakrishnan will cease to be the Non-Executive Vice Chairman effective October 10, 2014. The Board expressed its deep sense of appreciation for the services rendered by him during his tenure at Infosys .

Mr.K.V. Kamath has been elected as the Chairman of the Board effective October 11, 2014.

The company has been classifying its founders, Narayana Murthy, Nandan Nilekani, S. Gopalakrishnan, S. D.Shibulal and K Dinesh along with their immediate family members as promoters/promoter group of the company in applicable disclosures with the stock exchanges and other regulatory authorities .

With the last two founders, Narayana Murthy and S Gopalakrishnan, remitting office, the founders have neither association with the company nor exercise any control over the affairs of the company after the current date. The founders have therefore requested the company to seek appropriate classification of their revised status. The company is in the process of seeking appropriate regulatory guidance on the same.

 

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