INFOSYS LTD - RESULTS FOR - Q2 FY 13-14 - Q.E.SEP 2013 - REVENUE GROWTH 31.5%YoY; NPT GROWTH 1.6%YoY; DUE TO ONE OFF PROV.OF RS.219 CR. - GUIDANCE UPPED - GOOD RESULTS

INFOSYS LIMITED

CONSOLIDATED RESULTS FOR Q2 FY 2013-14

Q/E SEP, 2013

Financial Highlights

· Revenues were Rs.12,965 crore for Q/E September 30, 2013 QoQ growth was 15.1%  YoY growth was 31.5%

· Net profit was Rs.2,407 crore; QoQ growth was 1.4% YoY growth was 1.6%.
Significantly, Shibulal, the company's CEO & MD has indicated that Margins would not be the first priority at least for next couple of quarters. This means, that the company will be focusing more on Growth - to catch up with its rivals first. The CEO also says that Business environment has seen a pick up in last couple of quarters - These statements indicate a renewed confidence in the future.

· EPS (including the provision of Rs.219 crore for visa related matters) was  Rs.42.12 for Q/E September 30, 2013 QoQ growth was 1.4% ; YoY growth was 1.6% ; EPS for the quarter is Rs.45.96 per share, excluding  provision of  Rs.219 crore for visa related matters. The difference is Rs.3.84 per share.

· Liquid assets including cash and cash equivalents, available-for-sale  financial assets, and government bonds were Rs.26,907 crore as on September 30, 2013 versus Rs.24,078 crore as on June 30 , 2013

Other highlights:

· Infosys and its subsidiaries added 68 clients during the quarter

· Gross addition of 12,168 employees (net addition of 2,964) for the quarter by Infosys and its subsidiaries. However - the attrition Rate has jumped to 17.3 % in Q2 from 16.9% in the preceding quarter.

During the period, the IT major's attrition rate increased to 17.3 percent compared to 16.9 percent in the June quarter.

Read more at: http://www.moneycontrol.com/news/result-analysis/infosys-results-attrition-rate-jumps-to-173sept-quarter_968062.html?utm_source=ref_article

During the period, the IT major's attrition rate increased to 17.3 percent compared to 16.9 percent in the June quarter.

Read more at: http://www.moneycontrol.com/news/result-analysis/infosys-results-attrition-rate-jumps-to-173sept-quarter_968062.html?utm_source=ref_article

During the period, the IT major's attrition rate increased to 17.3 percent compared to 16.9 percent in the June quarter.

Read more at: http://www.moneycontrol.com/news/result-analysis/infosys-results-attrition-rate-jumps-to-173sept-quarter_968062.html?utm_source=ref_article

· 1,60,227 employees as on September 30, 2013 for Infosys and its subsidiaries

· Declared an interim dividend of Rs.`20 per share. The record date for the payment of dividend is October  18 , 2013

"During the quarter we witnessed broad - based volume growth, robust client additions, five large deal wins and increased sales momentum of our big data and cloud offerings. This growth is a result of our focus on execution, which helps our clients achieve their objectives." said S. D. Shibulal, CEO and Managing Director.  "We will continue with planned investments and initiatives to explore new avenues of growth. We remain watchful of the sustainability of improving global economic fundamentals", he added.

“ The global currency market remains volatile with the Indian Rupee depreciating by 11 % during the quarter. We have an active hedging program to minimize its impact on our margins. We will continue our focus on optimizing costs and enhancing the efficiency of our operations,” said Rajiv Bansal, Chief Financial Officer.

The company’s outlook (consolidated) for the fiscal year ending March 31, 2014, under IFRS is as follows:

· Revenues are expected to grow 21% to 22%

* Conversion 1 US$ = `62.61 for the rest of the fiscal year

Business  Highlights

· Infy says –

We are pursuing and winning large outsourcing deals. Service innovations like Global Agile, Virtual Operations and Integrated Application Management continue to provide high levels of differentiation for us in the marketplace and have enabled wins across industry verticals.

We have recently entered into a four-year engagement with  Toyota Motor Europe to manage its Pan-European application support.

This contract covers key operational areas including core automotive processes and corporate functions, under a managed service model.

· On the Business Transformation front, we have enhanced our scale in emerging markets and our non-linear revenues by leveraging new business models and pricing structures. We continue to leverage our alliances and are driving innovation through industry leading intellectual property and solutions.

· We continue to strengthen our competencies in Oracle and SAP practices. We have been rated as a leader in Gartner’s Magic Quadrant for Oracle Application Implementation and Application Management Services, and for SAP Application Management services.

· Our Products and Platforms business continues to grow at a steady pace with 15 wins this quarter (excluding Finacle™).

· Finacle™ had 18 new wins across South Asia, South East Asia, the Middle East, Europe, and Australia -New Zealand this quarter . We launched Finacle 11E, the enterprise edition of Finacle ™ universal banking solution. Finacle 11E is designed to simplify banking transformation with enterprise-class components.

· We are building momentum in the market with our Cloud and Big Data offerings. Last quarter, we won over 15 new projects with clients in these segments. We are a leader in Cloud services with more than 4,500 Cloud experts, 200 engagements and 35 partners. This was validated by IDC’s recognition of Infosys as a Major Player in its IDC Market Scape for Cloud Professional Services.

· We are engaging with clients to create innovative solutions around the mobile device. This quarter we began over 25 different engagements in various areas such as Mobile strategy consulting, Mobile field service, customer engagement, and enterprise productivity, among others.

· In the U.S., we are partnering with leading healthcare and public sector organizations through Infosys Public Services Inc., to help them deliver patient

-centric care and mission outcomes.

A Blue Cross Blue Shield Plan awarded us a three year managed services contract to support its IT operations and provide application maintenance and testing services. This will enable the client to optimize efficiency and cost

while delivering enhanced care and services to members. We have also been selected by a multi-state Medicaid/Medicare Plan to implement a solution

that meets shared member liability management requirements, as mandated for participation in health exchanges under the U.S. Affordable Care Act.

· During the second quarter, Infosys applied for 21 unique patent applications in India and the U.S. With this, we have 536 patent applications undergoing various stages of patent prosecution in India, the U.S. and other jurisdictions. We have been granted 119 patents by the United States Patent and trademark  Office and 3 patents by the Luxembourg patent office.

OTHER NEWS & COMMENTS ON THE RESULTS

The Company has performed well – and has indicated much better Guidance for the Future, which is very significant. There is no more Gloomy forecasting from Infosys – as in previous quarters. The quarter’s wins are also very significant.

REUTER SAYS - INFOSYS Ltd's refocus on big-ticket contracts since the return of its founder has begun to pay off as India's No. 2 software services exporter crossed $2 billion in quarterly sales for the first time and pushed up its revenue outlook

Still, a one-off provision left Infosys reporting profit that missed analyst estimates in its first full-quarter earnings since Narayana Murthy came out of retirement, during which time the industry bellwether lost ground to rivals such as  TCS.

....Under Executive Chairman Murthy, Infosys is increasing investment in sales and doing a better job at winning large outsourcing contracts to which it is devoting more senior management attention.

.....Infosys pointed to Australia, its third-biggest market, as evidence of recent success, winning all six of the deals it competed for above $75 million in value over the last two quarters.

Globally, Infosys won five large contracts worth a combined $450 million in the September quarter.

"Our focus on proactively creating large deals has led to significantly better pipeline," CEO S.D. Shibulal told analysts.

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