Exhibit 99.8
Form of Releases to Stock Exchanges and Advertisement
Infosys Limited Regd. office: Electronics City, Hosur Road, Bengaluru – 560 100, India | CIN : L85110KA1981PLC013115 Website: www.infosys.com Email: investors@infosys.com T: 91 80 2852 0261, F: 91 80 2852 0362 |
Audited consolidated financial results of Infosys Limited and its subsidiaries for the quarter ended June 30, 2016, prepared in compliance with the Indian Accounting Standard(Ind-AS)
(in crore, except per equity share data)
Particulars | Quarter ended June 30, | Quarter ended March 31, | Quarter ended June 30, | Year ended March 31, |
2016 | 2016 | 2015 | 2016 | |
Audited | Audited | Audited | Audited | |
Revenue from operations | 16,782 | 16,550 | 14,354 | 62,441 |
Other Income, net | 753 | 772 | 756 | 3,123 |
Total Income | 17,535 | 17,322 | 15,110 | 65,564 |
Expenses | ||||
Employee benefit expenses | 9,282 | 9,024 | 8,053 | 34,406 |
Deferred consideration pertaining to acquisition | – | – | 60 | 149 |
Cost of technical sub-contractors | 917 | 925 | 750 | 3,531 |
Travel expenses | 740 | 595 | 556 | 2,263 |
Cost of software packages and others | 276 | 330 | 312 | 1,274 |
Communication expenses | 120 | 117 | 112 | 449 |
Consultancy and professional charges | 175 | 213 | 169 | 779 |
Depreciation and amortization expenses | 400 | 419 | 313 | 1,459 |
Other expenses | 825 | 707 | 582 | 2,511 |
Total Expenses | 12,735 | 12,330 | 10,907 | 46,821 |
Profit Before Minority Interest / Share In Net Profit / (Loss) Of Associate | 4,800 | 4,992 | 4,203 | 18,743 |
Share in net profit/(loss) of associate | (2) | (1) | – | (3) |
Profit Before Tax | 4,798 | 4,991 | 4,203 | 18,740 |
Tax expense: | ||||
Current tax | 1,467 | 1,426 | 1,133 | 5,318 |
Deferred tax | (105) | (32) | 42 | (67) |
Profit for the Period | 3,436 | 3,597 | 3,028 | 13,489 |
Other comprehensive income | ||||
Items that will not be reclassified to profit or loss | ||||
Remeasurement of the net defined benefit liability/asset | (17) | (3) | (7) | (12) |
Equity instruments through other comprehensive income | – | – | – | – |
Items that will be reclassified subsequently to profit or loss | ||||
Exchange differences on translation of foreign operations | 38 | 96 | 144 | 303 |
Total other comprehensive income, net of tax | 21 | 93 | 137 | 291 |
Total comprehensive income for the period | 3,457 | 3,690 | 3,165 | 13,780 |
Paid up Share Capital (par Value5/- each, fully paid) | 1,144 | 1,144 | 1,144 | 1,144 |
Other Equity | 60,600 | 60,600 | 54,198 | 60,600 |
Earnings per equity share (par value5/- each) | ||||
Basic () | 15.03 | 15.74 | 13.25 | 59.02 |
Diluted () | 15.03 | 15.74 | 13.25 | 59.02 |
1. | The audited consolidated financial statements for the quarter ended June 30, 2016 have been taken on record by the Board of Directors at its meeting held on July 15, 2016. The statutory auditors have expressed an unqualified audit opinion. The information presented above is extracted from the audited consolidated financial statements. The consolidated financial statements are prepared in accordance with the Indian Accounting Standard (Ind-AS) as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016. |
2. | These financial statements are the Group's first Ind-AS financial statements. The Group has adopted all the Ind-AS standards and the adoptions were carried out in accordance with Ind-AS 101-First time adoption of Indian Accounting Standards. The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed under Sec 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP), which was the previous GAAP. |
3. | The Nomination and Remuneration Committee of the Board of Directors of Infosys Limited at its meeting held on July 14, 2016, approved the grant of 1,857,820 RSU's at par value which shall be made on August 1, 2016, to a total of 7,898 eligible and identified high performing employees upto mid level managers of the Company and its subsidiaries under the 2015 Employee Stock Compensation Plan. The RSU's shall vest over a period of four years from the date of grant which shall be exercisable within the period as approved by the committee. Out of these RSU’s, a total of 1,515,135 equity shares will be issued out of the existing treasury shares held by the Infosys Employee Benefits Trust and the balance will be in the form of ADR’s and Phantom stock rights. |
4. | In accordance with the postal ballot approved by the shareholders on March 31, 2016, the Nomination and Remuneration Committee of the Board of Directors of Infosys Limited at its meeting held on July 14, 2016, approved the grant of RSU's amounting to $ 2 Million on August 1, 2016 to Dr. Vishal Sikka, CEO and Managing Director. The RSU's are time based and will vest over a period of 4 years subject to continuous service. The exercise price for the grant is equal to the par value of one share per RSU. |
5. | Information on dividends for the quarter June 30, 2016 |
(in)
Particulars | Quarter ended June 30, | Quarter ended March 31, | Quarter ended June 30, | Year ended March 31, |
2016 | 2016 | 2015 | 2016 | |
Dividend per share (par value5/- each) | ||||
Interim dividend | – | – | – | 10.00 |
Final dividend | – | 14.25 | – | 14.25 |
6. There are no items of expenditure which exceeds 10% of the total expenditure.
7. Audited financial results of Infosys Limited (Standalone Information)
(in crore)
Particulars | Quarter ended June 30, | Quarter ended March 31, | Quarter ended June 30, | Year ended March 31, |
2016 | 2016 | 2015 | 2016 | |
Revenue from operations | 14,420 | 14,158 | 12,738 | 53,983 |
Profit before tax | 4,460 | 4,705 | 3,990 | 17,600 |
Profit for the period | 3,180 | 3,391 | 2,891 | 12,693 |
Note:
The audited results of Infosys Limited for the above mentioned periods are available on our website, www.infosys.com and on the Stock Exchange website www.nseindia.com and www.bseindia.com. The information above has been extracted from the audited standalone financial statements as stated.
8. Reconciliation of Consolidated Statement of Profit and loss as previously reported under IGAAP to Ind AS
(in crore)
Particulars | Note | Three months ended June 30, 2015 | ||
IGAAP | Effects of transition to Ind-AS | Ind AS | ||
Revenue from operations | 14,354 | – | 14,354 | |
Other income, net | 756 | – | 756 | |
Net Income | 15,110 | – | 15,110 | |
Expenses | ||||
Employee benefit expenses | 1.1 | 8,061 | (8) | 8,053 |
Deferred consideration pertaining to acquisition | 1.2 | 46 | 14 | 60 |
Cost of technical sub-contractors | 750 | – | 750 | |
Travel expenses | 556 | – | 556 | |
Cost of software packages and others | 312 | – | 312 | |
Communication expenses | 112 | – | 112 | |
Consultancy and professional charges | 169 | – | 169 | |
Depreciation and amortization expenses | 1.3 | 282 | 31 | 313 |
Other expenses | 1.2 | 581 | 1 | 582 |
Total expenses | 10,869 | 38 | 10,907 | |
Profit before minority interest / share in net profit / (loss) of associate | 4,241 | (38) | 4,203 | |
Share in net profit/(loss) of associate | – | – | – | |
PROFIT BEFORE TAX | 4,241 | (38) | 4,203 | |
Tax expense: | ||||
Current tax | 1.4 | 1,131 | 2 | 1,133 |
Deferred tax | 1.5 | 49 | (7) | 42 |
Profit for the Period | 3,061 | (33) | 3,028 | |
Other comprehensive income | ||||
Items that will not be reclassified to profit or loss | ||||
Remeasurement of the net defined benefit liability/asset | 1.1 | – | (7) | (7) |
Equity instruments through other comprehensive income | – | – | – | |
Items that will be reclassified subsequently to profit or loss | ||||
Exchange differences on translation of foreign operations | 1.6 | 39 | 105 | 144 |
Total other comprehensive income, net of tax | 39 | 98 | 137 | |
Total comprehensive income for the period | 3,100 | 65 | 3,165 |
This reconciliation statement has been provided in accordance with circular CIR/CFD/FAC/62/2016 issued by SEBI dated July 05, 2016 on account of implementation of Ind-AS by listed companies
Explanations for reconciliation of Consolidated Statement of profit and loss as previously reported under IGAAP to Ind-AS
1.1 | a) | As per Ind-AS 19 - Employee Benefits, actuarial gain and losses are recognized in other comprehensive income and not reclassified to profit and loss in a subsequent period. |
b) | Adjustments reflect unamortized negative past service cost arising on modification of the gratuity plan in an earlier period. Ind AS 19 requires such gains and losses to be adjusted to retained earnings. | |
1.2 | Adjustments reflect impact of discounting pertaining to deferred and contingent consideration payable for business combination | |
1.3 | Adjustment reflects impact of amortisation of intangible assets included within goodwill under the IGAAP, separately recognized under Ind-AS | |
1.4 | Tax component on actuarial gains and losses which was transferred to other comprehensive income under Ind AS | |
1.5 | The reduction in deferred tax expense is on account of reversal of deferred tax liabilities recorded on intangible assets acquired in business combination. | |
1.6 | Under Ind-AS, exchange differences on translation of foreign operations are recorded in other comprehensive income. |
9. Segment reporting (Ind-AS Consolidated - Audited)
(in crore)
Particulars | Quarter ended June 30, | Quarter ended March 31, | Quarter ended June 30, | Year ended March 31, |
2016 | 2016 | 2015 | 2016 | |
Revenue by business segment | ||||
Financial Services (FS) | 4,551 | 4,522 | 3,882 | 17,024 |
Manufacturing (MFG) | 1,844 | 1,748 | 1,616 | 6,948 |
Energy & utilities, Communication and Services (ECS) | 3,719 | 3,635 | 3,166 | 13,547 |
Retail, Consumer packaged goods and Logistics (RCL) | 2,861 | 2,727 | 2,342 | 10,226 |
Life Sciences, Healthcare and Insurance (HILIFE) | 2,004 | 2,083 | 1,870 | 8,090 |
Hi-Tech | 1,322 | 1,327 | 1,151 | 4,891 |
All other segments | 481 | 508 | 327 | 1,715 |
Total | 16,782 | 16,550 | 14,354 | 62,441 |
Less: Inter-segment revenue | – | – | – | – |
Net revenue from operations | 16,782 | 16,550 | 14,354 | 62,441 |
Segment profit before tax, depreciation and non-controlling interests: | ||||
Financial Services (FS) | 1,267 | 1,249 | 1,073 | 4,839 |
Manufacturing (MFG) | 451 | 426 | 346 | 1,560 |
Energy & utilities, Communication and Services (ECS) | 1,066 | 1,108 | 952 | 4,029 |
Retail, Consumer packaged goods and Logistics (RCL) | 802 | 767 | 649 | 2,840 |
Life Sciences, Healthcare and Insurance (HILIFE) | 522 | 626 | 478 | 2,265 |
Hi-Tech | 321 | 364 | 270 | 1,301 |
All other segments | 21 | 105 | (7) | 259 |
Total | 4,450 | 4,645 | 3,761 | 17,093 |
Less: Other unallocable expenditure | 403 | 425 | 314 | 1,473 |
Add: Unallocable other income | 753 | 772 | 756 | 3,123 |
Add: Share in Associate's profit / (loss) | (2) | (1) | – | (3) |
Profit before tax and non-controlling interests | 4,798 | 4,991 | 4,203 | 18,740 |
Notes on segment information
Business segments
Based on the "management approach" as defined in Ind AS 108 - Operating Segments, the Chief Operating Decision Marker evaluates the Company's performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented along these business segments. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments
Segmental capital employed
Assets and liabilities used in the Company's business are not identified to any of the reportable segments, as these are used interchangeably between segments. The Management believes that it is not practicable to provide segment disclosures relating to total assets and liabilities since a meaningful segregation of the available data is onerous.
By order of the Board for Infosys Limited | |
Bangalore, India July 15, 2016 | Dr. Vishal Sikka Chief Executive Officer and Managing Director |
The Board has also taken on record the unaudited condensed consolidated results of Infosys Limited and its subsidiaries for the quarter ended June 30, 2016, prepared as per International Financial Reporting Standards (IFRS) and reported in US Dollars. A summary of the financial statements is as follows:
(in US$ million, except per equity share data)
Particulars | Quarter ended June 30, | Quarter ended March 31 , | Quarter ended June 30, | Year ended March 31, |
2016 | 2016 | 2015 | 2016 | |
Revenues | 2,501 | 2,446 | 2,256 | 9,501 |
Cost of sales | 1,592 | 1,516 | 1,434 | 5,950 |
Gross profit | 909 | 930 | 822 | 3,551 |
Net profit | 511 | 533 | 476 | 2,052 |
Earnings per Equity Share | ||||
Basic | 0.22 | 0.23 | 0.21 | 0.90 |
Diluted | 0.22 | 0.23 | 0.21 | 0.90 |
Total assets | 11,317 | 11,378 | 10,587 | 11,378 |
Cash and cash equivalents including current investments | 4,681 | 4,946 | 4,537 | 4,946 |
Certain statements in this advertisement concerning our future growth prospects are forward-looking statements regarding our future business expectations intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, fluctuations in foreign exchange rates, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal or expiration of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2016. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and our reports to shareholders. In addition, please note that the date of this advertisement is July 15, 2016, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. The company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the company unless it is required by law.
Infosys Limited Regd. office: Electronics City, Hosur Road, Bengaluru – 560 100, India | CIN : L85110KA1981PLC013115 Website: www.infosys.com Email: investors@infosys.com T: 91 80 2852 0261, F: 91 80 2852 0362 |
Extract of Audited consolidated financial results of Infosys Limited and its subsidiaries for the quarter ended June 30, 2016, prepared in compliance with the Indian Accounting Standard (Ind-AS)
( in crore except equity share data)
Particulars | Quarter ending June 30, | Year ending March 31, | Quarter ending June 30, |
2016 | 2016 | 2015 | |
Revenues from operations | 16,782 | 62,441 | 14,354 |
Net profit | 3,436 | 13,489 | 3,028 |
Total Comprehensive Income for the period (comprising profit for the period after tax and other comprehensive income after tax) | 3,457 | 13,780 | 3,165 |
Paid-up equity share capital (par value5/- each, fully paid) | 1,144 | 1,144 | 1,144 |
Other Equity | 60,600 | 60,600 | 54,198 |
Earnings per share (par value5/- each) | |||
Basic | 15.03 | 59.02 | 13.25 |
Diluted | 15.03 | 59.02 | 13.25 |
Note:
1. | The audited consolidated financial statements for the quarter ended June 30, 2016 have been taken on record by the Board of Directors at its meeting held on July 15, 2016. The statutory auditors have expressed an unqualified audit opinion. The information presented above is extracted from the audited consolidated financial statements. The consolidated financial statements are prepared in accordance with the Indian Accounting Standard (Ind-AS) as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016. | |
2. | These financial statements are the Group's first Ind-AS financial statements. The Group has adopted all the Ind-AS standards and the adoptions were carried out in accordance with Ind-AS 101-First time adoption of Indian Accounting Standards. The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed under Sec 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP), which was the previous GAAP. | |
3. | The Nomination and Remuneration Committee of the Board of Directors of Infosys Limited at its meeting held on July 14, 2016, approved the grant of 1,857,820 RSU's at par value which shall be made on August 1, 2016, to a total of 7,898 eligible and identified high performing employees upto mid level managers of the Company and its subsidiaries under the 2015 Employee Stock Compensation Plan.The RSU's shall vest over a period of four years from the date of grant which shall be exercisable within the period as approved by the committee. Out of these RSU’s, a total of 1,515,135 equity shares will be issued out of the existing treasury shares held by the Infosys Employee Benefits Trust and the balance will be in the form of ADR’s and Phantom stock rights. | |
4. | In accordance with the postal ballot approved by the shareholders on March 31, 2016, the Nomination and Remuneration Committee of the Board of Directors of Infosys Limited at its meeting held on July 14, 2016, approved the grant of RSU's amounting to $ 2 Million on August 1, 2016 to Dr. Vishal Sikka, CEO and Managing Director. The RSU's are time based and will vest over a period of 4 years subject to continuous service. The exercise price for the grant is equal to the par value of one share per RSU. | |
5. | Reconciliation of Consolidated Statement of Profit and loss as previously reported under IGAAP to Ind AS |
( in crore)
Particulars | Note | Three months ended June 30, 2015 | ||
IGAAP | Effects of transition to Ind-AS | Ind AS | ||
Revenue from operations | 14,354 | – | 14,354 | |
Other income, net | 756 | – | 756 | |
Net Income | 15,110 | – | 15,110 | |
Expenses | ||||
Employee benefit expenses | 1.1 | 8,061 | (8) | 8,053 |
Deferred consideration pertaining to acquisition | 1.2 | 46 | 14 | 60 |
Cost of technical sub-contractors | 750 | – | 750 | |
Travel expenses | 556 | – | 556 | |
Cost of software packages and others | 312 | – | 312 | |
Communication expenses | 112 | – | 112 | |
Consultancy and professional charges | 169 | – | 169 | |
Depreciation and amortization expenses | 1.3 | 282 | 31 | 313 |
Other expenses | 1.2 | 581 | 1 | 582 |
Total expenses | 10,869 | 38 | 10,907 | |
Profit before minority interest / share in net profit / (loss) of associate | 4,241 | (38) | 4,203 | |
Share in net profit/(loss) of associate | – | – | – | |
PROFIT BEFORE TAX | 4,241 | (38) | 4,203 | |
Tax expense: | ||||
Current tax | 1.4 | 1,131 | 2 | 1,133 |
Deferred tax | 1.5 | 49 | (7) | 42 |
Profit For the Period | 3,061 | (33) | 3,028 | |
Other comprehensive income | ||||
Items that will not be reclassified to profit or loss | ||||
Remeasurement of the net defined benefit liability/asset | 1.1 | – | (7) | (7) |
Equity instruments through other comprehensive income | – | – | – | |
Items that will be reclassified subsequently to profit or loss | ||||
Exchange differences on translation of foreign operations | 1.6 | 39 | 105 | 144 |
Total other comprehensive income, net of tax | 39 | 98 | 137 | |
Total comprehensive income for the period | 3,100 | 65 | 3,165 |
Explanations for reconciliation of Consolidated Statement of profit and loss as previously reported under IGAAP to Ind AS
1.1 | a) | As per Ind-AS 19 - Employee Benefits, actuarial gain and losses resulting from experience adjustment and effects of changes in actuarial assumptions are recognized in other comprehensive income and not reclassified to profit and loss in a subsequent period. |
b) | Adjustments reflect unamortized negative past service cost arising on modification of the gratuity plan in an earlier period. Ind AS 19 requires such gains and losses to be adjusted to retained earnings. | |
1.2 | Adjustments reflect impact of discounting pertaining to deferred and contingent consideration payable for business combinations | |
1.3 | Adjustment reflects impact of amortisation of intangible assets included within goodwill under the IGAAP, separately recognized under Ind-AS | |
1.4 | Tax component on actuarial gains and losses arising from changes in present value of obligation which was transferred to other comprehensive income under Ind AS | |
1.5 | The reduction in deferred tax expense is on account of reversal of deferred tax liabilities recorded on intangible assets acquired in business combination. | |
1.6 | Under Ind-AS, exchange differences on translation of foreign operations are recorded in other comprehensive income. |
5. Audited financial results of Infosys Limited (Standalone Information)
(in crore)
Particulars | Quarter ending June 30, | Year ending March 31, | Quarter ending June 30, |
2016 | 2016 | 2015 | |
Revenues | 14,420 | 53,983 | 12,738 |
Profit before tax | 4,460 | 17,600 | 3,990 |
Profit for the period | 3,180 | 12,693 | 2,891 |
The above is an extract of the detailed format of Quarterly Financial Results filed with Stock Exchanges under Regulation 33 of the SEBI (Listing and Other Disclosure Requirements) Regulations, 2015. The full format of the Quarterly Financial Results are available on the Stock Exchange websites, www.nseindia.com and www.bseindia.com, and on the Company's website, www.infosys.com.
Certain statements in this advertisement concerning our future growth prospects are forward-looking statements regarding our future business expectations intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, fluctuations in foreign exchange rates, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal or expiration of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2016. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and our reports to shareholders. In addition, please note that the date of this advertisement is July 15, 2016, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. The company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the company unless it is required by law.
Infosys Limited Regd. office: Electronics City, Hosur Road, Bengaluru – 560 100, India | CIN : L85110KA1981PLC013115 Website: www.infosys.com Email: investors@infosys.com T: 91 80 2852 0261, F: 91 80 2852 0362 |
Audited financial results of Infosys Limited for the quarter ended June 30, 2016, prepared in compliance with the Indian Accounting Standard (Ind-AS)
(in crore, except per equity share data)
Particulars | Quarter Ended June 30, | Quarter Ended March 31, | Quarter Ended June 30, | Year Ended March 31, |
2016 | 2016 | 2015 | 2016 | |
Audited | Audited | Audited | Audited | |
Revenue from operations | 14,420 | 14,158 | 12,738 | 53,983 |
Other Income, net | 761 | 773 | 721 | 3,006 |
Total Income | 15,181 | 14,931 | 13,459 | 56,989 |
Expenses | ||||
Employee benefit expenses | 7,605 | 7,297 | 6,807 | 28,207 |
Deferred consideration pertaining to acquisition | – | – | 60 | 149 |
Cost of technical sub-contractors | 1,135 | 1,191 | 965 | 4,417 |
Travel expenses | 576 | 438 | 432 | 1,655 |
Cost of software packages and others | 224 | 223 | 291 | 1,049 |
Communication expenses | 82 | 79 | 80 | 311 |
Consultancy and professional charges | 119 | 155 | 132 | 563 |
Depreciation and amortization expense | 319 | 315 | 252 | 1,115 |
Other expenses | 661 | 528 | 450 | 1,923 |
Total Expenses | 10,721 | 10,226 | 9,469 | 39,389 |
Profit before tax | 4,460 | 4,705 | 3,990 | 17,600 |
Tax Expense: | ||||
Current tax | 1,314 | 1,309 | 1,053 | 4,898 |
Deferred tax | (34) | 5 | 46 | 9 |
Profit for the period | 3,180 | 3,391 | 2,891 | 12,693 |
Other comprehensive income | ||||
Items that will not be reclassified to profit or loss | ||||
Remeasurement of the net defined benefit liability/asset | (17) | (3) | (8) | (2) |
Equity instruments through other comprehensive income | – | – | – | – |
Items that will be reclassified to profit or loss | – | – | – | – |
Total other comprehensive income, net of tax | (17) | (3) | (8) | (2) |
Total comprehensive income, for the period | 3,163 | 3,388 | 2,883 | 12,691 |
Paid-up share capital (par value5/- each fully paid) | 1,148 | 1,148 | 1,148 | 1,148 |
Other Equity | 59,934 | 59,934 | 51,617 | 59,934 |
Earnings per equity share ( par value5 /- each) | ||||
Basic () | 13.85 | 14.76 | 12.59 | 55.26 |
Diluted () | 13.85 | 14.76 | 12.59 | 55.26 |
1. | The audited financial statements for the quarter ended June 30, 2016 have been taken on record by the Board of Directors at its meeting held on July 15, 2016. The statutory auditors have expressed an unqualified audit opinion. The information presented above is extracted from the audited standalone financial statements. The financial statements are prepared in accordance with the Indian Accounting Standard (Ind-AS) as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016. |
2. | These financial statements are the Company's first Ind-AS financial statements. The Company has adopted all the Ind-AS standards and the adoptions were carried out in accordance with Ind-AS 101-First time adoption of Indian Accounting Standards. The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed under Sec 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP), which was the previous GAAP. |
3. | The Nomination and Remuneration Committee of the Board of Directors of Infosys Limited at its meeting held on July 14, 2016, approved the grant of 1,857,820 RSU's at par value which shall be made on August 1, 2016, to a total of 7,898 eligible and identified high performing employees upto mid level managers of the Company and its subsidiaries under the 2015 Employee Stock Compensation Plan. The RSU's shall vest over a period of four years from the date of grant which shall be exercisable within the period as approved by the committee. Out of these RSU’s, a total of 1,515,135 equity shares will be issued out of the existing treasury shares held by the Infosys Employee Benefits Trust and the balance will be in the form of ADR’s and Phantom stock rights. |
4. | In accordance with the postal ballot approved by the shareholders on March 31, 2016, the Nomination and Remuneration Committee of the Board of Directors of Infosys Limited at its meeting held on July 14, 2016, approved the grant of RSU's amounting to $ 2 Million on August 1, 2016 to Dr. Vishal Sikka, CEO and Managing Director. The RSU's are time based and will vest over a period of 4 years subject to continuous service. The exercise price for the grant is equal to the par value of one share per RSU. |
5. | Information on dividends for the quarter ended June 30, 2016 |
(in)
Particulars | Quarter ended June 30, | Quarter ended March 31, | Quarter ended June 30, | Year ended March 31, |
2016 | 2016 | 2015 | 2016 | |
Dividend per share (par value5/- each) | ||||
Interim dividend | – | – | – | 10.00 |
Final dividend | – | 14.25 | – | 14.25 |
6. There are no items of expenditure which exceeds 10% of the total expenditure.
7. Reconciliation of Statement of Profit and loss as previously reported under IGAAP to Ind-AS
(in crore)
Particulars | Note | Three months ended June 30, 2015 | ||
IGAAP | Effects of transition to Ind AS | Ind -AS | ||
Revenue from operations | 12,738 | – | 12,738 | |
Other income, net | 719 | 2 | 721 | |
Total Income | 13,457 | 2 | 13,459 | |
Expenses | ||||
Employee benefit expenses | 1.1 | 6,817 | (10) | 6,807 |
Deferred consideration pertaining to acquisition | 1.2 | 46 | 14 | 60 |
Cost of technical sub-contractors | 965 | – | 965 | |
Travel expenses | 432 | – | 432 | |
Cost of software packages and others | 291 | – | 291 | |
Communication expenses | 80 | – | 80 | |
Consultancy and professional charges | 132 | – | 132 | |
Depreciation and amortization expenses | 252 | – | 252 | |
Other expenses | 1.2 | 449 | 1 | 450 |
Total expenses | 9,464 | 5 | 9,469 | |
Profit before Tax | 3,993 | (3) | 3,990 | |
Tax expense: | ||||
Current tax | 1.3 | 1,050 | 3 | 1,053 |
Deferred tax | 46 | – | 46 | |
Profit for the Period | 2,897 | (6) | 2,891 | |
Other comprehensive income | ||||
Items that will not be reclassified to profit or loss | ||||
Remeasurement of the net defined benefit liability/asset | 1.1 | – | (8) | (8) |
Equity instruments through other comprehensive income | – | – | – | |
Items that will be reclassified subsequently to profit or loss | – | – | – | |
Total other comprehensive income, net of tax | – | (8) | (8) | |
Total comprehensive income for the period | 2,897 | (14) | 2,883 |
This reconciliation statement has been provided in accordance with circular CIR/CFD/FAC/62/2016 issued by SEBI dated July 05, 2016 on account of implementation of Ind-AS by listed companies
Explanations for Reconciliation of profit and loss as previously reported under IGAAP to Ind AS
1.1 | a) | As per Ind-AS 19 - Employee Benefits, actuarial gains and losses are recognized in other comprehensive income and not reclassified to profit and loss in a subsequent period |
b) | Adjustments reflect unamortized negative past service cost arising on modification of the gratuity plan in an earlier period. Ind AS 19 requires such gains and losses to be adjusted to retained earnings. | |
1.2. | Adjustments reflect impact of discounting pertaining to deferred consideration and contingent consideration payable for business combinations | |
1.3 | Tax component on actuarial gains and losses which was transferred to other comprehensive income under Ind AS |
8. Segment Reporting - Standalone audited
(in crore)
Particulars | Quarter ended June 30, | Quarter ended March 31, | Quarter ended June 30, | Year ended March 31, |
2016 | 2016 | 2015 | 2016 | |
Revenue by business segment | ||||
Financial Services (FS) | 3,873 | 3,805 | 3,652 | 14,846 |
Manufacturing (MFG) | 1,472 | 1,395 | 1,249 | 5,434 |
Energy & utilities, Communication and Services (ECS) | 3,341 | 3,256 | 2,842 | 12,124 |
Retail, Consumer Packaged Goods and Logistics (RCL) | 2,583 | 2,502 | 2,179 | 9,411 |
Life Sciences, Healthcare and Insurance (HILIFE) | 1,627 | 1,626 | 1,507 | 6,392 |
Hi-Tech | 1,270 | 1,265 | 1,118 | 4,736 |
All Other Segments | 254 | 309 | 191 | 1,040 |
Total | 14,420 | 14,158 | 12,738 | 53,983 |
Less: Inter-segment revenue | – | – | – | – |
Net revenue from operations | 14,420 | 14,158 | 12,738 | 53,983 |
Segment profit before tax | ||||
Financial Services (FS) | 1,026 | 1,030 | 1,054 | 4,185 |
Manufacturing (MFG) | 410 | 386 | 325 | 1,436 |
Energy & utilities, Communication and Services (ECS) | 1,022 | 1,081 | 854 | 3,829 |
Retail, Consumer Packaged Goods and Logistics (RCL) | 771 | 757 | 639 | 2,817 |
Life Sciences, Healthcare and Insurance (HILIFE) | 451 | 514 | 395 | 1,844 |
Hi-Tech | 341 | 381 | 278 | 1,373 |
All Other Segments | – | 104 | (23) | 239 |
Total | 4,021 | 4,253 | 3,522 | 15,723 |
Less:Other unallocable expenditure | 322 | 321 | 253 | 1,129 |
Add:Unallocable other income | 761 | 773 | 721 | 3,006 |
Profit before tax | 4,460 | 4,705 | 3,990 | 17,600 |
Notes on segment information:
Business segments
Based on the "management approach" as defined in Ind AS 108 - Operating Segments, the Chief Operating Decision Marker evaluates the Company's performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented along these business segments. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments
Segment Assets/Liabilities
Assets and liabilities used in the company's business are not identified to any of the reportable segments, as these are used interchangeably between segments. The Management believes that it is not practicable to provide segment disclosures relating to total assets and liabilities since a meaningful segregation of the available data is onerous.
By order of the Board for Infosys Limited | |
Bangalore, India July 15, 2016 | Dr. Vishal Sikka Chief Executive Officer and Managing Director |
Certain statements in this release concerning our future growth prospects are forward-looking statements regarding our future business expectations intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, fluctuations in foreign exchange rates, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal or expiration of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2016. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company's filings with the Securities and Exchange Commission and our reports to shareholders. In addition, please note that the date of this release is July 15, 2016, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. The company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the company unless it is required by law.