Exhibit 99.7
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, |
Audited consolidated financial results of Infosys Limited and its subsidiaries for the quarter and half-year ended September 30, 2017 prepared in compliance with the Indian Accounting Standards (Ind-AS)
(in crore, except per equity share data)
Particulars | Quarter ended September 30, | Quarter ended June 30, | Quarter ended September 30, | Half-year ended September 30, | Year ended March 31, | |
2017 | 2017 | 2016 | 2017 | 2016 | 2017 | |
Audited | Audited | Audited | Audited | Audited | Audited | |
Revenue from operations | 17,567 | 17,078 | 17,310 | 34,645 | 34,091 | 68,484 |
Other income, net | 883 | 814 | 760 | 1,697 | 1,513 | 3,080 |
Total Income | 18,450 | 17,892 | 18,070 | 36,342 | 35,604 | 71,564 |
Expenses | ||||||
Employee benefit expenses | 9,604 | 9,366 | 9,648 | 18,970 | 18,930 | 37,659 |
Cost of technical sub-contractors | 1,089 | 1,061 | 940 | 2,150 | 1,857 | 3,833 |
Travel expenses | 480 | 527 | 520 | 1,008 | 1,260 | 2,235 |
Cost of software packages and others | 492 | 440 | 381 | 932 | 657 | 1,597 |
Communication expenses | 131 | 125 | 136 | 255 | 256 | 549 |
Consultancy and professional charges | 269 | 246 | 165 | 515 | 340 | 763 |
Depreciation and amortisation expenses | 456 | 450 | 424 | 906 | 824 | 1,703 |
Other expenses | 800 | 752 | 787 | 1,552 | 1,612 | 3,244 |
Total expenses | 13,321 | 12,967 | 13,001 | 26,288 | 25,736 | 51,583 |
Profit before non-controlling interest / share in net profit / (loss) of associate | 5,129 | 4,925 | 5,069 | 10,054 | 9,868 | 19,981 |
Share in net profit/(loss) of associate | – | – | (3) | – | (5) | (12) |
Write-down of investment in associate* | – | (71) | – | (71) | – | (18) |
Profit before tax | 5,129 | 4,854 | 5,066 | 9,983 | 9,863 | 19,951 |
Tax expense: | ||||||
Current tax | 1,471 | 1,499 | 1,469 | 2,971 | 2,936 | 5,653 |
Deferred tax | (68) | (128) | (9) | (197) | (114) | (55) |
Profit for the period | 3,726 | 3,483 | 3,606 | 7,209 | 7,041 | 14,353 |
Other comprehensive income | ||||||
Items that will not be reclassified subsequently to profit or loss | ||||||
Remeasurement of the net defined benefit liability/asset | 6 | (3) | (40) | 3 | (57) | (45) |
Equity instruments through other comprehensive income, net | – | – | – | – | – | (5) |
Items that will be reclassified subsequently to profit or loss | ||||||
Fair value changes on derivatives designated as cash flow hedges, net | 20 | (66) | 2 | (46) | 2 | 39 |
Exchange differences on translation of foreign operations | 100 | 107 | (51) | 207 | (13) | (257) |
Fair value changes on investments, net | 12 | 27 | – | 39 | – | (10) |
Total other comprehensive income, net of tax | 138 | 65 | (89) | 203 | (68) | (278) |
Total comprehensive income for the period | 3,864 | 3,548 | 3,517 | 7,412 | 6,973 | 14,075 |
Paid up share capital (par value![]() | 1,144 | 1,144 | 1,144 | 1,144 | 1,144 | 1,144 |
Other equity | 67,838 | 67,838 | 60,600 | 67,838 | 60,600 | 67,838 |
Earnings per equity share (par value![]() | ||||||
Basic (![]() | 16.30 | 15.24 | 15.77 | 31.54 | 30.81 | 62.80 |
Diluted (![]() | 16.29 | 15.23 | 15.77 | 31.51 | 30.80 | 62.77 |
* | During the quarter ended June 30, 2017, the Company has written down the entire carrying value of the investment in its associate DWA Nova LLC amounting to![]() ![]() |
** | EPS is not annualized for the quarter and half year ended September 30, 2017, quarter ended June 30, 2017 and quarter and half year ended September 30, 2016. |
Notes:
1. | The audited interim consolidated financial statements for the quarter and half-year ended September 30, 2017 have been taken on record by the Board of Directors at its meeting held on October 24, 2017.The statutory auditors, Deloitte Haskins & Sells LLP have expressed an unqualified audit opinion. Amounts for the quarter and half year ended September 30, 2016 and year ended March 31, 2017 were audited by previous auditors - B S R & Co LLP. The information presented above is extracted from the audited interim consolidated financial statements. The interim consolidated financial statements are prepared in accordance with the Indian Accounting Standards (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. | Management and Board changes during the quarter ended September 30, 2017 | |
1. | On August 18, 2017 : | |
Dr. Vishal Sikka resigned as the Chief Executive Officer and Managing Director of the Company and subsequently resigned as the Executive Vice-Chairman of the Board with effect from August 24, 2017. | ||
The Board appointed U.B. Pravin Rao as the Interim-Chief Executive Officer and Managing Director with immediate effect. Shareholders have approved the appointment of Managing Director vide Postal Ballot concluded on October 7, 2017. | ||
2. | On August 24, 2017: | |
The Board appointed Nandan M. Nilekani as the Non-Executive, Non-Independent Chairman of the Board with immediate effect. Shareholders have approved the appointment vide Postal Ballot concluded on October 7, 2017. | ||
R. Seshasayee resigned as the Chairman of the Board with immediate effect. | ||
Ravi Venkatesan resigned from his position as the Co-Chairman of the Board and continues to be the independent member of the Board. | ||
Prof. Jeffrey Lehman resigned as the member of the Board with immediate effect. | ||
Prof. John Etchemendy resigned as the member of the Board with immediate effect. | ||
3. | Other matters | |
Appointed D. Sundaram as the Chairperson of the Audit Committee with effect from October 24, 2017. | ||
4. | Acquisiton of Brilliant Basics | |
On September 8, 2017, Infosys acquired 100% of the voting interests in Brilliant Basics Holdings Limited., UK (Brilliant Basics) a product design and customer experience innovator with experience in executing global programs. The business acquisition was conducted by entering into a share purchase agreement for cash consideration of $4 million (![]() ![]() ![]() | ||
5. | Update on Capital Allocation Policy | |
The Board, at its meeting on August 19, 2017, approved a proposal for the Company to buyback its fully paid-up equity shares of face value of![]() ![]() ![]() | ||
6. | Information on dividends for the quarter and half-year ended September 30, 2017 | |
The Board declared an interim dividend of![]() ![]() | ||
(in)
Particulars | Quarter ended September 30, | Quarter ended June 30, | Quarter ended September 30, | Half-year ended September 30, | Year ended March 31, | |
2017 | 2017 | 2016 | 2017 | 2016 | 2017 | |
Dividend per share (par value![]() | ||||||
Interim dividend | 13.00 | – | 11.00 | 13.00 | 11.00 | 11.00 |
Final dividend | – | – | – | – | – | 14.75 |
7. Consolidated statement of assets and liabilities
(in crore)
Particulars | As at | |
September 30, 2017 | March 31, 2017 | |
ASSETS | ||
Non-current assets | ||
Property, plant and equipment | 9,507 | 9,751 |
Capital work-in-progress | 1,849 | 1,365 |
Goodwill | 3,788 | 3,652 |
Other Intangible assets | 700 | 776 |
Investment in associate | – | 71 |
Financial assets: | ||
Investments | 6,169 | 6,382 |
Loans | 40 | 29 |
Other financial assets | 307 | 309 |
Deferred tax assets (net) | 724 | 540 |
Income tax assets (net) | 6,239 | 5,716 |
Other non-current assets | 920 | 1,059 |
Total non-current assets | 30,243 | 29,650 |
Current assets | ||
Financial assets | ||
Investments | 12,122 | 9,970 |
Trade receivables | 13,423 | 12,322 |
Cash and cash equivalents | 23,339 | 22,625 |
Loans | 245 | 272 |
Other financial assets | 6,447 | 5,980 |
Other current assets | 2,659 | 2,536 |
Total current assets | 58,235 | 53,705 |
Total assets | 88,478 | 83,355 |
EQUITY AND LIABILITIES | ||
Equity | ||
Equity share capital | 1,144 | 1,144 |
Other equity | 71,226 | 67,838 |
Total equity attributable to equity holders of the Company | 72,370 | 68,982 |
Non-controlling interests | – | – |
Total equity | 72,370 | 68,982 |
Liabilities | ||
Non-current liabilities | ||
Financial liabilities | ||
Other financial liabilities | 52 | 70 |
Deferred tax liabilities (net) | 188 | 207 |
Other non-current liabilities | 82 | 83 |
Total non-current liabilities | 322 | 360 |
Current liabilities | ||
Financial liabilities | ||
Trade payables | 538 | 367 |
Other financial liabilities | 7,047 | 6,349 |
Other current liabilities | 3,214 | 3,007 |
Provisions | 417 | 405 |
Income tax liabilities (net) | 4,570 | 3,885 |
Total current liabilities | 15,786 | 14,013 |
Total equity and liabilities | 88,478 | 83,355 |
The disclosure is an extract of the audited Consolidated Balance Sheet as at September 30, 2017 and March 31, 2017 prepared in compliance with the Indian Accounting Standards (Ind-AS).
8. Audited financial results of Infosys Limited (Standalone Information)
(in crore)
Particulars | Quarter ended September 30, | Quarter ended June 30, | Quarter ended September 30, | Half-year ended September 30, | Year ended March 31, | |
2017 | 2017 | 2016 | 2017 | 2016 | 2017 | |
Revenue from operations | 15,356 | 14,971 | 15,000 | 30,326 | 29,420 | 59,289 |
Profit before tax | 4,880 | 4,716 | 4,812 | 9,597 | 9,271 | 18,938 |
Profit for the period | 3,579 | 3,415 | 3,476 | 6,994 | 6,656 | 13,818 |
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 interim condensed financial statements as stated.
9. Segment reporting (Consolidated - Audited)
(in crore)
Particulars | Quarter ended September 30, | Quarter ended June 30, | Quarter ended September 30, | Half-year ended September 30, | Year ended March 31, | |
2017 | 2017 | 2016 | 2017 | 2016 | 2017 | |
Revenue by business segment | ||||||
Financial Services (FS) | 4,718 | 4,594 | 4,686 | 9,312 | 9,237 | 18,555 |
Manufacturing (MFG) | 1,916 | 1,863 | 1,853 | 3,779 | 3,696 | 7,507 |
Energy & utilities, Communication and Services (ECS) | 4,122 | 3,957 | 3,864 | 8,079 | 7,583 | 15,430 |
Retail, Consumer packaged goods and Logistics (RCL) | 2,742 | 2,695 | 2,833 | 5,437 | 5,694 | 11,225 |
Life Sciences, Healthcare and Insurance (HILIFE) | 2,301 | 2,170 | 2,089 | 4,471 | 4,093 | 8,437 |
Hi-Tech | 1,254 | 1,235 | 1,339 | 2,489 | 2,661 | 5,122 |
All other segments | 514 | 564 | 646 | 1,078 | 1,127 | 2,208 |
Total | 17,567 | 17,078 | 17,310 | 34,645 | 34,091 | 68,484 |
Less: Inter-segment revenue | – | – | – | – | – | – |
Net revenue from operations | 17,567 | 17,078 | 17,310 | 34,645 | 34,091 | 68,484 |
Segment profit before tax, depreciation and non-controlling interests: | ||||||
Financial Services (FS) | 1,337 | 1,295 | 1,295 | 2,632 | 2,561 | 5,209 |
Manufacturing (MFG) | 452 | 424 | 469 | 876 | 920 | 1,848 |
Energy & utilities, Communication and Services (ECS) | 1,113 | 1,073 | 1,122 | 2,186 | 2,189 | 4,431 |
Retail, Consumer packaged goods and Logistics (RCL) | 798 | 775 | 826 | 1,573 | 1,628 | 3,249 |
Life Sciences, Healthcare and Insurance (HILIFE) | 609 | 598 | 558 | 1,207 | 1,080 | 2,308 |
Hi-Tech | 314 | 273 | 342 | 588 | 662 | 1,277 |
All other segments | 80 | 124 | 123 | 204 | 144 | 292 |
Total | 4,703 | 4,562 | 4,735 | 9,266 | 9,184 | 18,614 |
Less: Other unallocable expenditure | 457 | 451 | 426 | 909 | 829 | 1,713 |
Add: Unallocable other income | 883 | 814 | 760 | 1,697 | 1,513 | 3,080 |
Add: Share in net profit/(loss) of associate | – | – | (3) | – | (5) | (12) |
Less: Write-down of investment in associate | – | 71 | – | 71 | – | 18 |
Profit before tax and non-controlling interests | 5,129 | 4,854 | 5,066 | 9,983 | 9,863 | 19,951 |
Notes on segment information
Business segments
Based on the "management approach" as defined in Ind-AS 108 - Operating Segments, the Chief Operating Decision Maker 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 | |
Bengaluru, India October 24, 2017 |
U. B. Pravin Rao Interim-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 and half-year ended September 30, 2017, 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 September 30, | Quarter ended June 30, | Quarter ended September 30, | Half-year ended September 30, | Year ended March 31, | |
2017 | 2017 | 2016 | 2017 | 2016 | 2017 | |
Revenues | 2,728 | 2,651 | 2,587 | 5,379 | 5,088 | 10,208 |
Cost of sales | 1,743 | 1,692 | 1,638 | 3,435 | 3,231 | 6,446 |
Gross profit | 985 | 959 | 949 | 1,944 | 1,857 | 3,762 |
Net profit | 578 | 541 | 539 | 1,119 | 1,050 | 2,140 |
Earnings per equity share * | ||||||
Basic | 0.25 | 0.24 | 0.24 | 0.49 | 0.46 | 0.94 |
Diluted | 0.25 | 0.24 | 0.24 | 0.49 | 0.46 | 0.94 |
Total assets | 13,551 | 13,178 | 11,875 | 13,551 | 11,875 | 12,854 |
Cash and cash equivalents including current investments | 5,428 | 5,184 | 5,086 | 5,428 | 5,086 | 5,027 |
* EPS is not annualized for the quarter and half year ended September 30, 2017, quarter ended June 30, 2017 and quarter and half year ended September 30, 2016.
Certain statements in these releases 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, 2017. 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 these results is October 24, 2017, 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, | CIN : L85110KA1981PLC013115 Website: www.infosys.com email: investors@infosys.com T: 91 80 2852 0261, |
Extract of audited consolidated financial results of Infosys Limited and its subsidiaries for the quarter and half-year ended September 30, 2017, prepared in compliance with the Indian Accounting Standards (Ind-AS)
( in crore except equity share data)
Particulars | Quarter ended September 30, | Half-year ended September 30, | Quarter ended September 30, |
2017 | 2017 | 2016 | |
Revenue from operations | 17,567 | 34,645 | 17,310 |
Profit before tax | 5,129 | 9,983 | 5,066 |
Net profit after tax | 3,726 | 7,209 | 3,606 |
Total comprehensive income for the period (comprising profit for the period after tax and other comprehensive income after tax) | 3,864 | 7,412 | 3,517 |
Paid-up equity share capital (par value![]() | 1,144 | 1,144 | 1,144 |
Other equity | 67,838 | 67,838 | 60,600 |
Earnings per share (par value![]() | |||
Basic | 16.30 | 31.54 | 15.77 |
Diluted | 16.29 | 31.51 | 15.77 |
Note: During the quarter ended June 30, 2017, the Company has written down the entire carrying value of the investment in its associate DWA Nova LLC amounting to71 crore. The write-down in the carrying value of investment in associate DWA Nova LLC during the quarter and year ended March 31, 2017 was
18 crore.
* EPS is not annualized
Notes:
1. | The audited interim consolidated financial statements for the quarter and half-year ended September 30, 2017 have been taken on record by the Board of Directors at its meeting held on October 24, 2017.The statutory auditors, Deloitte Haskins & Sells LLP have expressed an unqualified audit opinion. Amounts for the quarter ended September 30, 2016 and year ended March 31, 2017 were audited by previous auditors - B S R & Co LLP. The information presented above is extracted from the audited interim consolidated financial statements. The interim consolidated financial statements are prepared in accordance with the Indian Accounting Standards (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. | Management and Board changes during the quarter ended September 30, 2017 | |
1. | On August 18, 2017 : | |
Dr. Vishal Sikka resigned as the Chief Executive Officer and Managing Director of the Company and subsequently resigned as the Executive Vice-Chairman of the Board with effect from August 24, 2017. | ||
The Board appointed U.B. Pravin Rao as the Interim-Chief Executive Officer and Managing Director with immediate effect. Shareholders have approved the appointment of Managing Director vide Postal Ballot concluded on October 7, 2017. | ||
2. | On August 24, 2017: | |
The Board appointed Nandan M. Nilekani as the Non-Executive, Non-Independent Chairman of the Board with immediate effect. Shareholders have approved the appointment vide Postal Ballot concluded on October 7, 2017. | ||
R. Seshasayee resigned as the Chairman of the Board with immediate effect. | ||
Ravi Venkatesan resigned from his position as the Co-Chairman of the Board and continues to be the independent member of the Board. | ||
Prof. Jeffrey Lehman resigned as the member of the Board with immediate effect. | ||
Prof. John Etchemendy resigned as the member of the Board with immediate effect. | ||
3. | Other matters | |
Appointed D. Sundaram as the Chairperson of the Audit Committee with effect from October 24, 2017. | ||
4. | Acquisiton of Brilliant Basics | |
On September 8, 2017, Infosys acquired 100% of the voting interests in Brilliant Basics Holdings Limited., UK (Brilliant Basics) a product design and customer experience innovator with experience in executing global programs. The business acquisition was conducted by entering into a share purchase agreement for cash consideration of $4 million (![]() ![]() ![]() | ||
5. | Update on Capital Allocation Policy | |
The Board, at its meeting on August 19, 2017, approved a proposal for the Company to buyback its fully paid-up equity shares of face value of![]() ![]() ![]() | ||
6. | Information on dividends for the quarter and half-year ended September 30, 2017 | |
The Board declared an interim dividend of |
(in)
Particulars | Quarter ended September 30, | Half-year ended September 30, | Quarter ended September 30, |
2017 | 2017 | 2016 | |
Dividend per share (par value![]() | |||
Interim dividend | 13.00 | 13.00 | 11.00 |
Final dividend | – | – | – |
7. Audited financial results of Infosys Limited (Standalone information)
(in crore)
Particulars | Quarter ended September 30, | Half-year ended September 30, | Quarter ended September 30, |
2017 | 2017 | 2016 | |
Revenue from operations | 15,356 | 30,326 | 15,000 |
Profit before tax | 4,880 | 9,597 | 4,812 |
Profit for the period | 3,579 | 6,994 | 3,476 |
The above is an extract of the detailed format of Quarterly audited 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 these releases 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, 2017. 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 these results is October 24, 2017, 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, | CIN : L85110KA1981PLC013115 Website: www.infosys.com email: investors@infosys.com T: 91 80 2852 0261, |
Audited financial results of Infosys Limited for the quarter and half-year ended September 30, 2017 prepared in compliance with the Indian Accounting Standards (Ind-AS)
(incrore, except per equity share data)
Particulars | Quarter Ended September 30, | Quarter Ended June 30, | Quarter Ended September 30, | Half-year Ended September 30, | Year Ended March 31, | |
2017 | 2017 | 2016 | 2017 | 2016 | 2017 | |
Audited | Audited | Audited | Audited | Audited | Audited | |
Revenue from operations | 15,356 | 14,971 | 15,000 | 30,326 | 29,420 | 59,289 |
Other income, net | 849 | 723 | 763 | 1,573 | 1,525 | 3,062 |
Total income | 16,205 | 15,694 | 15,763 | 31,899 | 30,945 | 62,351 |
Expenses | ||||||
Employee benefit expenses | 8,015 | 7,752 | 7,939 | 15,766 | 15,544 | 30,944 |
Cost of technical sub-contractors | 1,377 | 1,334 | 1,183 | 2,712 | 2,319 | 4,809 |
Travel expenses | 353 | 391 | 364 | 744 | 940 | 1,638 |
Cost of software packages and others | 320 | 314 | 312 | 635 | 536 | 1,235 |
Communication expenses | 87 | 83 | 90 | 170 | 172 | 372 |
Consultancy and professional charges | 218 | 185 | 119 | 402 | 238 | 538 |
Depreciation and amortisation expense | 347 | 343 | 338 | 690 | 657 | 1,331 |
Other expenses | 608 | 576 | 606 | 1,183 | 1,268 | 2,546 |
Total expenses | 11,325 | 10,978 | 10,951 | 22,302 | 21,674 | 43,413 |
Profit before tax | 4,880 | 4,716 | 4,812 | 9,597 | 9,271 | 18,938 |
Tax expense: | ||||||
Current tax | 1,346 | 1,394 | 1,327 | 2,741 | 2,640 | 5,068 |
Deferred tax | (45) | (93) | 9 | (138) | (25) | 52 |
Profit for the period | 3,579 | 3,415 | 3,476 | 6,994 | 6,656 | 13,818 |
Other comprehensive income | ||||||
Items that will not be reclassified subsequently to profit or loss | ||||||
Remeasurement of the net defined benefit liability / asset | 6 | (2) | (35) | 4 | (52) | (42) |
Equity instruments through other comprehensive income, net | – | – | – | – | – | (5) |
Items that will be reclassified subsequently to profit or loss | ||||||
Fair value changes on derivatives designated as cash flow hedges, net | 20 | (66) | 2 | (46) | 2 | 39 |
Fair value changes on investments, net | 11 | 25 | – | 36 | – | (10) |
Total other comprehensive income, net of tax | 37 | (43) | (33) | (6) | (50) | (18) |
Total comprehensive income for the period | 3,616 | 3,372 | 3,443 | 6,988 | 6,606 | 13,800 |
Paid-up share capital (par value![]() | 1,148 | 1,148 | 1,148 | 1,148 | 1,148 | 1,148 |
Other Equity | 66,869 | 66,869 | 59,934 | 66,869 | 59,934 | 66,869 |
Earnings per equity share ( par value![]() | ||||||
Basic (![]() | 15.58 | 14.87 | 15.13 | 30.45 | 28.98 | 60.16 |
Diluted (![]() | 15.58 | 14.86 | 15.13 | 30.44 | 28.98 | 60.15 |
* EPS is not annualized for the quarter and half year ended September 30, 2017, quarter ended June 30, 2017 and quarter and half year ended September 30, 2016.
Notes:
1. | The audited interim condensed financial statements for the quarter and half-year ended September 30, 2017 have been taken on record by the Board of Directors at its meeting held on October 24, 2017.The statutory auditors, Deloitte Haskins & Sells LLP have expressed an unqualified audit opinion.Amounts for the quarter and half year ended September 30, 2016 and year ended March 31, 2017 were audited by previous auditors - B S R & Co LLP. The information presented above is extracted from the audited interim condensed financial statements. The interim condensed financial statements are prepared in accordance with the Indian Accounting Standards (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. | Management and Board changes during the quarter ended September 30, 2017 | |
1. | On August 18, 2017 : | |
Dr. Vishal Sikka resigned as the Chief Executive Officer and Managing Director of the Company and subsequently resigned as the Executive Vice-Chairman of the Board with effect from August 24, 2017. | ||
The Board appointed U.B. Pravin Rao as the Interim-Chief Executive Officer and Managing Director with immediate effect. Shareholders have approved the appointment of Managing Director vide Postal Ballot concluded on October 7, 2017. | ||
2. | On August 24, 2017: | |
The Board appointed Nandan M. Nilekani as the Non-Executive, Non-Independent Chairman of the Board with immediate effect. Shareholders have approved the appointment vide Postal Ballot concluded on October 7, 2017. | ||
R. Seshasayee resigned as the Chairman of the Board with immediate effect. | ||
Ravi Venkatesan resigned from his position as the Co-Chairman of the Board and continues to be the independent member of the Board. | ||
Prof. Jeffrey Lehman resigned as the member of the Board with immediate effect. | ||
Prof. John Etchemendy resigned as the member of the Board with immediate effect. | ||
3. | Other matters | |
Appointed D. Sundaram as the Chairperson of the Audit Committee with effect from October 24, 2017. | ||
4. | Acquisiton of Brilliant Basics | |
On September 8, 2017, Infosys acquired 100% of the voting interests in Brilliant Basics Holdings Limited., UK (Brilliant Basics) a product design and customer experience innovator with experience in executing global programs. The business acquisition was conducted by entering into a share purchase agreement for cash consideration of $4 million (![]() ![]() ![]() | ||
5. | Update on Capital Allocation Policy | |
The Board, at its meeting on August 19, 2017, approved a proposal for the Company to buyback its fully paid-up equity shares of face value of![]() ![]() ![]() | ||
6. | Information on dividends for the quarter and half-year ended September 30, 2017 | |
The Board declared an interim dividend of![]() ![]() |
(in)
Particulars | Quarter Ended September 30, | Quarter Ended June 30, | Quarter Ended September 30, | Half-year Ended September 30, | Year Ended March 31, | |
2017 | 2017 | 2016 | 2017 | 2016 | 2017 | |
Dividend per share (par value![]() | ||||||
Interim dividend | 13.00 | – | 11.00 | 13.00 | 11.00 | 11.00 |
Final dividend | – | – | – | – | – | 14.75 |
7. Statement of assets and liabilities (Standalone-Audited)
(in crore)
Particulars | As at | |
September 30, 2017 | March 31, 2017 | |
ASSETS | ||
Non-current assets | ||
Property, plant and equipment | 8,361 | 8,605 |
Capital work-in-progress | 1,680 | 1,247 |
Intangible assets | – | – |
Financial assets | ||
Investments | 15,047 | 15,334 |
Loans | 23 | 5 |
Other financial assets | 216 | 216 |
Deferred tax assets (net) | 494 | 346 |
Income tax assets (net) | 5,884 | 5,454 |
Other non-current assets | 844 | 996 |
Total non - current assets | 32,549 | 32,203 |
Current assets | ||
Financial assets | ||
Investments | 11,208 | 9,643 |
Trade receivables | 12,304 | 10,960 |
Cash and cash equivalents | 19,877 | 19,153 |
Loans | 392 | 310 |
Other financial assets | 5,708 | 5,403 |
Other current assets | 2,413 | 2,213 |
Total current assets | 51,902 | 47,682 |
Total assets | 84,451 | 79,885 |
EQUITY AND LIABILITIES | ||
Equity | ||
Equity share capital | 1,148 | 1,148 |
Other equity | 69,816 | 66,869 |
Total equity | 70,964 | 68,017 |
LIABILITIES | ||
Non-current liabilities | ||
Financial liabilities | ||
Other financial liabilities | 12 | 40 |
Other non-current liabilties | 39 | 42 |
Deferred tax liabilities (net) | 3 | – |
Total non - current liabilities | 54 | 82 |
Current liabilities | ||
Financial liabilities | ||
Trade payables | 687 | 269 |
Other financial liabilities | 5,432 | 5,056 |
Other current liabilities | 2,526 | 2,349 |
Provisions | 362 | 350 |
Income tax liabilities (net) | 4,426 | 3,762 |
Total current liabilities | 13,433 | 11,786 |
Total equity and liabilities | 84,451 | 79,885 |
The disclosure is an extract of the audited interim condensed Balance Sheet as at September 30, 2017 and March 31, 2017 prepared in compliance with the Indian Accounting Standards (Ind-AS).
8. Segment reporting (Standalone-Audited)
(in crore)
Particulars | Quarter ended September 30, | Quarter ended June 30, | Quarter ended September 30, | Half-year ended September 30, | Year ended March 31, | |
2017 | 2017 | 2016 | 2017 | 2016 | 2017 | |
Revenue by business segment | ||||||
Financial services (FS) | 4,000 | 3,897 | 3,998 | 7,897 | 7,871 | 15,735 |
Manufacturing (MFG) | 1,612 | 1,556 | 1,506 | 3,168 | 2,978 | 6,086 |
Energy & utilities, communication and services (ECS) | 3,782 | 3,654 | 3,510 | 7,437 | 6,851 | 13,999 |
Retail, consumer packaged goods and logistics (RCL) | 2,543 | 2,501 | 2,598 | 5,044 | 5,181 | 10,280 |
Life sciences, healthcare and insurance (HILIFE) | 1,903 | 1,862 | 1,736 | 3,765 | 3,364 | 7,065 |
Hi-Tech | 1,198 | 1,155 | 1,275 | 2,352 | 2,545 | 4,901 |
All Other Segments | 318 | 346 | 377 | 663 | 630 | 1,223 |
Total | 15,356 | 14,971 | 15,000 | 30,326 | 29,420 | 59,289 |
Less: Inter-segment revenue | – | – | – | – | – | – |
Net revenue from operations | 15,356 | 14,971 | 15,000 | 30,326 | 29,420 | 59,289 |
Segment profit before tax and depreciation: | ||||||
Financial Services (FS) | 1,073 | 1,070 | 1,064 | 2,143 | 2,090 | 4,291 |
Manufacturing (MFG) | 432 | 414 | 449 | 845 | 859 | 1,770 |
Energy & utilities, communication and services (ECS) | 1,106 | 1,101 | 1,114 | 2,208 | 2,136 | 4,355 |
Retail, consumer packaged goods and logistics (RCL) | 795 | 768 | 816 | 1,563 | 1,586 | 3,159 |
Life sciences, healthcare and insurance (HILIFE) | 570 | 569 | 500 | 1,140 | 951 | 2,089 |
Hi-Tech | 331 | 296 | 365 | 627 | 706 | 1,354 |
All other segments | 73 | 119 | 81 | 191 | 80 | 199 |
Total | 4,380 | 4,337 | 4,389 | 8,717 | 8,408 | 17,217 |
Less: Other unallocable expenditure | 349 | 344 | 340 | 693 | 662 | 1,341 |
Add: Unallocable other income | 849 | 723 | 763 | 1,573 | 1,525 | 3,062 |
Profit before tax | 4,880 | 4,716 | 4,812 | 9,597 | 9,271 | 18,938 |
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 | |
Bengaluru, India October 24, 2017 |
U. B. Pravin Rao Interim-Chief Executive Officer and Managing Director |
Certain statements in these releases 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, 2017. 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 these results is October 24, 2017, 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.