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 nine months ended December 31, 2017 prepared in compliance with the Indian Accounting Standards (Ind-AS)
(in crore, except per equity share data)
Particulars | Quarter ended December 31, | Quarter ended September 30, | Quarter ended December 31, | Nine months ended December 31, | Year ended March 31, | |
2017 | 2017 | 2016 | 2017 | 2016 | 2017 | |
Audited | Audited | Audited | Audited | Audited | Audited | |
Revenue from operations | 17,794 | 17,567 | 17,273 | 52,439 | 51,364 | 68,484 |
Other income, net ( Refer note b) | 962 | 883 | 820 | 2,659 | 2,333 | 3,080 |
Total Income | 18,756 | 18,450 | 18,093 | 55,098 | 53,697 | 71,564 |
Expenses | ||||||
Employee benefit expenses | 9,869 | 9,604 | 9,420 | 28,839 | 28,349 | 37,659 |
Cost of technical sub-contractors | 1,041 | 1,089 | 975 | 3,191 | 2,833 | 3,833 |
Travel expenses | 496 | 480 | 502 | 1,503 | 1,762 | 2,235 |
Cost of software packages and others | 472 | 492 | 461 | 1,404 | 1,119 | 1,597 |
Communication expenses | 120 | 131 | 145 | 376 | 400 | 549 |
Consultancy and professional charges | 238 | 269 | 165 | 753 | 505 | 763 |
Depreciation and amortisation expenses | 498 | 456 | 433 | 1,404 | 1,257 | 1,703 |
Other expenses | 741 | 800 | 838 | 2,293 | 2,450 | 3,244 |
Total expenses | 13,475 | 13,321 | 12,939 | 39,763 | 38,675 | 51,583 |
Profit before non-controlling interest / share in net profit / (loss) of associate | 5,281 | 5,129 | 5,154 | 15,335 | 15,022 | 19,981 |
Share in net profit/(loss) of associate | – | – | – | – | (5) | (12) |
Write-down of investment in associate ( Refer Note c) | – | – | – | (71) | – | (18) |
Profit before tax | 5,281 | 5,129 | 5,154 | 15,264 | 15,017 | 19,951 |
Tax expense:( Refer Note a) | ||||||
Current tax | 144 | 1,471 | 1,468 | 3,115 | 4,404 | 5,653 |
Deferred tax | 8 | (68) | (22) | (190) | (136) | (55) |
Profit for the period(Refer Note a) | 5,129 | 3,726 | 3,708 | 12,339 | 10,749 | 14,353 |
Other comprehensive income | ||||||
Items that will not be reclassified subsequently to profit or loss | ||||||
Remeasurement of the net defined benefit liability/asset | 18 | 6 | (8) | 21 | (65) | (45) |
Equity instruments through other comprehensive income, net | (2) | – | – | (2) | – | (5) |
Items that will be reclassified subsequently to profit or loss | ||||||
Fair value changes on derivatives designated as cash flow hedges, net | 5 | 20 | 26 | (41) | 28 | 39 |
Exchange differences on translation of foreign operations | (86) | 100 | (47) | 121 | (60) | (257) |
Fair value changes on investments, net | (25) | 12 | – | 14 | – | (10) |
Total other comprehensive income/(loss), net of tax | (90) | 138 | (29) | 113 | (97) | (278) |
Total comprehensive income for the period | 5,039 | 3,864 | 3,679 | 12,452 | 10,652 | 14,075 |
Paid up share capital (par value5/- each, fully paid) | 1,088 | 1,144 | 1,144 | 1,088 | 1,144 | 1,144 |
Other equity | 67,838 | 67,838 | 60,600 | 67,838 | 60,600 | 67,838 |
Earnings per equity share (par value5/- each)( Refer note d) | ||||||
Basic ()(Refer note a) | 22.55 | 16.30 | 16.22 | 54.06 | 47.03 | 62.80 |
Diluted () | 22.53 | 16.29 | 16.22 | 54.02 | 47.02 | 62.77 |
Note
a) | During the quarter ended December 31, 2017, on account of the conclusion of an Advance Pricing Agreement (“APA”) with the U.S. Internal Revenue Service (“IRS”), the Company has, in accordance with the APA, reversed income tax expense provision of $225 million (1,432 crore) which pertains to previous periods which are no longer required. Consequently, profit for the period has increased and therefore has led to an increase in Basic earnings per equity share by6.29 ($0.10) for quarter ended December 31, 2017 and5.81 ($0.09) for nine months ended December 31, 2017. Further, in line with the APA, the Company expects to payout approximately US$ 233 million due to the difference between the taxes payable for prior periods as per the APA and the actual taxes paid for such periods. This amount is expected to be paid over the next few quarters. |
b) | Other income includes200 crore and262 crore towards interest on income tax refund for the quarter and nine months ended December 31, 2017 and62 crore for the quarter ended September 30, 2017 |
c) | 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 was18 crore. |
d) | EPS is not annualized for the quarter and nine months ended December 31, 2017, quarter ended September 30, 2017 and quarter and nine months ended December 31, 2016. |
Notes:
1. | The audited interim consolidated financial statements for the quarter and nine months ended December 31, 2017 have been taken on record by the Board of Directors at its meeting held on January 12, 2018.The statutory auditors, Deloitte Haskins & Sells LLP have expressed an unqualified audit opinion. Amounts for the quarter and nine months ended December 31, 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. Board and Management changes
a) | Based on the recommendations of the Nomination and Remuneration Committee, the Board in its meeting held on December 2, 2017 appointed Salil S. Parekh as the Chief Executive Officer and Managing Director of the Company with effect from January 2, 2018 for a period of 5 years, subject to the approval of shareholders and other regulatory requirements. The Board re-designated U. B. Pravin Rao as the Chief Operating Officer and Whole Time Director with effect from January 2, 2018 upon stepping down as the interim Chief Executive Officer and Managing Director in accordance with the terms of his appointment. Further, U. B. Pravin Rao shall hold the office of Whole Time Director up to August 17, 2022. The postal ballot notice dated January 3, 2018 seeking the approval of shareholders including the terms of appointment of the above changes is available on the Company’s website at the following link- https://www.infosys.com/investors/Documents/postal-ballot-jan2018.pdf |
b) | Rajesh K. Murthy, President, has resigned from the company for personal reasons. His last date with Infosys will be January 31, 2018. The Board places on record its deep appreciation for his commitment to Infosys over the last 26 years and wishes him the very best for his future endeavors. |
3. Buyback of equity shares of the Company
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 of5 each from the eligible equity shareholders of the Company for an amount not exceeding13,000 crore. The shareholders approved the said proposal of buyback of Equity Shares through the postal ballot that concluded on October 7, 2017. The Buyback offer comprised a purchase of 11,30,43,478 Equity Shares aggregating 4.92% of the paid-up equity share capital of the Company at a price of1,150 per Equity share. The buyback was offered to all eligible equity shareholders (including those who became equity shareholders as on the Record date by cancelling American Depository Shares and withdrawing underlying Equity shares) of the Company as on the Record Date (i.e November 1, 2017) on a proportionate basis through the "Tender offer" route. The Company concluded the buyback procedures on December 27, 2017 and 11,30,43,478 equity shares were extinguished. The Company has funded the buyback from its securities premium and general reserve. In accordance with section 69 of the Companies Act, 2013, the Company has created ‘Capital Redemption Reserve’ of56 crore equal to the nominal value of the shares bought back as an appropriation from general reserve.
4. Update on Noah Consulting LLC
On July 14, 2017, the Board of Directors of Infosys authorized the Company to execute a Business Transfer Agreement and related documents with Noah Consulting LLC, a wholly owned subsidiary, to transfer the business of Noah Consulting LLC to Infosys Limited, subject to securing the requisite regulatory approvals for a consideration based on an independent valuation. Subsequently on October 17, 2017, the Company entered into a business transfer agreement to transfer the business for a consideration of $41 million (approximately266 crore) and the transfer was with effect from October 25, 2017. The transaction was between a holding company and a wholly owned subsidiary and therefore did not have any impact on the consolidated financial statements. Subsequently in November 2017, Noah Consulting LLC has been liquidated.
5. Information on dividends for the quarter and nine months ended December 31, 2017
The Board declared an interim dividend of13/- (par value of5/- each) per equity share on October 24, 2017 and the same was paid on November 4, 2017. The interim dividend declared in the previous year was11/- per equity share.
(in)
Particulars | Quarter ended December 31, | Quarter ended September 30, | Quarter ended December 31, | Nine months ended December 31, | Year ended March 31, | |
2017 | 2017 | 2016 | 2017 | 2016 | 2017 | |
Dividend per share (par value5/- each) | ||||||
Interim dividend | – | 13.00 | – | 13.00 | 11.00 | 11.00 |
Final dividend | – | – | – | – | – | 14.75 |
6. Audited financial results of Infosys Limited (Standalone Information)
(in crore)
Particulars | Quarter ended December 31, | Quarter ended September 30, | Quarter ended December 31, | Nine months ended December 31, | Year ended March 31, | |
2017 | 2017 | 2016 | 2017 | 2016 | 2017 | |
Revenue from operations | 15,631 | 15,356 | 14,949 | 45,957 | 44,369 | 59,289 |
Profit before tax | 5,922 | 4,880 | 4,883 | 15,519 | 14,155 | 18,938 |
Profit for the period | 6,004 | 3,579 | 3,599 | 12,998 | 10,255 | 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.
7. Segment reporting (Consolidated - Audited)
(in crore)
Particulars | Quarter ended December 31, | Quarter ended September 30, | Quarter ended December 31, | Nine months ended December 31, | Year ended March 31, | |
2017 | 2017 | 2016 | 2017 | 2016 | 2017 | |
Revenue by business segment | ||||||
Financial Services (FS) | 4,643 | 4,718 | 4,663 | 13,955 | 13,900 | 18,555 |
Manufacturing (MFG) | 1,955 | 1,916 | 1,893 | 5,734 | 5,589 | 7,507 |
Energy & utilities, Communication and Services (ECS) | 4,241 | 4,122 | 3,885 | 12,320 | 11,468 | 15,430 |
Retail, Consumer packaged goods and Logistics (RCL) | 2,837 | 2,742 | 2,821 | 8,274 | 8,515 | 11,225 |
Life Sciences, Healthcare and Insurance (HILIFE) | 2,375 | 2,301 | 2,196 | 6,846 | 6,289 | 8,437 |
Hi-Tech | 1,256 | 1,254 | 1,250 | 3,745 | 3,911 | 5,122 |
All other segments | 487 | 514 | 565 | 1,565 | 1,692 | 2,208 |
Total | 17,794 | 17,567 | 17,273 | 52,439 | 51,364 | 68,484 |
Less: Inter-segment revenue | – | – | – | – | – | – |
Net revenue from operations | 17,794 | 17,567 | 17,273 | 52,439 | 51,364 | 68,484 |
Segment profit before tax, depreciation and non-controlling interests: | ||||||
Financial Services (FS) | 1,254 | 1,337 | 1,320 | 3,886 | 3,881 | 5,209 |
Manufacturing (MFG) | 498 | 452 | 455 | 1,375 | 1,376 | 1,848 |
Energy & utilities, Communication and Services (ECS) | 1,145 | 1,113 | 1,123 | 3,331 | 3,311 | 4,431 |
Retail, Consumer packaged goods and Logistics (RCL) | 834 | 798 | 837 | 2,407 | 2,466 | 3,249 |
Life Sciences, Healthcare and Insurance (HILIFE) | 689 | 609 | 632 | 1,896 | 1,712 | 2,308 |
Hi-Tech | 304 | 314 | 324 | 892 | 986 | 1,277 |
All other segments | 94 | 80 | 78 | 297 | 221 | 292 |
Total | 4,818 | 4,703 | 4,769 | 14,084 | 13,953 | 18,614 |
Less: Other unallocable expenditure | 499 | 457 | 435 | 1,408 | 1,264 | 1,713 |
Add: Unallocable other income | 962 | 883 | 820 | 2,659 | 2,333 | 3,080 |
Add: Share in net profit/(loss) of associate | – | – | – | – | (5) | (12) |
Less: Write-down of investment in associate | – | – | – | 71 | – | 18 |
Profit before tax and non-controlling interests | 5,281 | 5,129 | 5,154 | 15,264 | 15,017 | 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 | |
Salil Parekh | |
Bengaluru, India January 12, 2018 | 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 nine months ended December 31, 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 December 31, | Quarter ended September 30, | Quarter ended December 31, | Nine months ended December 31, | Year ended March 31, | |
2017 | 2017 | 2016 | 2017 | 2016 | 2017 | |
Revenues | 2,755 | 2,728 | 2,551 | 8,134 | 7,639 | 10,208 |
Cost of sales | 1,773 | 1,743 | 1,601 | 5,208 | 4,832 | 6,446 |
Gross profit | 982 | 985 | 950 | 2,926 | 2,807 | 3,762 |
Net profit | 796 | 578 | 547 | 1,915 | 1,597 | 2,140 |
Earnings per equity share * | ||||||
Basic | 0.35 | 0.25 | 0.24 | 0.84 | 0.70 | 0.94 |
Diluted | 0.35 | 0.25 | 0.24 | 0.84 | 0.70 | 0.94 |
Total assets | 11,889 | 13,551 | 11,870 | 11,889 | 11,870 | 12,854 |
Cash and cash equivalents including current investments | 3,615 | 5,428 | 4,487 | 3,615 | 4,487 | 5,027 |
* | EPS is not annualized for the quarter and nine months ended December 31, 2017, quarter ended September 30, 2017 and quarter and nine months ended December 31, 2016. |
Certain statements mentioned in this release including those 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 January 12, 2018, 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 nine months ended December 31, 2017 prepared in compliance with the Indian Accounting Standards (Ind-AS)
(in crore, except per equity share data)
Particulars
| Quarter ended December 31, | Quarter ended September 30, | Quarter ended December 31, | Nine months ended December 31, | Year ended March 31, | |
2017 | 2017 | 2016 | 2017 | 2016 | 2017 | |
Audited | Audited | Audited | Audited | Audited | Audited | |
Revenue from operations | 15,631 | 15,356 | 14,949 | 45,957 | 44,369 | 59,289 |
Other income, net ( Refer note b) | 1,811 | 849 | 805 | 3,384 | 2,330 | 3,062 |
Total income | 17,442 | 16,205 | 15,754 | 49,341 | 46,699 | 62,351 |
Expenses | ||||||
Employee benefit expenses | 8,287 | 8,015 | 7,733 | 24,053 | 23,277 | 30,944 |
Cost of technical sub-contractors | 1,349 | 1,377 | 1,228 | 4,060 | 3,547 | 4,809 |
Travel expenses | 366 | 353 | 356 | 1,111 | 1,296 | 1,638 |
Cost of software packages and others | 315 | 320 | 358 | 950 | 894 | 1,235 |
Communication expenses | 85 | 87 | 96 | 255 | 268 | 372 |
Consultancy and professional charges | 190 | 218 | 124 | 592 | 362 | 538 |
Depreciation and amortisation expense | 354 | 347 | 339 | 1,045 | 995 | 1,331 |
Other expenses | 574 | 608 | 637 | 1,756 | 1,905 | 2,546 |
Total expenses | 11,520 | 11,325 | 10,871 | 33,822 | 32,544 | 43,413 |
Profit before tax | 5,922 | 4,880 | 4,883 | 15,519 | 14,155 | 18,938 |
Tax expense: ( Refer note a) | ||||||
Current tax | (134) | 1,346 | 1,287 | 2,607 | 3,927 | 5,068 |
Deferred tax | 52 | (45) | (3) | (86) | (27) | 52 |
Profit for the period ( Refer note a) | 6,004 | 3,579 | 3,599 | 12,998 | 10,255 | 13,818 |
Other comprehensive income | ||||||
Items that will not be reclassified subsequently to profit or loss | ||||||
Remeasurement of the net defined benefit liability / asset | 17 | 6 | (6) | 21 | (58) | (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 | 5 | 20 | 26 | (41) | 28 | 39 |
Fair value changes on investments, net | (23) | 11 | – | 13 | – | (10) |
Total other comprehensive income/(loss), net of tax | (1) | 37 | 20 | (7) | (30) | (18) |
Total comprehensive income for the period | 6,003 | 3,616 | 3,619 | 12,991 | 10,225 | 13,800 |
Paid-up share capital (par value5/- each fully paid) | 1,092 | 1,148 | 1,148 | 1,092 | 1,148 | 1,148 |
Other Equity | 66,869 | 66,869 | 59,934 | 66,869 | 59,934 | 66,869 |
Earnings per equity share ( par value5 /- each) (Refer note c) | ||||||
Basic ()( Refer note a) | 26.27 | 15.58 | 15.67 | 56.68 | 44.65 | 60.16 |
Diluted () | 26.26 | 15.58 | 15.67 | 56.66 | 44.65 | 60.15 |
Note
a) | During the quarter ended December 31, 2017, on account of the conclusion of an Advance Pricing Agreement (“APA”) with the U.S. Internal Revenue Service (“IRS”), the Company has, in accordance with the APA, reversed income tax expense provision of $225 million (1,432 crore) which pertains to previous periods which are no longer required. Consequently, profit for the period has increased and therefore has led to an increase in Basic earnings per equity share by6.26 for quarter ended December 31, 2017 and5.78 for nine months ended December 31, 2017 on a standalone basis. Further, in line with the APA, the Company expects to payout approximately US$ 233 million due to the difference between the taxes payable for prior periods as per the APA and the actual taxes paid for such periods. This amount is expected to be paid over the next few quarters. |
b) | Other income includes199 crore and257 crore towards interest on income tax refund for the quarter and nine months ended December 31, 2017 and58 crore for the quarter ended September 30, 2017 |
c) | EPS is not annualized for the quarter and nine months ended December 31, 2017, quarter ended September 30, 2017 and quarter and nine months ended December 31, 2016. |
Notes
1. | The audited interim condensed financial statements for the quarter and nine months ended December 31, 2017 have been taken on record by the Board of Directors at its meeting held on January 12, 2018.The statutory auditors, Deloitte Haskins & Sells LLP have expressed an unqualified audit opinion. Amounts for the quarter and nine months ended December 31, 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. | Board and Management changes |
a) | Based on the recommendations of the Nomination and Remuneration Committee, the Board in its meeting held on December 2, 2017 appointed Salil S. Parekh as the Chief Executive Officer and Managing Director of the Company with effect from January 2, 2018 for a period of 5 years, subject to the approval of shareholders and other regulatory requirements. The Board re-designated U. B. Pravin Rao as the Chief Operating Officer and Whole Time Director with effect from January 2, 2018 upon stepping down as the interim Chief Executive Officer and Managing Director in accordance with the terms of his appointment. Further, U. B. Pravin Rao shall hold the office of Whole Time Director up to August 17, 2022.
The postal ballot notice dated January 3, 2018 seeking the approval of shareholders including the terms of appointment of the above changes is available on the Company’s website at the following link- https://www.infosys.com/investors/Documents/postal-ballot-jan2018.pdf |
b) | Rajesh K. Murthy, President, has resigned from the company for personal reasons. His last date with Infosys will be January 31, 2018. The Board places on record its deep appreciation for his commitment to Infosys over the last 26 years and wishes him the very best for his future endeavors. |
3. | Buyback of equity shares of the Company |
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 of5 each from the eligible equity shareholders of the Company for an amount not exceeding13,000 crore. The shareholders approved the said proposal of buyback of Equity Shares through the postal ballot that concluded on October 7, 2017. The Buyback offer comprised a purchase of 11,30,43,478 Equity Shares aggregating 4.92% of the paid-up equity share capital of the Company at a price of1,150 per Equity share. The buyback was offered to all eligible equity shareholders (including those who became equity shareholders as on the Record date by cancelling American Depository Shares and withdrawing underlying Equity shares) of the Company as on the Record Date (i.e November 1, 2017) on a proportionate basis through the "Tender offer" route. The Company concluded the buyback procedures on December 27, 2017 and 11,30,43,478 equity shares were extinguished. The Company has funded the buyback from its securities premium and general reserve. In accordance with section 69 of the Companies Act, 2013, the Company has created ‘Capital Redemption Reserve’ of56 crore equal to the nominal value of the shares bought back as an appropriation from general reserve. | |
4. | Update on Noah Consulting LLC |
On July 14, 2017, the Board of Directors of Infosys authorized the Company to execute a Business Transfer Agreement and related documents with Noah Consulting LLC, a wholly owned subsidiary, to transfer the business of Noah Consulting LLC to Infosys Limited, subject to securing the requisite regulatory approvals for a consideration based on an independent valuation. Subsequently on October 17, 2017 , the Company entered into a business transfer agreement to transfer the business for a consideration of $41 million (approximately266 crore) and the transfer was with effect from October 25, 2017. The transaction was between a holding company and a wholly owned subsidiary . Subsequently in November 2017, Noah Consulting LLC has been liquidated. | |
5. | Information on dividends for the quarter and nine months ended December 31, 2017 |
The Board declared an interim dividend of13/- (par value of 5/- each) per equity share on October 24, 2017 and the same was paid on November 4, 2017. The interim dividend declared in the previous year was11/- per equity share. |
(in)
Particulars | Quarter ended December 31, | Quarter ended September 30, | Quarter ended December 31, | Nine months ended December 31, | Year ended March 31, | |
2017 | 2017 | 2016 | 2017 | 2016 | 2017 | |
Dividend per share (par value5/- each) | ||||||
Interim dividend | – | 13.00 | – | 13.00 | 11.00 | 11.00 |
Final dividend | – | – | – | – | – | 14.75 |
6. Segment reporting (Standalone-Audited)
(in crore)
Particulars | Quarter ended December 31, | Quarter ended September 30, | Quarter ended December 31, | Nine months ended December 31, | Year ended March 31, | |
2017 | 2017 | 2016 | 2017 | 2016 | 2017 | |
Revenue by business segment | ||||||
Financial services (FS) | 3,951 | 4,000 | 3,939 | 11,848 | 11,810 | 15,735 |
Manufacturing (MFG) | 1,652 | 1,612 | 1,541 | 4,820 | 4,519 | 6,086 |
Energy & utilities, communication and services (ECS) | 3,913 | 3,782 | 3,519 | 11,350 | 10,370 | 13,999 |
Retail, consumer packaged goods and logistics (RCL) | 2,586 | 2,543 | 2,596 | 7,630 | 7,777 | 10,280 |
Life sciences, healthcare and insurance (HILIFE) | 2,014 | 1,903 | 1,842 | 5,779 | 5,206 | 7,065 |
Hi-Tech | 1,191 | 1,198 | 1,199 | 3,543 | 3,744 | 4,901 |
All Other Segments | 324 | 318 | 313 | 987 | 943 | 1,223 |
Total | 15,631 | 15,356 | 14,949 | 45,957 | 44,369 | 59,289 |
Less: Inter-segment revenue | – | – | – | – | – | – |
Net revenue from operations | 15,631 | 15,356 | 14,949 | 45,957 | 44,369 | 59,289 |
Segment profit before tax and depreciation: | ||||||
Financial Services (FS) | 1,011 | 1,073 | 1,085 | 3,154 | 3,175 | 4,291 |
Manufacturing (MFG) | 464 | 432 | 452 | 1,309 | 1,311 | 1,770 |
Energy & utilities, communication and services (ECS) | 1,153 | 1,106 | 1,093 | 3,361 | 3,229 | 4,355 |
Retail, consumer packaged goods and logistics (RCL) | 805 | 795 | 816 | 2,368 | 2,402 | 3,159 |
Life sciences, healthcare and insurance (HILIFE) | 625 | 570 | 566 | 1,765 | 1,517 | 2,089 |
Hi-Tech | 319 | 331 | 341 | 946 | 1,047 | 1,354 |
All other segments | 90 | 73 | 66 | 281 | 146 | 199 |
Total | 4,467 | 4,380 | 4,419 | 13,184 | 12,827 | 17,217 |
Less:Other unallocable expenditure | 356 | 349 | 341 | 1,049 | 1,002 | 1,341 |
Add:Unallocable other income | 1,811 | 849 | 805 | 3,384 | 2,330 | 3,062 |
Profit before tax | 5,922 | 4,880 | 4,883 | 15,519 | 14,155 | 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 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 | |
Salil Parekh | |
Bengaluru, India January 12, 2018 | Chief Executive Officer and Managing Director |
Certain statements mentioned in this release including those 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 January 12, 2018, 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 nine months ended December 31, 2017, prepared in compliance with the Indian Accounting Standards (Ind-AS)
( in crore except equity share data)
Particulars | Quarter ended December 31, | Nine months ended December 31, | Quarter ended December 31, |
2017 | 2017 | 2016 | |
Revenue from operations | 17,794 | 52,439 | 17,273 |
Profit before tax | 5,281 | 15,264 | 5,154 |
Net profit after tax ( Refer note a, b and c) | 5,129 | 12,339 | 3,708 |
Total comprehensive income for the period (comprising profit for the period after tax and other comprehensive income after tax) | 5,039 | 12,452 | 3,679 |
Paid-up equity share capital (par value5/- each, fully paid) | 1,088 | 1,088 | 1,144 |
Other equity | 67,838 | 67,838 | 60,600 |
Earnings per share (par value5/- each)(Refer note d) | |||
Basic () ( Refer Note a) | 22.55 | 54.06 | 16.22 |
Diluted () | 22.53 | 54.02 | 16.22 |
Note:
a) | During the quarter ended December 31, 2017, on account of the conclusion of an Advance Pricing Agreement (“APA”) with the U.S. Internal Revenue Service (“IRS”), the Company has, in accordance with the APA, reversed income tax expense provision of $225 million (1,432 crore) which pertains to previous periods which are no longer required. Consequently, profit for the period has increased and therefore has led to an increase in Basic earnings per equity share by6.29 ($0.10) for quarter ended December 31, 2017 and5.81 ($0.09) for nine months ended December 31, 2017. Further, in line with the APA, the Company expects to payout approximately US$ 233 million due to the difference between the taxes payable for prior periods as per the APA and the actual taxes paid for such periods. This amount is expected to be paid over the next few quarters. |
b) | Other income includes200 crore and262 crore towards interest on income tax refund for the quarter and nine months ended December 31, 2017 and62 crore for the quarter ended September 30, 2017 |
c) | 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 was18 crore. |
d) | EPS is not annualized for the quarter and nine months ended December 31, 2017 and quarter ended December 31, 2016 |
Notes
1. | The audited interim consolidated financial statements for the quarter and nine months ended December 31, 2017 have been taken on record by the Board of Directors at its meeting held on January 12, 2018.The statutory auditors, Deloitte Haskins & Sells LLP have expressed an unqualified audit opinion. Amounts for the quarter and nine months ended December 31, 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. | Board and Management changes |
a) | Based on the recommendations of the Nomination and Remuneration Committee, the Board in its meeting held on December 2, 2017 appointed Salil S. Parekh as the Chief Executive Officer and Managing Director of the Company with effect from January 2, 2018 for a period of 5 years, subject to the approval of shareholders and other regulatory requirements. The Board re-designated U. B. Pravin Rao as the Chief Operating Officer and Whole Time Director with effect from January 2, 2018 upon stepping down as the interim Chief Executive Officer and Managing Director in accordance with the terms of his appointment. Further, U. B. Pravin Rao shall hold the office of Whole Time Director up to August 17, 2022.
The postal ballot notice dated January 3, 2018 seeking the approval of shareholders including the terms of appointment of the above changes is available on the Company’s website at the following link- https://www.infosys.com/investors/Documents/postal-ballot-jan2018.pdf |
b) | Rajesh K. Murthy, President, has resigned from the company for personal reasons. His last date with Infosys will be January 31, 2018. The Board places on record its deep appreciation for his commitment to Infosys over the last 26 years and wishes him the very best for his future endeavors. |
3. | Buyback of equity shares of the Company |
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 of5 each from the eligible equity shareholders of the Company for an amount not exceeding13,000 crore. The shareholders approved the said proposal of buyback of Equity Shares through the postal ballot that concluded on October 7, 2017. The Buyback offer comprised a purchase of 11,30,43,478 Equity Shares aggregating 4.92% of the paid-up equity share capital of the Company at a price of1,150 per Equity share. The buyback was offered to all eligible equity shareholders (including those who became equity shareholders as on the Record date by cancelling American Depository Shares and withdrawing underlying Equity shares) of the Company as on the Record Date (i.e November 1, 2017) on a proportionate basis through the "Tender offer" route. The Company concluded the buyback procedures on December 27, 2017 and 11,30,43,478 equity shares were extinguished. The Company has funded the buyback from its securities premium and general reserve. In accordance with section 69 of the Companies Act, 2013, the Company has created ‘Capital Redemption Reserve’ of56 crore equal to the nominal value of the shares bought back as an appropriation from general reserve. | |
4. | Update on Noah Consulting LLC |
On July 14, 2017, the Board of Directors of Infosys authorized the Company to execute a Business Transfer Agreement and related documents with Noah Consulting LLC, a wholly owned subsidiary, to transfer the business of Noah Consulting LLC to Infosys Limited, subject to securing the requisite regulatory approvals for a consideration based on an independent valuation. Subsequently on October 17, 2017, the Company entered into a business transfer agreement to transfer the business for a consideration of $41 million (approximately266 crore) and the transfer was with effect from October 25, 2017. The transaction was between a holding company and a wholly owned subsidiary and therefore did not have any impact on the consolidated financial statements. Subsequently in November 2017, Noah Consulting LLC has been liquidated. | |
5. | Information on dividends for the quarter and nine months ended December 31, 2017 |
The Board declared an interim dividend of13/- (par value of5/- each) per equity share on October 24, 2017 and the same was paid on November 4, 2017. The interim dividend declared in the previous year was11/- per equity share. |
(in)
Particulars | Quarter ended December 31, | Nine months ended December 31, | Quarter ended December 31, |
2017 | 2017 | 2016 | |
Dividend per share (par value5/- each) | |||
Interim dividend | – | 13.00 | – |
Final dividend | – | – | – |
6. Audited financial results of Infosys Limited (Standalone information)
(in crore)
Particulars | Quarter ended December 31, | Nine months ended December 31, | Quarter ended December 31, |
2017 | 2017 | 2016 | |
Revenue from operations | 15,631 | 45,957 | 14,949 |
Profit before tax | 5,922 | 15,519 | 4,883 |
Profit for the period | 6,004 | 12,998 | 3,599 |
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 mentioned in this release including those 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 January 12, 2018, 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.