Exhibit 99.3
Form of Release to Stock Exchanges
 | 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 |
Statement of Consolidated Audited Results of Infosys Limited and its subsidiaries for the quarter and half-year ended September 30, 2021 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, |
| | 2021 | 2021 | 2020 | 2021 | 2020 | 2021 |
| | Audited | Audited | Audited | Audited | Audited | Audited |
| Revenue from operations | 29,602 | 27,896 | 24,570 | 57,498 | 48,234 | 1,00,472 |
| Other income, net | 524 | 622 | 570 | 1,146 | 1,046 | 2,201 |
| Total Income | 30,126 | 28,518 | 25,140 | 58,644 | 49,280 | 1,02,673 |
| Expenses | | | | | | |
| Employee benefit expenses | 15,743 | 15,230 | 13,400 | 30,973 | 27,004 | 55,541 |
| Cost of technical sub-contractors | 3,054 | 2,454 | 1,634 | 5,508 | 3,260 | 7,084 |
| Travel expenses | 163 | 133 | 151 | 296 | 267 | 554 |
| Cost of software packages and others | 1,393 | 1,289 | 1,108 | 2,682 | 2,001 | 4,223 |
| Communication expenses | 146 | 147 | 162 | 294 | 324 | 634 |
| Consultancy and professional charges | 449 | 396 | 286 | 844 | 548 | 1,261 |
| Depreciation and amortisation expenses | 859 | 829 | 855 | 1,687 | 1,611 | 3,267 |
| Finance cost | 48 | 49 | 48 | 98 | 96 | 195 |
| Other expenses | 823 | 815 | 746 | 1,639 | 1,626 | 3,286 |
| Total expenses | 22,678 | 21,342 | 18,390 | 44,021 | 36,737 | 76,045 |
| Profit before tax | 7,448 | 7,176 | 6,750 | 14,623 | 12,543 | 26,628 |
| Tax expense: | | | | | | |
| Current tax | 1,987 | 1,937 | 1,763 | 3,923 | 3,084 | 6,672 |
| Deferred tax | 33 | 38 | 129 | 71 | 328 | 533 |
| Profit for the period | 5,428 | 5,201 | 4,858 | 10,629 | 9,131 | 19,423 |
| Other comprehensive income | | | | | | |
| Items that will not be reclassified subsequently to profit or loss | | | | | | |
| Remeasurement of the net defined benefit liability/asset, net | 14 | (33) | 7 | (19) | 154 | 134 |
| Equity instruments through other comprehensive income, net | 40 | 1 | (5) | 41 | (6) | 119 |
| Items that will be reclassified subsequently to profit or loss | | | | | | |
| Fair value changes on derivatives designated as cash flow hedges, net | 6 | 5 | 27 | 11 | 21 | 25 |
| Exchange differences on translation of foreign operations | (166) | 290 | 21 | 124 | 185 | 130 |
| Fair value changes on investments, net | 55 | 38 | (45) | 93 | 9 | (102) |
| Total other comprehensive income/(loss), net of tax | (51) | 301 | 5 | 250 | 363 | 306 |
| Total comprehensive income for the period | 5,377 | 5,502 | 4,863 | 10,879 | 9,494 | 19,729 |
| Profit attributable to: | | | | | | |
| Owners of the company | 5,421 | 5,195 | 4,845 | 10,616 | 9,078 | 19,351 |
| Non-controlling interest | 7 | 6 | 13 | 13 | 53 | 72 |
| | 5,428 | 5,201 | 4,858 | 10,629 | 9,131 | 19,423 |
| Total comprehensive income attributable to: | | | | | | |
| Owners of the company | 5,375 | 5,491 | 4,847 | 10,866 | 9,434 | 19,651 |
| Non-controlling interest | 2 | 11 | 16 | 13 | 60 | 78 |
| | 5,377 | 5,502 | 4,863 | 10,879 | 9,494 | 19,729 |
| Paid up share capital (par value5/- each, fully paid) | 2,097 | 2,122 | 2,123 | 2,097 | 2,123 | 2,124 |
| Other equity *# | 74,227 | 74,227 | 63,328 | 74,227 | 63,328 | 74,227 |
| Earnings per equity share (par value5/- each)** | | | | | | |
| Basic () | 12.88 | 12.24 | 11.42 | 25.11 | 21.40 | 45.61 |
| Diluted () | 12.85 | 12.21 | 11.40 | 25.06 | 21.37 | 45.52 |
| * | | Balances for the quarter and half year ended September 30, 2021 and quarter ended June 30, 2021 represents balances as per the audited Balance Sheet for the year ended March 31, 2021 and balances for the quarter and half year ended September 30, 2020 represents balances as per the audited Balance Sheet for the year ended March 31, 2020 as required by SEBI (Listing and Other Disclosure Requirements) Regulations, 2015 |
| ** | | EPS is not annualized for the quarter and half year ended September 30, 2021, quarter ended June 30, 2021 and quarter and half year ended September 30, 2020. |
| # | | Excludes non-controlling interest |
1. Notes pertaining to the current quarter
| a) | | The audited interim condensed consolidated financial statements for the quarter and half-year ended September 30, 2021 have been taken on record by the Board of Directors at its meeting held on October 13, 2021. The statutory auditors, Deloitte Haskins & Sells LLP have expressed an unmodified audit opinion. The information presented above is extracted from the audited interim condensed consolidated financial statements. These interim condensed 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 relevant amendment rules thereafter. |
| b) | | Buyback of Equity shares |
| | | |
| | | The shareholders approved the proposal of buyback of Equity Shares recommended by its Board of Directors in the Annual General meeting held on June 19 , 2021. The buyback was offered to all eligible equity shareholders of the Company (other than the Promoters, the Promoter Group and Persons in Control of the Company) under the open market route through the stock exchange. The buyback of equity shares through the stock exchange commenced on June 25, 2021 and was completed on September 8, 2021 and the Company bought back and extinguished a total of 55,807,337 equity shares from the stock exchange at a volume weighted average buyback price of1,648.53/- per equity share comprising 1.31% of the pre buyback paid up equity share capital of the Company. The buyback resulted in a cash outflow of9,200 crore (excluding transaction costs and tax on buyback). The Company funded the buyback from its free reserves including Securities Premium as explained in Section 68 of the Companies Act, 2013. In accordance with section 69 of the Companies Act, 2013, as at September 30, 2021 , the Company has created ‘Capital Redemption Reserve’ of28 crore equal to the nominal value of the shares bought back as an appropriation from general reserve. |
| | | |
| c) | | Estimation of uncertainties relating to the global health pandemic from COVID-19 ( COVID-19): |
| | | |
| | | The Group has considered the possible effects that may result from the pandemic relating to COVID-19 in the preparation of these interim condensed consolidated financial statements including the recoverability of carrying amounts of financial and non financial assets. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the Group has, at the date of approval of these condensed financial statements, used internal and external sources of information including credit reports and related information and economic forecasts and expects that the carrying amount of these assets will be recovered. The impact of COVID-19 on the Group's financial statements may differ from that estimated as at the date of approval of these interim condensed consolidated financial statements. |
| | | |
| d) | | Employee stock grants |
| | | |
| | | On recommendation of the Nomination and Remuneration Committee, the Board on October 13, 2021 approved the grant of 25,270 RSUs to certain eligible employees under the 2015 Plan. The grant date for these RSUs is November 1, 2021. The RSUs would vest over a period of two to three years and the exercise price of RSUs will be equal to the par value of the share. |
2. Information on dividends for the quarter and half year ended September 30, 2021
The Board of Directors declared an interim dividend of15 /- per equity share. The record date for the payment is October 27, 2021.The interim dividend will be paid on November 10, 2021. The interim dividend declared in the previous year was12/- per equity share.
(in)
| Particulars | Quarter
ended
September 30, | Quarter
ended
June 30, | Quarter
ended
September 30, | Half-year
ended
September 30, | Year ended
March 31, |
| | 2021 | 2021 | 2020 | 2021 | 2020 | 2021 |
| Dividend per share (par value5/- each) | | | | | | |
| Interim dividend | 15.00 | – | 12.00 | 15.00 | 12.00 | 12.00 |
| Final dividend | – | – | – | – | – | 15.00 |
3. Audited Consolidated Balance Sheet
(in crore)
| Particulars | As at |
| | September 30, 2021 | March 31, 2021 |
| ASSETS | | |
| Non-current assets | | |
| Property, plant and equipment | 12,913 | 12,560 |
| Right of use assets | 4,599 | 4,794 |
| Capital work-in-progress | 383 | 922 |
| Goodwill | 6,122 | 6,079 |
| Other Intangible assets | 1,895 | 2,072 |
| Financial assets | | |
| Investments | 10,096 | 11,863 |
| Loans | 45 | 32 |
| Other financial assets | 1,252 | 1,141 |
| Deferred tax assets (net) | 976 | 1,098 |
| Income tax assets (net) | 5,796 | 5,811 |
| Other non-current assets | 2,025 | 1,281 |
| Total non-current assets | 46,102 | 47,653 |
| Current assets | | |
| Financial assets | | |
| Investments | 4,983 | 2,342 |
| Trade receivables | 20,121 | 19,294 |
| Cash and cash equivalents | 18,056 | 24,714 |
| Loans | 191 | 159 |
| Other financial assets | 7,385 | 6,410 |
| Other current assets | 9,272 | 7,814 |
| Total current assets | 60,008 | 60,733 |
| Total Assets | 1,06,110 | 1,08,386 |
| EQUITY AND LIABILITIES | | |
| Equity | | |
| Equity share capital | 2,097 | 2,124 |
| Other equity | 67,842 | 74,227 |
| Total equity attributable to equity holders of the Company | 69,939 | 76,351 |
| Non-controlling interests | 409 | 431 |
| Total equity | 70,348 | 76,782 |
| Liabilities | | |
| Non-current liabilities | | |
| Financial liabilities | | |
| Lease liabilities | 4,356 | 4,587 |
| Other financial liabilities | 2,109 | 1,514 |
| Deferred tax liabilities (net) | 858 | 875 |
| Other non-current liabilities | 751 | 763 |
| Total non-current liabilities | 8,074 | 7,739 |
| Current liabilities | | |
| Financial liabilities | | |
| Lease liabilities | 788 | 738 |
| Trade payables | 3,176 | 2,645 |
| Other financial liabilities | 13,605 | 11,390 |
| Other Current Liabilities | 6,802 | 6,233 |
| Provisions | 862 | 713 |
| Income tax liabilities (net) | 2,455 | 2,146 |
| Total current liabilities | 27,688 | 23,865 |
| Total equity and liabilities | 1,06,110 | 1,08,386 |
The disclosure is an extract of the audited Consolidated Balance Sheet as at September 30, 2021 and March 31, 2021 prepared in compliance with the Indian Accounting Standards (Ind-AS).
4. Audited Consolidated Statement of Cash Flows
(in crore)
| Particulars | Half-year ended
September 30, |
| | 2021 | 2020 |
| Cash flow from operating activities | | |
| Profit for the period | 10,629 | 9,131 |
| Adjustments to reconcile net profit to net cash provided by operating activities: | | |
| Income tax expense | 3,994 | 3,412 |
| Depreciation and amortization | 1,687 | 1,611 |
| Interest and dividend income | (885) | (804) |
| Finance cost | 98 | 96 |
| Impairment loss recognized / (reversed) under expected credit loss model | 87 | 159 |
| Exchange differences on translation of assets and liabilities, net | 54 | (7) |
| Stock compensation expense | 209 | 174 |
| Other adjustments | 36 | (60) |
| Changes in assets and liabilities | | |
| Trade receivables and unbilled revenue | (2,963) | (67) |
| Loans, other financial assets and other assets | (406) | 415 |
| Trade payables | 349 | (477) |
| Other financial liabilities, other liabilities and provisions | 2,754 | 773 |
| Cash generated from operations | 15,643 | 14,356 |
| Income taxes paid | (3,574) | (2,987) |
| Net cash generated by operating activities | 12,069 | 11,369 |
| Cash flows from investing activities | | |
| Expenditure on property, plant and equipment and intangibles | (1,030) | (1,306) |
| Deposits placed with corporation | (516) | (495) |
| Redemption of deposits placed with corporation | 343 | 362 |
| Interest and dividend received | 1,017 | 708 |
| Payment of contingent consideration pertaining to acquisition of business | (53) | (150) |
| Escrow and other deposits pertaining to Buyback | (420) | – |
| Redemption of escrow and other deposits pertaining to Buyback | 420 | – |
| Other receipts | 35 | 25 |
| Other payments | (22) | – |
| Payments to acquire Investments | | |
| Liquid mutual funds and fixed maturity plan securities | (25,411) | (11,960) |
| Non convertible debentures | (154) | (829) |
| Certificates of deposit | (498) | – |
| Government securities | (653) | (4,664) |
| Others | (13) | (1) |
| Proceeds on sale of Investments | | |
| Non-convertible debentures | 1,299 | 720 |
| Government securities | 1,336 | 1,529 |
| Certificates of deposit | 500 | 900 |
| Liquid mutual funds and fixed maturity plan securities | 22,928 | 11,850 |
| Others | 1 | 22 |
| Net cash (used in) / from investing activities | (891) | (3,289) |
| Cash flows from financing activities: | | |
| Payment of lease liabilities | (421) | (351) |
| Payment of dividends | (6,369) | (4,031) |
| Payment of dividend to non-controlling interest of subsidiary | (2) | (20) |
| Shares issued on exercise of employee stock options | 9 | 6 |
| Other receipts | 117 | – |
| Other payments | (15) | – |
| Buyback of equity shares including transaction cost and tax on buyback | (11,125) | – |
| Net cash used in financing activities | (17,806) | (4,396) |
| Net increase / (decrease) in cash and cash equivalents | (6,628) | 3,684 |
| Cash and cash equivalents at the beginning of the period | 24,714 | 18,649 |
| Effect of exchange rate changes on cash and cash equivalents | (30) | 78 |
| Cash and cash equivalents at the end of the period | 18,056 | 22,411 |
| Supplementary information: | | |
| Restricted cash balance | 526 | 404 |
The disclosure is an extract of the audited Consolidated Statement of Cash flows for the half year ended September 30, 2021 and September 30, 2020 prepared in compliance with Indian Accounting Standard (Ind AS) 34 Interim Financial Reporting.
5. 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, |
| | 2021 | 2021 | 2020 | 2021 | 2020 | 2021 |
| Revenue by business segment | | | | | | |
| Financial Services (1) | 9,566 | 9,217 | 7,871 | 18,783 | 15,328 | 32,583 |
| Retail (2) | 4,330 | 4,175 | 3,651 | 8,505 | 7,043 | 14,745 |
| Communication (3) | 3,668 | 3,403 | 3,093 | 7,071 | 6,257 | 12,628 |
| Energy, Utilities, Resources and Services | 3,501 | 3,371 | 3,027 | 6,871 | 6,054 | 12,539 |
| Manufacturing | 3,219 | 2,702 | 2,241 | 5,922 | 4,497 | 9,447 |
| Hi-Tech | 2,511 | 2,310 | 2,244 | 4,821 | 4,307 | 8,560 |
| Life Sciences (4) | 2,103 | 1,891 | 1,672 | 3,994 | 3,246 | 6,870 |
| All other segments (5) | 704 | 827 | 771 | 1,531 | 1,502 | 3,100 |
| Total | 29,602 | 27,896 | 24,570 | 57,498 | 48,234 | 1,00,472 |
| Less: Inter-segment revenue | – | – | – | – | – | – |
| Net revenue from operations | 29,602 | 27,896 | 24,570 | 57,498 | 48,234 | 1,00,472 |
| Segment profit before tax, depreciation and non-controlling interests: | | | | | | |
| Financial Services (1) | 2,644 | 2,358 | 2,360 | 5,002 | 4,361 | 8,946 |
| Retail (2) | 1,503 | 1,482 | 1,300 | 2,985 | 2,349 | 5,117 |
| Communication (3) | 816 | 707 | 663 | 1,523 | 1,284 | 2,795 |
| Energy, Utilities , Resources and Services | 1,017 | 1,022 | 825 | 2,038 | 1,676 | 3,552 |
| Manufacturing | 724 | 625 | 655 | 1,350 | 1,160 | 2,563 |
| Hi-Tech | 619 | 567 | 669 | 1,186 | 1,268 | 2,454 |
| Life Sciences (4) | 588 | 571 | 565 | 1,159 | 1,039 | 2,156 |
| All other segments (5) | (80) | 100 | 46 | 19 | 67 | 306 |
| Total | 7,831 | 7,432 | 7,083 | 15,262 | 13,204 | 27,889 |
| Less: Other Unallocable expenditure | 859 | 829 | 855 | 1,687 | 1,611 | 3,267 |
| Add: Unallocable other income | 524 | 622 | 570 | 1,146 | 1,046 | 2,201 |
| Less: Finance cost | 48 | 49 | 48 | 98 | 96 | 195 |
| Profit before tax and non-controlling interests | 7,448 | 7,176 | 6,750 | 14,623 | 12,543 | 26,628 |
| (1) | | Financial Services include enterprises in Financial Services and Insurance |
| (2) | | Retail includes enterprises in Retail, Consumer Packaged Goods and Logistics |
| (3) | | Communication includes enterprises in Communication, Telecom OEM and Media |
| (4) | | Life Sciences includes enterprises in Life sciences and Health care |
| (5) | | All other segments include operating segments of businesses in India, Japan, China, Infosys Public Services & other enterprises in Public Services |
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 Group'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 Group'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.
6. 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, |
| | 2021 | 2021 | 2020 | 2021 | 2020 | 2021 |
| Revenue from operations | 25,462 | 23,714 | 21,046 | 49,176 | 41,372 | 85,912 |
| Profit before tax | 7,303 | 6,493 | 6,163 | 13,796 | 11,542 | 24,477 |
| Profit for the period | 5,463 | 4,723 | 4,497 | 10,186 | 8,505 | 18,048 |
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 standalone condensed financial statements as stated.
| | By order of the Board for Infosys Limited |
| | |
Bengaluru, India October 13, 2021 | Salil Parekh Chief Executive Officer and Managing Director |
The Board has also taken on record the condensed consolidated results of Infosys Limited and its subsidiaries for the quarter and half-year ended September 30, 2021, 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, |
| | 2021 | 2021 | 2020 | 2021 | 2020 | 2021 |
| | Audited | Audited | Audited | Audited | Audited | Audited |
| Revenues | 3,998 | 3,782 | 3,312 | 7,780 | 6,433 | 13,561 |
| Cost of sales | 2,675 | 2,509 | 2,125 | 5,184 | 4,196 | 8,828 |
| Gross profit | 1,323 | 1,273 | 1,187 | 2,596 | 2,237 | 4,733 |
| Operating expenses | 382 | 377 | 347 | 759 | 690 | 1,408 |
| Operating profit | 941 | 896 | 840 | 1,837 | 1,547 | 3,325 |
| Other income, net | 71 | 84 | 76 | 155 | 140 | 297 |
| Finance cost | 6 | 7 | 6 | 13 | 12 | 26 |
| Profit before income taxes | 1,006 | 973 | 910 | 1,979 | 1,675 | 3,596 |
| Income tax expense | 272 | 268 | 255 | 540 | 456 | 973 |
| Net profit | 734 | 705 | 655 | 1,439 | 1,219 | 2,623 |
| Earnings per equity share * | | | | | | |
| Basic | 0.17 | 0.17 | 0.15 | 0.34 | 0.29 | 0.62 |
| Diluted | 0.17 | 0.17 | 0.15 | 0.34 | 0.29 | 0.61 |
| Total assets | 14,295 | 14,730 | 13,363 | 14,295 | 13,363 | 14,825 |
| Cash and cash equivalents and current investments | 3,103 | 3,499 | 3,526 | 3,103 | 3,526 | 3,700 |
| * | | EPS is not annualized for the quarter and half year ended September 30, 2021, quarter ended June 30, 2021 and quarter and half year ended September 30, 2020. |
Certain statements in this release concerning our future growth prospects, financial expectations and plans for navigating the COVID-19 impact on our employees, clients and stakeholders are forward-looking statements 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 COVID-19 and the effects of government and other measures seeking to contain its spread, risks related to an economic downturn or recession in India, the United States and other countries around the world, changes in political, business, and economic conditions, 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, unauthorized use of our intellectual property and general economic conditions affecting our industry and the outcome of pending litigation and government investigation. 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, 2021. 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. 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.
