Exhibit 99.6
Form of Release to Stock Exchanges
INDEPENDENT Auditor’s Report ON THE AUDIT OF THE CONSOLIDATED FINANCIAL RESULTS
To The Board of Directors of INFOSYS Limited
Opinion
We have audited the accompanying Statement of Consolidated Financial Results of INFOSYS Limited (the “Company”) and its subsidiaries (the Company and its subsidiaries together referred to as the “Group”) for the quarter and half year ended September 30, 2021, (the “Statement”) being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the “Listing Regulations”).
In our opinion and to the best of our information and according to the explanations given to us, the Statement:
| i. | includes the results of the entities as given in the Annexure to this report; |
| ii. | is presented in accordance with the requirements of Regulation 33 of the Listing Regulations; and |
| iii. | gives a true and fair view in conformity with the recognition and measurement principles laid down in the Indian Accounting Standard 34 “Interim Financial Reporting” (“Ind AS 34”) prescribed under section 133 of the Companies Act, 2013 (the “Act”) read with relevant rules issued thereunder and other accounting principles generally accepted in India of the consolidated net profit and consolidated total comprehensive income and other financial information of the Group for the quarter and half year ended September 30, 2021. |
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (“SA”s) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in Auditor’s Responsibilities for audit of the consolidated financial results section of our report. We are independent of the Group in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (“ICAI”) together with the ethical requirements that are relevant to our audit of the consolidated financial results under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion.
Management’s Responsibilities for the Consolidated Financial Results
This Statement, which is the responsibility of the Company’s Management and approved by the Company’s Board of Directors, has been compiled from the audited interim condensed consolidated financial statements for the quarter and half year ended September 30, 2021. The Company’s Board of Directors is responsible for the preparation and presentation of these consolidated financial results that give a true and fair view of the consolidated net profit and consolidated other comprehensive income and other financial information of the Group in accordance with the recognition and measurement principles laid down in the Ind AS 34, prescribed under Section 133 of the Act, read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations.
The respective Boards of Directors of the companies included in the Group are responsible for maintenance of the adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the respective financial results that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the consolidated financial results by the Directors of the Company, as aforesaid.
In preparing the consolidated financial results, the respective Boards of Directors of the companies included in the Group are responsible for assessing the ability of the respective entities to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective Boards of Directors either intends to liquidate their respective entities or to cease operations, or have no realistic alternative but to do so.
The respective Boards of Directors of the companies included in the Group are responsible for overseeing the financial reporting process of the Group.
Auditor’s Responsibilities for Audit of the Consolidated Financial Results
Our objectives are to obtain reasonable assurance about whether the consolidated financial results as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial results.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
| · | Identify and assess the risks of material misstatement of the consolidated financial results, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
| · | Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of such controls. |
| · | Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors. |
| · | Evaluate the appropriateness and reasonableness of disclosures made by the Board of Directors in terms of the requirements specified under Regulation 33 of the Listing Regulations. |
| · | Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. |
| · | Evaluate the overall presentation, structure and content of the consolidated financial results, including the disclosures, and whether the consolidated financial results represent the underlying transactions and events in a manner that achieves fair presentation. |
| · | Obtain sufficient appropriate audit evidence regarding the Financial Information of the entities within the Group to express an opinion on the consolidated financial results. We are responsible for the direction, supervision and performance of the audit of financial information of such entities included in the consolidated financial results of which we are the independent auditors. |
Materiality is the magnitude of misstatements in the consolidated financial results that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the consolidated financial results may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the consolidated financial results.
We communicate with those charged with governance of the Company and such other entities included in the consolidated financial results of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
| | For DELOITTE HASKINS & SELLS LLP Chartered Accountants (Firm’s Registration No. 117366W/W-100018) |
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Place: Mumbai Date: October 13, 2021 | Sanjiv V. Pilgaonkar Partner (Membership No.039826) UDIN: 21039826AAAAG08733 |
Annexure to Auditor’s Report
List of Entities:
| 1. | Infosys Technologies (China) Co. Limited |
| 2. | Infosys Technologies S. de R. L. de C. V. |
| 3. | Infosys Technologies (Sweden) AB. |
| 4. | Infosys Technologies (Shanghai) Company Limited |
| 5. | Infosys Nova Holdings LLC. |
| 6. | EdgeVerve Systems Limited |
| 8. | Skava Systems Private Limited (under liquidation) |
| 9. | Kallidus Inc. (liquidated effective March 9, 2021) |
| 11. | Infosys Arabia Limited |
| 12. | Infosys Consulting Ltda. |
| 13. | Infosys CIS LLC (liquidated effective January 28, 2021) |
| 14. | Infosys Luxembourg S.a.r.l |
| 16. | Infosys Public Services, Inc. |
| 17. | Infosys Canada Public Services Inc. |
| 19. | Infosys (Czech Republic) Limited s.r.o. |
| 20. | Infosys Poland Sp Z.o.o |
| 21. | Infosys McCamish Systems LLC |
| 22. | Portland Group Pty Ltd |
| 23. | Infosys BPO Americas LLC. |
| 24. | Infosys Consulting Holding AG |
| 25. | Infosys Management Consulting Pty Limited |
| 27. | Infosys Consulting GmbH |
| 28. | Infosys Consulting S.R.L (Romania) |
| 29. | Infosys Consulting SAS |
| 30. | Infosys Consulting s.r.o. (under liquidation) |
| 31. | Infosys Consulting (Shanghai) Co., Ltd. (liquidated effective September 01, 2021) |
| 32. | Infy Consulting Company Limited |
| 34. | Infosys Consulting Sp. Z.o.o (merged with Infosys Poland Sp Z.o.o effective October 21, 2020) |
| 35. | Lodestone Management Consultants Portugal, Unipessoal, Lda. (liquidated effective November 19, 2020) |
| 36. | Infosys Consulting S.R.L (Argentina) |
| 37. | Infosys Consulting (Belgium) NV |
| 41. | Brilliant Basics Holdings Limited |
| 42. | Brilliant Basics Limited |
| 43. | Brilliant Basics (MENA) DMCC (liquidated effective July 17, 2020) |
| 44. | Infosys Consulting Pte Ltd. |
| 45. | Infosys Middle East FZ LLC |
| 47. | Fluido Sweden AB (Extero) |
| 51. | Fluido Newco AB (merged with Fluido Sweden AB effective December 18, 2020) |
| 52. | Infosys Compaz PTE. Ltd |
| 53. | Infosys South Africa (Pty) Ltd |
| 54. | WongDoody Holding Company Inc. |
| 55. | WDW Communications, Inc. |
| 60. | Stater Duitsland B.V. (merged with Stater N.V effective December 23, 2020) |
| 63. | Stater Participations B.V. |
| 64. | Stater Deutschland Verwaltungs-GmbH (merged with Stater Duitsland B.V. effective December 18, 2020) |
| 65. | Stater Deutschland GmbH & Co. KG (merged with Stater Duitsland B.V. effective December 18, 2020) |
| 66. | Stater Belgium N.V./S.A. |
| 67. | Outbox systems Inc. dba Simplus (US) |
| 68. | Simplus North America Inc. (liquidated effective April 27, 2021) |
| 70. | Simplus Australia Pty Ltd |
| 71. | Sqware Peg Digital Pty Ltd (liquidated effective September 02, 2021) |
| 72. | Simplus Philippines, Inc. |
| 73. | Simplus Europe, Ltd. (liquidated effective July 20, 2021) |
| 74. | Infosys Fluido UK, Ltd. (formerly Simplus U.K, Ltd) |
| 75. | Infosys Fluido Ireland, Ltd. (formerly Simplus Ireland, Ltd) |
| 76. | Infosys Limited Bulgaria EOOD (incorporated effective September 11, 2020) |
| 77. | Infosys BPM UK Limited (incorporated effective December 09, 2020) |
| 78. | Blue Acorn LLC (acquired on October 27, 2020) |
| 79. | Beringer Commerce Inc renamed as Blue Acorn iCi Inc. (acquired on October 27, 2020) |
| 80. | Beringer Capital Digital Group Inc (acquired on October 27, 2020) |
| 81. | Mediotype LLC (acquired on October 27, 2020) |
| 82. | Beringer Commerce Holdings LLC (acquired on October 27, 2020) |
| 83. | SureSource LLC (acquired on October 27, 2020) |
| 84. | Simply Commerce LLC (acquired on October 27, 2020) |
| 85. | iCiDIGITAL LLC (acquired on October 27, 2020) |
| 86. | Kaleidoscope Animations, Inc; (acquired on October 09, 2020) |
| 87. | Kaleidoscope Prototyping LLC; (acquired on October 09, 2020) |
| 88. | GuideVision s.r.o (acquired on October 01, 2020) |
| 89. | GuideVision Deutschland GmbH (acquired on October 01, 2020) |
| 90. | GuideVision Suomi Oy (acquired on October 01, 2020) |
| 91. | GuideVision Magyarorszag Kft (acquired on October 01, 2020) |
| 92. | GuideVision Polska SP Z.O.O (acquired on October 01, 2020) |
| 93. | GuideVision UK Ltd (acquired on October 01, 2020) |
| 94. | Infosys Turkey Bilgi Teknolojikeri Sirketi (incorporated effective December 30, 2020) |
| 95. | Infosys Germany Holding Gmbh (incorporated on March 23, 2021) |
| 96. | Infosys Automotive and Mobility GmbH & Co. KG, a partnership firm (formed on March 28, 2021). |
| 97. | Stater GmbH (incorporated on August 4, 2021) |
| 98. | Infosys Green Forum (incorporated on August 31, 2021) |
| 99. | Infosys Employees Welfare Trust |
| 100. | Infosys Employee Benefits Trust |
| 101. | Infosys Science Foundation |
| 102. | Infosys Expanded Stock Ownership Trust |
INDEPENDENT AUDITOR’S REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL RESULTS
TO THE BOARD OF DIRECTORS OF INFOSYS LIMITED
Opinion
We have audited the accompanying Statement of Standalone Financial Results of INFOSYS LIMITED (the “Company”), for the quarter and half year ended September 30, 2021, (the “Statement”), being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the “Listing Regulations”).
In our opinion and to the best of our information and according to the explanations given to us, the Statement:
| a. | is presented in accordance with the requirements of Regulation 33 of the Listing Regulations; and |
| b. | gives a true and fair view in conformity with the recognition and measurement principles laid down in the Indian Accounting Standard 34 “Interim Financial Reporting” (“Ind AS 34”) prescribed under section 133 of the Companies Act, 2013 (the “Act”) read with relevant rules issued thereunder and other accounting principles generally accepted in India of the net profit and total comprehensive income, and other financial information of the Company for the quarter and half year ended September 30, 2021. |
Basis for Opinion
We conducted our audit of the Statement in accordance with the Standards on Auditing (“SA”s) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in Auditor’s Responsibilities for the Audit of the Standalone Financial Results section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (“ICAI”) together with the ethical requirements that are relevant to our audit of the Standalone Financial Results under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion.
Management’s Responsibilities for the Standalone Financial Results
This Statement, which is the responsibility of the Company’s Management and approved by the Board of Directors, has been compiled from the related audited interim condensed standalone financial statements for the quarter and half year ended September 30, 2021. The Company’s Board of Directors is responsible for the preparation and presentation of the standalone financial results that give a true and fair view of the net profit and other comprehensive income and other financial information in accordance with the recognition and measurement principles laid down in Ind AS 34, prescribed under Section 133 of the Act, read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial results that give a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the standalone financial results, the Board of Directors is responsible for assessing the Company’s ability, to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the financial reporting process of the Company.
Auditor’s Responsibilities for the Audit of the Standalone Financial Results
Our objectives are to obtain reasonable assurance about whether the standalone financial results as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial results.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
| • | Identify and assess the risks of material misstatement of the standalone financial results, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
| • | Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. |
| • | Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors. |
| • | Evaluate the appropriateness and reasonableness of disclosures made by the Board of Directors in terms of the requirements specified under Regulation 33 of the Listing Regulations. |
| • | Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Company to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Statement or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. |
| • | Evaluate the overall presentation, structure and content of the standalone financial results, including the disclosures, and whether the standalone financial results represent the underlying transactions and events in a manner that achieves fair presentation. |
| • | Obtain sufficient appropriate audit evidence regarding the standalone financial results of the Company to express an opinion on the standalone financial results. |
Materiality is the magnitude of misstatements in the standalone financial results that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial results may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial results.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
| | For DELOITTE HASKINS & SELLS LLP Chartered Accountants (Firm’s Registration No. 117366W/W-100018) |
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Place: Mumbai Date: October 13, 2021 | Sanjiv V. Pilgaonkar Partner (Membership No.039826) UDIN: 21039826AAAAGQ4828 |
 | 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 of 15 /- 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.
| | 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 Audited results of Infosys Limited 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 | 25,462 | 23,714 | 21,046 | 49,176 | 41,372 | 85,912 |
| Other income, net | 1,052 | 570 | 582 | 1,622 | 1,060 | 2,467 |
| Total income | 26,514 | 24,284 | 21,628 | 50,798 | 42,432 | 88,379 |
| Expenses | | | | | | |
| Employee benefit expenses | 12,734 | 12,191 | 11,053 | 24,925 | 22,275 | 45,179 |
| Cost of technical sub-contractors | 3,934 | 3,316 | 2,125 | 7,251 | 4,220 | 9,528 |
| Travel expenses | 143 | 115 | 136 | 258 | 228 | 484 |
| Cost of software packages and others | 736 | 528 | 548 | 1,264 | 1,029 | 2,058 |
| Communication expenses | 107 | 104 | 121 | 210 | 235 | 464 |
| Consultancy and professional charges | 365 | 311 | 225 | 675 | 418 | 999 |
| Depreciation and amortisation expense | 601 | 576 | 608 | 1,178 | 1,154 | 2,321 |
| Finance cost | 32 | 32 | 31 | 64 | 62 | 126 |
| Other expenses | 559 | 618 | 618 | 1,177 | 1,269 | 2,743 |
| Total expenses | 19,211 | 17,791 | 15,465 | 37,002 | 30,890 | 63,902 |
| Profit before tax | 7,303 | 6,493 | 6,163 | 13,796 | 11,542 | 24,477 |
| Tax expense: | | | | | | |
| Current tax | 1,805 | 1,697 | 1,526 | 3,502 | 2,752 | 6,013 |
| Deferred tax | 35 | 73 | 140 | 108 | 285 | 416 |
| Profit for the period | 5,463 | 4,723 | 4,497 | 10,186 | 8,505 | 18,048 |
| Other comprehensive income | | | | | | |
| Items that will not be reclassified subsequently to profit or loss | | | | | | |
| Remeasurement of the net defined benefit liability / asset, net | 10 | (32) | 6 | (22) | 162 | 148 |
| Equity instruments through other comprehensive income, net | 39 | 2 | (5) | 41 | (5) | 120 |
| 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 |
| Fair value changes on investments, net | 52 | 38 | (45) | 90 | 4 | (102) |
| Total other comprehensive income/ (loss), net of tax | 107 | 13 | (17) | 120 | 182 | 191 |
| Total comprehensive income for the period | 5,570 | 4,736 | 4,480 | 10,306 | 8,687 | 18,239 |
| Paid-up share capital (par value5/- each fully paid) | 2,102 | 2,128 | 2,129 | 2,102 | 2,129 | 2,130 |
| Other Equity* | 69,401 | 69,401 | 60,105 | 69,401 | 60,105 | 69,401 |
| Earnings per equity share ( par value5 /- each)** | | | | | | |
| Basic () | 12.93 | 11.08 | 10.56 | 24.01 | 19.97 | 42.37 |
| Diluted () | 12.92 | 11.07 | 10.55 | 23.98 | 19.96 | 42.33 |
| * | | 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. |
| 1. | | Notes pertaining to the current quarter |
| a) | | The audited interim condensed standalone 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 standalone financial statements. These interim condensed standalone 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 Company has considered the possible effects that may result from the pandemic relating to COVID-19 in the preparation of these interim condensed standalone 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 Company 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 Company's financial statements may differ from that estimated as at the date of approval of these interim condensed standalone 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. Notes pertaining to the previous quarter
Proposed transfer of Corporate Social Responsibility (CSR ) Asset
Consequent to the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 (“the Rules”), the Company intends to transfer its CSR capital assets created prior to January 2021 to a wholly owned subsidiary, Infosys Green Forum (referred to as “ the Subsidiary” ) established in accordance with Section 8 of the Companies Act, 2013 for charitable objects. The transfer will be undertaken upon obtaining the required approvals from regulatory authorities.
The carrying amount of the capital asset amounting to283 crore has been impaired and included as CSR expense in the standalone financial statements during the year ended March 31, 2021 because the Company will not be able to recover the carrying amount of the asset from its Subsidiary on account of prohibition on payment of dividend by this Subsidiary.
3. Information on dividends for the quarter and half-year ended September 30, 2021
The Board of Directors declared an interim dividend of 15 /- 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 |
4. Audited Standalone Balance Sheet
(In crore)
| Particulars | As at |
| | September 30, 2021 | March 31, 2021 |
| ASSETS | | |
| Non-current assets | | |
| Property, plant and equipment | 11,238 | 10,930 |
| Right of use assets | 3,306 | 3,435 |
| Capital work-in-progress | 347 | 906 |
| Goodwill | 167 | 167 |
| Other Intangible assets | 49 | 67 |
| Financial assets | | |
| Investments | 19,423 | 22,118 |
| Loans | 44 | 30 |
| Other financial assets | 581 | 613 |
| Deferred tax assets (net) | 823 | 955 |
| Income tax assets (net) | 5,325 | 5,287 |
| Other non-current assets | 1,305 | 1,149 |
| Total non-current assets | 42,608 | 45,657 |
| Current assets | | |
| Financial assets | | |
| Investments | 3,873 | 2,037 |
| Trade receivables | 17,361 | 16,394 |
| Cash and cash equivalents | 12,396 | 17,612 |
| Loans | 163 | 229 |
| Other financial assets | 5,533 | 5,226 |
| Other current assets | 7,453 | 6,784 |
| Total current assets | 46,779 | 48,282 |
| Total assets | 89,387 | 93,939 |
| EQUITY AND LIABILITIES | | |
| Equity | | |
| Equity share capital | 2,102 | 2,130 |
| Other equity | 62,431 | 69,401 |
| Total equity | 64,533 | 71,531 |
| LIABILITIES | | |
| Non-current liabilities | | |
| Financial liabilities | | |
| Lease liabilities | 3,198 | 3,367 |
| Other financial liabilities | 363 | 259 |
| Deferred tax liabilities (net) | 516 | 511 |
| Other non-current liabilities | 634 | 649 |
| Total non - current liabilities | 4,711 | 4,786 |
| Current liabilities | | |
| Financial liabilities | | |
| Lease liabilities | 520 | 487 |
| Trade payables | | |
| Total outstanding dues of micro enterprises and small enterprises | – | – |
| Total outstanding dues of creditors other than micro enterprises and small enterprises | 1,907 | 1,562 |
| Other financial liabilities | 9,581 | 8,359 |
| Other current liabilities | 5,147 | 4,816 |
| Provisions | 818 | 661 |
| Income tax liabilities (net) | 2,170 | 1,737 |
| Total current liabilities | 20,143 | 17,622 |
| Total equity and liabilities | 89,387 | 93,939 |
The disclosure is an extract of the audited Balance Sheet as at September 30, 2021 and March 31, 2021 prepared in compliance with the Indian Accounting Standards (Ind-AS).
5. Audited Standalone Statement of Cash flows
(In crore)
| Particulars | Half-year ended
September 30, |
| | 2021 | 2020 |
| Cash flow from operating activities: | | |
| Profit for the period | 10,186 | 8,505 |
| Adjustments to reconcile net profit to net cash provided by operating activities: | | |
| Depreciation and amortization | 1,178 | 1,154 |
| Income tax expense | 3,610 | 3,037 |
| Impairment loss recognized / (reversed) under expected credit loss model | 66 | 123 |
| Finance cost | 64 | 62 |
| Interest and dividend income | (1,347) | (734) |
| Stock compensation expense | 185 | 154 |
| Other adjustments | 33 | 2 |
| Exchange differences on translation of assets and liabilities | 46 | (20) |
| Changes in assets and liabilities | | |
| Trade receivables and unbilled revenue | (2,337) | (268) |
| Loans, other financial assets and other assets | 190 | 457 |
| Trade payables | 323 | (209) |
| Other financial liabilities, other liabilities and provisions | 1,745 | 184 |
| Cash generated from operations | 13,942 | 12,447 |
| Income taxes paid | (3,092) | (2,692) |
| Net cash generated by operating activities | 10,850 | 9,755 |
| Cash flow from investing activities: | | |
| Expenditure on property, plant and equipment | (793) | (1,105) |
| Deposits placed with corporation | (409) | (425) |
| Redemption of deposits placed with corporation | 275 | 295 |
| Loan given to subsidiaries | – | (76) |
| Loan repaid by subsidiaries | 73 | 267 |
| Proceeds from redemption of debentures | 536 | 327 |
| Investment in subsidiaries | (126) | (215) |
| Payment towards business transfer | – | (66) |
| Payment of contingent consideration pertaining to acquisition | – | (122) |
| Escrow and other deposits pertaining to Buyback | (420) | – |
| Redemption of Escrow and other deposits pertaining to Buyback | 420 | – |
| Other receipts | 25 | 25 |
| Payments to acquire investments | | |
| Preference, equity securities and others | (3) | (1) |
| Liquid mutual fund units and fixed maturity plan securities | (22,370) | (10,499) |
| Certificates of deposit | (498) | – |
| Government Securities | (83) | (4,664) |
| Non Convertible debentures | – | (746) |
| Proceeds on sale of investments | | |
| Liquid mutual fund units and fixed maturity plan securities | 20,446 | 10,541 |
| Non-convertible debentures | 1,299 | 535 |
| Certificates of deposit | 500 | 900 |
| Government Securities | 1,336 | 1,529 |
| Interest and dividend received | 906 | 673 |
| Dividend received from subsidiary | 592 | – |
| Net cash (used in) / from investing activities | 1,706 | (2,827) |
| Cash flow from financing activities: | | |
| Payment of lease liabilities | (286) | (210) |
| Buyback of equity shares including transaction cost and tax on buyback | (11,125) | – |
| Other receipts | 62 | – |
| Shares issued on exercise of employee stock options | 6 | 5 |
| Payment of dividends | (6,392) | (4,048) |
| Net cash used in financing activities | (17,735) | (4,253) |
| Effect of exchange differences on translation of foreign currency cash and cash equivalents | (37) | 10 |
| Net increase / (decrease) in cash and cash equivalents | (5,179) | 2,675 |
| Cash and cash equivalents at the beginning of the period | 17,612 | 13,562 |
| Cash and cash equivalents at the end of the period | 12,396 | 16,247 |
| Supplementary information: | | |
| Restricted cash balance | 153 | 99 |
The disclosure is an extract of the audited 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.
6. Segment Reporting
The Company publishes standalone financial statements along with the consolidated financial statements. In accordance with Ind AS 108, Operating Segments, the Company has disclosed the segment information in the audited interim condensed consolidated financial statements. Accordingly, the segment information is given in the audited consolidated financial results of Infosys Limited and its subsidiaries for the quarter and half-year ended September 30, 2021.
| | By order of the Board
for Infosys Limited |
| | |
Bengaluru, India
October 13, 2021 | Salil Parekh
Chief Executive Officer and
Managing Director |
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.
| | Infosys Limited Regd. office: Electronics City, Hosur Road,
Bengaluru – 560 100, India | CIN : L85110KA1981PLC013115 Website: www.infosys.com email: investors@infosys.com T: 91 80 2852 0261, F: 91 80 2852 0362 |
Extract of Consolidated Audited Financial 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, | Half-year
ended
September 30, | Quarter
ended
September 30, |
| | 2021 | 2021 | 2020 |
| Revenue from operations | 29,602 | 57,498 | 24,570 |
| Profit before tax | 7,448 | 14,623 | 6,750 |
| Profit for the period | 5,428 | 10,629 | 4,858 |
| Total comprehensive income for the period (comprising profit for the period after tax and other comprehensive income after tax) | 5,377 | 10,879 | 4,863 |
| Profit attributable to: | | | |
| Owners of the company | 5,421 | 10,616 | 4,845 |
| Non-controlling interest | 7 | 13 | 13 |
| | 5,428 | 10,629 | 4,858 |
| Total comprehensive income attributable to: | | | |
| Owners of the company | 5,375 | 10,866 | 4,847 |
| Non-controlling interest | 2 | 13 | 16 |
| | 5,377 | 10,879 | 4,863 |
| Paid-up share capital (par value5/- each fully paid) | 2,097 | 2,097 | 2,123 |
| Other equity *# | 74,227 | 74,227 | 63,328 |
| Earnings per equity share (par value5/- each)** | | | |
| Basic () | 12.88 | 25.11 | 11.42 |
| Diluted () | 12.85 | 25.06 | 11.40 |
| * | | Balances for the quarter and half year ended September 30, 2021 represents balances as per the audited Balance Sheet for the year ended March 31, 2021 and balances for the quarter 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 and quarter 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 of 15 /- 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, | Half-year
ended
September 30, | Quarter
ended
September 30, |
| | 2021 | 2021 | 2020 |
| Dividend per share (par value5/- each) | | | |
| Interim dividend | 15.00 | 15.00 | 12.00 |
| Final dividend | – | – | – |
3. Audited financial results of Infosys Limited (Standalone information)
(in crore)
| Particulars | Quarter
ended
September 30, | Half-year
ended
September 30, | Quarter
ended
September 30, |
| | 2021 | 2021 | 2020 |
| Revenue from operations | 25,462 | 49,176 | 21,046 |
| Profit before tax | 7,303 | 13,796 | 6,163 |
| Profit for the period | 5,463 | 10,186 | 4,497 |
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 Audited Financial Results are available on the Stock Exchange websites, www.nseindia.com and www.bseindia.com, and on the Company's website, www.infosys.com.
Certain statements in this 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.
| | By order of the Board
for Infosys Limited |
| | |
Bengaluru, India
October 13, 2021 | Salil Parekh
Chief Executive Officer and
Managing Director |
