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 nine months ended December 31, 2023 prepared in compliance with the Indian Accounting Standards (Ind-AS)
(in crore, except per equity share data)
Particulars | Quarter ended December 31, | Quarter ended September 30, | Quarter ended December 31, | Nine months ended December 31, | Year ended March 31, | |
2023 | 2023 | 2022 | 2023 | 2022 | 2023 | |
Audited | Audited | Audited | Audited | Audited | Audited | |
Revenue from operations | 38,821 | 38,994 | 38,318 | 115,748 | 109,326 | 146,767 |
Other income, net | 789 | 632 | 769 | 1,982 | 2,030 | 2,701 |
Total Income | 39,610 | 39,626 | 39,087 | 117,730 | 111,356 | 149,468 |
Expenses | ||||||
Employee benefit expenses | 20,651 | 20,796 | 20,272 | 62,228 | 58,048 | 78,359 |
Cost of technical sub-contractors | 3,066 | 3,074 | 3,343 | 9,264 | 10,946 | 14,062 |
Travel expenses | 387 | 439 | 360 | 1,288 | 1,099 | 1,525 |
Cost of software packages and others | 3,722 | 3,387 | 3,085 | 9,828 | 8,017 | 10,902 |
Communication expenses | 169 | 179 | 183 | 531 | 542 | 713 |
Consultancy and professional charges | 504 | 387 | 401 | 1,237 | 1,296 | 1,684 |
Depreciation and amortisation expenses | 1,176 | 1,166 | 1,125 | 3,515 | 3,104 | 4,225 |
Finance cost | 131 | 138 | 80 | 360 | 202 | 284 |
Other expenses | 1,185 | 1,292 | 1,307 | 3,731 | 3,246 | 4,392 |
Total expenses | 30,991 | 30,858 | 30,156 | 91,982 | 86,500 | 116,146 |
Profit before tax | 8,619 | 8,768 | 8,931 | 25,748 | 24,856 | 33,322 |
Tax expense: | ||||||
Current tax | 2,419 | 2,491 | 2,195 | 7,216 | 7,027 | 9,287 |
Deferred tax | 87 | 62 | 150 | 258 | (145) | (73) |
Profit for the period | 6,113 | 6,215 | 6,586 | 18,274 | 17,974 | 24,108 |
Other comprehensive income | ||||||
Items that will not be reclassified subsequently to profit or loss | ||||||
Remeasurement of the net defined benefit liability/asset, net | 71 | (64) | 29 | 94 | (17) | 8 |
Equity instruments through other comprehensive income, net | (9) | 40 | 1 | 31 | 8 | (7) |
Items that will be reclassified subsequently to profit or loss | ||||||
Fair value changes on derivatives designated as cash flow hedges, net | (46) | 23 | (57) | (17) | (43) | (7) |
Exchange differences on translation of foreign operations | 436 | 5 | 676 | 457 | 715 | 776 |
Fair value changes on investments, net | 52 | (20) | 48 | 107 | (298) | (256) |
Total other comprehensive income/(loss), net of tax | 504 | (16) | 697 | 672 | 365 | 514 |
Total comprehensive income for the period | 6,617 | 6,199 | 7,283 | 18,946 | 18,339 | 24,622 |
Profit attributable to: | ||||||
Owners of the company | 6,106 | 6,212 | 6,586 | 18,264 | 17,967 | 24,095 |
Non-controlling interest | 7 | 3 | – | 10 | 7 | 13 |
6,113 | 6,215 | 6,586 | 18,274 | 17,974 | 24,108 | |
Total comprehensive income attributable to: | ||||||
Owners of the company | 6,605 | 6,196 | 7,268 | 18,934 | 18,322 | 24,598 |
Non-controlling interest | 12 | 3 | 15 | 12 | 17 | 24 |
6,617 | 6,199 | 7,283 | 18,946 | 18,339 | 24,622 | |
Paid up share capital (par value5/- each, fully paid) | 2,070 | 2,070 | 2,086 | 2,070 | 2,086 | 2,069 |
Other equity *# | 73,338 | 73,338 | 73,252 | 73,338 | 73,252 | 73,338 |
Earnings per equity share (par value `5/- each)** | ||||||
Basic (in per share) | 14.76 | 15.01 | 15.72 | 44.13 | 42.85 | 57.63 |
Diluted (in per share) | 14.74 | 14.99 | 15.70 | 44.08 | 42.79 | 57.54 |
* | Balances for the quarter and nine months ended December 31, 2023 and quarter ended September 30, 2023 represent balances as per the audited Balance Sheet as at March 31, 2023 and balances for the quarter and nine months ended December 31, 2022 represent balances as per the audited Balance Sheet as at March 31, 2022 as required by SEBI (Listing and Other Disclosure Requirements) Regulations, 2015 |
** | EPS is not annualized for the quarter and nine months ended December 31, 2023, quarter ended September 30, 2023 and quarter and nine months ended December 31, 2022. |
# | Excludes non-controlling interest |
1. Notes pertaining to the current quarter
a) The audited interim condensed consolidated financial statements for the quarter and nine months ended December 31, 2023 have been taken on record by the Board of Directors at its meeting held on January 11, 2024. 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) Board and Management changes
i) The Board, based on the recommendation of the Nomination and Remuneration Committee, considered and approved the re-appointment of Chitra Nayak (DIN - 09101763), as an Independent Director for the second term of three years from March 25, 2024 to March 24, 2027, subject to shareholders’ approval.
ii) The Board appointed Jayesh Sanghrajka as the Chief Financial Officer of the Company with effect from April 1, 2024.
iii) Nilanjan Roy resigned as the Chief Financial Officer of the Company. He will continue to be with Infosys till March 31, 2024 as the Chief Financial Officer. The Board placed on record its appreciation for the services rendered by him and for his contributions to the Company.
c) Update on McCamish Cybersecurity incident
In November 2023, Infosys McCamish Systems LLC (McCamish) a step down subsidiary of Infosys Limited, experienced a cybersecurity incident resulting in the non-availability of certain applications and systems. McCamish initiated its incident response and engaged cybersecurity and other specialists to assist in its investigation of and response to the incident and remediation and restoration of impacted applications and systems. By December 31, 2023, McCamish, with external specialists’ assistance, substantially remediated and restored the affected applications and systems.
Loss of contracted revenues and costs incurred with respect to remediations, restoration, communication efforts and others amounted to approximately250 crore ($30 million).
Actions taken by McCamish included investigative analysis conducted by a third-party cybersecurity firm to determine, among other things, whether and the extent to which company or customer data was subject to unauthorized access or exfiltration. On the basis of analysis conducted by the cybersecurity firm, McCamish believes that certain data was exfiltrated by unauthorized third parties during the incident and this exfiltrated data included certain customer data. McCamish has engaged a third-party e- discovery vendor in assessing the extent and nature of such data. This review process is ongoing. McCamish may incur additional costs including indemnities or damages/claims, which are indeterminable at this time.
Infosys had previously communicated the occurence of this cybersecurity incident to BSE Limited, National Stock Exchange of India Limited, New York Stock Exchange and to United States Securities and Exchange Commission on November 3, 2023.
d) Proposed acquisition
On January 11, 2024, Infosys Limited entered into a definitive agreement to acquire 100% of the equity share capital in InSemi Technology Services Private Limited, a semiconductor design services company headquartered in India, for a consideration including earn-outs, and management incentives and retention bonuses totalling up to280 crore (approximately $34 million) , subject to customary closing adjustments.
e) Update on stock grants
The Board, on January 11, 2024, based on the recommendations of the Nomination and Remuneration Committee, approved the annual time-based stock incentives in the form of Restricted Stock Units (RSUs) to Salil Parekh, CEO & MD having a market value of3 crore as on the date of grant under the 2015 Stock Incentive Compensation Plan (2015 Plan) in accordance with the terms of his employment agreement. The RSUs will vest in line with the employment agreement. The RSUs will be granted w.e.f February 1, 2024 and the number of RSUs will be calculated based on the market price at the close of trading on February 1, 2024. The exercise price of RSUs will be equal to the par value of the share.
2. Information on dividends for the quarter and nine months ended December 31, 2023
The Board of Directors (in the meeting held on October 12, 2023) declared an interim dividend of18/- per equity share. The record date for the payment was October 25, 2023 and the same was paid on November 6, 2023. The interim dividend declared in the previous year was16.50/- per equity share.
(in)
Particulars | Quarter ended December 31, | Quarter ended September 30, | Quarter ended December 31, | Nine months Ended December 31, | Year ended March 31, | |
2023 | 2023 | 2022 | 2023 | 2022 | 2023 | |
Dividend per share (par value5/- each) | ||||||
Interim dividend | – | 18.00 | – | 18.00 | 16.50 | 16.50 |
Final dividend | – | – | – | – | – | 17.50 |
3. Segment reporting (Consolidated - Audited)
(in crore)
Particulars | Quarter ended December 31, | Quarter ended September 30, | Quarter ended December 31, | Nine months Ended December 31, | Year ended March 31, | |
2023 | 2023 | 2022 | 2023 | 2022 | 2023 | |
Revenue by business segment | ||||||
Financial Services (1)# | 10,783 | 10,705 | 11,235 | 32,149 | 32,945 | 43,763 |
Retail (2) | 5,649 | 5,913 | 5,480 | 17,075 | 15,667 | 21,204 |
Communication (3) | 4,421 | 4,463 | 4,710 | 13,325 | 13,675 | 18,086 |
Energy, Utilities, Resources and Services | 5,121 | 4,957 | 4,957 | 14,966 | 13,714 | 18,539 |
Manufacturing | 5,786 | 5,574 | 5,099 | 16,710 | 13,957 | 19,035 |
Hi-Tech | 2,985 | 3,053 | 3,095 | 9,095 | 8,878 | 11,867 |
Life Sciences (4) | 2,954 | 3,050 | 2,695 | 8,753 | 7,404 | 10,085 |
All other segments (5) | 1,122 | 1,279 | 1,047 | 3,675 | 3,086 | 4,188 |
Total | 38,821 | 38,994 | 38,318 | 115,748 | 109,326 | 146,767 |
Less: Inter-segment revenue | – | – | – | – | – | – |
Net revenue from operations | 38,821 | 38,994 | 38,318 | 115,748 | 109,326 | 146,767 |
Segment profit before tax, depreciation and non-controlling interests: | ||||||
Financial Services (1)# | 2,260 | 2,579 | 2,678 | 7,384 | 8,243 | 10,843 |
Retail (2) | 1,715 | 1,674 | 1,646 | 5,018 | 4,761 | 6,396 |
Communication (3) | 860 | 1,035 | 1,042 | 2,879 | 2,801 | 3,759 |
Energy, Utilities , Resources and Services | 1,450 | 1,352 | 1,457 | 4,091 | 3,853 | 5,155 |
Manufacturing | 1,110 | 1,033 | 1,035 | 3,116 | 2,212 | 3,113 |
Hi-Tech | 758 | 788 | 813 | 2,349 | 2,209 | 2,959 |
Life Sciences (4) | 766 | 799 | 684 | 2,266 | 1,861 | 2,566 |
All other segments (5) | 218 | 180 | 12 | 538 | 192 | 339 |
Total | 9,137 | 9,440 | 9,367 | 27,641 | 26,132 | 35,130 |
Less: Other Unallocable expenditure | 1,176 | 1,166 | 1,125 | 3,515 | 3,104 | 4,225 |
Add: Unallocable other income | 789 | 632 | 769 | 1,982 | 2,030 | 2,701 |
Less: Finance cost | 131 | 138 | 80 | 360 | 202 | 284 |
Profit before tax and non-controlling interests | 8,619 | 8,768 | 8,931 | 25,748 | 24,856 | 33,322 |
(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 |
# | Includes impact on account of McCamish cybersecurity incident. Refer note 1.c) above. |
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.
4. Audited financial results of Infosys Limited (Standalone Information)
(in crore)
Particulars | Quarter ended December 31, | Quarter ended September 30, | Quarter ended December 31, | Nine months Ended December 31, | Year ended March 31, | |
2023 | 2023 | 2022 | 2023 | 2022 | 2023 | |
Revenue from operations | 32,491 | 32,629 | 32,389 | 96,932 | 93,483 | 124,014 |
Profit before tax | 8,876 | 8,517 | 8,295 | 25,539 | 23,686 | 31,643 |
Profit for the period | 6,552 | 6,245 | 6,210 | 18,754 | 17,364 | 23,268 |
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 | Salil Parekh Chief Executive Officer and Managing Director |
January 11, 2024 |
The Board has also taken on record the condensed consolidated results of Infosys Limited and its subsidiaries for the quarter and nine months ended December 31, 2023, prepared as per International Financial Reporting Standards (IFRS) and reported in US dollars. A summary of the financial statements is as follows:
(in US$ million, except per equity share data)
Particulars | Quarter ended December 31, | Quarter ended September 30, | Quarter ended December 31, | Nine months ended December 31, | Year ended March 31, | |
2023 | 2023 | 2022 | 2023 | 2022 | 2023 | |
Audited | Audited | Audited | Audited | Audited | Audited | |
Revenues | 4,663 | 4,718 | 4,659 | 13,997 | 13,657 | 18,212 |
Cost of sales | 3,274 | 3,271 | 3,230 | 9,755 | 9,544 | 12,709 |
Gross profit | 1,389 | 1,447 | 1,429 | 4,242 | 4,113 | 5,503 |
Operating expenses | 433 | 447 | 428 | 1,325 | 1,245 | 1,678 |
Operating profit | 956 | 1,000 | 1,001 | 2,917 | 2,868 | 3,825 |
Other income, net | 95 | 77 | 94 | 239 | 254 | 335 |
Finance cost | 16 | 17 | 10 | 43 | 25 | 35 |
Profit before income taxes | 1,035 | 1,060 | 1,085 | 3,113 | 3,097 | 4,125 |
Income tax expense | 301 | 309 | 285 | 904 | 859 | 1,142 |
Net profit | 734 | 751 | 800 | 2,209 | 2,238 | 2,983 |
Earnings per equity share * | ||||||
Basic | 0.18 | 0.18 | 0.19 | 0.53 | 0.53 | 0.71 |
Diluted | 0.18 | 0.18 | 0.19 | 0.53 | 0.53 | 0.71 |
Total assets | 15,606 | 15,689 | 15,226 | 15,606 | 15,226 | 15,312 |
Cash and cash equivalents and current investments | 2,598 | 2,805 | 2,456 | 2,598 | 2,456 | 2,322 |
* | EPS is not annualized for the quarter and nine months ended December 31, 2023, quarter ended September 30, 2023 and quarter and nine months ended December 31, 2022. |
Certain statements in this release concerning our future growth prospects, our future financial or operating performance, and the McCamish cybersecurity incident 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 or outcomes 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 the execution of our business strategy, our ability to attract and retain personnel, our transition to hybrid work model, economic uncertainties, technological innovations such as Generative AI, the complex and evolving regulatory landscape including immigration regulation changes, our ESG vision, our capital allocation policy and expectations concerning our market position, future operations, margins, profitability, liquidity, capital resources, our corporate actions including acquisitions, the actual or anticipated findings of the ongoing assessment of the extent and nature of exfiltrated data in relation to the McCamish cybersecurity incident and customer reaction to such findings, and the amount of any additional costs, including indemnities or damages / claims, resulting from the McCamish cybersecurity incident. Important factors that may cause actual results or outcomes to differ from those implied by the forward-looking statements are discussed in more detail in our US Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2023. 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.