EX-99.7 DISTR CONTR 8 exv99w07.htm FORM OF RELEASES TO STOCK EXCHANGES AND ADVERTISEMENT

Exhibit 99.7
Form of Releases to Stock Exchanges and Advertisement

 

 

 

 

Infosys Limited

Regd. office: Electronics City, Hosur Road,

Bengaluru – 560 100, India

CIN : L85110KA1981PLC013115

Website: www.infosys.com

email: investors@infosys.com

T: 91 80 2852 0261,
F: 91 80 2852 0362 

    

Audited consolidated financial results of Infosys Limited and its subsidiaries for the quarter and half-year ended September 30, 2017 prepared in compliance with the Indian Accounting Standards (Ind-AS)

 

(in crore, except per equity share data)

Particulars Quarter ended
September 30,
Quarter ended
June 30,
Quarter ended
September 30,
Half-year ended
September 30,
Year ended
March 31,
  2017 2017 2016 2017 2016 2017
  Audited Audited Audited Audited Audited Audited
Revenue from operations  17,567  17,078  17,310  34,645  34,091 68,484
Other income, net  883  814  760  1,697  1,513 3,080
Total Income  18,450  17,892  18,070  36,342  35,604 71,564
Expenses            
Employee benefit expenses  9,604  9,366  9,648  18,970  18,930 37,659
Cost of technical sub-contractors  1,089  1,061  940  2,150  1,857 3,833
Travel expenses  480  527  520  1,008  1,260 2,235
Cost of software packages and others  492  440  381  932  657 1,597
Communication expenses  131  125  136  255  256 549
Consultancy and professional charges  269  246  165  515  340 763
Depreciation and amortisation expenses  456  450  424  906  824 1,703
Other expenses  800  752  787  1,552  1,612 3,244
Total expenses  13,321  12,967  13,001  26,288  25,736 51,583
Profit before non-controlling interest / share in net profit / (loss) of associate  5,129  4,925  5,069  10,054  9,868 19,981
Share in net profit/(loss) of associate (3) (5) (12)
Write-down of investment in associate* (71) (71) (18)
Profit before tax  5,129  4,854  5,066  9,983  9,863 19,951
Tax expense:            
Current tax  1,471  1,499  1,469  2,971  2,936 5,653
Deferred tax (68) (128) (9) (197) (114) (55)
Profit for the period  3,726  3,483  3,606  7,209  7,041 14,353
Other comprehensive income            
Items that will not be reclassified subsequently to profit or loss            
Remeasurement of the net defined benefit liability/asset  6 (3) (40) 3 (57) (45)
Equity instruments through other comprehensive income, net (5)
Items that will be reclassified subsequently to profit or loss            
Fair value changes on derivatives designated as cash flow hedges, net  20 (66)  2 (46)  2 39
Exchange differences on translation of foreign operations  100  107 (51)  207 (13) (257)
Fair value changes on investments, net  12  27  39 (10)
Total other comprehensive income, net of tax 138  65 (89)  203 (68) (278)
Total comprehensive income for the period 3,864  3,548  3,517  7,412  6,973 14,075
Paid up share capital (par value 5/- each, fully paid)  1,144  1,144  1,144  1,144  1,144 1,144
Other equity  67,838  67,838  60,600  67,838  60,600 67,838
Earnings per equity share (par value 5/- each)**            
Basic () 16.30  15.24  15.77  31.54  30.81 62.80
Diluted () 16.29  15.23  15.77  31.51  30.80 62.77

 

*During the quarter ended June 30, 2017, the Company has written down the entire carrying value of the investment in its associate DWA Nova LLC amounting to 71 crore. The write-down in the carrying value of investment in associate DWA Nova LLC during the quarter and year ended March 31, 2017 was 18 crore.
  
** EPS is not annualized for the quarter and half year ended September 30, 2017, quarter ended June 30, 2017 and quarter and half year ended September 30, 2016.

  

Notes:

 

1.The audited interim consolidated financial statements for the quarter and half-year ended September 30, 2017 have been taken on record by the Board of Directors at its meeting held on October 24, 2017. The statutory auditors, Deloitte Haskins & Sells LLP have expressed an unqualified audit opinion. Amounts for the quarter and half year ended September 30, 2016 and year ended March 31, 2017 were audited by previous auditors - B S R & Co LLP. The information presented above is extracted from the audited interim consolidated financial statements. The interim consolidated financial statements are prepared in accordance with the Indian Accounting Standards (Ind-AS) as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.
   
2. Management and Board changes during the quarter ended September 30, 2017
   
 1.On August 18, 2017 :
   
  Dr. Vishal Sikka resigned as the Chief Executive Officer and Managing Director of the Company and subsequently resigned as the Executive Vice-Chairman of the Board with effect from August 24, 2017.
   
  The Board appointed U.B. Pravin Rao as the Interim-Chief Executive Officer and Managing Director with immediate effect. Shareholders have approved the appointment of Managing Director vide Postal Ballot concluded on October 7, 2017.
   
 2.On August 24, 2017:
   
  The Board appointed Nandan M. Nilekani as the Non-Executive, Non-Independent Chairman of the Board with immediate effect. Shareholders have approved the appointment vide Postal Ballot concluded on October 7, 2017.
   
  R. Seshasayee resigned as the Chairman of the Board with immediate effect.
   
  Ravi Venkatesan resigned from his position as the Co-Chairman of the Board and continues to be the independent member of the Board.
   
  Prof. Jeffrey Lehman resigned as the member of the Board with immediate effect.
   
  Prof. John Etchemendy resigned as the member of the Board with immediate effect.
   
3. Other matters
   
 Appointed D. Sundaram as the Chairperson of the Audit Committee with effect from October 24, 2017.
   
4. Acquisiton of Brilliant Basics
   
 On September 8, 2017, Infosys acquired 100% of the voting interests in Brilliant Basics Holdings Limited., UK (Brilliant Basics) a product design and customer experience innovator with experience in executing global programs. The business acquisition was conducted by entering into a share purchase agreement for cash consideration of $4 million (29 crore), contingent consideration of up to $3 million (up to 20 crore) and an additional consideration of $2 million (13 crore), referred to as retention bonus, payable to the employees of Brilliant Basics at each anniversary year over the next two years, subject to their continuous employment with the group at each anniversary.
  
5. Update on Capital Allocation Policy
  
 The Board, at its meeting on August 19, 2017, approved a proposal for the Company to buyback its fully paid-up equity shares of face value of 5/- each from the eligible equity shareholders of the Company for an amount not exceeding 13,000 crore (approximately $2 billion). The Buyback offer comprises a purchase of upto 113,043,478 Equity Shares aggregating upto 4.92% of the paid-up equity share capital of the Company at a price of 1,150/- per Equity share. The buyback is proposed to be made from all eligible equity shareholders (including those who become equity shareholders as on the Record date by cancelling American Depository Shares and withdrawing underlying Equity shares) of the Company as on the Record Date (i.e. November 1, 2017) on a proportionate basis through the "Tender offer" route. The shareholders approved the said proposal of Buyback of Equity Shares through the postal ballot concluded on October 7, 2017. The Company has published a Public Announcement on October 10, 2017 for the buyback of its shares through a tender offer and has submitted the Draft Letter of Offer to regulatory authorities for their comments.
  
6. Information on dividends for the quarter and half-year ended September 30, 2017
  
 The Board declared an interim dividend of 13/- per equity share. The record date for the payment of interim dividend is November 1, 2017. The interim dividend will be paid on November 4, 2017. The interim dividend declared in the previous year was 11/- 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,
  2017 2017 2016 2017 2016 2017
Dividend per share (par value 5/- each)            
 Interim dividend  13.00  11.00  13.00  11.00 11.00
 Final dividend 14.75

 

7. Consolidated statement of assets and liabilities

(in crore) 

Particulars As at
  September 30, 2017 March 31, 2017
ASSETS    
Non-current assets    
Property, plant and equipment  9,507  9,751
Capital work-in-progress  1,849  1,365
Goodwill  3,788  3,652
Other Intangible assets  700  776
Investment in associate  71
Financial assets:    
 Investments  6,169  6,382
 Loans  40  29
 Other financial assets  307  309
Deferred tax assets (net)  724  540
Income tax assets (net)  6,239  5,716
Other non-current assets  920  1,059
Total non-current assets  30,243  29,650
Current assets    
Financial assets    
 Investments  12,122  9,970
 Trade receivables  13,423  12,322
 Cash and cash equivalents  23,339  22,625
 Loans  245  272
 Other financial assets  6,447  5,980
Other current assets  2,659  2,536
Total current assets  58,235  53,705
Total assets  88,478  83,355
EQUITY AND LIABILITIES    
Equity    
Equity share capital  1,144  1,144
Other equity  71,226  67,838
Total equity attributable to equity holders of the Company  72,370  68,982
Non-controlling interests
Total equity  72,370  68,982
Liabilities    
Non-current liabilities    
Financial liabilities    
Other financial liabilities  52  70
Deferred tax liabilities (net)  188  207
Other non-current liabilities  82  83
Total non-current liabilities  322  360
Current liabilities    
Financial liabilities    
 Trade payables  538  367
 Other financial liabilities  7,047  6,349
Other current liabilities  3,214  3,007
Provisions  417  405
Income tax liabilities (net)  4,570  3,885
Total current liabilities  15,786  14,013
Total equity and liabilities  88,478  83,355

 

The disclosure is an extract of the audited Consolidated Balance Sheet as at September 30, 2017 and March 31, 2017 prepared in compliance with the Indian Accounting Standards (Ind-AS).

 

8. Audited financial results of Infosys Limited (Standalone Information)

(in crore)

Particulars  Quarter ended
September 30,
 Quarter ended
June 30,
 Quarter ended
September 30,
 Half-year ended
September 30,
Year ended
March 31,
  2017 2017 2016 2017 2016 2017
Revenue from operations  15,356  14,971  15,000  30,326  29,420  59,289
Profit before tax  4,880  4,716  4,812  9,597  9,271  18,938
Profit for the period  3,579  3,415  3,476  6,994  6,656  13,818

 

Note: The audited results of Infosys Limited for the above mentioned periods are available on our website, www.infosys.com and on the Stock Exchange website www.nseindia.com and www.bseindia.com. The information above has been extracted from the audited interim condensed financial statements as stated.

 

9. Segment reporting (Consolidated - Audited)

(in crore)

Particulars Quarter ended
September 30,
Quarter ended
June 30,
Quarter ended
September 30,
Half-year ended
September 30,
Year ended
March 31,
  2017 2017 2016 2017 2016 2017
Revenue by business segment          
Financial Services (FS)  4,718  4,594  4,686  9,312  9,237 18,555
Manufacturing (MFG)  1,916  1,863  1,853  3,779  3,696 7,507
Energy & utilities, Communication and Services (ECS)  4,122  3,957  3,864  8,079  7,583 15,430
Retail, Consumer packaged goods and Logistics (RCL)  2,742  2,695  2,833  5,437  5,694 11,225
Life Sciences, Healthcare and Insurance (HILIFE)  2,301  2,170  2,089  4,471  4,093 8,437
Hi-Tech  1,254  1,235  1,339  2,489  2,661 5,122
All other segments  514  564  646  1,078  1,127 2,208
Total  17,567  17,078  17,310  34,645  34,091 68,484
Less: Inter-segment revenue
Net revenue from operations  17,567  17,078  17,310  34,645  34,091 68,484
Segment profit before tax, depreciation and non-controlling interests:          
Financial Services (FS)  1,337  1,295  1,295  2,632  2,561 5,209
Manufacturing (MFG)  452  424  469  876  920 1,848
Energy & utilities, Communication and Services (ECS)  1,113  1,073  1,122  2,186  2,189 4,431
Retail, Consumer packaged goods and Logistics (RCL)  798  775  826  1,573  1,628 3,249
Life Sciences, Healthcare and Insurance (HILIFE)  609  598  558  1,207  1,080 2,308
Hi-Tech  314  273  342  588  662 1,277
All other segments  80  124  123  204  144 292
Total  4,703  4,562  4,735  9,266  9,184 18,614
Less: Other unallocable expenditure  457  451  426  909  829 1,713
Add: Unallocable other income  883  814  760  1,697  1,513 3,080
Add: Share in net profit/(loss) of associate (3) (5) (12)
Less: Write-down of investment in associate 71 71 18
Profit before tax and non-controlling interests  5,129  4,854  5,066  9,983  9,863 19,951

 

 

Notes on segment information

 

Business segments

 

Based on the "management approach" as defined in Ind-AS 108 - Operating Segments, the Chief Operating Decision Maker evaluates the Company's performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented along these business segments. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments.

 

Segmental capital employed

 

Assets and liabilities used in the Company's business are not identified to any of the reportable segments, as these are used interchangeably between segments. The Management believes that it is not practicable to provide segment disclosures relating to total assets and liabilities since a meaningful segregation of the available data is onerous.

 

 

By order of the Board

for Infosys Limited

Bengaluru, India

October 24, 2017

 

U. B. Pravin Rao

Interim-Chief Executive Officer and Managing Director

 

The Board has also taken on record the unaudited condensed consolidated results of Infosys Limited and its subsidiaries for the quarter and half-year ended September 30, 2017, prepared as per International Financial Reporting Standards (IFRS) and reported in US dollars. A summary of the financial statements is as follows:

 

(in US$ million, except per equity share data)

Particulars Quarter ended September 30, Quarter ended June 30, Quarter ended September 30, Half-year ended
September 30,
Year ended
March 31,
  2017 2017 2016 2017 2016 2017
Revenues  2,728 2,651 2,587 5,379 5,088 10,208
Cost of sales  1,743  1,692  1,638  3,435  3,231 6,446
Gross profit  985  959  949  1,944  1,857 3,762
Net profit  578  541  539  1,119  1,050 2,140
Earnings per equity share *            
 Basic  0.25  0.24  0.24  0.49  0.46 0.94
 Diluted  0.25  0.24  0.24  0.49  0.46 0.94
Total assets  13,551 13,178 11,875  13,551 11,875 12,854
Cash and cash equivalents including current investments  5,428 5,184 5,086  5,428 5,086 5,027

 

* EPS is not annualized for the quarter and half year ended September 30, 2017, quarter ended June 30, 2017 and quarter and half year ended September 30, 2016.

 

Certain statements in these releases concerning our future growth prospects are forward-looking statements regarding our future business expectations intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, fluctuations in foreign exchange rates, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time-frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal or expiration of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring Companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2017. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company's filings with the Securities and Exchange Commission and our reports to shareholders. In addition, please note that the date of these results is October 24, 2017, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company unless it is required by law.

 

  

 

 

 

 

Infosys Limited

Regd. office: Electronics City, Hosur Road,
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 audited consolidated financial results of Infosys Limited and its subsidiaries for the quarter and half-year ended September 30, 2017, prepared in compliance with the Indian Accounting Standards (Ind-AS)

 

( in crore except equity share data)

Particulars Quarter ended September 30, Half-year ended September 30, Quarter ended September 30,
  2017 2017 2016
Revenue from operations  17,567  34,645 17,310
Profit before tax  5,129  9,983 5,066
Net profit after tax  3,726  7,209 3,606
Total comprehensive income for the period (comprising profit for the period after tax and other comprehensive income after tax)  3,864  7,412 3,517
Paid-up equity share capital (par value 5/- each, fully paid)  1,144  1,144 1,144
Other equity  67,838  67,838 60,600
Earnings per share (par value 5/- each) *      
Basic 16.30 31.54 15.77
Diluted 16.29 31.51 15.77

 

Note: During the quarter ended June 30, 2017, the Company has written down the entire carrying value of the investment in its associate DWA Nova LLC amounting to 71 crore. The write-down in the carrying value of investment in associate DWA Nova LLC during the quarter and year ended March 31, 2017 was 18 crore.

* EPS is not annualized

 

Notes:

 

1.The audited interim consolidated financial statements for the quarter and half-year ended September 30, 2017 have been taken on record by the Board of Directors at its meeting held on October 24, 2017. The statutory auditors, Deloitte Haskins & Sells LLP have expressed an unqualified audit opinion. Amounts for the quarter ended September 30, 2016 and year ended March 31, 2017 were audited by previous auditors - B S R & Co LLP. The information presented above is extracted from the audited interim consolidated financial statements. The interim consolidated financial statements are prepared in accordance with the Indian Accounting Standards (Ind-AS) as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.
   
2.Management and Board changes during the quarter ended September 30, 2017
   
 1.On August 18, 2017 :
   
  Dr. Vishal Sikka resigned as the Chief Executive Officer and Managing Director of the Company and subsequently resigned as the Executive Vice-Chairman of the Board with effect from August 24, 2017.
   
  The Board appointed U.B. Pravin Rao as the Interim-Chief Executive Officer and Managing Director with immediate effect. Shareholders have approved the appointment of Managing Director vide Postal Ballot concluded on October 7, 2017.
   
 2.On August 24, 2017:
   
  The Board appointed Nandan M. Nilekani as the Non-Executive, Non-Independent Chairman of the Board with immediate effect. Shareholders have approved the appointment vide Postal Ballot concluded on October 7, 2017.
   
  R. Seshasayee resigned as the Chairman of the Board with immediate effect.
   
  Ravi Venkatesan resigned from his position as the Co-Chairman of the Board and continues to be the independent member of the Board.
   
  Prof. Jeffrey Lehman resigned as the member of the Board with immediate effect.
   
  Prof. John Etchemendy resigned as the member of the Board with immediate effect.
   
3.Other matters
   
 Appointed D. Sundaram as the Chairperson of the Audit Committee with effect from October 24, 2017.
   
4.Acquisiton of Brilliant Basics
   
 On September 8, 2017, Infosys acquired 100% of the voting interests in Brilliant Basics Holdings Limited., UK (Brilliant Basics) a product design and customer experience innovator with experience in executing global programs. The business acquisition was conducted by entering into a share purchase agreement for cash consideration of $4 million (29 crore), contingent consideration of up to $3 million (up to 20 crore) and an additional consideration of $2 million (13 crore), referred to as retention bonus, payable to the employees of Brilliant Basics at each anniversary year over the next two years, subject to their continuous employment with the group at each anniversary.
   
5. Update on Capital Allocation Policy
   
 The Board, at its meeting on August 19, 2017, approved a proposal for the Company to buyback its fully paid-up equity shares of face value of 5/- each from the eligible equity shareholders of the Company for an amount not exceeding 13,000 crore (approximately $2 billion). The Buyback offer comprises a purchase of upto 113,043,478 Equity Shares aggregating upto 4.92% of the paid-up equity share capital of the Company at a price of 1,150/- per Equity share. The buyback is proposed to be made from all eligible equity shareholders (including those who become equity shareholders as on the Record date by cancelling American Depository Shares and withdrawing underlying Equity shares) of the Company as on the Record Date (i.e. November 1, 2017) on a proportionate basis through the "Tender offer" route. The shareholders approved the said proposal of Buyback of Equity Shares through the postal ballot concluded on October 7, 2017. The Company has published a Public Announcement on October 10, 2017 for the buyback of its shares through a tender offer and has submitted the Draft Letter of Offer to regulatory authorities for their comments.
   
6.Information on dividends for the quarter and half-year ended September 30, 2017
   
 

The Board declared an interim dividend of 13/- per equity share. The record date for the payment of interim dividend is November 1, 2017. The interim dividend will be paid on November 4, 2017. The interim dividend declared in the previous year was 11/- per equity share.

 

  (in )

Particulars Quarter ended September 30, Half-year ended September 30, Quarter ended September 30,
  2017 2017 2016
Dividend per share (par value 5/- each)      
Interim dividend  13.00  13.00 11.00
Final dividend

 

7. Audited financial results of Infosys Limited (Standalone information)

  (in crore)

Particulars Quarter ended September 30, Half-year ended September 30, Quarter ended September 30,
  2017 2017 2016
Revenue from operations  15,356  30,326 15,000
Profit before tax  4,880  9,597 4,812
Profit for the period  3,579  6,994 3,476

 

The above is an extract of the detailed format of Quarterly audited financial results filed with Stock Exchanges under Regulation 33 of the SEBI (Listing and Other Disclosure Requirements) Regulations, 2015. The full format of the Quarterly Financial Results are available on the Stock Exchange websites, www.nseindia.com and www.bseindia.com, and on the Company's website, www.infosys.com.

 

Certain statements in these releases concerning our future growth prospects are forward-looking statements regarding our future business expectations intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, fluctuations in foreign exchange rates, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time-frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal or expiration of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2017. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and our reports to shareholders. In addition, please note that the date of these results is October 24, 2017, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company unless it is required by law.

 

 

 

 

 

Infosys Limited

Regd. office: Electronics City, Hosur Road,
Bengaluru – 560 100, India

CIN : L85110KA1981PLC013115

Website: www.infosys.com

email: investors@infosys.com

T: 91 80 2852 0261,
F: 91 80 2852 0362 

 

 

Audited financial results of Infosys Limited for the quarter and half-year ended September 30, 2017 prepared in compliance with the Indian Accounting Standards (Ind-AS) 

 

(in crore, except per equity share data) 

Particulars Quarter Ended
September 30,
Quarter Ended
June 30,
Quarter Ended
September 30,
Half-year Ended
September 30,
Year Ended
March 31,
  2017 2017 2016 2017 2016 2017
  Audited Audited Audited Audited Audited Audited
Revenue from operations  15,356  14,971  15,000  30,326  29,420 59,289
Other income, net  849  723  763  1,573  1,525 3,062
Total income  16,205  15,694  15,763  31,899  30,945 62,351
Expenses            
Employee benefit expenses  8,015  7,752  7,939  15,766  15,544 30,944
Cost of technical sub-contractors  1,377  1,334  1,183  2,712  2,319 4,809
Travel expenses  353  391  364  744  940 1,638
Cost of software packages and others  320  314  312  635  536 1,235
Communication expenses  87  83  90  170  172 372
Consultancy and professional charges  218  185  119  402  238 538
Depreciation and amortisation expense  347  343  338  690  657 1,331
Other expenses  608  576  606  1,183  1,268 2,546
Total expenses  11,325  10,978  10,951  22,302  21,674 43,413
Profit before tax  4,880  4,716  4,812  9,597  9,271 18,938
Tax expense:            
Current tax  1,346  1,394  1,327  2,741  2,640 5,068
Deferred tax  (45)  (93)  9  (138)  (25) 52
Profit for the period  3,579  3,415  3,476  6,994  6,656 13,818
Other comprehensive income            
Items that will not be reclassified subsequently to profit or loss            
Remeasurement of the net defined benefit liability / asset  6  (2)  (35)  4  (52) (42)
Equity instruments through other comprehensive income, net (5)
Items that will be reclassified subsequently to profit or loss            
Fair value changes on derivatives designated as cash flow hedges, net  20  (66)  2  (46)  2 39
Fair value changes on investments, net  11  25  36 (10)
             
Total other comprehensive income, net of tax  37  (43)  (33)  (6)  (50) (18)
             
Total comprehensive income for the period  3,616  3,372  3,443  6,988  6,606 13,800
Paid-up share capital (par value 5/- each fully paid)  1,148  1,148  1,148  1,148  1,148 1,148
Other Equity  66,869  66,869  59,934  66,869  59,934 66,869
Earnings per equity share ( par value 5 /- each) *            
Basic () 15.58  14.87  15.13  30.45  28.98 60.16
Diluted () 15.58  14.86  15.13  30.44  28.98 60.15

 

* EPS is not annualized for the quarter and half year ended September 30, 2017, quarter ended June 30, 2017 and quarter and half year ended September 30, 2016.

 

Notes:

 

1.The audited interim condensed financial statements for the quarter and half-year ended September 30, 2017 have been taken on record by the Board of Directors at its meeting held on October 24, 2017. The statutory auditors, Deloitte Haskins & Sells LLP have expressed an unqualified audit opinion. Amounts for the quarter and half year ended September 30, 2016 and year ended March 31, 2017 were audited by previous auditors - B S R & Co LLP. The information presented above is extracted from the audited interim condensed financial statements. The interim condensed financial statements are prepared in accordance with the Indian Accounting Standards (Ind-AS) as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.
   
2. Management and Board changes during the quarter ended September 30, 2017
   
 1.On August 18, 2017 :
   
  Dr. Vishal Sikka resigned as the Chief Executive Officer and Managing Director of the Company and subsequently resigned as the Executive Vice-Chairman of the Board with effect from August 24, 2017.
   
  The Board appointed U.B. Pravin Rao as the Interim-Chief Executive Officer and Managing Director with immediate effect. Shareholders have approved the appointment of Managing Director vide Postal Ballot concluded on October 7, 2017.
   
 2.On August 24, 2017:
   
  The Board appointed Nandan M. Nilekani as the Non-Executive, Non-Independent Chairman of the Board with immediate effect. Shareholders have approved the appointment vide Postal Ballot concluded on October 7, 2017.
   
  R. Seshasayee resigned as the Chairman of the Board with immediate effect.
   
  Ravi Venkatesan resigned from his position as the Co-Chairman of the Board and continues to be the independent member of the Board.
   
  Prof. Jeffrey Lehman resigned as the member of the Board with immediate effect.
   
  Prof. John Etchemendy resigned as the member of the Board with immediate effect.
   
3.Other matters
   
 

Appointed D. Sundaram as the Chairperson of the Audit Committee with effect from October 24, 2017.

   
4. Acquisiton of Brilliant Basics
   
 On September 8, 2017, Infosys acquired 100% of the voting interests in Brilliant Basics Holdings Limited., UK (Brilliant Basics) a product design and customer experience innovator with experience in executing global programs. The business acquisition was conducted by entering into a share purchase agreement for cash consideration of $4 million (29 crore), contingent consideration of up to $3 million (up to 20 crore) and an additional consideration of $2 million (13 crore), referred to as retention bonus, payable to the employees of Brilliant Basics at each anniversary year over the next two years, subject to their continuous employment with the group at each anniversary.
   
5.Update on Capital Allocation Policy
   
 The Board, at its meeting on August 19, 2017, approved a proposal for the Company to buyback its fully paid-up equity shares of face value of 5/- each from the eligible equity shareholders of the Company for an amount not exceeding 13,000 crore (approximately $2 billion). The Buyback offer comprises a purchase of upto 113,043,478 Equity Shares aggregating upto 4.92% of the paid-up equity share capital of the Company at a price of 1,150/- per Equity share. The buyback is proposed to be made from all eligible equity shareholders (including those who become equity shareholders as on the Record date by cancelling American Depository Shares and withdrawing underlying Equity shares) of the Company as on the Record Date (i.e. November 1, 2017) on a proportionate basis through the "Tender offer" route. The shareholders approved the said proposal of Buyback of Equity Shares through the postal ballot concluded on October 7, 2017. The Company has published a Public Announcement on October 10, 2017 for the buyback of its shares through a tender offer and has submitted the Draft Letter of Offer to regulatory authorities for their comments.
   
6.Information on dividends for the quarter and half-year ended September 30, 2017
   
 The Board declared an interim dividend of 13/- per equity share. The record date for the payment of interim dividend is November 1, 2017. The interim dividend will be paid on November 4, 2017. The interim dividend declared in the previous year was 11/- 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,
  2017 2017 2016 2017 2016 2017
Dividend per share (par value 5/- each)            
 Interim dividend  13.00  11.00  13.00  11.00 11.00
 Final dividend 14.75

 

7. Statement of assets and liabilities (Standalone-Audited)

(in crore)

Particulars As at
  September 30, 2017 March 31, 2017
ASSETS    
Non-current assets    
 Property, plant and equipment  8,361 8,605
 Capital work-in-progress  1,680 1,247
 Intangible assets
 Financial assets    
 Investments  15,047 15,334
 Loans  23 5
 Other financial assets  216 216
Deferred tax assets (net)  494 346
Income tax assets (net)  5,884 5,454
Other non-current assets  844 996
Total non - current assets  32,549 32,203
Current assets    
 Financial assets    
 Investments  11,208 9,643
 Trade receivables  12,304 10,960
 Cash and cash equivalents  19,877 19,153
 Loans  392 310
 Other financial assets  5,708 5,403
 Other current assets  2,413 2,213
Total current assets  51,902 47,682
Total assets  84,451 79,885
EQUITY AND LIABILITIES    
Equity    
 Equity share capital  1,148 1,148
 Other equity  69,816 66,869
Total equity  70,964 68,017
LIABILITIES    
Non-current liabilities    
Financial liabilities    
Other financial liabilities  12 40
Other non-current liabilties  39 42
Deferred tax liabilities (net)  3
Total non - current liabilities  54 82
Current liabilities    
 Financial liabilities    
 Trade payables  687 269
 Other financial liabilities  5,432 5,056
Other current liabilities  2,526 2,349
Provisions  362 350
Income tax liabilities (net)  4,426 3,762
Total current liabilities  13,433 11,786
Total equity and liabilities  84,451 79,885

 

The disclosure is an extract of the audited interim condensed Balance Sheet as at September 30, 2017 and March 31, 2017 prepared in compliance with the Indian Accounting Standards (Ind-AS).

 

8. Segment reporting (Standalone-Audited)

(in crore)

Particulars Quarter ended September 30, Quarter ended June 30, Quarter ended September 30, Half-year ended
September 30,
Year ended
March 31,
  2017 2017 2016 2017 2016 2017
Revenue by business segment            
Financial services (FS)  4,000  3,897  3,998  7,897  7,871 15,735
Manufacturing (MFG)  1,612  1,556  1,506  3,168  2,978 6,086
Energy & utilities, communication and services (ECS)  3,782  3,654  3,510  7,437  6,851 13,999
Retail, consumer packaged goods and logistics (RCL)  2,543  2,501  2,598  5,044  5,181 10,280
Life sciences, healthcare and insurance (HILIFE)  1,903  1,862  1,736  3,765  3,364 7,065
Hi-Tech  1,198  1,155  1,275  2,352  2,545 4,901
All Other Segments  318  346  377  663  630 1,223
Total  15,356  14,971  15,000  30,326  29,420 59,289
Less: Inter-segment revenue
Net revenue from operations  15,356  14,971  15,000  30,326  29,420 59,289
Segment profit before tax and depreciation:            
Financial Services (FS)  1,073  1,070  1,064  2,143  2,090 4,291
Manufacturing (MFG)  432  414  449  845  859 1,770
Energy & utilities, communication and services (ECS)  1,106  1,101  1,114  2,208  2,136 4,355
Retail, consumer packaged goods and logistics (RCL)  795  768  816  1,563  1,586 3,159
Life sciences, healthcare and insurance (HILIFE)  570  569  500  1,140  951 2,089
Hi-Tech  331  296  365  627  706 1,354
All other segments  73  119  81  191  80 199
Total  4,380  4,337  4,389  8,717  8,408 17,217
Less: Other unallocable expenditure  349  344  340  693  662 1,341
Add: Unallocable other income  849  723  763  1,573  1,525 3,062
Profit before tax  4,880  4,716  4,812  9,597  9,271 18,938

 

Notes on segment information:

 

Business segments

 

Based on the "management approach" as defined in Ind-AS 108 - Operating Segments, the Chief Operating Decision Marker evaluates the Company's performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented along these business segments. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments

 

Segmental capital employed

 

Assets and liabilities used in the Company's business are not identified to any of the reportable segments, as these are used interchangeably between segments. The Management believes that it is not practicable to provide segment disclosures relating to total assets and liabilities since a meaningful segregation of the available data is onerous.

 

 

By order of the Board

for Infosys Limited

Bengaluru, India

October 24, 2017

 

U. B. Pravin Rao

Interim-Chief Executive Officer and Managing Director

 

Certain statements in these releases concerning our future growth prospects are forward-looking statements regarding our future business expectations intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, fluctuations in foreign exchange rates, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time-frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal or expiration of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring Companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2017. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company's filings with the Securities and Exchange Commission and our reports to shareholders. In addition, please note that the date of these results is October 24, 2017, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company unless it is required by law.