Exhibit 99.1
Outcome of the Board meeting
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934
For the quarter ended June 30, 2021
Commission File Number 001-35754
Infosys Limited
(Exact name of Registrant as specified in its charter)
Not Applicable
(Translation of Registrant's name into English)
Electronics City, Hosur Road, Bangalore - 560 100, Karnataka, India. +91-80-2852-0261
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F:
Form 20-F þ Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1) : o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7) : o
TABLE OF CONTENTS
| DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
| SIGNATURES |
| INDEX TO EXHIBITS |
| EXHIBIT 99.1 |
| EXHIBIT 99.2 |
| EXHIBIT 99.3 |
DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION
Infosys Limited (“we” or “the Company”) hereby furnishes the United States Securities and Exchange Commission with copies of the following information concerning our public disclosures regarding our results of operations and financial condition for the quarter ended June 30, 2021.
The following information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
On July 14, 2021, we announced our results of operations for the quarter ended June 30, 2021. We issued press releases announcing our results under International Financial Reporting Standards ("IFRS"), copies of which are attached to this Form 6-K as Exhibit 99.2.
We have placed the form of release to stock exchanges concerning our results of operations for the quarter ended June 30, 2021 under Ind-AS. A copy of the release to stock exchanges is attached to this Form 6-K as Exhibit 99.3
A copy of the outcome of the board meeting is attached to this Form 6-K as Exhibit 99.1.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
Infosys Limited /s/ Inderpreet Sawhney | |
| Date: July 14, 2021 |
Inderpreet Sawhney General Counsel and Chief Compliance Officer |
| Exhibit No. | Description of Document |
| 99.1 | Outcome of the Board Meeting |
| 99.2 | IFRS USD press release |
| 99.3 | Form of Release to Stock Exchanges |
Exhibit 99.1
Outcome of the Board meeting
Exhibit 99.2
IFRS USD Press Release
Significant growth acceleration in Q1 to 16.9% YoY and 4.8% QoQ. Large deal momentum strong with $2.6 bn TCV Revenue guidance for FY22 revised to 14%-16%. Margin guidance retained at 22%-24%
Bengaluru, India – July 14, 2021: Infosys (NSE, BSE, NYSE: INFY), a global leader in next-generation digital services and consulting, delivered a strong Q1 performance with year on year growth accelerating to 16.9% and sequential growth increasing to 4.8% in constant currency. Large deal flows remained strong with TCV of $2.6 billion in Q1. Operating margin for the quarter was robust at 23.7%, with Free Cash Flows growing by 18.5% year on year.
“Driven by the dedication of our employees and the trust of our clients, we grew at the fastest pace in Q1 in a decade, at 16.9% year-on-year and 4.8% quarter-on-quarter in constant currency. I am proud of our employees, who as ‘One Infosys’ demonstrate resilience and commitment in delivering for our clients. This gives us confidence to increase our revenue growth guidance to 14%-16%”, said Salil Parekh, CEO and MD. “As Infosys completes forty remarkable years, its continuing success and global impact are a testament to the vision of the founders and all the leaders who have shaped the company,” he added.
| 1. | Key highlights for the quarter ended June 30, 2021 |
| · | Revenues in CC terms grew by 16.9% YoY and 4.8% QoQ |
| · | Reported revenues at $3,782 million, growth of 21.2% YoY |
| · | Digital revenues at 53.9% of total revenues, YoY CC growth of 42.1% |
| · | Operating margin at 23.7%, increase of 1.0% YoY and decline of 0.8% QoQ |
| · | Basic EPS at $0.17, growth of 26.1% YoY |
| · | FCF at $863 million, YoY growth of 18.5%; FCF conversion at 122.3% of net profit |
“Employee wellbeing is of paramount importance to us and we have had multiple interventions in this regard including facilitating vaccination for them and their dependents. We rolled out several intense employee engagement initiatives including career acceleration opportunities, compensation reviews and learning & development interventions. Our clients continue to be supportive of the multiple initiatives we have undertaken; they value the delivery commitments we have met even during these extraordinary times”, said Pravin Rao, Chief Operating Officer, Infosys. “As the demand for digital talent explodes, rising attrition in the industry poses a near-term challenge. We plan to meet this demand by expanding our hiring program of college graduates for FY 22 to ~35,000 globally”, he added.
“We remain confident of delivering on the margin guidance, underpinned by our comprehensive cost optimization program, despite increasing cost headwinds arising largely from compensation review, talent acquisition and retention”, said Nilanjan Roy, Chief Financial Officer. “Our free cash conversion was strong at 122.3% of net profit and ROE improved to 29.3%”, he added.
| 2. | Capital Allocation |
Pursuant to the Board recommendation and
subsequent to shareholders’ approval in the AGM, the company has started share buyback program through open market route from June
25, 2021 and till date, has bought back 9.8 million shares worth 
1,542 crore (app.
$0.2 billion) or 16.8% of total authorization of 9,200 crore at an average price of approx.
1,569 per share (compared to maximum Buyback Price of 1,750 per share).
*USD-INR rate of 75.00
| 3. | Client Wins & Testimonials |
The trust clients’ repose in Infosys drives us to invest further in building stronger digital capabilities and to raise the bar in delivery excellence.
| · | Archrock selected Infosys for its rich experience and deep domain expertise in the energy industry to integrate digital technologies and mobile tools for its field service technicians. Infosys will leverage its pre-configured accelerator for Microsoft Dynamics 365 Field Service Application. Eric Thode, Archrock’s Senior Vice President, Operations, said, “Our collaboration with Infosys is part of a multi-year technology project to further enhance the value proposition to our customers, more effectively manage our assets, reduce our emissions footprint and yield attractive value for our shareholders. Two major objectives of our digital transformation are to improve our customers’ experience and make our field employees’ jobs easier. As these leading-edge mobile tools are rolled out across our operations, we expect this will increase our compression unit uptime, improve the efficiency of our field service technicians and result in reduced vehicle mileage. With the right digital and energy industry credentials, we are confident Infosys is the right partner to deliver Microsoft’s industry leading field service platform.” |
| · | Infosys and the French Tennis Federation unveiled new technologies to help bridge the gap between remote fans and the game, transforming the Roland-Garros experience for the entire tennis ecosystem. Amélie Oudéa-Castera, Chief Executive Officer of French Tennis Federation (FFT), said, “This is our second year impacted by the challenges of the pandemic and social distancing, but partnering with Infosys we have set a gold standard for other sporting organizations navigating a disrupted season, and looking to bridge the gap between players, coaches and fans across the world. The innovations we have created are leading the way in establishing a long-term immersive and digital standard for sporting tournaments.” |
| · | Infosys was selected by Britvic to help deliver their strategic transformation roadmap and operations, across Applications, Cloud Infrastructure, Service Management and End User Computing. Neal Johnson, IT Director Operations & Infrastructure at Britvic, said, "Britvic's aim is to be the most dynamic, creative and admired soft drinks company in the world which means IT needs to transform the way service and operations are delivered - with Infosys we have a strategic partner to take our operations to the next level by leveraging automation and digitalisation, thereby, offering a seamless digital experience for our enterprise users. This partnership will also help us innovate faster, be more agile and to transform quickly by leveraging Infosys's thought leadership as a market leader in IT services for Consumer Goods companies.” |
| · | ArcelorMittal selected Infosys to help accelerate the company’s digital transformation journey and enable next-generation application management and business process management (BPM) services for ArcelorMittal Europe. Geert Van Poelvoorde, CEO of ArcelorMittal Europe, said, “We are delighted to partner with Infosys on our digital transformation journey. Infosys not only shares our vision and values but also brings agility, delivery excellence, and willingness to walk the extra mile to ensure mutual success. We are confident that this collaboration will mean our employees and associates are equipped with powerful new tools that enhance our competitiveness and fuel our innovation.” |
| · | Posten Norge is aiming to build a best-in-class IT service management capability to create more value for its customers. Arne Erik Berntzen, CIO, Posten Norge, said, “At Posten Norge our aim is to make everyday life simpler and the world smaller by simplifying and increasing the value of trade and communication for people and enterprises in the Nordic region. Transforming our IT processes to improve the services we deliver will enable us to be at the forefront of technology and innovation and be the customer’s first choice. With Infosys as a strategic partner we are aiming to build a best-in-class IT service management capability so we can create more value for our customers, with a focus on service experience. This collaboration will help us redesign our IT processes to be ready for new age software delivery methods with next generation technologies.” |
| · | AGCO has been working with Infosys to deliver a first-class customer experience. Infosys has been a key player in leveraging advanced technologies to enable new opportunities for AGCO’s dealers and improved services to its customers. Seth Crawford, Senior Vice President and General Manager, Precision Ag and Digital for AGCO, said, “Together with our digital partner Infosys, we have built a team that is passionate about maximizing farmers' results with smart, high-quality solutions. We are creating impactful platforms with reliable, easy to use solutions for farmers and empowering our dealers with a great digital toolset. We look forward to our continued work with Infosys to offer our dealers and farmers integrated and seamless journeys through all our channels, extending their experience with our products and services.” |
| · | Infosys has been one of the key drivers in delivering Axiata’s first live field trials for deploying virtual and Open RAN networks. “In consideration of Axiata’s Open RAN ambition across our markets, we partner up with the global best to bring next-level solutions in how we deploy, optimise and operate our networks. Infosys has been one of the key drivers in delivering our first live field trials in the deployment of virtual and Open RAN networks. In our pursuit to become The Next Generation Digital Champion, we look forward to building on this relationship as we position for more wins to future-proof our networks and meet society’s evolving needs, “ said Thomas Hundt, Group Executive Vice President – Technology, Axiata Group Berhad. |
| · | Infosys Finacle announced its Digital Banking SaaS (Software-as-a-Service) offering designed as an accessible solution to help Indian Urban Cooperative Banks (UCBs) to modernize their business and operations. Vidyadhar Anaskar, Chairman, Vidya Sahakari Bank Ltd, and Maharashtra Urban Cooperative Banks Federation, and Vice President, National Federation of Urban Cooperative Banks & Credit Societies LTD (NAFCUB), said, “Urban Cooperative Banks (UCBs) have immense potential waiting to be harnessed. The UCBs’ geographic and demographic reach within the urban and rural populace is unmatched, not to mention the richness of the banking relationship with their customers. At Vidya Bank, we are looking at leveraging this opportunity, to leapfrog into the future with a modern technology platform as a key strategic asset. With Infosys Finacle, we are able to fully embrace our digital-first vision and we look forward to differentiating ourselves with a winning combination of a strong community presence and tech-powered, innovative, contextual, banking products.” |
| 4. | Recognitions |
| · | Infosys recognized as one of India’s Best Employers among Nation-Builders 2021 |
| · | Infosys topped CRISIL’s ranking as the most Environmental, Social, and Governance (ESG) focused IT Company in India |
| · | Infosys won four Stevie® Awards at the 19th Annual American Business Awards. Also won a silver Stevie® Award at the 2021 Asia Pacific Stevie Awards |
| · | Infosys won top spot in Institutional Investor 2021 All Asia Executive Team Ranking (IT Services & Software) |
| · | Positioned as the fourth most attractive employer in India, according to the Randstad Employer Brand Research (REBR), 2021 |
| · | Ranked number 3 by Brand Finance in their top 10 most valuable Indian brands listing |
| · | Infosys was recognized as one of the top three service providers in the Nordics in the Whitelane Research and PA Consulting IT Sourcing Study 2021 |
| · | Ranked among the top five in 14 countries by Top Employer Global 2021 |
| · | Infosys won six awards in the Engineering Service Providers (ESP) category at the NASSCOM ER&D Showcase 2021. Also won ER&D Organization of the year award for 2021 |
| · | Infosys was recognized by HPE as the Global System Integrator of the Year 2021 and Asia Pacific System Integrator of the Year 2021 |
| · | Microsoft awarded ‘Supplier of the Year: Large’ to Infosys at 2021 Microsoft Supplier Program Prestige Awards |
| · | BluePrism recognized Infosys with Global Client Business Impact Partner of the Year Telecommunications and Regional Client Business Impact Telecommunications – APAC Awards at the BluePrism Partner Excellence Awards 2021 |
| · | Ranked as a leader in Gartner Magic Quadrant for Oracle Cloud Application Services, Worldwide |
| · | Positioned as a leader in Everest - Application and Digital Services in Banking PEAK Matrix® Global Assessment 2021 |
| · | Ranked as a leader in IDC MarketScape: Worldwide Microsoft Implementation Services 2021 Vendor Assessment |
| · | Ranked as a leader in IDC MarketScape: Worldwide Artificial Intelligence Services 2021 Vendor Assessment |
| · | Rated as a leader in IDC MarketScape: Worldwide Smart Manufacturing Service Providers 2021 Vendor Assessment |
| · | Positioned as a leader in NelsonHall - Cognitive & Self-Healing IT Infrastructure Management Services NEAT 2021 |
| · | Ranked as a leader in HFS Research Top 10: Telecom, Media, and Technology (TMT) Service Providers Top 10 2021 |
| · | Positioned as a leader in HFS Research Top 10: ServiceNow Services 2021 |
| · | Rated as a leader in HFS Research Top 10: Supply Chain Service Providers 2021 |
| · | Ranked as a leader in NelsonHall - Intelligent Automation in Banking NEAT 2021 |
| · | Ranked as a leader in NelsonHall - Blockchain Services NEAT 2021 |
| · | EdgeVerve won two Globee awards for ‘Most Innovative Software of The Year’ for AssistEdge and ‘Effective Leadership During COVID’ |
| · | IBS Sales League Table 2021 recognized Infosys Finacle as the best-selling solution across six categories |
| · | Infosys Positioned as Leader in ‘Salesforce Ecosystem Partners 2021’ ISG Provider Lens™ study 2020 – Leader in Germany and U.S. |
| · | Infosys was rated a Leader in Avasant’s Applied AI and Advanced Analytics Services RadarView 2021 |
| · | Infosys Positioned as Leader in ISG Provider Lens™ Quadrant study on “Mainframe Services and Solutions 2021”- Leader in US |
| · | EdgeVerve was named Best Artificial Intelligence Software Company of 2021 by Digital.com |
About Infosys
|
Infosys is a global leader in next-generation digital services and consulting. We enable clients in 46 countries to navigate their digital transformation. With four decades of experience in managing the systems and workings of global enterprises, we expertly steer our clients through their digital journey. We do it by enabling the enterprise with an AI-powered core that helps prioritize the execution of change. We also empower the business with agile digital at scale to deliver unprecedented levels of performance and customer delight. Our always-on learning agenda drives their continuous improvement through building and transferring digital skills, expertise, and ideas from our innovation ecosystem.
Visit www.infosys.com to see how Infosys (NYSE: INFY) can help your enterprise navigate your next. |
 |
Safe Harbor
“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.”
Contact
| Investor Relations |
Sandeep Mahindroo +91 80 3980 1018 Sandeep_Mahindroo@infosys.com |
|
| Media Relations |
Rishi Basu Rajarshi.Basu@infosys.com |
Harini Babu Harini_Babu@infosys.com |
Infosys Limited and subsidiaries
Extracted from the Condensed Consolidated Balance Sheet under IFRS as at:
(Dollars in millions)
| June 30, 2021 | March 31, 2021 | |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 2,871 | 3,380 |
| Current investments | 628 | 320 |
| Trade receivables | 2,747 | 2,639 |
| Unbilled revenue | 1,138 | 1,030 |
| Other Current assets | 929 | 938 |
| Total current assets | 8,313 | 8,307 |
| Non-current assets | ||
| Property, plant and equipment and Right-of-use assets | 2,438 | 2,519 |
| Goodwill and other Intangible assets | 1,106 | 1,115 |
| Non-current investments | 1,613 | 1,623 |
| Unbilled revenue | 97 | 81 |
| Other non-current assets | 1,163 | 1,180 |
| Total non-current assets | 6,417 | 6,518 |
| Total assets | 14,730 | 14,825 |
| LIABILITIES AND EQUITY | ||
| Current liabilities | ||
| Trade payables | 359 | 362 |
| Unearned revenue | 575 | 554 |
| Employee benefit obligations | 304 | 276 |
| Other current liabilities and provisions | 2,736 | 2,072 |
| Total current liabilities | 3,974 | 3,264 |
| Non-current liabilities | ||
| Lease liabilities | 591 | 627 |
| Other non-current liabilities | 436 | 432 |
| Total non-current liabilities | 1,027 | 1,059 |
| Total liabilities | 5,001 | 4,323 |
| Total equity attributable to equity holders of the company | 9,668 | 10,442 |
| Non-controlling interests | 61 | 60 |
| Total equity | 9,729 | 10,502 |
| Total liabilities and equity | 14,730 | 14,825 |
Extracted from the Condensed Consolidated statement of Comprehensive Income under IFRS for:
(Dollars in millions except per equity share data)
| 3 months ended June 30, 2021 | 3 months ended June 30, 2020 | |
| Revenues | 3,782 | 3,121 |
| Cost of sales | 2,509 | 2,071 |
| Gross profit | 1,273 | 1,050 |
| Operating expenses: | ||
| Selling and marketing expenses | 169 | 151 |
| Administrative expenses | 208 | 191 |
| Total operating expenses | 377 | 342 |
| Operating profit | 896 | 708 |
| Other income, net (3) | 77 | 57 |
| Profit before income taxes | 973 | 765 |
| Income tax expense | 268 | 201 |
| Net profit (before minority interest) | 705 | 564 |
| Net profit (after minority interest) | 704 | 558 |
| Basic EPS ($) | 0.17 | 0.13 |
| Diluted EPS ($) | 0.17 | 0.13 |
NOTES:
| 1. | The above information is extracted from the audited condensed consolidated Balance sheet and Statement of Comprehensive Income for the quarter ended June 30, 2021 which have been taken on record at the Board meeting held on July 14, 2021. |
| 2. | A Fact Sheet providing the operating metrics of the Company can be downloaded from www.infosys.com. |
| 3. | Other Income includes Finance Cost. |
Exhibit 99.3
Form of Release to Stock Exchanges
 |
Infosys Limited Regd. office: Electronics City, Hosur Road, |
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 ended June 30, 2021 prepared in compliance with the Indian Accounting Standards (Ind-AS)
(in crore, except per equity share data)
| Particulars | Quarter
ended June 30, |
Quarter
ended March 31, |
Quarter
ended June 30, |
Year ended March 31, |
| 2021 | 2021 | 2020 | 2021 | |
| Audited | Audited | Audited | Audited | |
| Revenue from operations | 27,896 | 26,311 | 23,665 | 1,00,472 |
| Other income, net | 622 | 545 | 475 | 2,201 |
| Total Income | 28,518 | 26,856 | 24,140 | 1,02,673 |
| Expenses | ||||
| Employee benefit expenses | 15,230 | 14,440 | 13,604 | 55,541 |
| Cost of technical sub-contractors | 2,454 | 1,985 | 1,626 | 7,084 |
| Travel expenses | 133 | 161 | 116 | 554 |
| Cost of software packages and others | 1,289 | 1,072 | 893 | 4,223 |
| Communication expenses | 147 | 146 | 163 | 634 |
| Consultancy and professional charges | 396 | 395 | 262 | 1,261 |
| Depreciation and amortisation expenses | 829 | 831 | 756 | 3,267 |
| Finance cost | 49 | 50 | 48 | 195 |
| Other expenses | 815 | 841 | 880 | 3,286 |
| Total expenses | 21,342 | 19,921 | 18,348 | 76,045 |
| Profit before tax | 7,176 | 6,935 | 5,792 | 26,628 |
| Tax expense: | ||||
| Current tax | 1,937 | 1,662 | 1,321 | 6,672 |
| Deferred tax | 38 | 195 | 199 | 533 |
| Profit for the period | 5,201 | 5,078 | 4,272 | 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 | (33) | (146) | 147 | 134 |
| Equity instruments through other comprehensive income, net | 1 | 9 | (1) | 119 |
| Items that will be reclassified subsequently to profit or loss | ||||
| Fair value changes on derivatives designated as cash flow hedges, net | 5 | 26 | (6) | 25 |
| Exchange differences on translation of foreign operations | 290 | (266) | 164 | 130 |
| Fair value changes on investments, net | 38 | (137) | 54 | (102) |
| Total other comprehensive income/(loss), net of tax | 301 | (514) | 358 | 306 |
| Total comprehensive income for the period | 5,502 | 4,564 | 4,630 | 19,729 |
| Profit attributable to: | ||||
| Owners of the company | 5,195 | 5,076 | 4,233 | 19,351 |
| Non-controlling interest | 6 | 2 | 39 | 72 |
| 5,201 | 5,078 | 4,272 | 19,423 | |
| Total comprehensive income attributable to: | ||||
| Owners of the company | 5,491 | 4,570 | 4,586 | 19,651 |
| Non-controlling interest | 11 | (6) | 44 | 78 |
| 5,502 | 4,564 | 4,630 | 19,729 | |
| Paid up share capital (par value 5/- each, fully paid) |
2,122 | 2,124 | 2,122 | 2,124 |
| Other equity *# | 74,227 | 74,227 | 63,328 | 74,227 |
| Earnings per equity share (par value 5/- each)** |
||||
| Basic () |
12.24 | 11.96 | 9.98 | 45.61 |
| Diluted () |
12.21 | 11.94 | 9.97 | 45.52 |
| * | Balances for the quarter ended June 30, 2021 and June 30, 2020 represent balances as per the audited Balance Sheet for the year ended March 31, 2021 and March 31, 2020, respectively as required by SEBI (Listing and Other Disclosure Requirements) Regulations, 2015 |
| ** | EPS is not annualized for the quarter ended June 30, 2021, quarter ended March 31, 2021 and quarter ended June 30, 2020. |
| # | Excludes non-controlling interest |
1. Notes
| a) | The audited interim condensed consolidated financial statements for the quarter ended June 30, 2021 have been taken on record by the Board of Directors at its meeting held on July 14, 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. At the Maximum buyback price
of
During the quarter ended June 30, 2021 43,90,000 equity
shares were purchased from the stock exchange which includes 22,04,000 shares which have been purchased but not extinguished as of June
30, 2021. In accordance with section 69 of the Companies Act, 2013, during the quarter ended June 30, 2021 , the Company has created ‘Capital
Redemption Reserve’ of |
| 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. |
| 2. | Information on dividends for the quarter ended June 30, 2021 | |
| For financial year 2021, the Board recommended a final
dividend of 15/- (par value of 5/- each) per equity share. The same was approved by the shareholders in the Annual General
Meeting of the Company held on June 19, 2021 and was paid on June 25, 2021. |
(in )
| Particulars | Quarter
ended June 30, |
Quarter
ended March 31, |
Quarter
ended June 30, |
Year ended March 31, |
| 2021 | 2021 | 2020 | 2021 | |
| Dividend per share (par value 5/- each) |
||||
| Interim dividend | – | – | – | 12.00 |
| Final dividend | – | 15.00 | – | 15.00 |
3. Segment reporting (Consolidated - Audited)
(in crore)
| Particulars | Quarter
ended June 30, |
Quarter ended March 31, |
Quarter ended June 30, |
Year ended March 31, |
| 2021 | 2021 | 2020 | 2021 | |
| Revenue by business segment | ||||
| Financial Services(1) | 9,217 | 8,677 | 7,457 | 32,583 |
| Retail (2) | 4,175 | 3,902 | 3,391 | 14,745 |
| Communication (3) | 3,403 | 3,156 | 3,165 | 12,628 |
| Energy, Utilities, Resources and Services | 3,371 | 3,233 | 3,027 | 12,539 |
| Manufacturing | 2,702 | 2,533 | 2,256 | 9,447 |
| Hi-Tech | 2,310 | 2,124 | 2,063 | 8,560 |
| Life Sciences (4) | 1,891 | 1,796 | 1,575 | 6,870 |
| All other segments (5) | 827 | 890 | 731 | 3,100 |
| Total | 27,896 | 26,311 | 23,665 | 1,00,472 |
| Less: Inter-segment revenue | – | – | – | – |
| Net revenue from operations | 27,896 | 26,311 | 23,665 | 1,00,472 |
| Segment profit before tax, depreciation and non-controlling interests: | ||||
| Financial Services (1) | 2,358 | 2,239 | 2,001 | 8,946 |
| Retail (2) | 1,482 | 1,385 | 1,048 | 5,117 |
| Communication (3) | 707 | 709 | 621 | 2,795 |
| Energy, Utilities , Resources and Services | 1,022 | 932 | 851 | 3,552 |
| Manufacturing | 625 | 707 | 506 | 2,563 |
| Hi-Tech | 567 | 558 | 598 | 2,454 |
| Life Sciences (4) | 571 | 547 | 476 | 2,156 |
| All other segments (5) | 100 | 194 | 20 | 306 |
| Total | 7,432 | 7,271 | 6,121 | 27,889 |
| Less: Other Unallocable expenditure | 829 | 831 | 756 | 3,267 |
| Add: Unallocable other income | 622 | 545 | 475 | 2,201 |
| Less: Finance cost | 49 | 50 | 48 | 195 |
| Profit before tax and non-controlling interests | 7,176 | 6,935 | 5,792 | 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 currently 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 June 30, |
Quarter ended March 31, |
Quarter ended June 30, |
Year ended March 31, |
| 2021 | 2021 | 2020 | 2021 | |
| Revenue from operations | 23,714 | 22,497 | 20,325 | 85,912 |
| Profit before tax | 6,493 | 6,040 | 5,378 | 24,477 |
| Profit for the period | 4,723 | 4,459 | 4,008 | 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 | |
| Salil Parekh | |
| Bengaluru, India July 14, 2021 |
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 ended June 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 June 30, |
Quarter ended March 31, |
Quarter ended June 30, |
Year ended March 31, |
| 2021 | 2021 | 2020 | 2021 | |
| Audited | Audited | Audited | Audited | |
| Revenues | 3,782 | 3,613 | 3,121 | 13,561 |
| Cost of sales | 2,509 | 2,357 | 2,071 | 8,828 |
| Gross profit | 1,273 | 1,256 | 1,050 | 4,733 |
| Operating expenses | 377 | 372 | 342 | 1,408 |
| Operating profit | 896 | 884 | 708 | 3,325 |
| Other income, net | 84 | 75 | 63 | 297 |
| Finance cost | 7 | 7 | 6 | 26 |
| Profit before income taxes | 973 | 952 | 765 | 3,596 |
| Income tax expense | 268 | 255 | 201 | 973 |
| Net profit | 705 | 697 | 564 | 2,623 |
| Earnings per equity share * | ||||
| Basic | 0.17 | 0.16 | 0.13 | 0.62 |
| Diluted | 0.17 | 0.16 | 0.13 | 0.61 |
| Total assets | 14,730 | 14,825 | 13,037 | 14,825 |
| Cash and cash equivalents and current investments | 3,499 | 3,700 | 2,886 | 3,700 |
| * | EPS is not annualized for the quarter ended June 30, 2021, quarter ended March 31, 2021 and quarter ended June 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.
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