PR84794

BENGALURU, India, July 15, 2020 /PRNewswire=KYODO JBN/ --

     "Our Q1 results, especially growth, are a clear testimony to the relevance

of our service offerings and deep understanding of clients' business priorities

which is resonating with them in these times. It also demonstrates the

remarkable dedication of our employees and leadership during this period," said

Salil Parekh, CEO and MD. "Our confidence and visibility for the rest of the

year is improving driven by our Q1 performance and large deal wins."

     25.5% YoY

     Digital CC growth

     1.5% YoY

     CC growth

     22.7%

     Operating margin

     $1.74bn

     Large deal signings

     - Revenues declined year-on-year by 0.3% in USD; grew by 1.5% in constant

currency

     - Digital revenues at $1,389 million (44.5% of total revenues),

year-on-year growth of 25.5% in constant currency

     - Operating margin at 22.7%, increase of 220 basis points year-on-year

     - Free Cash Flow at $728 million; year-on-year growth of 50.1%

     - Voluntary attrition for IT services declined to 11.7% from 20.2% in Q1 20

     - FY 21 Revenue growth guidance in the range of 0%-2% in constant currency

     - Operating margin for FY 21 to be in the range of 21%-23%

    1.  Financial Highlights - Consolidated results under International

Financial Reporting Standards (IFRS)

    For the quarter ended June 30, 2020

    Revenues were $3,121 million, decline of 0.3% YoY and 2.4% QoQ

    Operating profit was $708 million, growth of 10.1% YoY and 4.9% QoQ.

Operating margin was 22.7%

    Basic EPS was $0.13, growth of 3.8% YoY and decline of 5.4% QoQ

    "During the last few months, we took multiple steps aimed at employee

safety and well-being while providing seamless services to our clients. Clients

have recognized us for the speed, security and effectiveness of our remote

enablement efforts", said Pravin Rao, COO. "The strength and diversity of our

portfolio was evident in good revenue performance, sizeable large deal wins,

high focus on operating metrics and significant decline in attrition."

    "Operating margin expanded to 22.7% driven by preemptive deployment of our

strategic cost levers along with tactical opportunities triggered by the COVID

situation", said Nilanjan Roy, CFO. "Collections were robust and capex was

focused, which led to 50% year on year increase in Free Cash Flows. Our liquid

and debt free Balance Sheet is a huge source of strength in these times."

    2.  Board changes

    The Board, based on the recommendation of the Nomination and Remuneration

Committee, appointed Bobby Parikh as an additional and Independent Director of

the Company effective July 15, 2020 for a period of 3 years, subject to the

approval of the shareholders.

    3.  Client wins & Testimonials

    Infosys partnered with the State of Rhode Island in launching a

privacy-first contact tracing solution to help Rhode Islanders and state

officials slow the spread of coronavirus throughout the state. The application,

called "CRUSH COVID RI," will utilize Infosys' Location Based Services platform

to create individualized location diaries, while protecting user privacy.

    Infosys was selected by GlobalFoundries (GF), the world's leading specialty

foundry, as its partner for the company's Digital Transformation program.

Through this partnership, Infosys will provide expertise and analytical

solutions to optimize the overall efficiency and agility of GF's manufacturing

and business operations.

FE CREDIT, a subsidiary of VP Bank, the market leader in consumer lending in

Vietnam, upgraded its Finacle Digital Banking solution suite to the latest

version and migrated it from an on-premise deployment to a

Software-as-a-Service (SaaS) model. Finacle's cloud-native, microservices-based

digital banking solution suite will run on the AWS cloud.

    A large CPG company selected Infosys as the strategic transformation

partner for IT services. With this engagement Infosys will provide end-to-end

support for enabling integrated operations across Applications, Infrastructure

and Cybersecurity.

    4.  Recognitions

     - Positioned as a leader in IDC MarketScape: EMEA Digital Transformation

Service Providers for Oil and Gas Industry 2020 Vendor Assessment

     - Ranked as a leader in IDC MarketScape: Worldwide Blockchain Services

2020 Vendor Assessment

     - Ranked as a leader in IDC MarketScape: Worldwide Business Analytics

Consulting and Systems Integration Services 2020 Vendor Assessment

     - Ranked as a leader in IDC MarketScape: Worldwide Cloud Business

Analytics Services 2020 Vendor Assessment

     - Positioned as a leader in Everest Group's Open Banking IT Services PEAK

Matrix Assessment 2020

     - Positioned as a leader in Everest Group's Risk & Compliance PEAK Matrix

Assessment 2020

     - Ranked number one in HFS Top 10: Agile Software Development, 2020

     - Recognized as a leader in HFS Top 10: Enterprise Blockchain Services

2020

     - Recognized as a leader in NelsonHall Mortgage & Loan Services NEAT 2020

     - EdgeVerve Systems was positioned as a Leader in Process Discovery and

Mining in NelsonHall NEAT 2020

     - Won the award for 2020 Microsoft Datacenter Migration Partner of the

Year

     - Won the "2020 BEST Awards" by The Association for Talent Development

(ATD), USA

     - Won the Pega Partner Award for Excellence in Growth and Delivery.

     - Awarded the 2020 IBM Beacon Award for our Cognitive Digital Commerce

platform

     - Celent recognized Emirates NBD's millennial focused digital-only bank

Liv as 'The Best Digital Bank' for driving a compelling digital-only

proposition leveraging Finacle Core Banking solution

     - Infosys' Investor Relations (IR) function was recognized as the top IR

functions amongst Indian companies in an annual survey conducted by FinanceAsia

     - Adjudged as the company most committed to social causes and amongst top

three in environmental stewardship in India by FinanceAsia

    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 nearly 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, 2020. These filings are available at www.sec.gov. Infosys may,

from time to time, make additional written and oral forward-looking statements,

including statements contained in the Company's filings with the Securities and

Exchange Commission and our reports to shareholders. The Company does not

undertake to update any forward-looking statements that may be made from time

to time by or on behalf of the Company unless it is required by law.

    Infosys Limited and subsidiaries

    Extracted from the condensed consolidated Balance Sheet under IFRS as at:

    (Dollars in millions)

                                                                         June 30, 2020       March 31, 2020

     ASSETS

     Current assets

     Cash and cash equivalents                               2,515                        2,465

     Earmarked bank balance for dividend (3)            536                           -

     Current investments                                             371                           615

     Trade receivables                                               2,487                        2,443

     Unbilled revenue                                                   949                           941

     Other Current assets (4)                                       865                           748

     Total current assets                                            7,723                        7,212

     Non-current assets

     Property, plant and equipment and

     Right-of-use assets                                            2,354                        2,361

     Goodwill and other Intangible assets                   956                            950

     Non-current investments                                      853                          547

     Other non-current assets                                   1,151                        1,190

     Total non-current assets                                    5,314                        5,048

     Total assets                                                       13,037                        12,260

    LIABILITIES AND EQUITY

     Current liabilities

     Trade payables                                                      366                          377

     Unearned revenue                                                 410                          395

     Employee benefit obligations                                253                          242

     Other current liabilities and provisions               2,400                        1,743

     Total current liabilities                                         3,429                        2,757

     Non-current liabilities

     Lease liabilities                                                       512                          530

     Other non-current liabilities                                    288                          272

     Total non-current liabilities                                     800                          802

     Total liabilities                                                       4,229                        3,559

     Total equity attributable to

     equity holders of the company                              8,747                        8,646

     Non-controlling interests                                           61                           55

     Total equity                                                            8,808                        8,701

     Total liabilities and equity                                    13,037                       12,260

     Extracted from the condensed consolidated statement of comprehensive

income under IFRS for:

      (Dollars in millions except per equity share data)

                                                                  3 months ended        3 months ended

                                                                    June 30, 2020            June 30, 2019

     Revenues                                                        3,121                        3,131

     Cost of sales                                                   2,071                        2,122

     Gross profit                                                     1,050                        1,009

     Operating expenses:

      Selling and marketing expenses                       151                        169

      Administrative expenses                                   191                        198

     Total operating expenses                                   342                        367

     Operating profit                                                  708                        642

     Other income, net (5)                                           57                        100

     Profit before income taxes                                 765                        742

     Income tax expense                                            201                        196

     Net profit (before minority interest)                   564                        546

     Net profit (after minority interest)                      558                        546

     Basic EPS ($)                                                     0.13                       0.13

     Diluted EPS ($)                                                  0.13                       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, 2020 which have been taken on record at the Board

meeting held on July 15, 2020.

     2. A Fact Sheet providing the operating metrics of the Company can be

downloaded from www.infosys.com

     3. Represents bank balance earmarked for final dividend. Payment date for

dividend was July 3, 2020.  

     4. Other receivables include $80 million towards redemption of mutual

funds.

     5. Other Income includes Finance Cost.

     IFRS-INR Press Release:

https://www.infosys.com/investors/reports-filings/quarterly-results/2020-2021/q1/documents/ifrs-inr-press-release.pdf 

     Fact Sheet:

https://www.infosys.com/investors/reports-filings/quarterly-results/2020-2021/q1/documents/fact-sheet.pdf 

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    Sourc: Infosys