Infosys Announces Results for the Quarter Ended December 31, 2012

      Infosys Announces Results for the Quarter Ended December 31, 2012

PR Newswire

BANGALORE, India, January 11, 2013

BANGALORE, India, January 11, 2013 /PRNewswire/ --

Q3 Revenues Grow by 6.3% Quarter on Quarter

Financial Highlights

Consolidated results under International Financial Reporting Standards (IFRS)
for the quarter ended December 31, 2012

  oRevenues were $1,911 million for the quarter ended December 31, 2012;
    QoQ growth was 6.3%
    YoY growth was 5.8%
  oRevenues excluding Lodestone were $1,872 million;
    QoQ growth was 4.2%
    YoY growth was 3.7%
  oNet income after tax was $434 million for the quarter ended December 31,
    2012 against $431 million for the quarter ended September 30, 2012
  oEarnings per American Depositary Share (EPADS) was $0.76 for the quarter
    ended December 31, 2012 against $0.75 for the quarter ended September 30,
    2012
  oLiquid assets including cash and cash equivalents, current
    available-for-sale financial assets, investment in certificates of
    deposits and government bonds were $4.1 billion versus $4.3 billion as on
    September 30, 2012

Other highlights:

  oThe company won 8 large outsourcing deals amounting to US$ 731 million of
    total contract value
  o14 new wins for Infosys' products and platforms
  oInfosys and its subsidiaries added 53 clients during the quarter
  oGross addition of 7,499 employees (net addition of 977) for the quarter by
    Infosys and its subsidiaries.
  o155,629 employees as on December 31, 2012 for Infosys and its subsidiaries
  oCompleted the acquisition of Lodestone Holding AG, a leading management
    consultancy based in Switzerland
  oInfosys American Depositary Shares (ADS) have started trading on the New
    York Stock Exchange (NYSE) under the ticker symbol 'INFY'. The company is
    in the process of listing its ADS on the Paris and London exchanges of
    NYSE Euronext.

"We have done well in this quarter despite an uncertain environment," said S.
D. Shibulal, CEO and Managing Director. "We continue to gain confidence from a
strong pipeline of large deals. However, the broader economic environment
remains difficult. Even so, we remain cautiously optimistic about the
January-March quarter," he added.

"We were able to maintain our margins through efficiency improvements despite
increased operating expenses. We remain focused on making the right
investments for profitable and sustainable growth in the longer term," said
Rajiv Bansal, Chief Financial Officer.

Outlook*

The company's outlook (consolidated) for the fiscal year ending March 31,
2013, under IFRS is as follows:

Revenues** are expected to be at least $7,450 million;

Earnings per American Depositary Share (EPADS) is expected to be at least
$2.97;

*Exchange rates considered for major global currencies: AUD / USD - 1.04; GBP
/ USD - 1.62; Euro / USD - 1.32 for rest of fiscal 2013

** Includes $104 million from Lodestone

Business Highlights

  oThe company won 8 large outsourcing deals amounting to US$ 731 Mn of total
    contract value
  oOur offerings in the Products and Platforms space continue to see good
    momentum. This quarter we had 14 wins across industries and geographies.
    Infosys products and platforms (excluding Finacle™) are now adopted by
    more than 70 global clients.
  oA Blue Cross Blue Shield Plan selected us as a strategic partner to
    provide enterprise-wide testing services and establish a Test CoE within
    its IT organization, aimed at creating testing processes and frameworks to
    support the company's ongoing transformation due to US healthcare reform.
    Another Blue Cross Blue Shield Plan is leveraging Infosys iTransform™
    product and services to help its ICD-10 migration, mandated by the U.S.
    federal government.
  oOur focus on Cloud as a new growth area continues to yield results and the
    Cloud business currently has more than 190 engagements and 3,500 experts.
    Over the last quarter, we won more than 15 engagements across Cloud
    services, Big Data and Security. Our vision of being a Cloud Ecosystem
    Integrator has gained increasing acceptance with clients and we are
    working with more than 30 partners to help clients create and manage their
    unified hybrid cloud environments.
  oDuring the third quarter, Infosys applied for seven patent applications in
    India and the U.S. With this, it has 525 patent applications in India, the
    U.S. and other jurisdictions, and has been granted 71 patents by the
    United States Patent and Trademark Office and two patents by the
    Luxembourg patent office.

Awards and Recognition

Infosys has been consistently honored by influencers

  oWe were declared the winners of 2012 Asia's Most Admired Knowledge
    Enterprises (MAKE) study by Teleos, in association with The KNOW Network
    for the 10^th time, for developing knowledge based products and services.
  oInfosys BPO Ltd. has been awarded the prestigious 2012 Optimas Award for
    'Managing Change', recognizing exemplary achievements in workforce
    management and for successfully integrating new employees from around the
    globe into the organization.
  oInfosys BPO Ltd. won the Gold Award for Marketing Excellence in the
    category of 'Marketing with Social and Interactive Media' at the
    Information Technology Services Marketing Association (ITSMA) Awards 2012.
  oWe have received the Microsoft Platform Modernization Award for sales
    achievement for our Legacy Modernization solution, which helps customers
    migrate to Microsoft platforms.
  oWe were awarded the National Energy Conservation Award 2012 for our energy
    conservation efforts at our campuses in Jaipur and Pune.
  oWe have been awarded the global No. 1 position for our corporate
    governance practices by IR Global Rankings (IRGR).
  oFinacle™ from Infosys has been ranked as a long-term leader in The
    Forrester Wave™: Global Banking Platforms, Q4 2012

About Infosys Ltd

Infosys partners with global enterprises to drive their innovation-led growth.
That's why Forbes ranked Infosys 19th among the top 100 most innovative
companies. As a leading provider of next-generation consulting, technology and
outsourcing solutions, Infosys helps clients in more than 30 countries realize
their goals.

Visit http://www.infosys.com and see how Infosys (NYSE: INFY), with its
150,000+ people, is Building Tomorrow's Enterprise^® today.

Safe Harbor

Certain statements in this release concerning our future growth prospects are
forward-looking statements, 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, 2012 and on Form 6-K for the quarter
ended December 31, 2011, June 30, 2012 and September 30, 2012. These filings
are available at http://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.

INR Press Release:
http://www.multivu.prnewswire.com/mnr/prne/operations/INR-press-release-Version-4.pdf

Fact Sheet:
http://www.multivu.prnewswire.com/mnr/prne/operations/Factsheet-Q3-2013.pdf



Infosys Limited and subsidiaries

Unaudited Condensed Consolidated Balance Sheets as of

(Dollars in millions except share data)

                                                    December 31,      March 31,
                                                           2012           2012
    ASSETS
    Current assets
    Cash and cash equivalents                            $2,740         $4,047
    Available-for-sale financial assets                   1,339              6
    Investment in certificates of deposit                     -             68
    Trade receivables                                     1,266          1,156
    Unbilled revenue                                        405            368
    Prepayments and other current assets                    335            300
    Total current assets                                  6,085          5,945
    Non-current assets
    Property, plant and equipment                         1,115          1,063
    Goodwill                                                368            195
    Intangible assets                                        72             34
    Available-for-sale financial assets                       2              2
    Investment in government bonds                           12              -
    Deferred income tax assets                               77             62
    Income tax assets                                       191            204
    Other non-current assets                                 33             32
    Total non-current assets                              1,870          1,592
    Total assets                                          $7955         $7,537
    LIABILITIES AND EQUITY
    Current liabilities
    Derivative financial instruments                          -             $9
    Trade payables                                           13              5
    Current income tax liabilities                          227            207
    Client deposits                                          12              3
    Unearned revenue                                        146            107
    Employee benefit obligations                            109             98
    Provisions                                               39             26
    Other current liabilities                               562            482
    Total current liabilities                             1,108            937
    Non-current liabilities
    Deferred income tax liabilities                          16              2
    Other non-current liabilities                            18             22
    Total liabilities                                     1,142            961
    Equity
    Share capital- `5 ($0.16) par value
    600,000,000 equity shares authorized, issued
    and outstanding 571,402,566 and 571,396,410,
    net of 2,833,600 treasury shares each as of
    December 31, 2012 and March 31, 2012,
    respectively                                             64             64
    Share premium                                           704            703
    Retained earnings                                     7,223          6,509
    Other components of equity                          (1,178)          (700)
    Total equity attributable to equity holders
    of the company                                        6,813          6,576
    Non-controlling interests                                 -              -
    Total equity                                          6,813          6,576
    Total liabilities and equity                         $7,955         $7,537

Infosys Limited and subsidiaries

Unaudited Condensed Consolidated Statements of Comprehensive Income

(Dollars in millions except share and per equity share data)

                                     Three        Three         Nine         Nine
                                    months       months       months       months
                                     ended        ended        ended        ended
                                  December     December     December     December
                                  31, 2012     31, 2011     31, 2012     31, 2011

    Revenues                        $1,911       $1,806       $5,460       $5,233
    Cost of sales                    1,203         1030        3,376        3,077
    Gross profit                       708          776        2,084        2,146
    Operating expenses:
    Selling and marketing
    expenses                            99           88          277          275
    Administrative expenses            118          128          355          386
    Total operating expenses           217          216          632          661
    Operating profit                   491          560        1,452        1,485
    Other income, net                   92           82          308          266
    Profit before income taxes         583          642        1,760        1,751
    Income tax expense                 149          184          479          498
    Net profit                        $434         $458       $1,281       $1,253
    Other comprehensive income
    Fair value changes on
    available - for-sale
    financial asset, net of
    tax effect                           -            -            -          $(2)
    Exchange differences on
    translating foreign
    operations                        (250)        (442)        (478)      (1,004)
    Total other comprehensive
    income                           $(250)       $(442)       $(478)     $(1,006)

    Total comprehensive income        $184          $16         $803         $247

    Profit attributable to:
    Owners of the company             $434         $458       $1,281       $1,253
    Non-controlling interests            -            -            -            -
                                      $434         $458       $1,281       $1,253
    Total comprehensive income
    attributable to:
    Owners of the company             $184          $16         $803         $247
    Non-controlling interests            -            -            -            -
                                      $184          $16         $803         $247

    Earnings per equity share
    Basic ($)                         0.76         0.80         2.24         2.19
    Diluted ($)                       0.76         0.80         2.24         2.19
    Weighted average equity
    shares used in computing
    earnings per equity share
    Basic                      571,400,086  571,377,084  571,398,129  571,356,602
    Diluted                    571,400,417  571,396,560  571,399,018  571,394,949

NOTE:

1. The unauditedCondensedConsolidated Balance sheets and Condensed
Consolidated Statements of Comprehensive Incomefor the three months and nine
months ended December 31, 2012 has been taken on record at the Board meeting
held on January 11, 2013

2. A Fact Sheet providing the operating metrics of the company can be
downloaded fromhttp://www.infosys.com

SOURCE Infosys

Contact: Investor Relations: Avishek Lath, India, +91 (80) 4116 7744,
avishek_lath@infosys.com ; Sandeep Mahindroo, US, +1 (646) 254 3133,
sandeep_mahindroo@infosys.com ; Media Relations: Sarah Vanita Gideon, India,
+91 (80) 4156 4998, Sarah_Gideon@infosys.com ; Danielle D'Angelo, USA , +1
(510) 859 5783, Danielle_Dangelo@infosys.com
 
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