EX-99.2 OPIN COUNSEL 3 exv99w02.htm IFRS INR PRESS RELEASE exv99w02.htm
Exhibit 99.2
IFRS INR Press Release
Infosys Announces Results for the Quarter ended December 31, 2012
 
Q3 Revenues grow by 5.7% quarter on quarter
 
Bangalore, India – January 11, 2013
 
Financial Highlights
 
Consolidated results under International Financial Reporting Standards (IFRS) for the quarter ended December 31, 2012
  • Revenues were rupee-symbol10,424 crore for the quarter ended December 31, 2012;
    QoQ growth was 5.7%
    YoY growth was 12.1%
  • Revenues excluding Lodestone were rupee-symbol10,210 crore;
    QoQ growth was 3.6%
    YoY growth was 9.8%
  • Net profit after tax was rupee-symbol2,369 crore  for the quarter ended December 31, 2012, which remained unchanged compared to the quarter ended September 30, 2012
  • Earnings per share (EPS) was rupee-symbol41.47 for the quarter ended December 31, 2012 against rupee-symbol41.46 for the quarter ended September 30, 2012
  • Liquid assets including cash and cash equivalents, current available-for-sale financial assets, investment in certificates of deposits and government bonds were rupee-symbol22,501 crore versus rupee-symbol22,570 crore as on September 30, 2012.
Other highlights:
  • The company won 8 large outsourcing deals amounting to US$ 731 million of total contract value
  • 14 new wins for Infosys’ products and platforms
  • Infosys and its subsidiaries added 53 clients during the quarter
  • Gross addition of 7,499 employees (net addition of 977) for the quarter by Infosys and its subsidiaries.
  • 1,55,629 employees as on December 31, 2012 for Infosys and its subsidiaries
  • Completed the acquisition of Lodestone Holding AG, a leading management consultancy based in Switzerland
  • Infosys 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 rupee-symbol40,746 crore;
  • Earnings per share (EPS) is expected to be at least rupee-symbol162.80;
*   Conversion 1 US$ = rupee-symbol54.50 for rest of fiscal 2013
** Includes rupee-symbol568 crore from Lodestone
 
Business Highlights
  • The company won 8 large outsourcing deals amounting to US$ 731 Mn of total contract value
  • Our 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.
  • A 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.
  • Our 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.
  • During 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
  • We were declared the winners of 2012 Asia’s Most Admired Knowledge Enterprises (MAKE) study by Teleos, in association with The KNOW Network for the 10th time, for developing knowledge based products and services.
  • Infosys 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.
  • Infosys 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.
  • We have received the Microsoft Platform Modernization Award for sales achievement for our Legacy Modernization solution, which helps customers migrate to Microsoft platforms.
  • We were awarded the National Energy Conservation Award 2012 for our energy conservation efforts at our campuses in Jaipur and Pune.
  • We have been awarded the global No. 1 position for our corporate governance practices by IR Global Rankings (IRGR).
  • Finacle™ 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 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 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.
 
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
 

Infosys Limited and subsidiaries
 
Consolidated Balance Sheets as of
(In rupee-symbol crore except share data)
 
December 31, 2012
March 31, 2012
ASSETS
    
Current assets
    
Cash and cash equivalents
15,071
20,591
Available-for-sale financial assets
7,365
32
Investment in certificates of deposit
–
345
Trade receivables
6,960
5,882
Unbilled revenue
2,227
1,873
Prepayments and other current assets
1,843
1,523
Total current assets
33,466
30,246
Non-current assets
    
Property, plant and equipment
6,133
5,409
Goodwill
2,025
993
Intangible assets
397
173
Available-for-sale financial assets
8
12
Investment in government bonds
65
–
Deferred income tax assets
422
316
Income tax assets
1,051
1,037
Other non-current assets
183
162
Total non-current assets
10,284
8,102
Total assets
43,750
38,348
LIABILITIES AND EQUITY
    
Current liabilities
    
Trade payables
75
23
Derivative financial instruments
–
42
Current income tax liabilities
1,249
1,054
Client deposits
65
15
Unearned revenue
801
545
Employee benefit obligations
599
498
Provisions
215
133
Other current liabilities
3,092
2,456
Total current liabilities
6,096
4,766
Non-current liabilities
    
Deferred income tax liabilities
85
12
Other non-current liabilities
100
109
Total liabilities
6,281
4,887
Equity
    
Share capital- rupee-symbol5 par value 60,00,00,000 equity shares authorized, issued and outstanding 57,14,02,566 and 57,13,96,401, net of 28,33,600 treasury shares each, as of December 31, 2012 and March  31, 2012, respectively
286
286
Share premium
3,090
3,089
Retained earnings
33,720
29,816
Other components of equity
373
270
Total equity attributable to equity holders of the company
37,469
33,461
Non-controlling interests
–
–
Total equity
37,469
33,461
Total liabilities and equity
43,750
38,348

Infosys Limited and subsidiaries
 
Consolidated Statements of Comprehensive Income
(In rupee-symbol crore except share and per equity share data)
 
Three months ended December 31, 2012
Three months ended December 31, 2011
Nine months ended December 31, 2012
Nine months ended December 31, 2011
Revenues
10,424
9,298
29,898
24,882
Cost of sales
6,566
5,288
18,478
14,609
Gross profit
3,858
4,010
11,420
10,273
Operating expenses:
        
Selling and marketing expenses
541
451
1,516
1,305
Administrative expenses
640
660
1,937
1,836
Total operating expenses
1,181
1,111
3,453
3,141
Operating profit
2,677
2,899
7,967
7,132
Other income, net
503
422
1,685
1,252
Profit before income taxes
3,180
3,321
9,652
8,384
Income tax expense
811
949
2,625
2,384
Net profit
2,369
2,372
7,027
6,000
Other comprehensive income
        
Fair value changes on available - for-sale financial asset, net of tax effect
(1)
–
(3)
(8)
Exchange differences on translating foreign operations
82
129
106
199
Total other comprehensive income
81
129
103
191
Total comprehensive income
2,450
2,501
7,130
6,191
Profit attributable to:
        
Owners of the company
2,369
2,372
7,027
6,000
Non-controlling interests
–
–
–
–
 
2,369
2,372
7,027
6,000
Total comprehensive income attributable to:
        
Owners of the company
2,450
2,501
7,130
6,191
Non-controlling interests
–
–
–
–
 
2,450
2,501
7,130
6,191
Earnings per equity share
        
Basic (rupee-symbol)
41.47
41.51
122.99
105.01
Diluted (rupee-symbol)
41.47
41.51
122.99
105.01
Weighted average equity shares used in computing earnings per equity share
        
Basic
57,14,00,086
57,13,77,084
57,13,98,129
57,13,56,602
Diluted
57,14,00,417
57,13,96,560
57,13,99,018
57,13,94,949

NOTE:
1. The audited Consolidated Balance sheets and Consolidated Statements of Comprehensive Income for the three months ended 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 from www.infosys.com