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 March 31, 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 and year ended March 31, 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 April 14, 2021, we announced our results of operations for the quarter and year ended March 31, 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 and year ended March 31, 2021 under Ind-AS. A copy of the release to stock exchanges is attached to this Form 6-K as Exhibit 99.3.
The Board of Directors of the Company amongst other matters, declared a final dividend of ₹15/- per equity share which will be paid on June 25, 2021 and announced that the 40th Annual General Meeting of the members of the Company will be held virtually on June 19, 2021. The record date for the purposes of the Annual General Meeting and final dividend is June 1, 2021.
The Board of Directors of the Company amongst other matters, also approved a proposal for the Company to buyback its own fully paid-up equity shares of face value of ₹ 5/- each (“Equity Shares”) from the equity shareholders of the Company (other than the promoters, the promoters group and persons in control of the Company), being 14.87% and 13.53% of its total paid-up capital and free reserves as on March 31, 2021 (on a standalone and consolidated basis, respectively) for an amount, payable in cash, aggregating up to ₹ 9,200 crore (Rupees Nine Thousand Two Hundred crore only) (“Maximum Buyback Size”) which is less than 15% of the aggregate of the total paid-up share capital and free reserves of the Company, based on the latest audited financial statements of the Company as at March 31, 2021 (on a standalone and consolidated basis), for a price not exceeding ₹ 1,750/- (Rupees One Thousand Seven Hundred and Fifty only) per Equity Share ("Maximum Buyback Price") through the open market route through the Indian stock exchanges, in accordance with the provisions of the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 (as amended) ("Buyback Regulations”) and the Companies Act, 2013 and the rules made thereunder (“Buyback”).
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: April 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
• Digital Differentiation and Large Deal Momentum Drive Industry-leading Growth in FY21
• Double-digit Revenue Growth Guidance of 12%-14% for FY22
• Share Buyback of 
9,200 Crore ($1.23 bn) and Final Dividend of 6,400 Crore ($0.85 bn) Announced
Bengaluru, India – April 14,
2021: Infosys (NSE, BSE, NYSE: INFY), a global leader in next-generation digital services and consulting, delivered strong FY21 performance
with 5.0% CC growth, and growth accelerating to 9.6% in Q4 – in the face of a turbulent economic environment. Large deal TCV for
FY21 peaked to an all-time high of $14.1 billion with 66% being net new. Operating margin for the year expanded by 3.2% and Free Cash
Flows increased by 38.5%. The Board has recommended capital return of 15,600 crore (app.
$2.08 billion) including final dividend of 6,400 crore (app. $0.85 billion)
and open market buyback of shares of 9,200 crore (app. $1.23 billion).
“I am very pleased with our performance
this year and incredibly proud of our employees for the passion and commitment they displayed despite a very tough environment. We have
crossed a milestone of 100,000 crore in revenue in FY21. Our intense focus on client relevance, growing our digital portfolio with differentiated
capabilities like Infosys CobaltTM, and empowering employees have helped us emerge as a preferred ‘partner-of-choice’
for our global clients. Our record large deal wins stand testimony to the effectiveness of this approach”, said Salil Parekh,
CEO and MD. “A strong momentum exiting FY21, alongside a focused strategy to accelerate client digital journeys, gives us confidence
for a stronger FY22”, he added.
Outlook for FY22:
| · | Revenue growth guidance of 12%-14% in constant currency |
| · | Operating margin guidance of 22%-24% |
In Q4, Infosys continued to expand its digital capabilities, especially with the Infosys CobaltTM cloud portfolio. The company announced a partnership with LivePerson for Conversational AI to help brands manage AI-powered conversations with consumers and employees. Powered by NVIDIA DGX A100 systems, the company also built its own applied AI cloud to provide employees simple and fast access to AI infrastructure, expanding their ability to drive AI-driven transformation for enterprises.
During the quarter, Infosys was also recognized as one of the World’s Most Ethical Companies in 2021 by Ethisphere Institute, US and was ranked #30 on WSJ’s 2021 list of 100 most sustainably managed companies in the world.
| 1. | FinancialKey highlights for the quarter and year ended March 31, 2021 |
For the quarter ended March 31, 2021 Revenues in CC terms grew by 9.6% YoY and 2.0% QoQ
Reported revenues at $3,613 million, growth of 13.0% YoY
Digital revenues at 51.5% of total revenues, YoY CC growth of 34.4%
Operating margin at 24.5%, increase of 3.4% YoY and decline of 0.9% QoQ
Basic EPS at $0.16, growth of 18.0% YoY
FCF at $799 million, YoY growth of 34.7%; FCF conversion at 114.6% of net profit |
For the year ended March 31, 2021 Revenues in CC terms grew by 5.0% YoY
Reported revenues at $13,561 million, growth of 6.1% YoY
Digital revenues at 48.5% of total revenues, YoY CC growth of 29.4%
Operating margin at 24.5%, increase of 3.2% YoY
Basic EPS at $0.62, growth of 12.5% YoY
FCF at $2,973 million, YoY growth of 38.5%; FCF conversion at 113.3% of net profit |
“Despite the disruptions, we continue to execute seamlessly with broad-based momentum across verticals. This has led to healthy volume growth and record utilization in a seasonally soft quarter”, said Pravin Rao, COO. While our employees continue to work from home through this health crisis, we remain focused on their wellness, including facilitating vaccination rollout for eligible employees. Attrition has picked up, largely reflecting a strong demand environment, but we remain confident of our employee engagement initiatives, vast talent pool and training capabilities to ensure seamless execution”, he added.
“FY21 was a landmark year with superior
shareholder returns backed by robust operating metrics and strong growth across revenue, margins and free cash flows”, said Nilanjan
Roy, CFO. “Executing on our capital allocation policy, the company proposes to increase the total dividend per share by 54%
over previous year and Buyback of Equity shares of up to 9,200 crore”, he added.
| 2. | Capital Allocation |
The Board in its meeting held today approved the following:
| · | Buyback
of Equity Shares, from the open market route through the Indian stock exchanges, amounting to 9,200 crore (Maximum Buyback Size,
excluding buyback tax) (app. $1.23 billion*) at a price not exceeding 1,750 per share (Maximum Buyback Price) (app. $23.3 per ADS*),
subject to shareholders' approval in the ensuing AGM. |
| · | For
FY 21, the Board has recommended a final dividend of 15 per share ($0.20 per ADS*). Together with the interim dividend of 12
per share already paid, the total dividend per share for FY 21 will amount to 27 (app. $0.36 per ADS*) which is a 54% increase
over FY 20. With this, the company has announced total dividend of 11,500 crore (app. $1.53 billion*) for FY21. |
*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.
| · | Sam Marnick, Executive Vice President and Chief Operating Officer, Spirit AeroSystems, said, “We look forward to partnering with Infosys on our efforts to further diversify our business and strategically position Spirit AeroSystems for the future. We appreciate the long-standing relationship we have with Infosys and the support they have brought to a number of strategic projects for Spirit.” |
| · | Alan Feeley, CIO of Siemens Gamesa, said, “Implementing a single S/4HANA system across all business units and regions is a core component of our company-wide strategy towards process efficiency, standardization and industrialization. These first go live steps across 7 countries, supporting all business types, have proven the value of the greenfield approach chosen, achieving a stable productive environment around Hybrid Azure cloud by Infosys. This single and global setup provides an almost Zero “change the standard” approach giving confidence towards sustainable cost management & upgrade proofing for the future. Infosys has demonstrated admirable ‘staying power’ and has delivered a solid product whilst fulfilling our expectations of being a partner in full.” |
| · | “We are pleased to continue to partner with Infosys BPM in standardizing and digitizing supply chain processes across our regions. Infosys BPM’s strong leadership commitment and clear understanding of our operations will enable significant productivity improvements, service levels improvements, and cost savings,” said Ryan Plourde, Group Executive – Supply Chain, Newmont Corporation. |
| Paolo Lomonaco, CFO, Chalhoub Group, said, “We are delighted to extend our strategic collaboration with Infosys to accelerate our digital transformation journey and enable a seamless transition to a new business model in the post-Covid normal. Infosys has been our partner of choice in providing a range of technology services for almost a year and has managed to efficiently transition during the unprecedented situation. We look forward to leveraging Infosys’ adroitness and a clear understanding of best in class retail technologies to scale digital commerce and drive operational efficiency.” |
| “We collaborated with Infosys to organize our first Mars AI virtual festival in December 2020, featuring top leaders from Mars, incorporated and globally renowned AI experts. With more than 8,000 associates and business stakeholders attending, spread across geographies, and spanning various business segments, we needed a platform that could not only support the scale of the event but also deliver a seamless, immersive, and engaging experience. And the Infosys Meridian platform delivered. Using the Infosys Meridian workplace ecosystem, we were able to drive interactions and collaboration amongst the global participants by orchestrating immersive interventions that included 26 kiosks, a speaker hangout area, a Twitter board, multiple games, a leaderboard, a digital caricature corner, and a live DJ. Over the five days of the event, we were able to execute an exciting agenda to create and sustain meaningful engagements with our global stakeholders.” - Miao Song, Global CIO, Mars Petcare |
| · | “Our partnership with Infosys has been invaluable, allowing us to innovate, strengthen our core operations, handle growing volumes and as customers focus on becoming increasingly digital, improve our services. The Infosys team supports our business transformation goals by helping us drive efficiencies and improve customer experience. Infosys demonstrated great support and flexibility throughout the pandemic, helping us keep our operations running and delivering with an unwavering customer-focus.” - Petteri Naulapää, CIO, Posti Group Oyj |
| 4. | Recognitions | |
| 1. | Ranked #30 (from previous ranking of #94 in 2020) on WSJ’s 2021 List of 100 Most Sustainably Managed Companies in the World |
| 2. | Recognized as one of the World’s Most Ethical Companies in 2021 by Ethisphere Institute, US |
| 3. | Positioned as a leader in Gartner Magic Quadrant for Data and Analytics Service Providers |
| 4. | Ranked as a leader in HFS Top 10: Hyperscaler Cloud Service Providers 2021 |
| 5. | Ranked as a leader in HFS Top 10: Digital Associates Services |
| 6. | Positioned as a leader in NelsonHall NEAT on Salesforce Services 2020 |
| 7. | Ranked as a leader in NelsonHall NEAT in SAP Cloud Migration Services 2021 |
| 8. | Ranked as a leader in Constellation ShortList™ Microsoft End-to-End Service Providers |
| 9. | Positioned as a leader in Constellation ShortList™ Blockchain Technology Services |
| 10. | Positioned as a leader in Constellation ShortList™ Learning Marketplaces |
| 11. | Ranked as a Leader in Everest - Software Product Engineering Services PEAK Matrix® Assessment 2021 |
| 12. | Infosys scored 95 out of 100 on the Human Rights Campaign Corporate Equality Index for LGBTQI+ Inclusion |
| 13. | Rated by Sustainalytics as an ESG Industry Top Rated Company |
| 14. | Awarded Top Employers Global 2021 certification in 20 countries across Europe, Middle East, Asia Pacific, and North America. With top ranking in 15 countries and #1 ranking in India, APAC, and Middle East Region, and among the top 2 employers in the United States and Australia. |
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.”
Contact
| Investor Relations |
Sandeep Mahindroo +91 80 3980 1018 Sandeep_Mahindroo@infosys.com |
|
| Media Relations |
Rishi Basu Rajarshi.Basu@infosys.com |
Chiku Somaiya Chiku.Somaiya@infosys.com |
Infosys Limited and subsidiaries
Extracted from the Condensed Consolidated Balance Sheet under IFRS as at:
(Dollars in millions)
| March 31, 2021 | March 31, 2020 | |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 3,380 | 2,465 |
| Current investments | 320 | 615 |
| Trade receivables | 2,639 | 2,443 |
| Unbilled revenue | 1,030 | 941 |
| Other Current assets | 938 | 748 |
| Total current assets | 8,307 | 7,212 |
| Non-current assets | ||
| Property, plant and equipment and Right-of-use assets | 2,519 | 2,361 |
| Goodwill and other Intangible assets | 1,115 | 950 |
| Non-current investments | 1,623 | 547 |
| Unbilled revenue | 81 | – |
| Other non-current assets | 1,180 | 1,190 |
| Total non-current assets | 6,518 | 5,048 |
| Total assets | 14,825 | 12,260 |
| LIABILITIES AND EQUITY | ||
| Current liabilities | ||
| Trade payables | 362 | 377 |
| Unearned revenue | 554 | 395 |
| Employee benefit obligations | 276 | 242 |
| Other current liabilities and provisions | 2,072 | 1,743 |
| Total current liabilities | 3,264 | 2,757 |
| Non-current liabilities | ||
| Lease liabilities | 627 | 530 |
| Other non-current liabilities | 432 | 272 |
| Total non-current liabilities | 1,059 | 802 |
| Total liabilities | 4,323 | 3,559 |
| Total equity attributable to equity holders of the company | 10,442 | 8,646 |
| Non-controlling interests | 60 | 55 |
| Total equity | 10,502 | 8,701 |
| Total liabilities and equity | 14,825 | 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 March 31, 2021 | 3 months ended March 31, 2020 | Year ended March 31, 2021 | Year ended March 31, 2020 | |
| Revenues | 3,613 | 3,197 | 13,561 | 12,780 |
| Cost of sales | 2,357 | 2,133 | 8,828 | 8,552 |
| Gross profit | 1,256 | 1,064 | 4,733 | 4,228 |
| Operating expenses: | ||||
| Selling and marketing expenses | 165 | 161 | 624 | 664 |
| Administrative expenses | 207 | 229 | 784 | 840 |
| Total operating expenses | 372 | 390 | 1,408 | 1,504 |
| Operating profit | 884 | 674 | 3,325 | 2,724 |
| Other income, net (3) | 68 | 78 | 271 | 371 |
| Profit before income taxes | 952 | 752 | 3,596 | 3,095 |
| Income tax expense | 255 | 160 | 973 | 757 |
| Net profit (before minority interest) | 697 | 592 | 2,623 | 2,338 |
| Net profit (after minority interest) | 697 | 590 | 2,613 | 2,331 |
| Basic EPS ($) | 0.16 | 0.14 | 0.62 | 0.55 |
| Diluted EPS ($) | 0.16 | 0.14 | 0.61 | 0.55 |
NOTES:
| 1. | The above information is extracted from the audited condensed consolidated Balance sheet and Statement of Comprehensive Income for the quarter and year ended March 31, 2021 which have been taken on record at the Board meeting held on April 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 and year ended March 31, 2021 prepared in compliance with the Indian Accounting Standards (Ind-AS)
(in crore, except per equity share data)
| Particulars | Quarter ended March 31, |
Quarter ended December 31, |
Quarter ended March 31, |
Year ended March 31, | |
| 2021 | 2020 | 2020 | 2021 | 2020 | |
| Audited | Audited | Audited | Audited | Audited | |
| Revenue from operations | 26,311 | 25,927 | 23,267 | 1,00,472 | 90,791 |
| Other income, net | 545 | 611 | 614 | 2,201 | 2,803 |
| Total Income | 26,856 | 26,538 | 23,881 | 1,02,673 | 93,594 |
| Expenses | |||||
| Employee benefit expenses | 14,440 | 14,097 | 12,916 | 55,541 | 50,887 |
| Cost of technical sub-contractors | 1,985 | 1,839 | 1,704 | 7,084 | 6,714 |
| Travel expenses | 161 | 126 | 667 | 554 | 2,710 |
| Cost of software packages and others | 1,072 | 1,150 | 755 | 4,223 | 2,703 |
| Communication expenses | 146 | 163 | 139 | 634 | 528 |
| Consultancy and professional charges | 395 | 319 | 339 | 1,261 | 1,326 |
| Depreciation and amortisation expenses | 831 | 826 | 749 | 3,267 | 2,893 |
| Finance cost | 50 | 49 | 45 | 195 | 170 |
| Other expenses | 841 | 818 | 1,071 | 3,286 | 3,656 |
| Total expenses | 19,921 | 19,387 | 18,385 | 76,045 | 71,587 |
| Profit before tax | 6,935 | 7,151 | 5,496 | 26,628 | 22,007 |
| Tax expense: | |||||
| Current tax | 1,662 | 1,927 | 1,335 | 6,672 | 5,775 |
| Deferred tax | 195 | 9 | (174) | 533 | (407) |
| Profit for the period | 5,078 | 5,215 | 4,335 | 19,423 | 16,639 |
| Other comprehensive income | |||||
| Items that will not be reclassified subsequently to profit or loss | |||||
| Remeasurement of the net defined benefit liability/asset, net | (146) | 126 | (21) | 134 | (180) |
| Equity instruments through other comprehensive income, net | 9 | 116 | (2) | 119 | (33) |
| Items that will be reclassified subsequently to profit or loss | |||||
| Fair value changes on derivatives designated as cash flow hedges, net | 26 | (22) | – | 25 | (36) |
| Exchange differences on translation of foreign operations | (266) | 211 | 237 | 130 | 378 |
| Fair value changes on investments, net | (137) | 26 | 15 | (102) | 22 |
| Total other comprehensive income/(loss), net of tax | (514) | 457 | 229 | 306 | 151 |
| Total comprehensive income for the period | 4,564 | 5,672 | 4,564 | 19,729 | 16,790 |
| Profit attributable to: | |||||
| Owners of the company | 5,076 | 5,197 | 4,321 | 19,351 | 16,594 |
| Non-controlling interest | 2 | 18 | 14 | 72 | 45 |
| 5,078 | 5,215 | 4,335 | 19,423 | 16,639 | |
| Total comprehensive income attributable to: | |||||
| Owners of the company | 4,570 | 5,647 | 4,545 | 19,651 | 16,732 |
| Non-controlling interest | (6) | 25 | 19 | 78 | 58 |
| 4,564 | 5,672 | 4,564 | 19,729 | 16,790 | |
| Paid up share capital (par value5/- each, fully paid) |
2,124 | 2,123 | 2,122 | 2,124 | 2,122 |
| Other equity *# | 74,227 | 63,328 | 63,328 | 74,227 | 63,328 |
| Earnings per equity share (par value5/- each)** |
|||||
| Basic (₹) | 11.96 | 12.25 | 10.19 | 45.61 | 38.97 |
| Diluted (₹) | 11.94 | 12.23 | 10.18 | 45.52 | 38.91 |
| * | Balances for the quarter ended December 31, 2020 represent balances as per the audited Balance Sheet for the year ended March 31, 2020 as required by SEBI (Listing and Other Disclosure Requirements) Regulations, 2015 |
| ** | EPS is not annualized for the quarter ended March 31, 2021, quarter ended December 31, 2020 and quarter ended March 31, 2020. |
| # | Excludes non-controlling interest |
| 1. | Notes pertaining to the current quarter |
| a) | The audited interim consolidated financial statements for the quarter and year ended March 31, 2021 have been taken on record by the Board of Directors at its meeting held on April 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 consolidated financial statements. These 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 relevant amendment rules thereafter. |
| b) | Buyback of Equity shares | |
| In line with the capital allocation policy, the Board,
at its meeting held on April 14, 2021, approved the buyback of equity shares, from the open market route through the Indian stock exchanges,
amounting to9,200 crore (Maximum Buyback Size, excluding buyback tax) at a price not exceeding1,750 per share (Maximum
Buyback Price), subject to shareholders' approval in the ensuing Annual General Meeting. | ||
| c) | Board appointment
The Board, based on the recommendation of the Nomination and Remuneration Committee, appointed Chitra Nayak as an additional and Independent Director (DIN: 09101763) of the Company effective March 25, 2021 for a period of 3 years, subject to the approval of the shareholders. | |
| d) | Constitution of Environmental Social and Governance (ESG) Committee
The Board approved the constitution of ESG Committee with effect from April 14, 2021. The members of the ESG Committee shall comprise of Kiran Mazumdar Shaw as the Chairperson, Chitra Nayak and Uri Levine as members of the Committee. | |
| e) | 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 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 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 consolidated financial statements. | |
| f) | Update on employee stock grants |
| i) | The Board, on April 14, 2021, based on the recommendations of the Nomination and Remuneration
Committee, approved the annual performance-based grant of RSUs amounting to13 crore for the financial year 2022 under the 2015
Stock Incentive Compensation Plan (2015 plan) to Salil Parekh, CEO and MD. This was pursuant to the approval from the shareholders through
postal ballot concluded on February 20, 2018 and as per the shareholders’ approval in the Annual General meeting held on June 22,
2019. These RSUs will vest in line with the current employment agreement. The RSUs will be granted w.e.f May 2, 2021 and the number of
RSU's will be calculated based on the market price at the close of trading on May 2, 2021. |
|
| ii) | The Board, on April 14, 2021, based on the recommendation
of the Nomination and Remuneration Committee, had approved the grant of annual performance-based stock incentives in the form of Restricted
Stock Units (RSU's) to Salil Parekh, CEO & MD covering Company’s equity shares having a market value of10 crore as on
the date of the grant under the Infosys Expanded Stock Ownership Program-2019 (2019 Plan), which shall vest 12 months from the date of
the grant subject to the Company’s achievement of certain performance criteria as laid out in the 2019 Plan. This was pursuant to
the approval from the shareholders in the Annual General meeting held on June 22, 2019.The RSUs will be granted w.e.f May 2, 2021 and
the number of RSU's will be calculated based on the market price at the close of trading on May 2, 2021. | |
| iii) | The Board, on April 14, 2021, based on the recommendations
of the Nomination and Remuneration Committee, approved the annual performance-based grant of RSUs amounting to0.75 crore for the
financial year 2022 under the 2015 plan to a Key Managerial Personnel(KMP). These RSUs will vest in line with the current employment agreement
based on the achievement of certain performance targets. The RSUs will be granted w.e.f May 2, 2021 and the number of RSU's will be calculated
based on the market price at the close of trading on May 2, 2021. |
| g) | Proposed transfer of Corporate Social Responsibility (CSR ) Asset | |
Consequent to the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 (“the Rules”), the Company intends to transfer its CSR capital assets created prior to January 2021 to a controlled subsidiary (referred to as “ the Subsidiary” ) to be established in accordance with Section 8 of the Companies Act, 2013 for charitable objects. The transfer will be undertaken upon obtaining the required approvals from regulatory authorities.
The Subsidiary will be included in the consolidated financial statements of the Company commencing in the period from formation because the Company will have the power to direct all of the Subsidiary’s relevant activities which affects returns and the Company will be exposed to any future financial support which may be required by the Subsidiary.
The Company evaluated the impact of the Rules on the
carrying amount of the capital asset of |
| h) | Update on the Code on Social Security, 2020 (‘Code’) | |
| The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period when the Code becomes effective. |
| i) | Business transfer - Kallidus Inc. and Skava Systems Private Limited | |
| On October 11, 2019, the Board of Directors of Infosys
authorized the Company to execute a Business Transfer Agreement and related documents with its wholly-owned subsidiaries, Kallidus Inc.
and Skava Systems Private Limited (together referred to as “Skava”), to transfer the business of Skava to Infosys Limited
for a consideration based on an independent valuation. On August 15, 2020, the company entered into a business transfer agreement to transfer
the business of Kallidus Inc. and Skava Systems Private Limited for a consideration of171 crore and66 crore respectively
on securing the requisite regulatory approvals. The transaction was between a holding company and a wholly owned subsidiary and therefore
was accounted for at carrying values and did not have any impact on the consolidated financial statements. Subsequently on March 9, 2021,
Kallidus Inc was liquidated. Further, on March 29, 2021, the shareholders of Skava have approved to voluntarily liquidate the affairs
of the Company. Accordingly, Skava will complete the process of voluntary liquidation pursuant to Section 59 of the Insolvency and Bankruptcy
Code of 2016 and applicable provisions of the Companies Act, 2013. |
2. Information on dividends for the quarter and year ended March 31, 2021
| For financial year 2021, the Board recommended a final dividend of15/- (par value of
5/- each) per equity share. This payment is subject to the approval of shareholders in the Annual General Meeting (AGM) of
the Company to be held on June 19, 2021. The dividend will be paid on June 25, 2021. The record date for the purpose of the payment
of final dividend is June 1, 2021. For the financial year ended 2020, the Company declared a final dividend of9.50/- per
equity share. |
An interim dividend of12/- (par value of5/- each) per equity
share was declared on October 14, 2020 and the same was paid on November 11, 2020. The interim dividend declared in the previous year
was8/- per equity share.
(in)
| Particulars | Quarter ended March 31, |
Quarter ended December 31, |
Quarter ended March 31, |
Year ended March 31, | |
| 2021 | 2020 | 2020 | 2021 | 2020 | |
| Dividend per share (par value5/- each) |
|||||
| Interim dividend | – | – | – | 12.00 | 8.00 |
| Final dividend | 15.00 | – | 9.50 | 15.00 | 9.50 |
3. Audited Consolidated Balance Sheet
(in crore)
| Particulars | As at | |
| March 31, 2021 | March 31, 2020 | |
| ASSETS | ||
| Non-current assets | ||
| Property, plant and equipment | 12,560 | 12,435 |
| Right of use assets | 4,794 | 4,168 |
| Capital work-in-progress | 922 | 954 |
| Goodwill | 6,079 | 5,286 |
| Other Intangible assets | 2,072 | 1,900 |
| Financial assets | ||
| Investments | 11,863 | 4,137 |
| Loans | 32 | 21 |
| Other financial assets | 1,141 | 737 |
| Deferred tax assets (net) | 1,098 | 1,744 |
| Income tax assets (net) | 5,811 | 5,384 |
| Other non-current assets | 1,281 | 1,426 |
| Total non-current assets | 47,653 | 38,192 |
| Current assets | ||
| Financial assets | ||
| Investments | 2,342 | 4,655 |
| Trade receivables | 19,294 | 18,487 |
| Cash and cash equivalents | 24,714 | 18,649 |
| Loans | 159 | 239 |
| Other financial assets | 6,410 | 5,457 |
| Income tax assets (net) | – | 7 |
| Other current assets | 7,814 | 7,082 |
| Total current assets | 60,733 | 54,576 |
| Total Assets | 1,08,386 | 92,768 |
| EQUITY AND LIABILITIES | ||
| Equity | ||
| Equity share capital | 2,124 | 2,122 |
| Other equity | 74,227 | 63,328 |
| Total equity attributable to equity holders of the Company | 76,351 | 65,450 |
| Non-controlling interests | 431 | 394 |
| Total equity | 76,782 | 65,844 |
| Liabilities | ||
| Non-current liabilities | ||
| Financial liabilities | ||
| Lease liabilities | 4,587 | 4,014 |
| Other financial liabilities | 1,514 | 807 |
| Deferred tax liabilities (net) | 875 | 968 |
| Other non-current liabilities | 763 | 279 |
| Total non-current liabilities | 7,739 | 6,068 |
| Current liabilities | ||
| Financial liabilities | ||
| Trade payables | 2,645 | 2,852 |
| Lease liabilities | 738 | 619 |
| Other financial liabilities | 11,390 | 10,481 |
| Other Current Liabilities | 6,233 | 4,842 |
| Provisions | 713 | 572 |
| Income tax liabilities (net) | 2,146 | 1,490 |
| Total current liabilities | 23,865 | 20,856 |
| Total equity and liabilities | 1,08,386 | 92,768 |
The disclosure is an extract of the audited Consolidated Balance Sheet as at March 31, 2021 and March 31, 2020 prepared in compliance with the Indian Accounting Standards (Ind-AS).
4. Audited Consolidated Statement of Cash Flows
(in crore)
| Particulars | Year ended March 31, | |
| 2021 | 2020 | |
| Cash flow from operating activities | ||
| Profit for the period | 19,423 | 16,639 |
| Adjustments to reconcile net profit to net cash provided by operating activities: | ||
| Income tax expense | 7,205 | 5,368 |
| Depreciation and amortization | 3,267 | 2,893 |
| Interest and dividend income | (1,615) | (1,613) |
| Finance cost | 195 | 170 |
| Impairment loss recognized / (reversed) under expected credit loss model | 190 | 161 |
| Exchange differences on translation of assets and liabilities, net | (62) | 184 |
| Stock compensation expense | 333 | 249 |
| Other adjustments | (91) | (131) |
| Changes in assets and liabilities | ||
| Trade receivables and unbilled revenue | (1,835) | (3,861) |
| Loans, other financial assets and other assets | (534) | 76 |
| Trade payables | (245) | (373) |
| Other financial liabilities, other liabilities and provisions | 3,382 | 1,791 |
| Cash generated from operations | 29,613 | 21,553 |
| Income taxes paid | (6,389) | (4,550) |
| Net cash generated by operating activities | 23,224 | 17,003 |
| Cash flows from investing activities | ||
| Expenditure on property, plant and equipment and intangibles | (2,107) | (3,307) |
| Deposits placed with corporation | (207) | (108) |
| Interest and dividend received | 1,418 | 1,929 |
| Payment towards acquisition of business, net of cash acquired | (1,221) | (1,860) |
| Payment of contingent consideration pertaining to acquisition of business | (158) | (6) |
| Redemption of escrow pertaining to Buyback | – | 257 |
| Other receipts | 49 | 46 |
| Other payments | (45) | – |
| Payments to acquire Investments | ||
| Preference, equity securities and others | – | (41) |
| Tax free bonds and government bonds | (318) | (19) |
| Liquid mutual funds and fixed maturity plan securities | (35,196) | (34,839) |
| Non convertible debentures | (3,689) | (993) |
| Certificates of deposit | – | (1,114) |
| Government securities | (7,510) | (1,561) |
| Others | (25) | (29) |
| Proceeds on sale of Investments | ||
| Tax free bonds and government bonds | – | 87 |
| Non-convertible debentures | 1,251 | 1,888 |
| Government securities | 2,704 | 1,674 |
| Commercial paper | – | 500 |
| Certificates of deposit | 1,149 | 2,545 |
| Liquid mutual funds and fixed maturity plan securities | 36,353 | 34,685 |
| Preference and equity securities | 73 | 27 |
| Others | 23 | – |
| Net cash (used in) / from investing activities | (7,456) | (239) |
| Cash flows from financing activities: | ||
| Payment of lease liabilities | (698) | (571) |
| Payment of dividends (including dividend distribution tax) | (9,117) | (9,515) |
| Payment of dividend to non-controlling interest of subsidiary | (20) | (33) |
| Shares issued on exercise of employee stock options | 15 | 6 |
| Payment towards purchase of non controlling interest | (49) | – |
| Other receipts | 83 | – |
| Buyback of equity shares including transaction cost | – | (7,478) |
| Net cash used in financing activities | (9,786) | (17,591) |
| Net increase / (decrease) in cash and cash equivalents | 5,982 | (827) |
| Cash and cash equivalents at the beginning of the period | 18,649 | 19,568 |
| Effect of exchange rate changes on cash and cash equivalents | 83 | (92) |
| Cash and cash equivalents at the end of the period | 24,714 | 18,649 |
| Supplementary information: | ||
| Restricted cash balance | 504 | 396 |
The disclosure is an extract of the audited Consolidated Statement of Cash flows for the year ended March 31, 2021 and March 31, 2020 prepared in compliance with Indian Accounting Standard (Ind AS) 34 Interim Financial Reporting.
3. Segment reporting (Consolidated - Audited)
(in crore)
| Particulars | Quarter ended March 31, |
Quarter ended December 31, |
Quarter ended March 31, |
Year ended March 31, | |
| 2021 | 2020 | 2020 | 2021 | 2020 | |
| Revenue by business segment | |||||
| Financial Services (1) | 8,677 | 8,578 | 7,282 | 32,583 | 28,625 |
| Retail (2) | 3,902 | 3,801 | 3,622 | 14,745 | 14,035 |
| Communication (3) | 3,156 | 3,215 | 3,017 | 12,628 | 11,984 |
| Energy, Utilities, Resources and Services | 3,233 | 3,251 | 2,992 | 12,539 | 11,736 |
| Manufacturing | 2,533 | 2,416 | 2,363 | 9,447 | 9,131 |
| Hi-Tech | 2,124 | 2,130 | 1,831 | 8,560 | 6,972 |
| Life Sciences (4) | 1,796 | 1,827 | 1,484 | 6,870 | 5,837 |
| All other segments (5) | 890 | 709 | 676 | 3,100 | 2,471 |
| Total | 26,311 | 25,927 | 23,267 | 1,00,472 | 90,791 |
| Less: Inter-segment revenue | – | – | – | – | – |
| Net revenue from operations | 26,311 | 25,927 | 23,267 | 1,00,472 | 90,791 |
| Segment profit before tax, depreciation and non-controlling interests: | |||||
| Financial Services (1) | 2,239 | 2,346 | 1,863 | 8,946 | 7,306 |
| Retail (2) | 1,385 | 1,384 | 1,058 | 5,117 | 4,212 |
| Communication (3) | 709 | 803 | 560 | 2,795 | 2,424 |
| Energy, Utilities , Resources and Services | 932 | 943 | 856 | 3,552 | 3,216 |
| Manufacturing | 707 | 696 | 557 | 2,563 | 2,059 |
| Hi-Tech | 558 | 629 | 431 | 2,454 | 1,604 |
| Life Sciences (4) | 547 | 568 | 344 | 2,156 | 1,431 |
| All other segments (5) | 194 | 46 | 37 | 306 | 64 |
| Total | 7,271 | 7,415 | 5,706 | 27,889 | 22,316 |
| Less: Other Unallocable expenditure | 831 | 826 | 779 | 3,267 | 2,942 |
| Add: Unallocable other income | 545 | 611 | 614 | 2,201 | 2,803 |
| Less: Finance cost | 50 | 49 | 45 | 195 | 170 |
| Profit before tax and non-controlling interests | 6,935 | 7,151 | 5,496 | 26,628 | 22,007 |
| (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 March 31, |
Quarter ended December 31, |
Quarter ended March 31, |
Year ended March 31, | |
| 2021 | 2020 | 2020 | 2021 | 2020 | |
| Revenue from operations | 22,497 | 22,043 | 20,187 | 85,912 | 79,047 |
| Profit before tax | 6,040 | 6,894 | 5,128 | 24,477 | 20,477 |
| Profit for the period | 4,459 | 5,083 | 4,069 | 18,048 | 15,543 |
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 financial statements as stated.
|
By order of the Board for Infosys Limited | |
| Bengaluru, India April 14, 2021 |
U.B. Pravin Rao Chief Operating Officer and Whole-time Director |
The Board has also taken on record the consolidated results of Infosys Limited and its subsidiaries for the quarter and year ended March 31, 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 March 31, |
Quarter ended December 31, |
Quarter ended March 31, |
Year ended March 31, | |
| 2021 | 2020 | 2020 | 2021 | 2020 | |
| Audited | Audited | Audited | Audited | Audited | |
| Revenues | 3,613 | 3,516 | 3,197 | 13,561 | 12,780 |
| Cost of sales | 2,357 | 2,275 | 2,133 | 8,828 | 8,552 |
| Gross profit | 1,256 | 1,241 | 1,064 | 4,733 | 4,228 |
| Operating expenses | 372 | 348 | 390 | 1,408 | 1,504 |
| Operating profit | 884 | 893 | 674 | 3,325 | 2,724 |
| Other income, net | 75 | 83 | 84 | 297 | 395 |
| Finance cost | 7 | 6 | 6 | 26 | 24 |
| Profit before income taxes | 952 | 970 | 752 | 3,596 | 3,095 |
| Income tax expense | 255 | 263 | 160 | 973 | 757 |
| Net profit | 697 | 707 | 592 | 2,623 | 2,338 |
| Earnings per equity share * | |||||
| Basic | 0.16 | 0.17 | 0.14 | 0.62 | 0.55 |
| Diluted | 0.16 | 0.17 | 0.14 | 0.61 | 0.55 |
| Total assets | 14,825 | 13,869 | 12,260 | 14,825 | 12,260 |
| Cash and cash equivalents and current investments | 3,700 | 3,476 | 3,080 | 3,700 | 3,080 |
| * | EPS is not annualized for the quarter ended March 31, 2021, quarter ended December 31, 2020 and quarter ended March 31, 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, 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.