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 month of October 2023
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, Bengaluru - 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
| INDEX TO EXHIBITS |
DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION
Infosys Limited (“we” or “the Company”) hereby furnishes the United States Securities and Exchange Commission with copies of the following information concerning our public disclosures regarding our results of operations and financial condition for the quarter ended September 30, 2023.
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 October 12, 2023, We announced our results of operations for the quarter ended September 30, 2023. A copy of the outcome of the board meeting is attached to this Form 6-K as Exhibit 99.1.
We issued press releases announcing our results under International Financial Reporting Standards ("IFRS"), copies of which are attached to this Form 6-K as Exhibit 99.2.
We have placed the form of release to stock exchanges concerning our results of operations for the quarter ended September 30, 2023 under Indian Accounting Standards (Ind-AS). A copy of the release to stock exchanges is attached to this Form 6-K as Exhibit 99.3.
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
| |
Date: October 12, 2023 |
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
Highest ever large and mega deal wins with TCV of $7.7 billion lay solid foundation for future Q2 growth at 2.3% sequentially with resilient margins of 21.2%. Revenue guidance revised to 1.0%- 2.5%
Bengaluru, India – October 12, 2023: Infosys (NSE, BSE, NYSE: INFY), a global leader in next-generation digital services and consulting, delivered $4,718 million in Q2 revenues with year-on-year growth of 2.5% and sequential growth of 2.3% in constant currency. Large deal TCV for the quarter was $7.7 billion, with net new of 48%. Operating margin for the quarter increased by 40 bps sequentially to 21.2%. Attrition declined further to 14.6%. FY24 revenue guidance revised to 1.0%-2.5% and operating margin guidance retained at 20%-22%.
“We had our highest large deals value at $7.7 billion in Q2 spread across all verticals and geographies. This, in an uncertain macro-environment, is a testament to our ability to pivot and stay relevant to the evolving client needs, by delivering the benefits of transformation as well as productivity and cost savings at scale”, said Salil Parekh, CEO and MD. “Strong H1 performance with significant large deal wins, builds a solid foundation for the future. The growing adoption of our Generative AI offering, Topaz, is helping us deliver consistent value and expand market share”, he added.
Guidance for FY24:
| · | Revenue growth of 1.0%-2.5% in constant currency |
| · | Operating margin of 20.0%-22.0% |
| 1. | Key highlights: |
For quarter ended September 30, 2023 · Revenues in CC terms grew by 2.5% YoY and 2.3% QoQ · Reported revenues at $4,718 million, growth of 3.6% YoY · Operating margin at 21.2%, decline of 0.3% YoY and increase of 0.4% QoQ · Basic EPS at $0.18, growth of 1.7% YoY · FCF at $670 million, growth of 13.8% YoY; FCF conversion at 89.2% of net profit |
For the six months ended September 30, 2023 · Revenues in CC terms grew by 3.3% YoY · Reported revenues at $9,334 million, growth of 3.7% YoY · Operating margin at 21.0%, growth of 0.3% YoY · Basic EPS at $0.36, growth of 4.0% YoY · FCF at $1,369 million, growth of 10.0% YoY; FCF conversion at 92.8% of net profit |
“Our
Q2 operating margin of 21.2% demonstrates the early benefits of recently unveiled margin improvement plan and is a clear reflection of
our ability to continuously identify opportunities for improving operational efficiencies”, said Nilanjan Roy, CFO. “In
line with our capital allocation policy, the Board has announced an interim dividend of 
18 per share,
an increase of 9.1% over last year”, he added.
2. Client wins & Testimonials
| · | Infosys extended collaboration with Liberty Global to help evolve and scale Liberty Global's digital entertainment and connectivity platforms leveraging Infosys Topaz. Mike Fries, CEO, Liberty Global, said, "Strengthening and expanding our collaboration with Infosys gives our best-in-class solutions new scale with the ability to reach many more markets and bring positive experiences to more customers. And while it produces substantial central cost savings over time, it also provides excellent opportunities for our talent to grow their specialist skills and nurture impactful careers with Infosys. We look forward to working together to accelerate innovation and make our entertainment solutions even more powerful and engaging as new generations of digital-first customers continue to demand more from us all." |
| · | Infosys collaborated with Microsoft to accelerate and democratize industry-wide adoption of generative AI. Nicole Dezen, Chief Partner Officer, Microsoft Corp, said, “We’re pleased to expand our collaboration with Infosys to deliver innovative solutions, utilizing Azure OpenAI Service and Azure Cognitive Services, that will help customers develop new business models, and realize new revenue streams. By harnessing the power of generative AI, Infosys will help customers accelerate growth and innovation.” |
| · | Infosys and NVIDIA collaborated to help enterprises boost productivity with generative AI. “Generative AI will drive the next wave of enterprise productivity gains,” said, Jensen Huang, Founder and CEO, NVIDIA. “The NVIDIA AI Enterprise ecosystem is ramping quickly to provide the platform for generative AI. Together, NVIDIA and Infosys will create an expert workforce to help businesses use this platform to build custom applications and solutions.” |
| · | Infosys announced a strategic multi-year collaboration with STARK Group to drive technological advancements and provide seamless services to STARK Group’s offices across Europe, leveraging Infosys Topaz. Pernille Geneser, Group CIO, STARK Group, commented, “We at STARK Group are excited to announce our collaboration with Infosys as we embark on a transformation journey to deliver state-of-the-art and future-fit IT services to our colleagues in the Nordics, Austria, Germany and UK. With Infosys' expertise, we look forward to enhancing the quality of our offerings and kickstarting many new innovations." |
| · | Infosys together with Microsoft recently executed a strategic Enterprise Resource Planning (ERP) transformation program to help accelerate Talking Rain Beverage Company's journey towards enhancing their core business capabilities and achieving business transformation. “By partnering with Microsoft and Infosys, we are aligning ourselves with leading technology and expertise in the industry,” said, Luke Fisher, Chief Financial Officer, Talking Rain Beverage Company. “This collaboration ensures we can continually enhance our capabilities and drive our business forward. The new ERP system takes our organization to a whole new level, enabling us to access real-time data, make smarter decisions and scale effectively for years to come.” |
| · | Rich Products Corporation (RPC) selected Infosys for a key strategic transformation program to deploy SAP’s S/4 HANA solution to simplify and harmonize their business processes, digitally upskill associates, and improve experience for associates and customers. Yexi Liu, Global CIO, RPC, said, “We are looking at this S/4 HANA based transformation to reimagine the way Rich’s operates its business and create unique and distinctive customer value. Our strong collaboration with Infosys will aim to help accelerate our business transformation, reduce technical debt and help shape industry standard business processes to drive operational excellence.” |
| · | Infosys recently launched the Infosys Cobalt Airline Cloud (ICAC), a first-of-its-kind industry cloud offering designed for commercial airlines to help them accelerate their digital transformation journey. Fernando Rocha, CIO, Aeroméxico Airline, said, "We are excited to collaborate with Infosys to leverage the solutions, reference architectures and blueprints of the Infosys Cobalt Airline Cloud. We believe that this platform will enable us to quickly adapt to changing market dynamics, enhance customer experiences, and drive profitable growth. |
| · | Guaranty Trust Bank selected Infosys Finacle’s Digital Banking Suite for its multi-country digital banking transformation program. Segun Agbaje, Group Chief Executive Officer, Guaranty Trust Holding Company Plc, said, “We are delighted to be working with Infosys Finacle to create a superior, agile, and scalable core banking system that supports our vision of delivering seamless and connected experiences across every customer touchpoint. As an organization, we have always held that the future of banking is digital, largely driven by technology and customers’ preference for secure, convenient, and reliable channels. This is the thinking behind our innovation drive and history of firsts, offering best-in-class financial services across Africa. Infosys Finacle’s digital solutions will significantly transform our operations and facilitate our push towards more innovative, responsive banking.” |
| · | Infosys Public Services announced the opening of its new subsidiary in Canada to help accelerate digital transformation for public sector organizations across the country and provide them access to top tier IT talent and innovative solutions for better delivery of government services to Canadian citizens and businesses. Franco Chirichella, President and CEO, Innovapost, said, “As one of Innovapost’s key strategic partners, Infosys Public Services Canada has helped us successfully deliver IT initiatives to meet the demands of the evolving mail, courier and logistics industry. IPS Canada does a great job of bringing the breadth and depth of their global and Canadian capabilities to Innovapost to support us in meeting our business and technical needs.” |
| · | Infosys transformed Bendigo and Adelaide Bank’s customer and employee experience by helping the bank democratize data, improve data governance, and deliver better banking experience. Nathalie Moss, Practice Lead, Lending Technology at Bendigo and Adelaide Bank, said, "Our employees are now able to service customers faster and more easily due to the centralized document storage and common searchable access approach. The key to the program led by Infosys is findability. The faster we can find all relevant customer documents, the more deeply we understand the customer and the more personalized the service we offer becomes, every time we interact. Better operational flow equals more effective and empowered staff and builds on the award-winning customer experience our Bank consistently offers.” |
3. Recognitions
| · | Featured in TIME's World’s Best Companies 2023 list - Infosys was among the top 3 global professional services firms and the only brand from India in the Top 100 global rankings |
| · | Ranked as one of the Top 3 brands in Kantar BrandZ Most Valuable Indian Brand Rankings 2023 |
| · | Recognized as one of India's Best WorkplacesTM for Women 2023 (Top 50 Large Organizations) by the Great Place to WorkTM Institute |
| · | Ranked among the Top 10 Best Companies for Women in India (BCWI) in 2023 for the fourth year in a row, and as the ‘Champion of Inclusion’ in the Most Inclusive Companies Index (MICI) for the second year in a row, by Avtar and Seramount |
| · | Honored with the Mahatma Award under the ‘ESG Excellence’ category |
| · | Infosys Crescent campus in Bengaluru, India, has been recognized as one of the ‘100 Iconic Sustainable Buildings’ by The Bureau of Energy Efficiency, Ministry of Power, Government of India |
| · | Positioned as a leader in the 2023 Magic Quadrant for Public Cloud IT Transformation Services by Gartner |
| · | Recognized as a leader in Net Zero Consulting Services PEAK Matrix® Assessment 2023 by Everest |
| · | Recognized as a leader in Cloud Services PEAK Matrix® Assessment 2023 – North America by Everest |
| · | Recognized as a leader in Network Transformation and Managed Services PEAK Matrix® Assessment – System Integrators (SIs) 2023 by Everest |
| · | Recognized as a leader in Data and Analytics (D&A) Services PEAK Matrix® Assessment 2023 by Everest |
| · | Recognized as a Leader in the IDC MarketScape: Worldwide Finance and Accounting Business Process Services in the Cloud Vendor Assessment 2023 |
| · | Positioned as a leader in HFS Horizons: Cards & Payments Services Providers 2023 report |
| · | Positioned as a leader in HFS Horizons: Travel, Hospitality, and Logistics Service Providers, 2023 report |
| · | Positioned as a leader in HFS Horizons: Enterprise Blockchain Services, 2023 report |
| · | Positioned as a leader in Automation in Banking NEAT 2023 by NelsonHall |
| · | Featured in the Constellation ShortList 2023: Customer Experience (CX) Operations Services: Global |
| · | Featured in the Constellation ShortList 2023: Digital Transformation Services (DTX): Global |
| · | Featured in the Constellation ShortList 2023: Public Cloud Transformation Services: Global |
| · | Featured in the Constellation ShortList 2023: AI Services: Global |
| · | Recognized as 2023 Google Cloud Industry Solution Services Partner of the Year - Supply Chain & Logistics and Google Cloud Specialization Partner of the Year for Application Development |
| · | Received the Salesforce 2023 Partner Innovation Award in the industry solution awards category |
| · | Infosys Finacle recognized as the Best Real Time Payments Provider at the MEA Finance Leaders in Payments Conference & Awards 2023 |
| · | Infosys Finacle recognized as the Best SaaS Provider of the Year (Software) and as Outstanding Wealth Management Solution by a Vendor at the Global BankTech Awards 2023 |
| · | Infosys recognized as a leader in Cyber Security - Solutions and Services 2023 ISG Provider LensTM study in US, US Public Sector, Australia, and Nordics regions |
| · | Infosys recognized as a leader in Private Hybrid Cloud - Solutions and Services 2023 ISG Provider LensTM study in US and Australia |
| · | Infosys recognized as a leader in IoT - Services and Solution 2023 ISG Provider LensTM study in US |
| · | Infosys recognized as a Leader in ISG Provider Lens™ Retail & CPG Services reports – Managed Services in the US and Europe 2023 |
| · | Rated as a leader in Avasant’s Digital Masters 2023 RadarView™ |
| · | Rated as a leader in Avasant’s Canada Digital Services 2023-2024 RadarView™ |
About Infosys
|
Infosys is a global leader in next-generation digital services and consulting. Over 300,000 of our people work to amplify human potential and create the next opportunity for people, businesses and communities. We enable clients in more than 56 countries to navigate their digital transformation. With over four decades of experience in managing the systems and workings of global enterprises, we expertly steer clients, as they navigate their digital transformation powered by the cloud. We enable them with an AI-powered core, empower the business with agile digital at scale and drive continuous improvement with always-on learning through the transfer of digital skills, expertise, and ideas from our innovation ecosystem. We are deeply committed to being a well-governed, environmentally sustainable organization where diverse talent thrives in an inclusive workplace. Visit www.infosys.com to see how Infosys (NSE, BSE, NYSE: INFY) can help your enterprise navigate your next. |
 |
Safe Harbor
Certain statements in this release concerning our future growth prospects, or our future financial or operating performance 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 or outcomes 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 the execution of our business strategy, our ability to attract and retain personnel, our transition to hybrid work model, economic uncertainties, technological innovations such as Generative AI, the complex and evolving regulatory landscape including immigration regulation changes, our ESG vision, our capital allocation policy and expectations concerning our market position, future operations, margins, profitability, liquidity, capital resources, and our corporate actions including acquisitions. Important factors that may cause actual results or outcomes to differ from those implied by the forward-looking statements are discussed in more detail in our US Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2023. 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 +91 80 4156 3998 Rajarshi.Basu@infosys.com |
Harini Babu +1 469 996 3516 Harini_Babu@infosys.com |
Infosys Limited and subsidiaries
Extracted from the Condensed Consolidated Balance Sheet under IFRS as at:
(Dollars in millions)
| Particulars | September 30, 2023 | March 31, 2023 |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 1,892 | 1,481 |
| Current investments | 913 | 841 |
| Trade receivables | 3,403 | 3,094 |
| Unbilled revenue | 1,692 | 1,861 |
| Other Current assets | 1,379 | 1,349 |
| Total current assets | 9,279 | 8,626 |
| Non-current assets | ||
| Property, plant and equipment and Right-of-use assets | 2,424 | 2,516 |
| Goodwill and other Intangible assets | 1,058 | 1,095 |
| Non-current investments | 1,414 | 1,530 |
| Unbilled revenue | 171 | 176 |
| Other non-current assets | 1,343 | 1,369 |
| Total non-current assets | 6,410 | 6,686 |
| Total assets | 15,689 | 15,312 |
| LIABILITIES AND EQUITY | ||
| Current liabilities | ||
| Trade payables | 386 | 470 |
| Unearned revenue | 844 | 872 |
| Employee benefit obligations | 315 | 292 |
| Other current liabilities and provisions | 3,134 | 3,135 |
| Total current liabilities | 4,679 | 4,769 |
| Non-current liabilities | ||
| Lease liabilities | 798 | 859 |
| Other non-current liabilities | 441 | 460 |
| Total non-current liabilities | 1,239 | 1,319 |
| Total liabilities | 5,918 | 6,088 |
| Total equity attributable to equity holders of the company | 9,720 | 9,172 |
| Non-controlling interests | 51 | 52 |
| Total equity | 9,771 | 9,224 |
| Total liabilities and equity | 15,689 | 15,312 |
Extracted from the Condensed Consolidated statement of Comprehensive Income under IFRS for:
(Dollars in millions except per equity share data)
| Particulars | 3 months ended September 30, 2023 | 3 months ended September 30, 2022 | 6 months ended September 30, 2023 | 6 months ended September 30, 2022 |
| Revenues | 4,718 | 4,555 | 9,334 | 8,999 |
| Cost of sales | 3,271 | 3,170 | 6,481 | 6,315 |
| Gross profit | 1,447 | 1,385 | 2,853 | 2,684 |
| Operating expenses: | ||||
| Selling and marketing expenses | 213 | 185 | 429 | 378 |
| Administrative expenses | 234 | 221 | 463 | 439 |
| Total operating expenses | 447 | 406 | 892 | 817 |
| Operating profit | 1,000 | 979 | 1,961 | 1,867 |
| Other income, net (3) | 60 | 65 | 117 | 145 |
| Profit before income taxes | 1,060 | 1,044 | 2,078 | 2,012 |
| Income tax expense | 309 | 295 | 603 | 574 |
| Net profit (before minority interest) | 751 | 749 | 1,475 | 1,438 |
| Net profit (after minority interest) | 751 | 748 | 1,475 | 1,437 |
| Basic EPS ($) | 0.18 | 0.18 | 0.36 | 0.34 |
| Diluted EPS ($) | 0.18 | 0.18 | 0.36 | 0.34 |
NOTES:
| 1. | The above information is extracted from the audited condensed consolidated Balance sheet and Statement of Comprehensive Income for the quarter and six months ended September 30, 2023, which have been taken on record at the Board meeting held on October 12, 2023. |
| 2. | A Fact Sheet providing the operating metrics of the Company can be downloaded from www.infosys.com. |
| 3. | Other income is net of Finance Cost |
| 4. | As the quarter and six months ended figures are taken from the source and rounded to the nearest digits, the quarter figures in this statement added up to the figures reported for the previous quarter might not always add up to the six months ended figures reported in this statement. |
Exhibit 99.3
Form of Release to Stock Exchanges
|
Infosys Limited Regd. office: Electronics City, Hosur Road, Bengaluru 560 100, India |
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 half-year ended September 30, 2023 prepared in compliance with the Indian Accounting Standards (Ind-AS)
(in crore, except per equity share data)
| Particulars | Quarter ended September 30, | Quarter ended June 30, | Quarter ended September 30, | Half-year ended September 30, | Year ended March 31, | |
| 2023 | 2023 | 2022 | 2023 | 2022 | 2023 | |
| Audited | Audited | Audited | Audited | Audited | Audited | |
| Revenue from operations | 38,994 | 37,933 | 36,538 | 76,927 | 71,008 | 146,767 |
| Other income, net | 632 | 561 | 584 | 1,193 | 1,260 | 2,701 |
| Total Income | 39,626 | 38,494 | 37,122 | 78,120 | 72,268 | 149,468 |
| Expenses | ||||||
| Employee benefit expenses | 20,796 | 20,781 | 19,438 | 41,577 | 37,776 | 78,359 |
| Cost of technical sub-contractors | 3,074 | 3,124 | 3,694 | 6,198 | 7,603 | 14,062 |
| Travel expenses | 439 | 462 | 363 | 901 | 739 | 1,525 |
| Cost of software packages and others | 3,387 | 2,720 | 2,512 | 6,106 | 4,932 | 10,902 |
| Communication expenses | 179 | 182 | 189 | 361 | 359 | 713 |
| Consultancy and professional charges | 387 | 346 | 439 | 734 | 895 | 1,684 |
| Depreciation and amortisation expenses | 1,166 | 1,173 | 1,029 | 2,339 | 1,979 | 4,225 |
| Finance cost | 138 | 90 | 66 | 228 | 121 | 284 |
| Other expenses | 1,292 | 1,254 | 1,001 | 2,546 | 1,939 | 4,392 |
| Total expenses | 30,858 | 30,132 | 28,731 | 60,990 | 56,343 | 116,146 |
| Profit before tax | 8,768 | 8,362 | 8,391 | 17,130 | 15,925 | 33,322 |
| Tax expense: | ||||||
| Current tax | 2,491 | 2,307 | 2,482 | 4,798 | 4,832 | 9,287 |
| Deferred tax | 62 | 110 | (117) | 172 | (295) | (73) |
| Profit for the period | 6,215 | 5,945 | 6,026 | 12,160 | 11,388 | 24,108 |
| Other comprehensive income | ||||||
| Items that will not be reclassified subsequently to profit or loss | ||||||
| Remeasurement of the net defined benefit liability/asset, net | (64) | 87 | 40 | 23 | (46) | 8 |
| Equity instruments through other comprehensive income, net | 40 | 1 | 4 | 40 | 7 | (7) |
| Items that will be reclassified subsequently to profit or loss | ||||||
| Fair value changes on derivatives designated as cash flow hedges, net | 23 | 6 | (12) | 29 | 14 | (7) |
| Exchange differences on translation of foreign operations | 5 | 15 | (14) | 21 | 39 | 776 |
| Fair value changes on investments, net | (20) | 75 | 26 | 55 | (346) | (256) |
| Total other comprehensive income/(loss), net of tax | (16) | 184 | 44 | 168 | (332) | 514 |
| Total comprehensive income for the period | 6,199 | 6,129 | 6,070 | 12,328 | 11,056 | 24,622 |
| Profit attributable to: | ||||||
| Owners of the company | 6,212 | 5,945 | 6,021 | 12,157 | 11,381 | 24,095 |
| Non-controlling interest | 3 | – | 5 | 3 | 7 | 13 |
| 6,215 | 5,945 | 6,026 | 12,160 | 11,388 | 24,108 | |
| Total comprehensive income attributable to: | ||||||
| Owners of the company | 6,196 | 6,132 | 6,068 | 12,328 | 11,054 | 24,598 |
| Non-controlling interest | 3 | (3) | 2 | – | 2 | 24 |
| 6,199 | 6,129 | 6,070 | 12,328 | 11,056 | 24,622 | |
| Paid up share capital (par value 5/- each, fully paid) |
2,070 | 2,070 | 2,099 | 2,070 | 2,099 | 2,069 |
| Other equity *# | 73,338 | 73,338 | 73,252 | 73,338 | 73,252 | 73,338 |
| Earnings per equity share (par value 5/- each)** |
||||||
| Basic ( in per share) |
15.01 | 14.37 | 14.35 | 29.38 | 27.13 | 57.63 |
| Diluted (in per share) |
14.99 | 14.35 | 14.34 | 29.34 | 27.10 | 57.54 |
| * | Balances for the quarter and half year ended September 30, 2023 and quarter ended June 30, 2023 represent balances as per the audited Balance Sheet as at March 31, 2023 and balances for the quarter and half year ended September 30, 2022 represent balances as per the audited Balance Sheet as at March 31, 2022 as required by SEBI (Listing and Other Disclosure Requirements) Regulations, 2015 |
| ** | EPS is not annualized for the quarter and half year ended September 30, 2023, quarter ended June 30, 2023 and quarter and half year ended September 30, 2022. |
| # | Excludes non-controlling interest |
1. Notes pertaining to the current quarter
a) The audited interim condensed consolidated financial statements for the quarter and half-year ended September 30, 2023 have been taken on record by the Board of Directors at its meeting held on October 12, 2023. The statutory auditors, Deloitte Haskins & Sells LLP have expressed an unmodified audit opinion. The information presented above is extracted from the audited interim condensed consolidated financial statements. These interim condensed consolidated financial statements are prepared in accordance with the Indian Accounting Standards (Ind-AS) as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules thereafter.
b) Appointment of Independent Director
Based on the recommendation of the Nomination and Remuneration Committee, the Board considered and approved the appointment of Nitin Paranjpe (DIN - 00045204), as an Additional & Independent Director effective January 1, 2024 for a period of 5 (Five) years, subject to the approval of the shareholders.
c) Update on Investment
On September 1, 2023, Infosys entered into a share
purchase agreement to acquire 100% of the voting interests in Danske IT and Support Services India Private Limited, which is Danske Bank's
IT center in India. The estimated consideration is approximately DKK 63 million (approximately 77 crore) which may be subjected
to a further adjustment on finalization of the opening net assets value as agreed in the Share Purchase Agreement.
d) Update on employee stock grants
The Board, on October 12, 2023, based on the recommendations of the Nomination and Remuneration Committee, approved :
One time grant of 1,231,260 RSUs under the 2015 Stock Incentive Compensation Plan (2015 Plan) and 500,250 PSUs under the Expanded Stock Ownership Program 2019 (2019 Plan) to Senior Management Personnel including Key management personnel as defined under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended and other Senior leaders.
The grants made under the 2015 Plan would vest over a period of three years and the grants made under the 2019 Plan would vest over a period of three years subject to Company’s achievement of performance parameters as defined in the 2019 Plan. The RSUs and PSUs will be granted w.e.f November 1, 2023 and the exercise price will be equal to the par value of the share.
Further, the Board on October 12, 2023, based on the recommendations of the Nomination and Remuneration Committee, approved the grant of 34,390 RSUs to few new hires under the 2015 plan w.e.f November 1, 2023. The RSUs will vest over a period of three to four years.
2. Information on dividends for the quarter and half year ended September 30, 2023
The Board of Directors declared an interim dividend
of 18/- per equity share. The record date for the payment is October 25, 2023.The interim dividend will be paid on November 6,
2023. The interim dividend declared in the previous year was 16.50/- per equity share.
(in )
| Particulars | Quarter ended September 30, | Quarter ended June 30, | Quarter ended September 30, | Half-year ended September 30, | Year ended March 31, | |
| 2023 | 2023 | 2022 | 2023 | 2022 | 2023 | |
| Dividend per share (par value 5/- each) |
||||||
| Interim dividend | 18.00 | – | 16.50 | 18.00 | 16.50 | 16.50 |
| Final dividend | – | – | – | – | – | 17.50 |
3. Audited Consolidated Balance Sheet
(in crore)
| Particulars | As at | |
| September 30, 2023 | March 31, 2023 | |
| ASSETS | ||
| Non-current assets | ||
| Property, plant and equipment | 12,542 | 13,346 |
| Right of use assets | 6,950 | 6,882 |
| Capital work-in-progress | 497 | 288 |
| Goodwill | 7,240 | 7,248 |
| Other Intangible assets | 1,547 | 1,749 |
| Financial assets | ||
| Investments | 11,744 | 12,569 |
| Loans | 38 | 39 |
| Other financial assets | 2,343 | 2,798 |
| Deferred tax assets (net) | 868 | 1,245 |
| Income tax assets (net) | 6,945 | 6,453 |
| Other non-current assets | 2,518 | 2,318 |
| Total non-current assets | 53,232 | 54,935 |
| Current assets | ||
| Financial assets | ||
| Investments | 7,579 | 6,909 |
| Trade receivables | 28,261 | 25,424 |
| Cash and cash equivalents | 15,713 | 12,173 |
| Loans | 252 | 289 |
| Other financial assets | 11,650 | 11,604 |
| Income tax assets (net) | 42 | 6 |
| Other current assets | 13,570 | 14,476 |
| Total current assets | 77,067 | 70,881 |
| Total Assets | 130,299 | 125,816 |
| EQUITY AND LIABILITIES | ||
| Equity | ||
| Equity share capital | 2,070 | 2,069 |
| Other equity | 78,698 | 73,338 |
| Total equity attributable to equity holders of the Company | 80,768 | 75,407 |
| Non-controlling interests | 386 | 388 |
| Total equity | 81,154 | 75,795 |
| Liabilities | ||
| Non-current liabilities | ||
| Financial liabilities | ||
| Lease liabilities | 6,626 | 7,057 |
| Other financial liabilities | 2,162 | 2,058 |
| Deferred tax liabilities (net) | 1,028 | 1,220 |
| Other non-current liabilities | 472 | 500 |
| Total non-current liabilities | 10,288 | 10,835 |
| Current liabilities | ||
| Financial liabilities | ||
| Lease liabilities | 1,920 | 1,242 |
| Trade payables | 3,203 | 3,865 |
| Other financial liabilities | 17,566 | 18,558 |
| Other Current Liabilities | 10,278 | 10,830 |
| Provisions | 1,702 | 1,307 |
| Income tax liabilities (net) | 4,188 | 3,384 |
| Total current liabilities | 38,857 | 39,186 |
| Total equity and liabilities | 130,299 | 125,816 |
The disclosure is an extract of the audited Consolidated Balance Sheet as at September 30, 2023 and March 31, 2023 prepared in compliance with the Indian Accounting Standards (Ind-AS).
4. Audited Consolidated Statement of Cash Flows
(in crore)
| Particulars | Half-year ended September 30, | |
| 2023 | 2022 | |
| Cash flow from operating activities | ||
| Profit for the period | 12,160 | 11,388 |
| Adjustments to reconcile net profit to net cash provided by operating activities: | ||
| Income tax expense | 4,970 | 4,537 |
| Depreciation and amortization | 2,339 | 1,979 |
| Interest and dividend income | (1,006) | (947) |
| Finance cost | 228 | 121 |
| Impairment loss recognized / (reversed) under expected credit loss model | 206 | 91 |
| Exchange differences on translation of assets and liabilities, net | (1) | 131 |
| Stock compensation expense | 279 | 269 |
| Other adjustments | 900 | 283 |
| Changes in assets and liabilities | ||
| Trade receivables and unbilled revenue | (1,751) | (4,864) |
| Loans, other financial assets and other assets | (251) | (1,205) |
| Trade payables | (661) | (9) |
| Other financial liabilities, other liabilities and provisions | (768) | 3,213 |
| Cash generated from operations | 16,644 | 14,987 |
| Income taxes paid | (4,538) | (4,227) |
| Net cash generated by operating activities | 12,106 | 10,760 |
| Cash flows from investing activities | ||
| Expenditure on property, plant and equipment and intangibles | (1,299) | (1,234) |
| Deposits placed with corporation | (636) | (564) |
| Redemption of deposits placed with corporation | 439 | 384 |
| Interest and dividend received | 973 | 846 |
| Payment towards acquisition of business, net of cash acquired | – | (904) |
| Payment of contingent consideration pertaining to acquisition of business | (59) | (60) |
| Other receipts | 127 | 40 |
| Payments to acquire Investments | ||
| Liquid mutual funds and fixed maturity plan securities | (33,038) | (36,310) |
| Certificates of deposit | (2,179) | (5,024) |
| Commercial Paper | (2,903) | (482) |
| Non-convertible debentures | (104) | (249) |
| Tax free bonds | – | (13) |
| Government securities | – | (1,569) |
| Other investments | (5) | (18) |
| Proceeds on sale of Investments | ||
| Other investments | – | 99 |
| Liquid mutual funds | 31,292 | 34,336 |
| Certificates of deposit | 4,912 | 3,138 |
| Commercial Paper | 1,254 | 200 |
| Non-convertible debentures | 875 | 295 |
| Government securities | 299 | 1,332 |
| Net cash (used in) / generated from investing activities | (52) | (5,757) |
| Cash flows from financing activities: | ||
| Payment of lease liabilities | (920) | (527) |
| Payment of dividends | (7,246) | (6,711) |
| Payment of dividend to non-controlling interest of subsidiary | (2) | (22) |
| Shares issued on exercise of employee stock options | 3 | 7 |
| Other receipts | 20 | 84 |
| Other payments | (334) | (220) |
| Net cash used in financing activities | (8,479) | (7,389) |
| Net increase / (decrease) in cash and cash equivalents | 3,575 | (2,386) |
| Effect of exchange rate changes on cash and cash equivalents | (35) | (217) |
| Cash and cash equivalents at the beginning of the period | 12,173 | 17,472 |
| Cash and cash equivalents at the end of the period | 15,713 | 14,869 |
| Supplementary information: | ||
| Restricted cash balance | 365 | 465 |
The disclosure is an extract of the audited Consolidated Statement of Cash flows for the half year ended September 30, 2023 and September 30, 2022 prepared in compliance with Indian Accounting Standard (Ind AS) 34 Interim Financial Reporting.
5. Segment reporting (Consolidated - Audited)
(in crore)
| Particulars | Quarter ended September 30, | Quarter ended June 30, | Quarter ended September 30, | Half-year Ended September 30, | Year ended March 31, | |
| 2023 | 2023 | 2022 | 2023 | 2022 | 2023 | |
| Revenue by business segment | ||||||
| Financial Services (1) | 10,705 | 10,661 | 11,148 | 21,366 | 21,710 | 43,763 |
| Retail (2) | 5,913 | 5,513 | 5,183 | 11,426 | 10,187 | 21,204 |
| Communication (3) | 4,463 | 4,441 | 4,501 | 8,904 | 8,965 | 18,086 |
| Energy, Utilities, Resources and Services | 4,957 | 4,889 | 4,498 | 9,846 | 8,757 | 18,539 |
| Manufacturing | 5,574 | 5,350 | 4,686 | 10,924 | 8,858 | 19,035 |
| Hi-Tech | 3,053 | 3,056 | 2,971 | 6,109 | 5,783 | 11,867 |
| Life Sciences (4) | 3,050 | 2,749 | 2,452 | 5,799 | 4,709 | 10,085 |
| All other segments (5) | 1,279 | 1,274 | 1,099 | 2,553 | 2,039 | 4,188 |
| Total | 38,994 | 37,933 | 36,538 | 76,927 | 71,008 | 146,767 |
| Less: Inter-segment revenue | – | – | – | – | – | – |
| Net revenue from operations | 38,994 | 37,933 | 36,538 | 76,927 | 71,008 | 146,767 |
| Segment profit before tax, depreciation and non-controlling interests: | ||||||
| Financial Services (1) | 2,579 | 2,545 | 2,811 | 5,124 | 5,565 | 10,843 |
| Retail (2) | 1,674 | 1,629 | 1,578 | 3,303 | 3,115 | 6,396 |
| Communication (3) | 1,035 | 984 | 965 | 2,019 | 1,759 | 3,759 |
| Energy, Utilities , Resources and Services | 1,352 | 1,290 | 1,251 | 2,642 | 2,396 | 5,155 |
| Manufacturing | 1,033 | 972 | 792 | 2,005 | 1,177 | 3,113 |
| Hi-Tech | 788 | 802 | 724 | 1,590 | 1,396 | 2,959 |
| Life Sciences (4) | 799 | 702 | 642 | 1,501 | 1,177 | 2,566 |
| All other segments (5) | 180 | 140 | 139 | 320 | 180 | 339 |
| Total | 9,440 | 9,064 | 8,902 | 18,504 | 16,765 | 35,130 |
| Less: Other Unallocable expenditure | 1,166 | 1,173 | 1,029 | 2,339 | 1,979 | 4,225 |
| Add: Unallocable other income | 632 | 561 | 584 | 1,193 | 1,260 | 2,701 |
| Less: Finance cost | 138 | 90 | 66 | 228 | 121 | 284 |
| Profit before tax and non-controlling interests | 8,768 | 8,362 | 8,391 | 17,130 | 15,925 | 33,322 |
| (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 not practicable to provide segment disclosures relating to total assets and liabilities since a meaningful segregation of the available data is onerous.
6. Audited financial results of Infosys Limited (Standalone Information)
(in crore)
| Particulars | Quarter ended September 30, | Quarter ended June 30, | Quarter ended September 30, | Half-year ended September 30, |
Year ended March 31, | |
| 2023 | 2023 | 2022 | 2023 | 2022 | 2023 | |
| Revenue from operations | 32,629 | 31,811 | 31,567 | 64,440 | 61,094 | 124,014 |
| Profit before tax | 8,517 | 8,146 | 8,488 | 16,663 | 15,391 | 31,643 |
| Profit for the period | 6,245 | 5,956 | 6,253 | 12,202 | 11,154 | 23,268 |
The audited results of Infosys Limited for the above mentioned periods are available on our website, www.infosys.com and on the Stock Exchange website www.nseindia.com and www.bseindia.com. The information above has been extracted from the audited interim standalone condensed financial statements as stated.
| By order of the Board for Infosys Limited | |
|
Bengaluru, India October 12, 2023 |
Salil Parekh Chief Executive Officer and Managing Director
|
The Board has also taken on record the condensed consolidated results of Infosys Limited and its subsidiaries for the quarter and half-year ended September 30, 2023, 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 September 30, | Quarter ended June 30, | Quarter ended September 30, | Half-year ended September 30, | Year ended March 31, | |
| 2023 | 2023 | 2022 | 2023 | 2022 | 2023 | |
| Audited | Audited | Audited | Audited | Audited | Audited | |
| Revenues | 4,718 | 4,617 | 4,555 | 9,334 | 8,999 | 18,212 |
| Cost of sales | 3,271 | 3,211 | 3,170 | 6,481 | 6,315 | 12,709 |
| Gross profit | 1,447 | 1,406 | 1,385 | 2,853 | 2,684 | 5,503 |
| Operating expenses | 447 | 445 | 406 | 892 | 817 | 1,678 |
| Operating profit | 1,000 | 961 | 979 | 1,961 | 1,867 | 3,825 |
| Other income, net | 77 | 68 | 73 | 145 | 160 | 335 |
| Finance cost | 17 | 11 | 8 | 28 | 15 | 35 |
| Profit before income taxes | 1,060 | 1,018 | 1,044 | 2,078 | 2,012 | 4,125 |
| Income tax expense | 309 | 294 | 295 | 603 | 574 | 1,142 |
| Net profit | 751 | 724 | 749 | 1,475 | 1,438 | 2,983 |
| Earnings per equity share * | ||||||
| Basic (in $ per share) | 0.18 | 0.17 | 0.18 | 0.36 | 0.34 | 0.71 |
| Diluted (in $ per share) | 0.18 | 0.17 | 0.18 | 0.36 | 0.34 | 0.71 |
| Total assets | 15,689 | 16,007 | 15,640 | 15,689 | 15,640 | 15,312 |
| Cash and cash equivalents and current investments | 2,805 | 2,176 | 3,276 | 2,805 | 3,276 | 2,322 |
| * | EPS is not annualized for the quarter and half year ended September 30, 2023, quarter ended June 30, 2023 and quarter and half year ended September 30, 2022. |
Certain statements in this release concerning our future growth prospects, or our future financial or operating performance 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 or outcomes 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 the execution of our business strategy, our ability to attract and retain personnel, our transition to hybrid work model, economic uncertainties, technological innovations such as Generative AI, the complex and evolving regulatory landscape including immigration regulation changes, our ESG vision, our capital allocation policy and expectations concerning our market position, future operations, margins, profitability, liquidity, capital resources, and our corporate actions including acquisitions. Important factors that may cause actual results or outcomes to differ from those implied by the forward looking statements are discussed in more detail in our US Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2023. 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