Infosys Ltd. — Interim / Quarterly Report 2014

Oct 10, 2013

Infosys Limited

Regd. Office: Electronics City, Hosur Road, Bangalore – 560 100, India.

Audited financial results of Infosys Limited for the quarter and half-year ended September 30, 2013. (in € crore, except share and per share data)

Particulars	Quarter ended September 30,	Quarter ended June 30,	Quarter ended September 30,	Half-year ended September 30,		Year ended March 31,
	2013	2013	2012	2013	2012	2013
Income from software services and products	11,482	9,959	9,129	21,441	18,038	36,765
Expenses:
Employee benefit expenses	6,572	5,567	4,882	12,139	9,647	19,932
Deferred consideration pertaining to acquisition	57	52	-	109	-	85
Cost of technical sub-contractors	666	579	418	1,245	786	1,731
Travel expenses	340	347	343	687	679	1,281
Cost of software packages and others	165	174	156	339	308	734
Communication expenses	88	75	73	163	139	389
Professional charges	92	95	138	187	255	504
Depreciation and amortization expense	257	250	238	507	452	956
Other expenses**	540	307	354	847	657	1,194
Total expenses	8,777	7,446	6,602	16,223	12,923	28,708
Profit from operations before other income	2,705	2,513	2,527	5,218	5,115	10,059
Other income	503	563	628	1,066	1,087	2,215
Profit before exceptional item and tax	3,208	3,076	3,155	6,284	6,202	12,274
Dividend income	-	-	83	-	83	83
Profit before tax	3,208	3,076	3,238	6,284	6,285	12,357
Tax expense	682	826	696	1,708	1,739	3,241
Net Profit for the period after exceptional item	2,326	2,250	2,342	4,076	4,046	9,116
Paid-up equity share capital (par value ₹5- each fully paid)	287	287	287	287	287	287
Reserves and surplus *	35,772	35,772	29,470	35,772	29,470	29,470
Earnings per share (per value of ₹5- each) - Refer to Note 4
Before exceptional item
Basic	40.50	39.19	39.57	79.69	77.95	157.55
Diluted	40.50	39.19	39.57	79.69	77.95	157.55
After exceptional item
Basic	40.50	39.19	40.78	79.69	79.16	158.76
Diluted	40.50	39.19	40.78	79.69	79.16	158.76
Total Public Shareholding *
Number of shares	39,36,76,421	41,01,01,111	41,54,08,755	39,58,76,421	41,54,08,755	41,12,67,871
Percentage of shareholding	68.90	71.41	72.34	68.90	72.34	71.62
Promoters and Promoter Group Shareholding
Pledged / Encumbered
Number of shares
Percentage of shares (as a % of the total shareholding of promoter and promoter group)
Percentage of shares (as a % of the total share capital of the company)
Non - encumbered
Number of shares	9,15,08,078	9,20,85,078	9,20,85,078	9,15,08,078	9,20,85,078	9,20,85,078
Percentage of shares (as a % of the total shareholding of promoter and promoter group)	100.00	100.00	100.00	100.00	100.00	100.00
Percentage of shares (as a % of the total share capital of the company)	15.94	16.04	16.04	15.94	16.04	16.04

*Other expenses for the quarter and half year ended September 30, 2013 include a provision of ₹219 crore towards visa related matters.

• Represents the previous accounting year balance as required under Clause 41 of the Listing Agreement. 4Total public shareholding as defined under Clause 40A of the Listing Agreement (excludes shares held by founders and American Depositary Receipt Holders).

Note: The audited Statement of Profit and Loss for the quarter and half-year ended September 30, 2013 has been taken on record at the Board meeting held on October 11, 2013.

Notes:

1. The audited financial statements for the quarter and half-year ended September 30, 2013 have been taken on record by the Board of Directors at its meeting held on October 11, 2013. The statutory auditors have expressed an unqualified audit opinion. The information presented above is extracted from the audited financial statements.
2. Mr. Leo Puri, independent director, and Mr. Ashok Vamuri, a whole time director, resigned from the Board with effect from August 14, 2013 and September 12, 2013 respectively. The Board expressed its appreciation for the services rendered by Mr. Leo Puri and Mr. Ashok Vamuri during their tenure.
3. The Hon'ble High Court of Karnataka sanctioned the scheme of amalgamation of Infosys Consulting India Limited (ICIL) with Infosys Limited with an effective date of August 23, 2013 and an appointed date of January 12, 2012. ICIL was a wholly owned subsidiary of Infosys Limited and was engaged in software related consultancy services. The merger of ICIL into Infosys Limited has been accounted for under posting of Interest method referred to in Accounting Standard 14, Accounting for Amalgamation (AS-14).
4. EPS for the quarter and half year ended September 30, 2013 is ₹44.32 per share and ₹83.51 per share respectively, excluding the provision of ₹219 crore for visa related matters. EPS for the quarter and half year ended September 30, 2013 is ₹40.50 per share and ₹79.69 per share, including the provision of ₹219 crores for visa related matters. The difference is ₹3.82 per share.

5. Information on dividends for the quarter and half-year ended September 30, 2013

The Board declared an interim dividend of ₹ .31/- per equity share. The record date for the payment of interim dividend is October 18, 2013. The interim dividend will be paid on October 21, 2013. The interim dividend declared in the previous year was ₹15/- 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,
	2013	2013	2012	2013	2012	2013
Dividend per share (per value ₹5- each)
Interim dividend	20.00	-	15.00	20.00	15.00	15.00
Final dividend	-	-	-	-	-	27.00
Total dividend	20.00	-	15.00	20.00	15.00	42.00

The final dividend of ₹27/-per equity share for fiscal 2013 was approved by the shareholders at the Annual General Meeting of the company held on June 15, 2013 and the same was paid on June 17, 2013.

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1. Other Information

(in ₹ crore)

Particulars	Quarter ended September 30, 2013	Quarter ended June 30, 2013	Quarter ended September 30, 2013	Half-year ended September 30, 2013	Year ended March 31, 2013
Staff costs	6,572	5,567	4,682	12,139	9,647
Items exceeding 10% of aggregate expenditure	-	-	-	-	-
Details of other income:
Interest on deposits with banks and others	516	497	411	1,013	869
Dividend received on investment in mutual fund units	42	31	61	73	85
Miscellaneous income, net	7	6	6	13	10
Gains / (losses) on foreign currency fluctuation, net	(62)	29	150	(33)	123
Total	503	503	635	1,000	1,007

1. Information on investor complaints pursuant to Clause 41 of the Listing Agreement for the quarter ended September 30, 2013

Nature of complaints received	Opening balance	Additions	Disposal	Closing balance
Non receipt of Dividend/Annual report related	-	145	145	-

1. Statement of assets and liabilities (Standalone-Audited) (in ₹ crore)

Particulars	As at
	September 30, 2013	March 31, 2013
EQUITY AND LIABILITIES
Shareholders' funds
Share capital	287	287
Reserves and surplus	39,010	35,772
	39,297	36,059
Non-current liabilities
Deferred tax liabilities (net)	-	56
Other long-term liabilities	254	120
	254	176
Current liabilities
Trade payables	52	178
Other current liabilities	4,506	2,827
Short-term provisions	4,347	3,788
	6,995	5,793
TOTAL - EQUITY AND LIABILITIES	49,456	43,039
ASSETS
Non-current assets
Fixed assets	5,991	5,588
Non-current investments	3,396	2,764
Deferred tax assets (net)	418	378
Long-term loans and advances	1,904	1,529
Other non-current assets	28	31
	11,737	10,290
Current assets
Current investments	3,146	1,580
Trade receivables	7,335	6,365
Cash and cash equivalents	21,011	20,401
Short-term loans and advances	5,233	4,392
	36,719	32,728
TOTAL - ASSETS	46,498	43,038

The above disclosure is in compliance with clause 41(4)(h) of the Listing Agreement. The disclosure is an extract of the audited Standalone Balance Sheet of Infosys Limited as at September 30, 2013

1. Segment reporting (Standalone-Audited) (in ₹ crore)

Particulars	Quarter ended September 30, 2013	Quarter ended June 30, 2013	Quarter ended September 30, 2013	Half-year ended September 30, 2013	Year ended March 31, 2013
Revenue by industry segment
Financial services and insurance (FSI)	3,979	3,467	3,118	7,446	6,240
Manufacturing Enterprise (MFG)	2,476	2,111	1,923	4,587	3,805
Energy, utilities, communication and services (ECS)	2,298	1,976	1,871	4,276	3,630
Retail, consumer packaged goods, logistics and life sciences (RCL)	2,729	2,403	2,217	5,132	4,363
Total	11,482	9,909	9,129	21,441	18,038
Less: Inter-segment revenue
Net revenue from operations	11,482	9,909	9,129	21,441	18,038
Segment profit before tax, depreciation
Financial services and insurance (FSI)	1,059	1,012	977	2,071	1,989
Manufacturing Enterprise (MFG)	559	531	546	1,090	1,097
Energy, utilities, communication and services (ECS)	704	606	530	1,304	1,053
Retail, consumer packaged goods, logistics and life sciences (RCL)	640	620	712	1,260	1,428
Total	2,962	2,763	2,765	5,725	5,567
Less: Other unallocable expenditure	257	250	238	507	452
Add: Unallocable other income	503	563	628	1,068	1,087
Profit before tax and exceptional item	3,208	3,076	3,155	6,394	6,202

Notes on segment information:

Principal segments

The company's operations predominantly relate to providing technology services, delivered to clients globally, operating in various industry segments. Accordingly, revenues represented along industries served constitute the primary basis of the segmental information set out above.

Segmental capital employed

Assets and liabilities used in the company's business are not identified to any of the reportable segments, as these are used interchangeably between segments. 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.

By order of the Board

for Infosys Limited

Bangalore, India

October 11, 2013

S. D. Shibulal

Chief Executive Officer

and Managing Director

Statements in connection with this release may include forward-looking statements within the meaning of US Securities laws intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks and uncertainties including those described in our SEC filings available at www.sec.gov including our Annual Report on Form 20-F for the year ended March 31, 2013, and our other recent filings, and actual results may differ materially from those projected by forward-looking statements. We may make additional written and oral forward-looking statements but do not undertake, and disclaim any obligation, to update them, unless required by law.