Infosys (NYSE: INFY) Announces Results for the Quarter Ended June 30, 2015 (1)

BANGALORE, July 21, 2015 /PRNewswire/ --

Q1 revenue growth at 4.5% QoQ; highest in 15 quarters * 

Volume growth at 5.4% QoQ, highest in 19 quarters 

Gross client addition at 79 

Largest client crosses $ 300 mn; added 2 clients in $ 200 mn bucket  

6 large deals signed in Q1 with TCV of $ 688 mn 

Quarterly annualized attrition for Infosys Limited at 14.2% compared to 23.4% in Q1 15 

FY 16 revenue guidance retained at 10%-12% in constant currency; increased to 7.2%-9.2% in USD terms 

*Excluding acquisitions

Financial Highlights  

Consolidated results under International Financial Reporting Standards (IFRS) for the quarter ended June 30, 2015

Quarter ended June 30, 2015

- Revenues were $ 2,256 million for the quarter ended June 30, 2015

QoQ growth was 4.5% in reported terms; 4.4% in constant currency terms

YoY growth was 5.7% in reported terms; 10.9% in constant currency terms  

- Net profit was $ 476 million for the quarter ended June 30, 2015

QoQ decline was 4.5%

YoY decline was 1.3% 

- Earnings per share (EPS) was $ 0.21 for the quarter ended June 30, 2015

QoQ decline was 4.5%

YoY decline was 1.3% 

- Liquid assets including cash and cash equivalents, available-for-sale financial assets

and government bonds were $ 4,750 million as on June 30, 2015 as compared to $ 5,214

million as on March 31, 2015

- Infosys spent $ 7 million in Q1, towards Corporate Social Responsibility (CSR) which

is primarily being carried out through the Infosys Foundation, its philanthropic arm.

The Infosys Foundation is engaged in several programs aimed at alleviating hunger,

promoting education, computing literacy, improving health, assisting rural development,

supporting arts and helping the destitute.

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Other Q1 Highlights 

- Volume growth of 5.4%

- 6 large deals signed with TCV of $ 688 mn

- Added 79 clients

- Utilization (excluding trainees) expanded 160 bps to 80.2%

- Quarterly annualized attrition for Infosys Limited at 14.2% compared to 23.4% in Q1 15

"I am very pleased with our performance in the first quarter. Our efforts in redesigning our clients' experience and our widespread adoption of innovation, both in grassroots and breakthroughs, are starting to bear fruit in large deal wins and in the growth of large clients", said Dr. Vishal Sikka, CEO and MD. "While we are still early in our journey to become the leading next-generation services company, this gives us good momentum for the rest of the year."

"The organization realignment made earlier this year for deeper client and operational focus has resulted in strong volume growth", said Mr. U. B. Pravin Rao, COO. "We continued the roll out of employee engagement initiatives around collaboration and simplification of internal processes in order to retain the industry's best talent."

"We are operating within our stated margin band, balancing strategic investments and client focus with operational efficiencies", said Rajiv Bansal, CFO. "Pricing environment is competitive which we are addressing through automation and improvement in productivity."

Outlook* 

The Company's outlook (consolidated) for the fiscal year ending March 31, 2016, under IFRS is as follows:

- Revenues are expected to grow 10%-12% in constant currency;

- Revenues are expected to grow 7.2%-9.2% in USD terms

*Conversion: AUD/USD - 0.77; Euro/USD - 1.12; GBP/USD - 1.57 for rest of fiscal 2016

Business Highlights  

We made significant client additions this quarter, including six large deals, each greater than USD$50 million in total contract value. We continue to focus on strengthening client relationships and delivering new and innovative solutions.

Client wins 

- This quarter, we signed a multi-year agreement with Deutsche Bank encompassing

bespoke development, application maintenance services, digital and mobility services,

package implementation, and testing services. We are now a strategic partner under

Deutsche Bank's Supplier Partnership Program.

Kim Hammonds, Global Chief Information Officer, Deutsche Bank said, "Kim Hammonds, Global Chief Information Officer, Deutsche Bank said, "Deutsche Bank is committed to applying innovative technology to enhance its efficiency and service to clients. Working with Infosys will help the bank achieve these goals."

- We were selected as a strategic partner by Allied Irish Banks, p.l.c. (AIB), a

financial services group operating predominantly in the Republic of Ireland and the

U.K. As part of this engagement, Infosys will provide application development and

management services, along with transformation and innovation services. We will also

set up a 200-seat facility in Dublin to house the staff who will be transferred from

AIB.

- We have won a multi-year contract with ServiceFirst, an internal shared service of the

Australian State of New South Wales organization. The total commercial value of the

deal is US $76 million and will include BPO and SAP services.

- This quarter, we completed the implementation of Infosys Smart Oilfield Services

Solution for SAP ERP at FTS International (FTSI), the largest private well completion

company in North America. This will enable the company to achieve a significant

milestone in its strategic business transformation. Within 14 months, we helped FTSI

implement 15 SAP modules across 20 locations for over 1,400 users, thus enabling the

company to improve operating metrics and to leverage an upgraded IT platform for

future growth.

FTSI Chief Information Officer and Chief HR Officer Sharon S. Stufflebeme said, "Infosys' tremendous footprint, level of expertise in SAP deployment, ability to work with both IT and business teams as well as its oil and gas experience made it the perfect partner for us in this important milestone in our strategic business transformation."

- NBTY Inc., a global manufacturer, marketer, distributor and retailer of

market-leading vitamins and nutritional supplements entered into a multi-year

partnership with us. As part of this agreement, we will provide development and

support services for NBTY's IT systems including enterprise-wide application

development and maintenance services.

Andrea Simone, Sr. Vice President & Global CIO, NBTY Inc. said, "We are creating a global, world-class IT architecture that will provide competitive advantage to NBTY in continuously driving profitable growth. We selected Infosys as a strategic partner to provide next-generation application services and to work with us on transformation initiatives that are expected to drive business and IT innovation."

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