Infosys (NYSE: INFY) Announces Results for the Quarter and Year Ended March 31, 2015 (1)

CHENNAI, April 24, 2015 /PRNewswire/ --

FY 16 revenues expected to grow between 10%-12% in constant currency terms

Dividend pay-out ratio increased to up to 50% of post-tax profits effective FY 15

1:1 bonus issue of equity shares and 1:1 stock dividend of American Depositary Shares

FY 15 EPS grew by 15.0% year on year

Operating margins expanded by 190 bps in FY 15 to 25.9%

Quarterly annualized attrition for Infosys Limited declined to 13.4% in Q4 compared to 23.4% in Q1

Announces definitive agreement to acquire Kallidus Inc. (d.b.a Skava) and invest in Airviz

Financial Highlights

Consolidated results under International Financial Reporting Standards (IFRS) for the year and quarter ended March 31, 2015

Year ended March 31, 2015

- Revenues were $ 8,711 million for the year ended March 31, 2015
YoY growth was 7.1% in constant currency; 5.6% in reported terms
- Net profit was $ 2,013 million for the year ended March 31, 2015
YoY growth was 15.0%
- Earnings per share (EPS) was $ 1.76 for the year ended March 31, 2015
YoY growth was 15.0%

Quarter ended March 31, 2015

- Revenues were $ 2,159 million for the quarter ended March 31, 2015
YoY growth was 3.2%; QoQ growth was (2.6%) in reported terms,

YoY growth was 7.8% in constant currency;

- Net profit was $ 498 million for the quarter ended March 31, 2015
YoY growth was 2.3%; QoQ growth was (4.6%)
- Earnings per share (EPS) was $ 0.44 for the quarter ended March 31, 2015
YoY growth was 2.3%; QoQ growth was (4.6%)
- Liquid assets including cash and cash equivalents, available-for-sale
financial assets, certificates of deposits and government bonds were $ 5,214 million
as on March 31, 2015 as compared to $ 5,532 million as on December 31, 2014 and $
5,048 million as on March 31, 2014
- The Board in its meeting held on April 24, 2015 has considered, approved and
recommended a bonus issue of one equity share for every equity share held and a stock
dividend of one American Depositary Share (ADS) for every ADS held, as on a record
date to be determined
- The company's current policy is to pay dividends of up to 40% of post-tax
profits. The Board has decided to increase the dividend pay-out ratio to up to 50% of
post-tax profits effective fiscal 2015
- The Board of Directors recommended a final dividend of INR 29.50 per share for
fiscal 2015 (equivalent to INR 14.75 per share effective after 1:1 bonus issue, if
approved by shareholders). This translates to a final dividend of $ 0.47 per share
pre-bonus and $ 0.24 per share post bonus (at USD-INR rate of 62.50)
- Infosys spent $ 42 million in FY 15, 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

(Logo: http://photos.prnewswire.com/prnh/201301...)

Other Highlights

- Gross employee additions over 50,000 for the year
- Utilization (excluding trainees) expands 450 bps for the year
- Quarterly annualized attrition declines to 13.4% for Infosys Limited in Q4

"We see the industry going through a fundamental and structural transition. Despite being a challenging quarter, I am encouraged by the early successes in executing our Renew-New strategy, on a foundation of learning," said CEO & MD Dr. Vishal Sikka . "Our focused employee engagement initiatives over the last few months have resulted in containing employee attrition to one of the lowest in recent times. And our investments in innovation and in renewing our capabilities are helping to elevate our client relationships."

"Services growth in the fourth quarter was lower than we expected, though we saw healthy growth in Finacle and our Edge suite. Pricing continues to be under pressure due to increasing commoditization in the traditional outsourcing business, requiring us to ramp up productivity through automation, and enhance our differentiation in large engagements," said U.B. Pravin Rao, COO. "But we are well placed to pursue healthy overall growth in the new fiscal year."

"We were able to improve profitability during the year even as we made investments into our employees and other strategic areas. We have been able to achieve this because of increased operating efficiencies despite a difficult pricing environment", said Rajiv Bansal, CFO. "Consistent with our objective of increasing shareholder returns, the Board has approved an increase in the dividend pay-out ratio to 50% of post-tax profits. The Board has also recommended a 1:1 bonus issue of equity shares and 1:1 stock dividend of American Depositary Shares."

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 terms;
- Revenues are expected to grow 6.2%-8.2% in USD terms

*Conversion: AUD/USD - 0.76; Euro/USD - 1.08; GBP/USD - 1.48 for the fiscal 2016.

Business Highlights

As we continue to pursue our dual strategy of renewing the core and innovating into new frontiers, we have witnessed strong client additions this quarter. We have also enhanced our investments in new technologies and education to foster a culture of learning and creativity.

Client wins

- ABN AMRO selected us as one of its strategic partners to drive business
transformation. We will deliver services across application development and
maintenance, testing and product implementation.
- Western Union Financial Services selected us for an 11 year turnkey project
where we take complete ownership to modernize, maintain and support its worldwide
settlement systems.
- We have been awarded a multi-year contract by House of Fraser
[http://www.houseoffraser.co.uk ] (recently acquired by Sanpower Group China), to
transform its multichannel business and IT infrastructure.

Frank Slevin, Chairman, House of Fraser, said, "This program will help us realize faster time to market as we adopt new and advanced technologies to enhance our multichannel business. The benefits from this program will also allow us to achieve our business goals as we go global. We look forward to building a long term strategic relationship with Infosys."

- We have been chosen as a strategic partner by an American fashion retailer
to manage its service desk, infrastructure and application support services. This
solution will provide the client considerable cost savings, direct business benefits
and innovation capabilities, thus enabling them to focus on strategic business
initiatives.
- A leading global express delivery company, selected us to simplify and
transform its technology applications. As part of this engagement, we will provide
application development and maintenance services, as well as provide digital
technologies to reduce complexity and cost, while increasing customer engagement.

Platforms

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