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Infosys Announces Results for the Quarter and Year Ended March 31, 2015 | ||
Chennai, Tamil Nadu, India - 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 15.8% 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
Quarter ended March 31, 2015:
Other Highlights
"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:
*Conversion: 1 US$ = Rs. 62.50 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
Platforms Infosys Information Platform (IIP) has seen increased traction in the market. IIP demonstrates our ability to create state-of-the-art platforms by bringing together domain expertise, learnability, the open source ecosystem, and a highly motivated team.
Carlos E. Amesquita, Chief Information Officer, The Hershey Company, said, "At its heart, Hershey isa knowledge company. Infosys and its new IIP platform bring enhanced capabilities and speed to ingest diverse data sets, harmonize and link them together to transform disparate data into actionable knowledge and insights
Finacle Finacle™ sustained its business momentum with 23 wins and 11 go-lives this quarter. Discover Financial Services, a leading U.S. direct bank and payment services company, which engaged Finacle last year, won the Celent Model Bank award for its core banking transformation program. During the quarter, an independent assessment of the top 1,000 world banks, revealed that banks powered by Finacle enjoy 50 percent higher return on assets, 30 percent higher return on capital, and 8.1 percent lesser cost to income than others. The research was conducted by Feedback Business Consulting based on the data published by ‘The Banker’ for top 1000 world banks1.
1 The Banker Top 1000 world banks - http://www.thebanker.com/Top-1000-World-Banks
EdgeVerve EdgeVerve has seen growth both in terms of revenue and client base. We had 12 wins and three client golives in the quarter.
Acquisitions, Investments and Partnerships
Innovation Fund This quarter, Infosys announced the creation of an 'Innovate in India Fund’ from its $ 500 million Innovation Fund. The $ 250 million (INR 1,550 crore) Innovate in India Fund will be dedicated to investments in promising new Indian companies. These companies will be inducted into the global ecosystem of strategic partners that we are building.
As part of the Infosys Innovation fund, we are announcing the launch of the Infosys Incubator. This incubator will help identify, nurture and grow companies engaged in innovative, new, and disruptive technologies that can help our business, and create future growth areas. By guiding and mentoring these businesses early, we hope to have the first pick of new innovations that we can bring to market and scale, thus improving the chances of viability and long-term success for the startups involved.
Awards and Recognition
Beyond Business This fiscal Infosys pledged Rs. 254 crore towards Corporate Social Responsibility (CSR) which is primarily being carried out through the Infosys Foundation, its philanthropic arm.
For the quarter and year ended March 31, 2015, Infosys and its subsidiaries donated Rs. 66 crore and Rs. 254 crore to Infosys Foundation and to the Spark-IT program.
During the quarter, the Association for Computing Machinery (ACM) and the Infosys Foundation announced that Dan Boneh is the recipient of the 2014 ACM-Infosys Foundation Award in the Computing Sciences category. The award recognizes Boneh’s ground-breaking contributions to the development of pairing-based cryptography and its application in identity-based encryption. The ACM-Infosys Foundation Award celebrates the finest recent innovations by young scientists and system developers in the computing field. An endowment from the Infosys Foundation provides financial support to the $ 175,000 annual award.
About Infosys Ltd Infosys is a global leader in consulting, technology, outsourcing and next-generation services. We enable clients, in more than 50 countries, to stay a step ahead of emerging business trends and outperform the competition. We help them transform and thrive in a changing world by co-creating breakthrough solutions that combine strategic insights and execution excellence.
Visit www.infosys.com to see how Infosys (NYSE: INFY), with US$ 8.7 billion in annual revenues and 176,000+ employees, is helping enterprises renew themselves while also creating new avenues to generate value.
Safe Harbor Certain statements in this press release concerning our future growth prospects are forward-looking statements regarding our future business expectations 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 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, fixedtime 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, and unauthorized use of our intellectual property and general economic conditions affecting our industry. 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, 2014 and our Forms 6- K for the quarters ended June 30, 2014, September 30, 2014 and December 31, 2014. 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. In addition, please note that the date of this press release is April 24, 2015, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. 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.
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Media Contact Details
Sandeep Mahindroo
Infosys, India +91 80 3980 1018 Sarah Vanita Gideon
Infosys +91 80 4156 3373 John Gallagher
Infosys Ltd +1 415 316 8060 |
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