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

Chennai (ots/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/20130122/589162)

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

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.

- Syngenta, a world leader in agribusiness, had application performance
challenges in their Management Reporting Solution due to large volume of data. Infosys
did a Proof of Concept with using the Infosys Information Platform to improve the
performance of Management Reporting solution. The IIP could inject 19 Million records
in 6 minutes compared to more than 1 hour for injecting half a million records.
Similarly IIP could do report/dashboard navigation in less than 5 seconds as against
more than a minute in the current platform.
- Syngenta, has leveraged the Infosys Automation platform to automate SAP user
authorization requests, thereby saving $ 1 million per year on IT operations costs.
Additionally, this has improved user productivity through speedy closure of
authorization requests.
- The Hershey Company, a global confectionery leader, engaged us as a strategic
partner for consulting and technology services. The company selected Infosys
Information Platform (IIP) to turn diverse data into knowledge and insights as it
places consumer, customer, market, and industry understanding at the center of its
decisions.

Carlos E. Amesquita, Chief Information Officer, The Hershey
Company, said, "At its heart, Hershey is a 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(TM) 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 banks[1].

- Qantas Credit Union was a significant win for Finacle this quarter in the
Australian market. Commenting on the engagement, Scott King, Chief Executive Officer,
Qantas Credit Union said, "Digitization is changing the banking environment rapidly.
To effectively compete and keep pace with the evolving demand of our members, we need
to transform our technology and operations. After many months on rigorous evaluation,
we have partnered with Infosys. I am confident that Infosys with its globally
successful Finacle platform will create the foundation for our future success and will
help us deliver best-in-class banking services to our members."

[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 go-lives in the quarter.

- Syngenta went live with TradeEdge Dealer Management System to manage
distributors in two states in India. This will be rolled out to distributors across
other states next year.
- Two marquee U.S. financial services giants selected our CreditFinanceEdge to
support parts of their global portfolios. A large U.S. telecommunication company
increased its AssistEdge footprint and took another step towards transforming its
customer contact centers, improving customer experience and reducing customer service
costs. AssistEdge is also being used for robotic process automation to enhance the
order management process for a high-tech industry client.

Acquisitions, Investments and Partnerships

- This quarter, we completed the acquisition of Panaya, a leading provider
of automation technology. Panaya's CloudQuality(TM) suite will enable us to leverage
automation for several of our service lines through an agile SaaS model, and help
mitigate risk, reduce costs and decrease time-to-market for clients.
- We have entered into a definitive agreement to acquire Kallidus Inc. (d.b.a
Skava) and its affiliate, a leading provider of digital experience solutions,
including mobile commerce and in-store shopping experiences to large retail clients.
This acquisition is an all-cash deal for a total consideration of $120 million
including retention bonus and a deferred component. Skava delivers a cloud hosted
platform for mobile websites, apps, and other digital shopping experiences across
mobile, tablet, desktop, in-store, and all emerging channels to large retail clients
worldwide. The platform enables retailers to provide a mobile specific experience to
their customers through an agile and flexible environment, enabling personalization
and delivering customer analytics across multiple channels.
- We also entered into a definitive agreement for an early-stage investment of $
2 million in Airviz, to acquire a minority share. Airviz is a personal air quality
monitoring startup and spinout from Carnegie Mellon University. This investment was
made out of the $ 500 million Innovation Fund earmarked for investments in disruptive
new technologies, and positions us as a driving force in the fast-growing personal
health monitoring market with a big data solution that provides indoor air pollution
sensing and visualization. Airviz Speck, an affordable, fine particulate monitor,
which uses patent-pending technology from Carnegie Mellon University, can empower
individuals and communities to understand and identify health hazards related to air
quality.
- Our strategic endeavor to inject the design thinking philosophy across the
organization continues. Till date, more than 25,000 employees across the company have
been trained in design thinking. We have also established a design thinking training
course for new joiners at the Infosys Global Education Center in Mysore. More than
22,000 trainees are expected to undergo this training in FY16. An important aspiration
is to extend this strategic capability with our clients. This quarter we have
successfully conducted more than 20 design thinking engagements with our clients and
the feedback from them has been very encouraging.

Speaking about RWE AG's recent engagement with Infosys on design
thinking, Peter Terium, Chief Executive Officer, RWE AG, said, "Our
company, and in fact, our entire industry is in the midst of a
massive transformation. Given the scale of the market disruption, RWE
has chosen to go outside in order to better innovate from within when
we started our innovation journey more than two years ago. In this
change journey, RWE has also recently received the support of our
long-term partner Infosys. Infosys helped to bring this exciting
capability to life at RWE's Silicon Valley outpost. Our interactions
with Infosys on Design Thinking have already yielded great value by
increasing the scope of what we even thought of as possible. Through
their unique relationship with d.Global and the faculty affiliated
with the Stanford d.school, Infosys is helping us to accelerate our
learning and to amplify the creativity and quest for excellence that
has always been an integral part of RWE. I look forward to an
increasingly strategic and collaborative partnership between our
companies in the Silicon Valley and around the Globe."

- We are collaborating with universities like East China Normal University,
University of California, Irvine and University of Wisconsin-Madison, which are the
leading research universities in areas like massively parallel databases, big data and
storage management. We will work closely with these universities, leveraging their
expertise, executing joint projects, and validating these modern systems against
industry use cases and workloads. This collaboration will significantly enhance our
expertise and products (like IIP) in the rapidly evolving areas of big data,
artificial intelligence, in-memory computing, and distributed storage, while
accelerating the adoption of these innovations among our enterprise customers.

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.

Beyond Business

This fiscal Infosys pledged INR 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 $ 11 million and $ 42 million to Infosys
Foundation and to the Spark-IT program.

During the quarter, the Association for Computing Machinery (ACM)
and the Infosys Foundation
[http://www.infosys.com/infosys-foundation/Pages/index.aspx ]
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
[http://www.infosys.com/links/redirectlink.aspx?id=awards.acm.aspx ]
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 http://www.infosys.com
[http://www.infosys.com/Pages/index.aspx ] to see how Infosys , with
US$ 8.25 billion in annual revenues and 165,000+ 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, fixed-time 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 http://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.

Infosys Limited and subsidiaries

Unaudited Condensed Consolidated Interim Balance Sheets as of

(Dollars in millions except equity share data)

March 31, 2015 March 31, 2014
ASSETS
Current assets
Cash and cash equivalents 4,859 4,331
Available-for-sale financial assets 140 367
Investment in certificates of deposit - 143
Trade receivables 1,554 1,394
Unbilled revenue 455 469
Prepayments and other current assets 527 440
Derivative financial instruments 16 36
Total current assets 7,551 7,180
Non-current assets
Property, plant and equipment 1,460 1,316
Goodwill 495 360
Intangible assets 102 57
Investment in Associates 15 -
Available-for-sale financial assets 215 208
Deferred income tax assets 85 110
Income tax assets 654 254
Other non-current assets 38 37
Total non-current assets 3,064 2,342
Total assets 10,615 9,522
LIABILITIES AND EQUITY
Current liabilities
Trade payables 22 29
Derivative Financial Instruments - -
Current income tax liabilities 451 365
Client deposits 4 6
Unearned revenue 168 110
Employee benefit obligations 171 159
Provisions 77 63
Other current liabilities 927 792
Total current liabilities 1,820 1,524
Non-current liabilities
Deferred income tax liabilities 25 11
Other non-current liabilities 8 54
Total liabilities 1,853 1,589
Equity
Share capital- INR 5 ($0.16) par value 1,200,000,000
(600,000,000) equity shares authorized, issued and
outstanding 1,142,805,132 (571,402,566), net of
5,667,200 (2,833,600) treasury shares as of March
31, 2015 (March 31, 2014), respectively 109 64
Share premium 659 704
Retained earnings 10,090 8,892
Other components of equity (2,096) (1,727)
Total equity attributable to equity holders of the
company 8,762 7,933
Non-controlling interests - -
Total equity 8,762 7,933
Total liabilities and equity 10,615 9,522

Infosys Limited and subsidiaries

Unaudited Condensed Consolidated Interim Statements of
Comprehensive Income (Dollars in millions except share and per equity
share data)

Three months Three months Year ended Year ended
ended March ended March March 31, March 31,
31, 2015 31, 2014 2015 2014
Revenues 2,159 2,092 8,711 8,249
Cost of sales 1,317 1,318 5,374 5,292
Gross profit 842 774 3,337 2,957
Operating expenses:
Selling and marketing expenses 118 104 480 431
Administrative expenses 169 136 599 547
Total operating expenses 287 240 1,079 978
Operating profit 555 534 2,258 1,979
Other income, net 141 139 560 440
Share in associate's profit /
(loss) - - - -
Profit before income taxes 696 673 2,818 2,419
Income tax expense 198 186 805 668
Net profit 498 487 2,013 1,751
Other comprehensive income
Items that will not be
reclassified to profit or
loss:
Re-measurement of the net
defined benefit
liability/(asset) (2) (10) (8) -
Items that may be reclassified
subsequently to profit or
loss:
Fair value changes on
available-for-sale financial
asset (2) (3) 14 (17)
Exchange differences on
translation of foreign
operations 53 228 (375) (616)
Total other comprehensive
income, net of tax 49 215 (369) (633)
Total comprehensive income 547 702 1,644 1,118
Profit attributable to:
Owners of the company 498 487 2,013 1,751
Non-controlling interests - - - -
498 487 2,013 1,751
Total comprehensive income
attributable to:
Owners of the company 547 702 1,644 1,118
Non-controlling interests - - - -
547 702 1,644 1,118
Earnings per equity share(*)
Basic ($) 0.44 0.43 1.76 1.53
Diluted ($) 0.44 0.43 1.76 1.53
Weighted average equity shares
used in computing earnings per
equity share(*)
Basic 1,142,805,132 1,142,805,132 1,142,805,132 1,142,805,132
Diluted 1,142,833,626 1,142,805,132 1,142,821,470 1,142,805,132

*Adjusted for 1:1 bonus issue in December, 2014

NOTE:

1. The unaudited Condensed Consolidated interim Balance sheets and
Condensed Consolidated interim Statements of Comprehensive Income for
the three months and year ended March 31, 2015 have been taken on
record at the Board meeting held on April 24, 2015

2. A Fact Sheet providing the operating metrics of the company can
be downloaded from http://www.infosys.com

IFRS-INR Press Release:
http://multivu.prnewswire.com/prnehost/Infosys_INR_press_release.pdf

Fact Sheet:
http://multivu.prnewswire.com/prnehost/Infosys_Fact_sheet.pdf

Contact

Investor Relations
Sandeep Mahindroo
+91 80 3980 1018
Sandeep_Mahindroo@infosys.com

Media Relations
Sarah Vanita Gideon, India
+91 80 4156 3373
Sarah_Gideon@Infosys.com

John Gallagher
Brunswick Group for Infosys, USA
+1 415 316 8060
jgallagher@brunswickgroup.com

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