Infosys: Accelerated Double Digit Growth of 12.4%; Highest Ever Large Deal TCV at $ 2.7 Bn

Bengaluru, India (ots/PRNewswire) - "We had a strong start to FY
20 with constant currency growth accelerating to 12.4% on year over
year basis and digital revenue growth of 41.9%. This was achieved
through our consistent client focus and investments which have
strengthened our client relationships," said Salil Parekh, CEO and
MD. "Consequently, we are raising our revenue guidance for the year
from 7.5%-9.5% to 8.5%-10%."

41.9% 12.4% 2.8% 20.50% $2.7 bn
YoY YoY QoQ
Digital CC CC Operating Large
CC growth growth margin deal
growth signings

- Q1 20 revenues grew year-on-year by 10.6% in USD; 12.4% in constant
currency
- Q1 20 revenues grew sequentially by 2.3% in USD; 2.8% in constant
currency
- Q1 20 Digital revenues at $1,119 million (35.7% of total revenues),
year-on-year growth of 41.9% and sequential growth of 8.6% in
constant currency
- Increased FY 20 revenue growth guidance range to 8.5%-10% in
constant currency
- Maintained FY 20 operating margin guidance range of 21%-23%

1. Financial Highlights - Consolidated results under International
Financial Reporting Standards (IFRS)

Revenues were $3,131 million, growth of 10.6% YoY and 2.3% QoQ

Operating profit was $642 million, decline of 4.2% YoY and 2.3%
QoQ. Operating margin was 20.5%.

"We had a good quarter as we continue to leverage our digital
navigation framework to help our clients build and nurture their live
enterprise," said Pravin Rao, COO. "Large deal TCV was highest ever
at $2.7 bn. Segment growth was robust with all large regions and most
verticals growing at double digits yoy in constant currency."

"Our first quarter results and continued focus on operational
efficiencies gives us the confidence on our revenue and margin
guidance for the year," said Nilanjan Roy, CFO. "Continuing our
objective of improving shareholder returns, we have revised our
capital allocation policy upwards to distribute ~ 85% of free cash
flows cumulatively over a 5-year period."

2. Capital Allocation

- The Company is on track towards completing its previously announced
share buyback of INR 8,260 crore. The company has till date bought
back shares worth `INR 5,934 crore.
- The Company's current policy is to pay up to 70% of the free cash
flow annually by way of dividend and/or buyback. The Board has
reviewed and approved a revised Capital Allocation Policy of the
Company after taking into consideration the strategic and
operational cash requirements."Effective from Financial year 2020,
the company expects to return approximately 85% of the free cash
flow cumulatively over a 5-year period through a combination of
semi-annual dividends and/or share buyback and/or special
dividends, subject to applicable laws and requisite approvals, if
any."Free cash flow is defined as net cash provided by operating
activities less capital expenditure as per the consolidated
statement of cash flows prepared under IFRS Dividend and buyback
include applicable taxes

3. Client wins & Testimonials

- We were selected by Finnish postal service Posti as a strategic
partner for the digital transformation of its business and IT
services to drive the modernization of its IT applications and
infrastructure, helping it move to a flexible IT service model.
This will also strengthen Posti's ability to respond to changes in
customer needs with agility and provide a seamless customer user
experience through a dedicated command center.
- We entered into long term strategic partnership with Toyota
Material Handling Europe to help in its digital transformation
journey by facilitating transformation to a scalable digital hybrid
cloud platform, providing application services, digital workplace,
infrastructure management and a dedicated data center operation.
- Infosys McCamish, a US based subsidiary of Infosys BPM entered into
a partnership with Pan-American Life Insurance Group (PALIG), a
leading provider of life, accident and health insurance to provide
policy administration services for PALIG's new Global Assets
Indexed Universal Life product.
- We have partnered with a leading consumer technology company to
help them localize their virtual assistant by training their AI.
Infosys is helping the client to define its overall global strategy
for localization while analyzing data to identify patterns which
can train the AI to respond better to the user command. This will
improve their virtual assistant to provide a better user
experience.
- Marc Schmidt, Head of SDD and GIT-ACI, BSH said, "At BSH GmbH, for
the software Development Platform (SDD) which is used for
developing thousands of micro to large scale applications, we
wanted to deploy an auto-scaling Infrastructure on AWS Cloud that
can handle millions of users across the world. Infosys leveraging
its Agile and DevOps methodology and expertise, automated build and
deployment which led to an overall 70% reduction in environment
provisioning time, Zero downtime, 100% improvement in recovery time
objectives."
- One of the world leaders in the manufacturing of connectivity and
sensor products engaged Infosys to transform their delivery of
Sales solutions needed for their globally dispersed sales team,
leveraging Salesforce ecosystem. Infosys over the last 12 months
has moved to a Highly Agile Capability based delivery model and
helped in an estimated 40% improvement in time to market for
solutions, shortened release cycles from once-a-quarter to
on-demand releases and improvement in time to revenue of solutions
by upto 25%

Recognitions

- Infosys positioned in HFS Top 10 Healthcare Services 2019
- Recognized as a Leader in NelsonHall's SAP HANA and S/4HANA
services report
- Recognized as a Leader in the Enterprise Platform IT Services in
BFS PEAK Matrix(TM) Assessment 2019
- Recognized in the HFS Top 10: Managed Security Services (MSS)
- Recognized in the HFS Top 10 Google AI Services
- Recognized as a Leader in The Forrester Wave(TM): Global API
Strategy And Delivery Service Providers, Q2 2019
- Recognized as a Leader in the NEAT on Next-Generation Software
Testing Services
- Recognized as a Leader in the IDC MarketScape: Worldwide Microsoft
Implementation Services 2019 Vendor Assessment
- Recognized in the NEAT on IoT in Digital Transformation
- Recognized in the HFS Top 10 Manufacturing Service Providers 2019
- Recognized in the HFS Top 10 Energy Services 2019
- Recognized as a Leader in Gartner Magic Quadrant for Public Cloud
Infrastructure Managed Service Providers
- Awarded the "Most Valuable Partner - Commercial Cloud" Award by
Oracle
- Won the Golden Peacock Environment Management Award
- Won the Pega partner excellence award in recognition of innovative
practice development and continued investment in the growth of a
strong delivery practice
- Recognized with the Global Partner of the Year Award for driving
customer success at TIBCO NOW
- Recognized as MuleSoft Americas Growth & Emerging Partner of the
Year 2019 by MuleSoft
- Awarded 'System Integrator Partner of the year 2019 for Hybrid
Cloud Solutions' by HPE at HPE Discover 2019

About Infosys

Infosys is a global leader in next-generation digital services and
consulting. We enable clients to navigate their digital
transformation, leveraging our teams from over 45 countries. With
over three decades of experience in managing the systems and workings
of global enterprises, we expertly steer our clients through their
digital journey. We do it by enabling the enterprise with an
AI-powered core that helps prioritize the execution of change. We
also empower the business with agile digital at scale to deliver
unprecedented levels of performance and customer delight. Our
always-on learning agenda drives their continuous improvement through
building and transferring digital skills, expertise, and ideas from
our innovation ecosystem.

Visit www.infosys.com to see how Infosys (NYSE: INFY) can help
your enterprise navigate your next.

Safe Harbor

Certain statements mentioned in this presentation 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, 2019. 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. 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

Audited
Condensed
Consolidated
Balance Sheet
as at
(Dollars in
millions except
equity share
data)
June March
30, 31,
2019 2019
ASSETS
Current assets
Cash and cash 2,266 2,829
equivalents
Current 778 958
investments
Trade 2,290 2,144
receivables
Unbilled 964 777
revenue
Prepayments and 851 827
other current
assets
Income tax 38 61
assets
Derivative 26 48
financial
instruments
Total current 7,213 7,644
assets
Non-current
assets
Property, plant 1,903 1,931
and equipment
Right-of-use 540 -
assets(B3)
Goodwill 589 512
Intangible 207 100
assets
Non-current 548 670
investments
Deferred income 204 199
tax assets
Income tax 917 914
assets
Other 296 282
non-current
assets
Total 5,204 4,608
non-current
assets
Total assets 12,417 12,252
LIABILITIES AND
EQUITY
Current
liabilities
Trade payables 317 239
Lease 72 -
liabilities(B3)
Derivative 3 2
financial
instruments
Current income 305 227
tax liabilities
Client deposits 4 4
Unearned 408 406
revenue
Employee 248 234
benefit
obligations
Provisions 84 83
Other current 2,022 1,498
liabilities
Total current 3,463 2,693
liabilities
Non-current
liabilities
Lease 483 -
liabilities(B3)
Deferred income 112 98
tax liabilities
Employee 7 6
benefit
obligations
Other 115 55
non-current
liabilities
Total 4,180 2,852
liabilities
Equity
Share capital- 334 339
INR 5 ($0.16)
par value
4,800,000,000
(4,800,000,000)
equity shares
authorized,
issued and
outstanding
4,271,404,014
(4,335,954,462)
equity shares
fully paid up,
net of
20,094,430
(20,324,982)
treasury shares
as at June 30,
2019 (March 31,
2019)
Share premium 286 277
Retained 9,969 11,248
earnings
Cash flow hedge - 3
reserve
Other reserves 432 384
Capital 15 10
redemption
reserve
Other (2,854) (2,870)
components of
equity
Total equity 8,182 9,391
attributable to
equity holders
of the company
Non-controlling 55 9
interests
Total equity 8,237 9,400
Total 12,417 12,252
liabilities and
equity

Infosys Limited and subsidiaries

Audited
Condensed
Consolidated
Statement of
Comprehensive
Income for the
(Dollars in
millions except
equity share and
per equity share
data)
Three months Three months
ended June ended June
30, 2019 30, 2018
Revenues 3,131 2,831
Cost of sales 2,122 1,819
Gross profit 1,009 1,012
Operating
expenses
Selling and 169 149
marketing
expenses
198 193
Administrative
expenses
Total operating 367 342
expenses
Operating profit 642 670
Other income, 106 107
net
Finance cost(B3) (6) -
Reduction in the - (39)
fair value of
Disposal Group
held for
sale(A1)
Profit before 742 738
income taxes
Income tax 196 204
expense
Net profit 546 534
Other
comprehensive
income
Items that will
not be
reclassified
subsequently to
profit or loss:
Re-measurements (3) -
of the net
defined benefit
liability/asset,
net
(3) -
Items that will
be reclassified
subsequently to
profit or loss:
Fair valuation 2 (7)
of investments,
net
Fair value (3) 1
changes on
derivatives
designated as
cash flow hedge,
net
Foreign currency 17 (468)
translation
16 (474)
Total other 13 (474)
comprehensive
income/(loss),
net of tax
Total 559 60
comprehensive
income
Profit
attributable to:
Owners of the 546 534
Company
Non-controlling - -
interests
546 534
Total
comprehensive
income
attributable to:
Owners of the 559 60
Company
Non-controlling - -
interests
559 60
Earnings per
equity share(A2)
Basic ($) 0.13 0.12
Diluted ($) 0.13 0.12
Weighted average
equity shares
used in
computing
earnings per
equity share(A2)
Basic 4,302,176,860 4,346,657,242
Diluted 4,308,286,160 4,350,710,356

NOTES:

A. Notes pertaining to previous quarters / periods

1. In the three months ended June 30, 2018, the Company had recorded
a reduction in the fair value amounting to $39 million in respect
of its subsidiary Panaya. The subsidiaries Kallidus and Skava
(together referred to as "Skava") and Panaya, are collectively
referred to as the "Disposal Group". Subsequently the company
reclassified these subsidiaries as they did not meet the criteria
for "Held for Sale".
2. Share numbers and EPS have been adjusted for September 2018 bonus
issue.

B. Notes pertaining to the current quarter

1. The audited interim condensed consolidated Balance sheet and
Statement of Comprehensive Income for the three months ended June
30, 2019 have been taken on record at the Board meeting held on
July 12, 2019.
2. A Fact Sheet providing the operating metrics of the Company can be
downloaded from www.infosys.com.
3. On account of adoption of IFRS 16- Leases effective April 1, 2019.

IFRS-INR Press Release: https://www.infosys.com/investors/reports-
filings/quarterly-results/2019-2020/q1/Documents/IFRS-INR-press-relea
se.pdf

Fact Sheet: https://www.infosys.com/investors/reports-filings/quar
terly-results/2019-2020/q1/Documents/fact-sheet.pdf

Logo: https://mma.prnewswire.com/media/633365/Infosys_Logo.jpg

ots Originaltext: INFOSYS
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Contact:
Sandeep Mahindroo
+91-80-3980-1018
Sandeep_Mahindroo@infosys.com Media Relations: Sarah Vanita Gideon
+91-80-4156-3998
Sarah_Gideon@infosys.com Chiku Somaiya
+1-71367-06752
Chiku.Somaiya@infosys.com

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