1. Highlights
FY 17 revenues crossed
FY 17 revenues grew 7.4% in USD terms; 8.3% in constant currency terms
FY 17 operating margin at 24.7% as compared to 25.0% in FY 16
FY 17 Basic EPS at
Q4 revenues grew 0.7% QoQ in USD terms; flat in constant currency terms
Q4 operating margin at 24.7% and Basic EPS at
Liquid assets including cash & cash equivalents and investments at
FY 18 revenue guidance at 6.5%-8.5% in constant currency. FY 18 operating margin guidance at 23%-25%
(Logo: http://photos.prnewswire.com/prnh/20130122/589162 )
2. Dividend for Financial Year 2017
For Financial Year 2017, the Board announced a final dividend of `14.75 per share (
3. Capital Allocation Policy
The Board reviewed and approved a revised Capital Allocation Policy of the Company after taking into consideration the strategic and operational cash requirements of the Company in the medium term.
The key aspects of the Capital Allocation Policy are:
1. The Company’s current policy is to pay dividends of up to 50% of post-tax profits of the Financial Year. Effective from Financial Year 2018, the Company expects to payout up to 70% of the free cash flow** of the corresponding Financial Year in such manner (including by way of dividend and/or share buyback) as may be decided by the Board from time to time, subject to applicable laws and requisite approvals, if any.
2. In addition to the above, the Board has identified an amount of up to `13,000 crore (
Further announcements in this regard will be made, as appropriate, in due course.
*USD/INR exchange rate as on
** 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 payout includes Dividend Distribution Tax
This announcement contains insider information
4. Board Changes
The Board, at its meeting held on
“Ravi will help me enhance the board engagement in supporting the Management in execution of company’s strategy,” said
5. Financial Highlights
Consolidated results under International Financial Reporting Standards (IFRS) for the quarter and year ended
Year ended
- Revenues were $10,208 million for the year ended
March 31, 2017
YoY growth of 7.4% in reported terms; 8.3% in constant currency terms - Operating profit was $2,520 million for the year ended
March 31, 2017 ; YoY growth of 6.1% - Net profit was $2,140 million for the year ended
March 31, 2017 ; YOY growth of 4.3%
Quarter ended
- Revenues were $2,569 million for the quarter ended
March 31 , 2017
QoQ growth of 0.7% in reported terms; flat in constant currency terms
YoY growth of 5.0% in reported terms; 5.3% in constant currency terms - Operating profit was $634 million for the quarter ended
March 31 , 2017
QoQ decline of 0.9%;YoY growth of 1.5% - Net profit was $543 million for the quarter ended
March 31 , 2017
QoQ decline of 0.8%;YoY growth of 1.8%
6. Outlook
The Company’s outlook (consolidated) for the fiscal year ending
- Revenues are expected to grow 6.5%-8.5% in constant currency*;
- Revenues are expected to grow 6.1%-8.1% in USD terms based on the exchange rates as of
March 31 , 2017**
*FY 17 constant currency rates – AUD/USD – 0.75; Euro/USD – 1.09; GBP/USD – 1.30
**Currency rates as of
“Unanticipated execution challenges and distractions in a seasonally soft quarter affected our overall performance. At the same time, we continued to see many positive signs of our strategy execution; our software-led offerings continued to show strong momentum and client success, with continued adoption of Mana, our AI platform; Zero Distance marked its 2-year anniversary as a grassroots cultural movement for innovation with strong client resonance, and our employee engagement continued to drive down attrition, especially with top performers,” said Dr.
“Attrition declined during the quarter reflecting our focus on better employee engagement. Utilization during Q4 reached 82% which is the highest in Q4 over the past several years,” said U.
“In FY 17, operating margins were steady as we continued our sharp focus on operational efficiencies. Cash provided by operating activities during the year was robust and exceeded
7. BUSINESS HIGHLIGHTS
In Q4, and in FY17, we continued to help clients drive automation and innovation into the core of their businesses, through our renewed services, our new software and services, and our culture of learning and education.
RENEW
In Q4, we worked closely with clients on their embrace of new digital and cloud technologies, new data and analytics capabilities and modernizing their mainframe landscapes. We also continued to drive grassroots innovation in every project through our Zero Distance (ZD) initiative, and in doing so, we continued to fuel the cultural transformation of
“
Colony Brands, a billion-dollar catalog and multi-channel marketing powerhouse, has partnered with
NEW
In new software and services, we continued to drive new value for clients, helping them to find new kinds of opportunities, leverage data in new ways, drive measurable improvements in operational efficiencies through automation, and capture the insights and knowledge of complex systems. In addition, we continued to bring Design Thinking services to clients to help them find and solve their most important business challenges.
“Intelligent applications based on cognitive computing, artificial intelligence, and deep learning are the next wave of technology transforming how consumers and enterprises work, learn, and play. The release of Infosys Mana and its use by a wide-ranging variety of clients and customers is showing that the cognitive/AI industry is transforming from research only to commercialization, and Infosys Mana is a commercially viable platform for cognitive/AI-enabled solutions within the marketplace. IDC recommends that organizations actively evaluate cognitive/AI software platforms like Infosys Mana for suitability and feasibility in areas such as process automation, digital transformation, automated customer service, IT automation, and automated advisory services,” –
With a vision to improve the experience of a world in motion, Adient is the global leader in multi industrial seating, producing seats and components for 25,000,000 vehicles each year across all major automakers and vehicle classes. “We are creating a digital ecosystem to accelerate growth and deliver more value to our automotive customers. Infosys Mana, a knowledge-based Artificial Intelligence Platform, will help us with robotic process automation and cognitive automation. By identifying and capturing the know-how within our complex systems, Infosys Mana will help us further improve agility and boost innovation, efficiency, and excellence across our enterprise,”
CSX, a leading US transportation and logistics provider, is committed to being the safest and most progressive railroad in North America. As part of its business transformation strategy to create the CSX of Tomorrow, CSX has partnered with
“Globe is at the forefront of transforming the telecoms industry in
In EdgeVerve, we delivered strong performance with 30 wins and 26 go-lives from Finacle and Edge suite of solutions across various regions.
Among other offerings, a
INVESTMENTS & ECOSYSTEM
We continue to deepen our partnerships, invest in technology and expertise that complements our strategy, and participate with clients and partners in the technical communities that drive value for clients and create new opportunities for
Together with Salesforce,
CULTURE
Education continues to be the foundation for driving
AWARDS & RECOGNITION
- Leader In Gartner Magic Quadrant for SAP® Application Services,
North America - Leader In Gartner Magic Quadrant for SAP® Application Services, EMEA
- Leader In Gartner Magic Quadrant for Oracle Application Services,
North America - Leader In Gartner Magic Quadrant for Oracle Application Services, EMEA
- Leader in NelsonHall NEAT Big Data and Analytics
- Winner‘s Circle in the Horses for Sources Blueprint on Managed Security Service Providers
- Leader in IDC MarketScape: Worldwide Omni-Channel Engagement IT Implementation Services 2017 Vendor Assessment
- Leader, Infosys Finacle, in Digital Banking Solutions, rated by Ovum
- Finacle won the Best Core Banking Project –
Africa withUnited Bank of Africa , and Best Core Banking Project –Middle East with Emirates Islamic Bank at the Asian Banker Technology Innovation Awards, 2017 Infosys won the 2017 IBM Beacon Award, which recognizes partners delivering exceptional solutions to drive business value and transform the way clients and industries operate.- In the recent report: The Forrester Wave(TM): Robotic Process Automation, Q1 2017, AssistEdge was ranked among the Strong Performers with competitive options. According to Forrester: ‘EdgeVerve Systems brings a combined services and product approach. AssistEdge takes a broader services approach compared with the rest of the field.
- Infosys Mana is positioned as a leading player in the HfS Research Intelligent Automation Continuum. Source: Augmenting Automation Through AI (Webinar)
March 2017
BEYOND BUSINESS
In fiscal 2017, we have invested our resources and applied our expertise to bring about a meaningful difference to the communities around us.
In Q4,
During the quarter,
About
Visit http://www.infosys.com to see how
Safe Harbor
Certain statements in this 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
Infosys Limited and subsidiaries
Unaudited Condensed Consolidated Balance Sheets as of
(Dollars in millions except equity share data)
March 31, 2017 March 31, 2016 ASSETS Current assets Cash and cash equivalents 3,489 4,935 Current investments 1,538 11 Trade receivables 1,900 1,710 Unbilled revenue 562 457 Prepayments and other current assets 749 672 Derivative financial instruments 44 17 Total current assets 8,282 7,802 Non-current assets Property, plant and equipment 1,807 1,589 Goodwill 563 568 Intangible assets 120 149 Investment in Associate 11 16 Non-current investments 984 273 Deferred income tax assets 83 81 Income tax assets 881 789 Other non-current assets 123 111 Total non-current assets 4,572 3,576 Total assets 12,854 11,378 LIABILITIES AND EQUITY Current liabilities Trade payables 57 58 Derivative Financial Instruments - 1 Current income tax liabilities 599 515 Client deposits 5 4 Unearned revenue 274 201 Employee benefit obligations 209 202 Provisions 63 77 Other current liabilities 954 940 Total current liabilities 2,161 1,998 Non-current liabilities Deferred income tax liabilities 32 39 Other non-current liabilities 24 17 Total liabilities 2,217 2,054 Equity Share capital- `5 ($0.16 ) par value 2,400,000,000 (2,400,000,000) equity shares authorized, issued and outstanding 2,285,655,150 (2,285,621,088), net of 11,289,514 (11,323,576) treasury shares as of March 31, 2017 (March 31, 2016), respectively 199 199 Share premium 587 570 Retained earnings 12,190 11,083 Cash flow hedge reserve 6 - Other reserves - - Other components of equity (2,345) (2,528) Total equity attributable to equity holders of the company 10,637 9,324 Non-controlling interests - - Total equity 10,637 9,324 Total liabilities and equity 12,854 11,378
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, 2017 31, 2016 2017 2016 Revenues 2,569 2,446 10,208 9,501 Cost of sales 1,614 1,516 6,446 5,950 Gross profit 955 930 3,762 3,551 Operating expenses: Selling and marketing expenses 133 134 535 522 Administrative expenses 188 171 707 654 Total operating expenses 321 305 1,242 1,176 Operating profit 634 625 2,520 2,375 Other income, net 112 114 459 476 Share in associate's profit / (loss) and others (4) - (5) - Profit before income taxes 742 739 2,974 2,851 Income tax expense 199 206 834 799 Net profit 543 533 2,140 2,052 Other comprehensive income Items that will not be reclassified subsequently to profit or loss: Re-measurements of the net defined benefit liability/asset 3 - (7) (2) Cumulative impact on reversal of unrealized gain on quoted debt securities on adoption of IFRS 9 - - (5) - Equity instruments through other comprehensive income (1) - (1) - Items that will be reclassified subsequently to profit or loss: Fair valuation of investments (2) 3 (2) 6 Fair value changes on derivatives designated as cash flow hedge, net 2 - 6 - Foreign currency translation 441 11 198 (436) Total other comprehensive income, net of tax 443 14 189 (432) Total comprehensive income 986 547 2,329 1,620 Profit attributable to: Owners of the company 543 533 2,140 2,052 Non-controlling interests - - - - 543 533 2,140 2,052 Total comprehensive income attributable to: Owners of the company 986 547 2,329 1,620 Non-controlling interests - - - - 986 547 2,329 1,620 Earnings per equity share Basic ($) 0.24 0.23 0.94 0.90 Diluted ($) 0.24 0.23 0.94 0.90 Weighted average equity shares used in computing earnings per equity share Basic 2,285,654,88 2,285,620,95 2,285,639,44 2,285,616,16 1 7 7 0 Diluted 2,286,652,00 2,285,750,31 2,286,396,74 2,285,718,89 3 6 5 4
NOTE:
1. The unaudited Condensed Consolidated Balance sheets and Condensed Interim Consolidated Statements of Comprehensive Income for the three months and year ended March 31, 2017 have been taken on record at the Board meeting held on April 13, 2017
2. A Fact Sheet providing the operating metrics of the company can be downloaded from http://www.infosys.com
IFRS-INR Press Release:https://www.infosys.com/investors/reports-filings/quarterly-results/2016-2017/q4/Documents/IFRS-INR-press-release.pdf
Fact Sheet: https://www.infosys.com/investors/reports-filings/quarterly-results/2016-2017/q4/Documents/fact-sheet.pdf
Contact
Investor Relations
Sandeep_Mahindroo@infosys.com
Media Relations
Sarah_Gideon@infosys.com
Chiku Somaiya
+1-408-375-2722
Chiku.Somaiya@infosys.com
SOURCE
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