Consolidated results under International Financial Reporting Standards (IFRS) for the quarter ended June 30, 2016
- Revenues were $2,501 million for the quarter ended June 30, 2016 QoQ growth of 2.2% in reported terms; 1.7% in constant currency terms YoY growth of 10.9% in reported terms; 12.1% in constant currency terms
- Operating profit was $602 million for the quarter ended June 30, 2016 QoQ decline of 3.7% YoY growth of 11.3%
- Net profit was $511 million for the quarter ended June 30, 2016 QoQ decline of 4.1% YoY growth of 7.4%
- Earnings per share (EPS) was $0.22 for the quarter ended June 30, 2016 QoQ decline of 4.1% YoY growth of 7.4%
- Liquid assets including cash and cash equivalents and investments were $4,918 million as on June 30, 2016 as compared to $5,202 million as on March 31, 2016 and $4,750 million as on June 30, 2015. Dividend payout of $481 million was made during the quarter.
- The Nomination and Remuneration Committee of the Board of Directors of Infosys Limited at its meeting held on July 14, 2016, approved the grant of 1,857,820 RSU's at par value which shall be made on August 1, 2016, to a total of 7,898 eligible and identified high performing employees up to mid-level managers of the Company and its subsidiaries under the 2015 Employee Stock Compensation Plan. The RSU's shall vest over a period of four years from the date of grant which shall be exercisable within the period as approved by the committee. Out of these RSU’s, a total of 1,515,135 equity shares will be issued out of the existing treasury shares held by the Infosys Employee Benefits Trust and the balance will be in the form of ADR’s and Phantom stock rights.
- In accordance with the Postal ballot approved by the shareholders on March 31, 2016, Dr. Vishal Sikka, CEO and Managing Director has been granted RSU's amounting to $ 2 Million which shall be made on August 1, 2016. The RSU's are time based and will vest over a period of 4 years subject to continuous service. The exercise price for the grant is equal to the par value of one share per RSU. IFRS – USD
“We had unanticipated headwinds in discretionary spending in consulting services and package implementations as well as slower project ramp-ups in large deals that we had won in earlier quarters, resulting in a lower than expected growth in Q1,” said Dr. Vishal Sikka, CEO. “Despite this, I am very encouraged by our progress in the execution of our strategy. We launched Infosys MANA, our AI based approach to helping clients continuously renovate their business processes and have already delivered on first client successes. We continued to see strong momentum in large deal wins in which we are bringing the best of our Renew-New strategy to every deal; and we continued to see growth in our delivery services due to their renewal on the basis of Zero Distance, Design Thinking and automation. Going forward, we will continue our strong focus on our long-term goals and vision of transforming Infosys where open, intelligent technology amplifies people and frees them to innovate in a culture of learning and collaboration, while bringing operational excellence and cost discipline to every aspect of our business.”
“Our client additions and top client growth was strong during the quarter. Automation continues to be a core lever in the renewal of our traditional service offerings,” said U B Pravin Rao, COO. “We are making impactful internal process changes through our simplification initiatives with a focus on better employee experience and improved productivity, " he added.
“Our focus on optimizing cost efficiency levers helped us during the quarter and our cash generation was strong,” said M.D. Ranganath, CFO. “We navigated a volatile currency environment effectively.”
The Company’s outlook (consolidated) for the fiscal year ending March 31, 2017, under IFRS is as follows:
- Revenues are expected to grow 10.5%-12.0% in constant currency*.
- The above constant currency guidance translates to 10.8%-12.3% in USD terms based on March 31st rates and 10.0%-11.5% based on June 30th rates
