Infosys Announces Results for the Quarter Ended December 31, 2012

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Infosys Announces Results for the Quarter Ended December 31, 2012

BANGALORE, India, January 11, 2013 /PRNewswire/ --

    Q3 Revenues Grow by 6.3% Quarter on Quarter

    Financial Highlights

    Consolidated results under International Financial Reporting Standards (IFRS) for the
quarter ended December 31, 2012

       
        - Revenues were $1,911 million for the quarter ended December 31, 2012;
          QoQ growth was 6.3%
          YoY growth was 5.8%
        - Revenues excluding Lodestone were $1,872 million;
          QoQ growth was 4.2%
          YoY growth was 3.7%
        - Net income after tax was $434 million for the quarter ended December 31, 2012
          against $431 million for the quarter ended September 30, 2012
        - Earnings per American Depositary Share (EPADS) was $0.76 for the quarter ended
          December 31, 2012 against $0.75 for the quarter ended September 30, 2012
        - Liquid assets including cash and cash equivalents, current available-for-sale
          financial assets, investment in certificates of deposits and government bonds were
          $4.1 billion versus $4.3 billion as on September 30, 2012

    Other highlights:

       
        - The company won 8 large outsourcing deals amounting to US$ 731 million of
          total contract value
        - 14 new wins for Infosys' products and platforms
        - Infosys and its subsidiaries added 53 clients during the quarter
        - Gross addition of 7,499 employees (net addition of 977) for the quarter by
          Infosys and its subsidiaries.
        - 155,629 employees as on December 31, 2012 for Infosys and its subsidiaries
        - Completed the acquisition of Lodestone Holding AG, a leading management
          consultancy based in Switzerland
        - Infosys American Depositary Shares (ADS) have started trading on the New York
          Stock Exchange (NYSE) under the ticker symbol 'INFY'. The company is in the process of
          listing its ADS on the Paris and London exchanges of NYSE Euronext.

    "We have done well in this quarter despite an uncertain environment," said S. D.
Shibulal, CEO and Managing Director. "We continue to gain confidence from a strong
pipeline of large deals. However, the broader economic environment remains difficult. Even
so, we remain cautiously optimistic about the January-March quarter," he added.

    "We were able to maintain our margins through efficiency improvements despite
increased operating expenses. We remain focused on making the right investments for
profitable and sustainable growth in the longer term," said Rajiv Bansal, Chief Financial
Officer.

    Outlook*

    The company's outlook (consolidated) for the fiscal year ending March 31, 2013, under
IFRS is as follows:

    Revenues** are expected to be at least $7,450 million;

    Earnings per American Depositary Share (EPADS) is expected to be at least $2.97;

    * Exchange rates considered for major global currencies: AUD / USD - 1.04; GBP / USD -
1.62; Euro / USD - 1.32 for rest of fiscal 2013

    ** Includes $104 million from Lodestone

    Business Highlights

       
        - The company won 8 large outsourcing deals amounting to US$ 731 Mn of total
          contract value
        - Our offerings in the Products and Platforms space continue to see good
          momentum. This quarter we had 14 wins across industries and geographies. Infosys
          products and platforms (excluding Finacle(TM)) are now adopted by more than 70 global
          clients.
        - A Blue Cross Blue Shield Plan selected us as a strategic partner to provide
          enterprise-wide testing services and establish a Test CoE within its IT organization,
          aimed at creating testing processes and frameworks to support the company's ongoing
          transformation due to US healthcare reform. Another Blue Cross Blue Shield Plan is
          leveraging Infosys iTransform(TM) product and services to help its ICD-10 migration,
          mandated by the U.S. federal government.
        - Our focus on Cloud as a new growth area continues to yield results and the
          Cloud business currently has more than 190 engagements and 3,500 experts. Over the
          last quarter, we won more than 15 engagements across Cloud services, Big Data and
          Security. Our vision of being a Cloud Ecosystem Integrator has gained increasing
          acceptance with clients and we are working with more than 30 partners to help clients
          create and manage their unified hybrid cloud environments.
        - During the third quarter, Infosys applied for seven patent applications in
          India and the U.S. With this, it has 525 patent applications in India, the U.S. and
          other jurisdictions, and has been granted 71 patents by the United States Patent and
          Trademark Office and two patents by the Luxembourg patent office.

    Awards and Recognition

    Infosys has been consistently honored by influencers

       
        - We were declared the winners of 2012 Asia's Most Admired Knowledge
          Enterprises (MAKE) study by Teleos, in association with The KNOW Network for the 10th
          time, for developing knowledge based products and services.
        - Infosys BPO Ltd. has been awarded the prestigious 2012 Optimas Award for
          'Managing Change', recognizing exemplary achievements in workforce management and for
          successfully integrating new employees from around the globe into the organization.
        - Infosys BPO Ltd. won the Gold Award for Marketing Excellence in the category
          of 'Marketing with Social and Interactive Media' at the Information Technology
          Services Marketing Association (ITSMA) Awards 2012.
        - We have received the Microsoft Platform Modernization Award for sales
          achievement for our Legacy Modernization solution, which helps customers migrate to
          Microsoft platforms.
        - We were awarded the National Energy Conservation Award 2012 for our energy
          conservation efforts at our campuses in Jaipur and Pune.
        - We have been awarded the global No. 1 position for our corporate governance
          practices by IR Global Rankings (IRGR).
        - Finacle(TM) from Infosys has been ranked as a long-term leader in The
          Forrester Wave(TM): Global Banking Platforms, Q4 2012

    About Infosys Ltd

    Infosys partners with global enterprises to drive their innovation-led growth. That's
why Forbes ranked Infosys 19th among the top 100 most innovative companies. As a leading
provider of next-generation consulting, technology and outsourcing solutions, Infosys
helps clients in more than 30 countries realize their goals.

    Visit http://www.infosys.com and see how Infosys (NYSE: INFY), with its 150,000+
people, is Building Tomorrow's Enterprise(R) today.

    Safe Harbor

    Certain statements in this release concerning our future growth prospects are
forward-looking statements, 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, 2012 and on Form 6-K for the quarter ended December 31,
2011, June 30, 2012 and September 30, 2012. 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. 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.

    INR Press Release:
http://www.multivu.prnewswire.com/mnr/prne/operations/INR-press-release-Version-4.pdf

    Fact Sheet:
http://www.multivu.prnewswire.com/mnr/prne/operations/Factsheet-Q3-2013.pdf

    Infosys Limited and subsidiaries

    Unaudited Condensed Consolidated Balance Sheets as of

                                                   (Dollars in millions except share data)

       
                                                        December 31,      March 31,
                                                               2012           2012
        ASSETS
        Current assets
        Cash and cash equivalents                            $2,740         $4,047
        Available-for-sale financial assets                   1,339              6
        Investment in certificates of deposit                     -             68
        Trade receivables                                     1,266          1,156
        Unbilled revenue                                        405            368
        Prepayments and other current assets                    335            300
        Total current assets                                  6,085          5,945
        Non-current assets
        Property, plant and equipment                         1,115          1,063
        Goodwill                                                368            195
        Intangible assets                                        72             34
        Available-for-sale financial assets                       2              2
        Investment in government bonds                           12              -
        Deferred income tax assets                               77             62
        Income tax assets                                       191            204
        Other non-current assets                                 33             32
        Total non-current assets                              1,870          1,592
        Total assets                                          $7955         $7,537
        LIABILITIES AND EQUITY
        Current liabilities
        Derivative financial instruments                          -             $9
        Trade payables                                           13              5
        Current income tax liabilities                          227            207
        Client deposits                                          12              3
        Unearned revenue                                        146            107
        Employee benefit obligations                            109             98
        Provisions                                               39             26
        Other current liabilities                               562            482
        Total current liabilities                             1,108            937
        Non-current liabilities
        Deferred income tax liabilities                          16              2
        Other non-current liabilities                            18             22
        Total liabilities                                     1,142            961
        Equity
        Share capital- `5 ($0.16) par value
        600,000,000 equity shares authorized, issued
        and outstanding 571,402,566 and 571,396,410,
        net of 2,833,600 treasury shares each as of
        December 31, 2012 and March 31, 2012,
        respectively                                             64             64
        Share premium                                           704            703
        Retained earnings                                     7,223          6,509
        Other components of equity                          (1,178)          (700)
        Total equity attributable to equity holders
        of the company                                        6,813          6,576
        Non-controlling interests                                 -              -
        Total equity                                          6,813          6,576
        Total liabilities and equity                         $7,955         $7,537

    Infosys Limited and subsidiaries

    Unaudited Condensed Consolidated Statements of Comprehensive Income

                              (Dollars in millions except share and per equity share data)

       
                                         Three        Three         Nine         Nine
                                        months       months       months       months
                                         ended        ended        ended        ended
                                      December     December     December     December
                                      31, 2012     31, 2011     31, 2012     31, 2011

        Revenues                        $1,911       $1,806       $5,460       $5,233
        Cost of sales                    1,203         1030        3,376        3,077
        Gross profit                       708          776        2,084        2,146
        Operating expenses:
        Selling and marketing
        expenses                            99           88          277          275
        Administrative expenses            118          128          355          386
        Total operating expenses           217          216          632          661
        Operating profit                   491          560        1,452        1,485
        Other income, net                   92           82          308          266
        Profit before income taxes         583          642        1,760        1,751
        Income tax expense                 149          184          479          498
        Net profit                        $434         $458       $1,281       $1,253
        Other comprehensive income
        Fair value changes on
        available - for-sale
        financial asset, net of
        tax effect                           -            -            -          $(2)
        Exchange differences on
        translating foreign
        operations                        (250)        (442)        (478)      (1,004)
        Total other comprehensive
        income                           $(250)       $(442)       $(478)     $(1,006)
        Total comprehensive income        $184          $16         $803         $247
        Profit attributable to:
        Owners of the company             $434         $458       $1,281       $1,253
        Non-controlling interests            -            -            -            -
                                          $434         $458       $1,281       $1,253
        Total comprehensive income
        attributable to:
        Owners of the company             $184          $16         $803         $247
        Non-controlling interests            -            -            -            -
                                          $184          $16         $803         $247
        Earnings per equity share
        Basic ($)                         0.76         0.80         2.24         2.19
        Diluted ($)                       0.76         0.80         2.24         2.19
        Weighted average equity
        shares used in computing
        earnings per equity share
        Basic                      571,400,086  571,377,084  571,398,129  571,356,602
        Diluted                    571,400,417  571,396,560  571,399,018  571,394,949

    NOTE:

    1. The unaudited Condensed Consolidated Balance sheets and Condensed Consolidated
Statements of Comprehensive Income for the three months and nine months ended December 31,
2012 has been taken on record at the Board meeting held on January 11, 2013

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

Infosys

CONTACT: Investor Relations: Avishek Lath, India, +91 (80) 4116 7744, avishek_lath@infosys.com ; Sandeep Mahindroo, US, +1 (646) 254 3133, sandeep_mahindroo@infosys.com ; Media Relations: Sarah Vanita Gideon, India, +91 (80) 4156 4998, Sarah_Gideon@infosys.com ; Danielle D'Angelo, USA , +1 (510) 859 5783, Danielle_Dangelo@infosys.com

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