Infosys is good for mechanical guys
Infosys (NYSE: INFY) reports results for the quarter ended December 31, 2015
18.01.2016 – 05:30
BANGALORE, April 23 / PRNewswire /
Sequential revenue growth of 0.6% in USD and 1.1% in constant currencies over the third quarter
Revenue grew 8.5% year over year in USD terms and 12.5% in constant currencies over the third quarter
Revenue forecast for FY 16 at constant exchange rates increased to 12.8% - 13.2% and in USD to 8.9% - 9.3% (exchange rates as of December 31, 2015)
QoQ volume growth of 3.1%
Churn rate falls to 13.4% in isolation
Ongoing implementation of grassroots innovations and aikido offers
Consolidated results according to International Financial Reporting Standards (IFRS) for the quarter ended December 31, 2015
Quarter ended December 31, 2015Revenue of $ 2,407 million for the quarter ended December 31, 2015 On a reported basis, quarter-on-quarter growth was 0.6%; at constant exchange rates the figure was 1.1%. On a reported basis, the year-on-year growth was 8.5%; in constant currencies, operating income was 12.5% - Operating profit for the quarter ended December 31, 2015 was $ 599 million Achieved - Net income of $ 524 million for the quarter ended December 31, 2015, 0.9% quarter-over-quarter growth 0.4% year-over-year - EPS of $ 0.23 for the December 31, 2015 ended Quarterly 0.9% Quarterly Growth 0.4% Year-Over-Year - As of December 31, 2015, cash and cash equivalents including cash and cash equivalents, financial assets for sale, and government bonds were $ 4,765 million; on September 30, 2015 a value of $ 4,894 million was reported
"We're seeing trust in creativity grow slowly at Infosys. David Kelley had a great idea that innovation shouldn't be confined to a specific department, but rather be part of all of us, just waiting to reach our full creative potential We watch infoscions become innovators, innovate and add value to customers with every single project. This trust can only develop in a corporate culture of learning and empowerment, and it is our ultimate goal to become a company to become exactly this way ", says CEO and Managing Director Dr. Vishal Sikka. "In addition to grassroots innovations, we are observing how our Aikido services are becoming more and more popular and are promoting the qualifications and imagination of our employees even more through intelligent systems, automation and software. This combination has helped us, despite the seasonally traditionally weaker quarter and to achieve promising results due to the additional headwinds, which will further facilitate the implementation of our strategy, which is based on sustainable profitable growth. "
"The healthy volume growth achieved in this quarter is extremely promising. The reduced number of working days and our investments in additional trainees resulted in lower prices and lower occupancy rates during the quarter," said President and COO U B Pravin Rao. "Our ongoing focus on employee engagement has paid off and has led to a lower churn rate. We are consistently simplifying our guidelines and ensuring greater agility within the company. The focus is on the targeted development of our productivity."
"We managed to get through the quarter better than initially expected," said CFO M.D. Ranganat. "In the coming quarters we will continue to focus on increasing operational efficiency with the help of several levers."
In accordance with IFRS, the company's (consolidated) forecasts for the fiscal year ended March 31, 2016 are as follows:- Increase in sales forecast to 12.8% - 13.2% at constant exchange rates - Increase in sales forecast to 8.9% - 9.3% in USD (based on the exchange rates of December 31, 2015) *
* Conversion: AUD / USD - 0.73; Euro / USD - 1.09; GBP / USD - 1.48
Investments and acquisitions:- The acquisition of Noah Consulting, LLC, a leading provider of advanced information management and consulting services with a focus on the oil and gas industry, is now complete. - The company has acquired a stake in WHOOP, an early stage company providing performance optimization systems for professional elite sports teams. There was also a stake in CloudEndure, a startup company that provides cloud migration and cloud-based DR (disaster recovery) software.
We continue to see great opportunities to completely rethink service delivery. By bringing together the best elements of human potential with software and platforms, we drive forward the digital transformation of our environment in a targeted manner.
Investing in Artificial Intelligence
In December we announced our participation in OpenAI. The non-profit organization is committed to developing and advancing artificial intelligence and bringing the best AI talents in the world even closer together in the interests of all of us. This initiative adds an important new dimension to our ongoing efforts in the AI space.
More extensive customer relationships
In the third quarter, we strengthened our relationships with major customers, renewing existing large orders, opening new customer accounts and closing four high value deals.- ALSTOM, a world leader in rail transport, has tasked us with providing next-generation services for the design, development and maintenance of applications. In addition, there is a PLM (Product Lifecycle Management) system that will reduce IT costs, improve the user experience and make the product design process even more efficient. - MRJ90 - the flagship of the aircraft fleet of Mitsubishi Aircraft Corporation, Japan (MITAC) - recently successfully completed its maiden flight. We supported MITAC in the mechanical design of the fuselage structures, brought about continuous improvements through automation and also reduced costs and throughput times. - The Mercedes Benz Research and Development Center India has entrusted us with the operation of its entire data center and all networks in 15 countries in the APAC region in order to increase agility and automation and further reduce operating costs.
Grassroots innovations through zero distance
With Zero Distance, our program to promote innovation in every single project, all employees can become innovators. The program continued to grow in the third quarter. At the end of the 3rd quarter, 90% of our entire sales organization made an innovative contribution to an existing project that went beyond the actual service description. As already emerged from numerous customer surveys, the innovation quotient of our company has increased. Zero Distance has also been described in employee surveys as the most effective and decisive movement within the company.
Matthew Pegge, TNT's Director of Service Delivery said: "In the 12 months of our partnership with Infosys, the company has met or exceeded our expectations. Infosys has seamlessly migrated over 721 applications across our complex application environment in 8 countries Over 5500 SME sessions laid the foundation for a solid business partnership. As part of the Zero Distance Initiative, Infosys then took the initiative to identify numerous opportunities to offer TNT additional added value. For example, non-invasive automation for the purpose of monitoring our mainframe on the basis of a messaging App ensures that incidents are detected earlier and resolved automatically. This gives us greater business stability. In addition, there are currently a number of other developments around the development of an "interactive visibility dashboard" that gives the company more insights and e s will therefore enable further service improvements to be achieved and operational efficiency to be increased. We believe that our partnership with Infosys will deliver additional business value. "
Drive innovation through Aikido service offerings
We are seeing an increasing spread of our Aikido service offerings in all kinds of industries. Customers are turning to us to renew their IT environments without interruption (Ki), to use new platforms and technologies to seize new opportunities (Ai) and to large Solving problems through Design Thinking (Thu).- The DNB Bank from Norway commissioned us to convert their application environment. By using AiKiDo (https://www.infosys.com/services/aikido/pages/index.aspx) we will not only handle the entire data cluster, but also the data warehousing services, the official reporting and the ERP functions of the DNB Renew and develop the bank in a targeted manner based on our knowledge and without any interruption. In addition, we will make IT processes and data processing more efficient and use design thinking to develop initiatives in the bank's data cluster. - As part of a multi-year application management program, Commerzbank commissioned us to develop a post-trading utility. We rely on the principles of Design Thinking and the AiKiDo framework model in order to simplify the application architecture, standardize and improve processes and increase cost efficiency.
The Infosys Information Platform (IIP) has exceeded 200 engagements so far, 30 of which are already in production.- Murray Swartzberg, Sr. VP IT and Digital Media at ATP, said: "We are extremely satisfied with the technology leadership that Infosys has brought into our partnership. What Infosys has achieved with its open data analysis platform Infosys Information Platform (IIP) in the course of the final round of the Barclays World Tour has that Tennis made even more captivating for our fans. The analysis of such large amounts of data in order to select the right insights as well as their anticipatory and timely implementation in the respective game was really unique for the ATP. We are looking forward to developing many more such initiatives together with Infosys to give us all a completely new tennis experience. "
The Infosys Automation Platform (IAP) exceeded 121 engagements, 47 of which are already in production.- Eric Keimes, Manager of the Operations Team (Ordering and Sales) at Proximus, explained: "With the help of the IAP, we have succeeded in automating the collective processing of data in the course of the ordering process across several complex platforms. This concerned, for example, Oracle, Unix and various GUIs Compared to conventional scripting, we have reduced the effort considerably and, in the event of production problems, were able to carry out extensive corrections in an even shorter time. This enabled us to save over EUR 1 million without incurring additional costs for Proximus. In addition, the platform gave us the We have the opportunity to better serve our customers, improve our KPIs and shorten the solution times. I really appreciate that the Infosys team developed this idea and worked together with Proximus on its implementation. "
The software products Panaya, Skava and Edge continue to enjoy high demand.- BNSF Railway, a leading North American freight train operator, has taken advantage of the extensive analysis capabilities of Infosys Panaya to introduce risk-based test procedures, automated recording of test records and accelerated tests in weekly releases for the business-critical SAP platform. - Skava is gaining traction with customers from all geographic areas. On Black Friday during the holiday weekend, the platform posted record levels of traffic and m-commerce sales, surpassing last year's results by 50%. - With 24 new customers and 25 startups of the Finacle and Edge solution suite in various markets, the EdgeVerve business is enjoying a sustained upswing.
To date, we have recorded over 151 design thinking engagements with customers and trained over 69,000 employees in design thinking.- Jan-Pieter Lips, President of Aimia's International Coalitions, said: "Infosys supported Aimia with a market strategy and roadmap based on Design Thinking. This has proven to be a very powerful and effective way to get in Bringing convergent thinking to our entire functional team. The process has helped Aimia assess the key needs of the market and consumers, and has helped our team take an open-minded approach to creative solutions rather than pushing pre-established ideas. We look forward to using this methodology in future initiatives. "
Prizes and awards:- Received the "Corporate Citizen of the Year Award" of the Economic Times (ET) Awards 2015 - In Gartner's November 2015 MQ ranked as a leader in the "Application Testing Services Worldwide" category * - Inclusion in the "Winner's Circle" of the HfS Research IoT Services Blueprint Report 2015 - One of the most relevant brands in digital strategy according to survey by Everest Group - Ranked as a leader in IDC's Worldwide PLM Strategic Consulting Report 2015 - Mobile banking solution Finacle from Forrester Research, Inc. in the report "The Forrester Wave (TM ): Mobile Banking Solutions, Q4 2015 "rated as a leader
* Gartner does not endorse any vendor, product, or service featured in the Magic Quadrant, and does not recommend selecting only companies with the highest ratings or awards. Gartner research publications are based on the beliefs of Gartner's research organization and should not be construed as assertions of fact. Gartner makes no warranty, express or implied, for this research. In addition to the warranty for defects, this also applies to any suitability for a specific purpose.
Changes in the board of directors:
On January 14, 2016, Dr. Punita Kumar Sinha appointed Independent Director by the Board of Directors with immediate effect.
With effect from November 23, 2015, Carol M. Browner left the Management Board. The Board of Directors expressed its deep appreciation for the services rendered as Director during her tenure.
The Executive Board proposed that Prof. Jeffrey S. Lehman be reappointed as an independent director of the company for a period of two years with effect from April 14, 2016. This office is to be retained until April 13, 2018 without having to retire on a regular basis. Prof. Lehman's current term of office as independent director runs until April 13, 2016. The appointment is subject to the approval of the shareholders.
In the current financial year, Infosys has committed itself to raising an amount of 270 crore for CSR (Corporate Social Responsibility). This will primarily be done through the non-profit Infosys Foundation.
In the third quarter, the Infosys Foundation USA continued its mission and awarded numerous new grants to improve access to computer science and programming classes in all US public schools. Schoolchildren (especially women and minorities) are given equal opportunities to acquire digital skills that will be expected of the workforce of the future. In celebration of Computer Science Education Week 2015, the foundation awarded five new grants to nonprofits across America and hosted 10+ computer science bootcamps.
On November 13, 2015, The Infosys Science Foundation (http://www.infosys-science-foundation.com/) (ISF) announced the winners of the 2015 Infosys Prize, which was awarded in six different categories: Engineering and Computer Science, Humanities , Life Science, Mathematical Science, Natural Science, and Social Science.
Information about Infosys Ltd:
Infosys is a global leader in consulting, technology, outsourcing and next generation services.We offer customers in over 50 countries the ability to stay one step ahead of the competition and emerging business trends. By jointly developing pioneering solutions that combine strategic knowledge with outstanding implementation skills, we help customers achieve change and success.
Visit http://www.infosys.com and see for yourself how Infosys (NYSE: INFY), with LTM sales of $ 9.2 billion and 193,000+ employees, is helping businesses transform themselves invent, break new ground and generate added value.
Safe Harbor Statement
Certain statements contained in this press release relating to our future growth forecasts are forward-looking statements regarding future business expectations that are subject to the safe harbors under the Private Securities Litigation Reform Act of 1995. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from those expressed in forward-looking statements. Additional risks that could affect our future results of operations are more fully described in our filings with the United States Securities and Exchange Commission, including our Annual Report on Form 20-F for the year ended March 31, 2015. These documents can be viewed at http://www.sec.gov. Infosys may from time to time make additional forward-looking statements oral or written. This includes all statements that are contained in the company's submissions to the stock exchange supervisory authority and in the reports for shareholders. In addition, we expressly point out that the publication date of this press release is January 14, 2016 and that all forward-looking statements made here are based on assumptions that we believed to be appropriate at the time. The company assumes no obligation to update forward-looking statements made by or for the company from time to time, unless this is expressly required by law.
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Infosys Limited and Subsidiaries
Unaudited, condensed consolidated interim balance sheet as of
(Dollar amounts in millions, excluding data per share)
2015 March 31, 2015
Cash and cash equivalents 4,455 4,859
Financial assets for sale 68 140
Accounts receivable 1,641 1,554
Deferred items 450 455
Advance payments and other current assets 747 527
Derivative financial instruments 8 16
Total current assets 7,369 7,551
Property, plant and equipment 1,517 1,460
Goodwill 560 495
Intangible assets 157 102
Shares in associated companies 16 15
Financial assets for sale 255 215
Deferred income tax assets 78 85
Income tax claims 718 654
Other fixed assets 101 38
Total fixed assets 3,402 3,064
Total assets 10,771 10,615
Short term liabilities
Trade payables 20 22
Derivative financial instruments 1 -
Current income tax liabilities 448 451
Customer deposits 5 4
Deferred sales 211 168
Pension obligations 192 171
Provisions 73 77
Other current liabilities 980 927
Total short-term liabilities 1,930 1,820
Deferred income tax liabilities 40 25
Other long-term liabilities 24 8
Total liabilities 1,994 1,853
Share capital: `5 ($ 0.16) at par value of 2,400,000,000
(1,200,000,000) issued, approved and
shares outstanding; 2,285,619,380 (1,142,805,132) less
11,325,284 (5,667,200) treasury shares as of
December 31, 2015 (March 31, 2015) 199 109
Premium portion 570 659
Retained income 10,550 10,090
Other reserves - -
Other components of equity (2,542) (2,096)
Overall more attributable to the company's shareholders
Shareholdings 8,777 8,762
Minority shareholdings - -
Total equity 8,777 8,762
Total liabilities 10,771 10,615
Infosys Limited and Subsidiaries
Unaudited, condensed consolidated interim cash flow statement
(Amounts in dollars in millions, excluding stocks and amounts each
Three months, three months, nine months, nine months
to the to the to the
December 31st December 31st December 31st December 31st
2015 2014 2015 2014
Sales 2,407 2,218 7,055 6,552
Cost of sales 1,512 1,360 4,435 4,057
Gross profit 895 858 2,620 2,495
Sales and Marketing 130 124 388 362
Administrative costs 166 142 482 430
Total operating expenses 296 266 870 792
Operating profit 599 592 1,750 1,703
Other income, net 121 136 362 419
Share of profit /
(Loss) of participations - - - -
Profit before income taxes 720 728 2,112 2,122
Income tax expense 196 206 593 607
Net profit 524 522 1,519 1,515
Overall result - other
Invoice lines that are neither
be rebooked for profit or loss:
Reassessment of the
Assets / liabilities
defined benefit pension plans 1 (2) (1) (6)
Invoice lines that may
can be subsequently rebooked for profit or loss:
Changed fair value valuation of
Financial assets for sale 1 8 3 16
Exchange rate differences from the
Conversion of foreign companies (69) (169) (448) (428)
Total other income
Less taxes (67) (163) (446) (418)
Total profit 457 359 1,073 1,097
Company owners 524 522 1,519 1,515
Minority holdings - - - -
524 522 1.519 1.515
Company owners 457 359 1,073 1,097
Minority holdings - - - -
457 359 1.073 1.097
Earnings per common share
Net Income ($) 0.23 0.23 0.66 0.66
Diluted ($) 0.23 0.23 0.66 0.66
Weighted average of the calculation
of earnings per common share used
Number of shares
Net profit 2,285,619,380 2,285,610,264 2,285,614,573 2,285,610,264
Diluted 2,285,732,052 2,285,654,792 2,285,715,960 2,285,630,846
1 The unaudited, condensed consolidated interim balance sheet and the
condensed consolidated interim cash flow statements of the three resp.
nine months to December 31, 2015 are in the course of the board meeting on
Officially detained on January 1, 2016.
2 A data sheet with the company's key figures is available
available for download at http://www.infosys.com.
3 Number of shares and EPS are from the previous reporting period
due to the issue of bonus shares in June 2015
IFRS INR press release:
Original content by: INFOSYS, transmitted by news aktuell
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