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INFOSYS LIMITED - Half-yearly Report

INFY

Statement of Comprehensive Income for three months ended,
(As per IFRS)                                                                     In` crore, except share data
Particulars                                                Sep 30,     Growth (%)  June 30, 2013               Growth %
                                                                                                             Q2 14 over
                                                                                                                  Q1 14
                                              2013            2012
Revenues                                    12,965           9,858           31.5         11,267                   15.1
Cost of sales                                8,384           6,102           37.4          7,319                   14.6
Gross Profit                                 4,581           3,756           22.0          3,948                   16.0
Operating Expenses:
Selling and marketing expenses                 757             506           49.6            584                   29.6
Administrative expenses*                       987             653           51.1            700                   41.0
Total Operating Expenses                     1,744           1,159           50.5          1,284                   35.8
Operating Profit                             2,837           2,597            9.2          2,664                    6.5
Other Income, net                              510             706         (27.8)            577                 (11.6)
Profit before income taxes                   3,347           3,303            1.3          3,241                    3.3
Income tax expense                             940             934            0.6            867                    8.4
Net Profit                                   2,407           2,369            1.6          2,374                    1.4
Earnings per equity share #
Basic (`)                                    42.12           41.46            1.6          41.54                    1.4
Diluted (`)                                  42.12           41.46            1.6          41.54                    1.4

*Administrative expenses for the three months ended September 30, 2013 includes a provision of ` 219 crore towards visa
related matters.
# EPS for the three months ended September 30, 2013 is ` 45.96 per share, excluding the provision of ` 219 crore for
visa related matters. EPS for the three months ended September 30, 2013 is ` 42.12 per share, including the provision of
` 219 crores for visa related matters. The difference is ` 3.84 per share.
Statement of Comprehensive Income for six months ended,
(As per IFRS)                                                     In` crore, except share data
Particulars                                                                               Sep 30,            Growth (%)
                                                                         2013                2012
Revenues                                                               24,232              19,474                  24.4
Cost of sales                                                          15,703              11,912                  31.8
Gross Profit                                                            8,529               7,562                  12.8
Operating Expenses:
Selling and marketing expenses                                          1,341                 975                  37.5
Administrative expenses*                                                1,687               1,297                  30.1
Total Operating Expenses                                                3,028               2,272                  33.3
Operating Profit                                                        5,501               5,290                   4.0
Other Income, net                                                       1,087               1,182                 (8.0)
Profit before income taxes                                              6,588               6,472                   1.8
Income tax expense                                                      1,807               1,814                 (0.4)
Net Profit                                                              4,781               4,658                   2.6
Earnings per equity share#
Basic (`)                                                               83.66               81.52                   2.6
Diluted (`)                                                             83.66               81.52                   2.6

*Administrative expenses for the six months ended September 30, 2013 includes a provision of ` 219 crore towards visa
related matters.
# EPS for the six months ended September 30, 2013 is ` 87.50 per share, excluding the provision of ` 219 crore for visa
related matters. EPS for the six months ended September 30, 2013 is ` 83.66 per share, including the provision of ` 219
crores for visa related matters. The difference is ` 3.84 per share.
Statement of Comprehensive Income for three months ended,
(As per IFRS)                                                                    in US $ million, except share data
Particulars                                               Sep 30,    Growth (%) June 30, 2013              Growth %
                                                                                                         Q2 14 over
                                                                                                              Q1 14
                                                 2013        2012
Revenues                                        2,066       1,797          15.0         1,991                   3.8
Cost of sales                                   1,337       1,114          20.0         1,296                   3.2
Gross Profit                                      729         683           6.7           695                   4.9
Operating Expenses:
Selling and marketing expenses                    120          92          30.4           103                  16.5
Administrative expenses*                          158         119          32.8           124                  27.4
Total Operating Expenses                          278         211          31.8           227                  22.5
Operating Profit                                  451         472         (4.4)           468                 (3.6)
Other Income, net                                  81         129        (37.2)           103                (21.4)
Profit before income taxes                        532         601        (11.5)           571                 (6.8)
Income tax expense                                149         170        (12.4)           153                 (2.6)
Net Profit                                        383         431        (11.1)           418                 (8.4)
Earnings per equity share#
Basic ($)                                        0.67        0.75        (10.7)          0.73                 (8.2)
Diluted ($)                                      0.67        0.75        (10.7)          0.73                 (8.2)

*Administrative expenses for the three months ended September 30, 2013 includes a provision of $ 35 million towards visa
related matters.
# EPS for the three months ended September 30, 2013 is $0.73 per share, excluding the provision of $ 35 Million for visa
related matters. EPS for the three months ended September 30, 2013 is $ 0.67 per share, including the provision of $ 35
million for visa related matters. The difference is $ 0.06 per share.
Statement of Comprehensive Income for six months ended,
(As per IFRS)                                                  in US $ million, except share data
Particulars                                                                                Sep 30,           Growth (%)
                                                                       2013                   2012
Revenues                                                              4,057                  3,549                 14.3
Cost of sales                                                         2,633                  2,173                 21.2
Gross Profit                                                          1,424                  1,376                  3.5
Operating Expenses:
Selling and marketing expenses                                          223                    178                 25.3
Administrative expenses*                                                282                    237                 19.0
Total Operating Expenses                                                505                    415                 21.7
Operating Profit                                                        919                    961                (4.4)
Other Income, net                                                       184                    216               (14.8)
Profit before income taxes                                            1,103                  1,177                (6.3)
Income tax expense                                                      302                    330                (8.5)
Net Profit                                                              801                    847                (5.4)
Earnings per equity share#
Basic ($)                                                              1.40                   1.48                (5.4)
Diluted ($)                                                            1.40                   1.48                (5.4)

*Administrative expenses for the six moths ended September 30, 2013 includes a provision of $ 35 million towards visa
related matters.
# EPS for the six months ended September 30, 2013 is $ 1.46 per share, excluding the provision of $ 35 million for visa
related matters. EPS for the six months ended September 30, 2013 is $ 1.40 per share, including the provision of $ 35
million for visa related matters. The difference is $ 0.06 per share.
Revenue by Geographical Segment
                                                                                                      (in %)
                                                                            Quarter ended                           LTM
                                                     Sep 30, 2013  June 30,  Sep 30, 2012    Sep 30, 2013  Sep 30, 2012
                                                                       2013
North America                                                61.5      61.4          63.9            61.0          63.5
Europe                                                       24.0      23.6          21.9            24.1          22.3
India                                                         2.4       2.6           1.6             2.5           1.9
Rest of the world                                            12.1      12.4          12.6            12.4          12.3
Total                                                       100.0     100.0         100.0           100.0         100.0

Revenue by Service Offering
                                                                                                                 (in %)
                                                            Quarter ended                             LTM
                                                   Sep 30, 2013   June 30,  Sep 30, 2012     Sep 30, 2013  Sep 30, 2012
                                                                      2013
Business IT Services                                       61.4       61.0          64.5             61.5          63.7
Application Development                                    16.0       15.7          17.0             15.8          17.0
Application Maintenance                                    19.1       19.3          21.4             19.6          21.3
Infrastructure Management Services                          7.2        7.0           6.8              7.1           6.4
Testing Services                                            8.4        8.4           8.6              8.4           8.2
Product Engineering Services                                3.3        3.2           3.4              3.2           3.5
Business Process Management                                 5.1        5.1           4.7              5.1           4.7
Others                                                      2.3        2.3           2.6              2.3           2.6
Consulting, Package Implementation & Others                33.3       33.6          30.0             33.1          30.4
Products, Platforms and Solutions                           5.3        5.4           5.5              5.4           5.9
Products                                                    3.7        3.7           3.8              3.8           4.4
BPM Platform                                                1.2        1.2           1.3              1.2           1.2
Others                                                      0.4        0.5           0.4              0.4           0.3
Total                                                     100.0      100.0         100.0            100.0         100.0

Revenue by Project Type *
                                                                                                                 (in %)
                                                              Quarter ended                             LTM
                                                        Sep 30, 2013   June 30, Sep 30, 2012       Sep 30,      Sep 30,
                                                                           2013                       2013         2012
Fixed Price                                                     40.2       40.1         40.4          40.5         39.7
Time & Materials                                                59.8       59.9         59.6          59.5         60.3
Total                                                          100.0      100.0        100.0         100.0        100.0
* Excluding products

Revenue by Industry
                                                                                    (in %)
                                     Quarter ended                          LTM
                         Sep 30, 2013  June 30, 2013     Sep 30,  Sep 30, 2013     Sep 30,
                                                            2012                      2012
Insurance, Banking &             33.4           33.7        33.7          33.7        34.4
Financial
Services
Banking & financial              27.1           27.0        27.0          27.0        27.5
services
Insurance                         6.3            6.7         6.7           6.7         6.9
Manufacturing                    23.2           22.5        22.1          22.4        21.4
Retail & Life Sciences           24.2           24.7        24.0          24.2        23.5
Retail & CPG                     15.7           15.8        17.0          15.7        16.2
Transport & Logistics             1.8            1.8         1.7           1.8         1.8
Life Sciences                     4.6            4.7         3.9           4.7         3.9
Healthcare                        2.1            2.4         1.4           2.0         1.6
Energy, Utilities,               19.2           19.1        20.2          19.7        20.7
Communications &
Services
Energy & Utilities                5.1            4.9         5.3           5.1         5.5
Telecom                           8.3            8.5         9.9           8.9        10.0
Others                            5.8            5.7         5.0           5.7         5.2
Total                           100.0          100.0       100.0         100.0       100.0

Client Data

                                                        Quarter ended                             Year ended
                                         Sep 30, 2013     June 30, 2013     Sep 30, 2012   Mar 31, 2013   Mar 31, 2012
Number of Clients
Active                                            873               836              715            798            694
Added during the period (gross)                    68                66               39            235            172
Number of million dollar clients*
1 Million dollar +                                469               466              413            448            399
5 Million dollar +                                221               215              205            213            190
10 Million dollar +                               146               139              134            137            132
20 Million dollar +                                86                82               82             80             79
30 Million dollar +                                66                64               61             62             64
40 Million dollar +                                51                49               52             49             50
50 Million dollar +                                40                41               40             40             40
60 Million dollar +                                34                35               32             33             28
70 Million dollar +                                30                29               22             28             23
80 Million dollar +                                22                22               19             19             17
90 Million dollar +                                17                17               14             17             16
100 Million dollar +                               15                15               11             12             13
200 Million dollar +                                3                 3                3              3              2
300 Million dollar +                                -                 -                -              -              1
Client contribution to revenue
Top client                                       3.9%              3.9%             4.0%           3.8%           4.3%
Top 5 clients                                   15.0%             14.9%            16.0%          15.2%          15.5%
Top 10 clients                                  24.5%             24.0%            25.4%          24.6%          24.6%
Repeat business                                 98.3%             99.0%            98.2%          97.8%          97.8%
Account receivables-LTM(in days)#                  62                65               65             64             60
*LTM (Last twelve months) Revenues
# excluding Lodestone
Effort and Utilization
                                                                                    (in %)
                                     Quarter ended                          LTM
                        Sep 30, 2013  June 30, 2013 Sep 30, 2012  Sep 30, 2013     Sep 30,
                                                                                      2012
Effort
Onsite                          25.6           26.0         24.3          25.4        24.6
Offshore                        74.4           74.0         75.7          74.6        75.4
Revenue
Onsite                          52.5           53.2         50.7          52.3        49.9
Offshore                        47.5           46.8         49.3          47.7        50.1
Utilization
Including trainees              73.7           72.4         69.6          71.8        68.5
Excluding trainees              77.8           75.9         73.3          75.2        73.7

Person Months Data

                                                       Quarter ended                                LTM
                                      Sep 30, 2013     June 30, 2013     Sep 30, 2012   Sep 30, 2013   Sep 30, 2012
Billed - Onsite                              87,383              86,551         75,047        333,698        286,488
- Offshore                                  253,828             245,856        233,228        978,036        878,900
TOTAL                                       341,211             332,407        308,275      1,311,734      1,165,387
Non Billable                                 97,310             105,473        112,171        432,403        415,084
Trainee                                      24,670              21,486         22,619         83,316        121,938
Sales & Support                              27,108              27,490         25,222        107,752         96,434
TOTAL                                       490,299             486,856        468,287      1,935,205      1,798,843

Consolidated IT Services

                                      Quarter ended                                                LTM
             Sep 30,      Sequential    June 30,   Sequential  Sep 30, Sequential   Sep 30,  Year on   Sep 30,  Year on
                2013        growth %        2013     growth %     2012   growth %      2013   Year        2012   Year
                                                                                            growth %           growth %
Effort - (Person months)
Onsite        82,156             0.7      81,609          5.8   71,002        4.4   314,477      15.0  273,386       9.0
Offshore     181,107             4.3     173,691          3.3  165,195        3.6   690,335       8.4  636,672       9.7
Total        263,263             3.1     255,300          4.1  236,197        3.8 1,004,812      10.4  910,058       9.5

Revenue - ($ million)
Onsite      1,053.10             2.1    1,031.49          5.3   886.35        4.8  4,017.08      16.0 3,464.16       7.9
Offshore      807.42             6.1      761.35          0.9   734.95        2.2  3,084.71       5.3 2,928.74       8.2
Total       1,860.52             3.8    1,792.84          3.4 1,621.30        3.6  7,101.79      11.1 6,392.90       8.0

Employee Metrics
                                                                                                                 (Nos.)
                                                            Quarter ended                        Year ended
                                               Sep 30, 2013  June 30, 2013  Sep 30, 2012  Mar 31, 2013  Mar 31, 2012
Total employees                                    1,60,227       1,57,263      1,53,761      1,56,688      1,49,994
S/W professionals                                  1,50,489       1,47,576      1,44,752      1,47,008      1,41,788
Billable                                           1,28,871       1,34,266       132,341      1,35,392      1,24,953
Banking product group                                 6,681          7,004         7,677         7,249         8,139
Trainees                                             14,937          6,306         4,734         4,367         8,696
Sales & Support                                       9,738          9,687         9,009         9,680         8,206
Gross addition                                       12,168         10,138        10,420        37,036        45,605
Of which lateral addition                             3,806          3,008         3,656        16,781        14,966
Attrition                                             9,204          9,563         7,810        30,342        26,431
Net addition                                          2,964            575         2,610         6,694        19,174
Attrition % (LTM)*                                    17.3%          16.9%         15.0%         16.3%         14.7%
* Excluding subsidiaries

Employee Metrics - Subsidiaries                                                                       (Nos.)
                                                    Quarter ended                           Year ended
                                         Sep 30, 2013         June 30, 2013    Sep 30,    Mar 31,    Mar 31,
                                                                                  2012       2013       2012
Infosys BPO Limited -                          26,834                26,207     22,918     24,634     20,523
consolidated
Infosys Technologies                                -                     -          -          -        674
(Australia) Pty. Ltd.*
Infosys Technologies (China)                    3,067                 3,032      3,047      3,073      3,092
Company Ltd.
Infosys Technologies S.De R.L.                    835                   824        719        797        631
De C. V., Mexico
Infosys Technologies (Sweden)                       2                     3          7          4         11
AB
Infosys Tecnologia DO Brasil                      547                   508        353        393        210
LTDA
Infosys Public Services Inc.                      182                   185        186        182         33
Infosys Technologies (Shanghai)                     4                     8         58         17         31
Company Ltd.
Lodestone Holding AG                             1450                  1307          -       1191          -
* Employees of Infosys Australia were transferred to Infosys Limited consequent to merger of its
operations with the parent company

Infrastructure (as on Sep 30, 2013)

                                          Completed                      Work in progress          Land acquired during
                                                                                                    the Quarter (acres)
                               Built-up area (Sq.   No. of seats    Built-up area    No. of seats
                                             Ft.)                       (Sq. Ft.)

Bangalore                               45,42,894         32,020         2,20,334           2,031                 13.31
Bhubaneswar                              8,79,721          3,974         5,34,767           4,320                     -
Chandigarh                              12,26,033          6,754                -               -                     -
Chennai                                 37,29,216         22,530         5,31,458           3,070                  0.38
Gurgaon                                  1,01,183            988         1,35,209           1,250                     -
Hyderabad                               35,00,477         17,628        14,53,077           8,296                     -
Jaipur                                   4,52,139          4,412         4,04,106           4,000                     -
Mangalore                               13,25,369          6,885        11,51,400           4,800                  0.19
Mysore (including ILI)*                 94,18,459         11,792        20,95,037           3,864                     -
Pune                                    54,67,202         32,384        13,53,967           4,315                     -
Thiruvananthapuram                       6,18,201          5,085        21,39,267           8,479                     -
Global Centers                          15,91,449         14,970                -               -                     -
Total                                 3,28,52,343       1,59,422      1,00,18,622          44,425                 13.88
*Infosys Leadership Institute

Subsidiaries Performance - Standalone financial statements
                                                                                                       (US $ Mn)
    Subsidiaries                                    Quarter ended                                   Year ended
                            Sep 30, 2013                June 30, 2013            Sep 30, 2012      Mar 31, 2013
                          Revenue     Net Income      Revenue     Net Income      Revenue     Net   Revenue  Net
                                                                                           Income         Income
Infosys BPO Limited         132.13         18.87        127.26         15.39        111.03  21.61  471.22  79.04
- consolidated
Infosys Technologies             -          0.10             -          0.10          0.03   0.67    0.42   0.31
(Australia) Pty.
Ltd.*
Infosys Technologies         31.68          0.10         28.33        (0.94)         25.91 (1.57)  104.37 (1.88)
(China) Company
Limited
Infosys Technologies         10.51          0.87          9.07          0.58          7.78   0.44   30.12 (0.37)
S.de R.L. de C V.,
Mexico
Infosys Technologies          0.11          0.00          0.12          0.01          0.37   0.01    1.11 (0.01)
(Sweden) AB
Infosys Tecnologia            8.66        (2.27)          8.02        (1.56)          6.47   0.10   23.59 (3.11)
DO Brasil LTDA
Infosys Public               43.32        (2.18)         45.63          4.97         24.88 (0.77)  110.40 (1.90)
Services Inc.
Infosys Technologies             -        (0.36)             -        (0.36)          0.07 (0.38)    0.14 (2.85)
(Shanghai) Co Ltd
Lodestone Holding AG         98.13          1.21         90.67          1.88             -      -  109.64 (0.90)
* Employees of Infosys Australia were transferred to Infosys Limited consequent to merger of its
operations with the parent company

Rupee Dollar Rate ( ` )

                                    Quarter ended                     Year ended
                        Sep 30, 2013     June 30, Sep 30, 2012 Mar 31, 2013 Mar 31, 2012
                                             2013
Period closing rate            62.61        59.39        52.86        54.29        50.88
Period average rate            62.77        56.56        54.85        54.54        48.10
Constant Currency Reporting

Reported revenues              Q2 13       Q3 13         Q4 13      Q1 14      Q2 14
Revenue ($ mn)                 1,797       1,911         1,938      1,991      2,066
Sequential growth %              2.6         6.3           1.4        2.7        3.8
YoY growth %                     2.9         5.8           9.4       13.6       15.0

Constant currency - Q o Q      Q2 13       Q3 13         Q4 13      Q1 14      Q2 14
Revenue ($ mn)                 1,794       1,902         1,944      2,005      2,074
Sequential growth (%)            2.4         5.8           1.7        3.4        4.2

Constant currency - Y o Y      Q2 13       Q3 13         Q4 13      Q1 14      Q2 14
Revenue ($ mn)                 1,820       1,910         1,946      1,999      2,086
YoY growth (%)                   4.2         5.8           9.9       14.1       16.1
Notes:
Basis of computation
1. Foreign exchange rates are as per FEDAI.
2. Average rates for major global currencies:
Average rate of USD            Q2 13           Q3 13          Q4 13 FY 13 Q1 14 Q2 14
AUD                             1.04            1.04           1.03  1.03  0.98  0.92
EURO                            1.26            1.30           1.32  1.29  1.31  1.34
GBP                             1.59            1.61           1.54  1.58  1.54  1.56
3. Proportion of revenues from major global currencies:
Revenue by currency            Q2 13           Q3 13          Q4 13 FY 13 Q1 14 Q2 14
(%)
AUD                              8.3             8.3            8.1   8.3   7.9   7.6
EURO                             8.3             9.6           10.4   8.8   9.8  10.1
GBP                              6.3             6.2            6.1   6.4   5.6   5.9
Q2 2014
Geographical segment - growth
North America grew by 3.9% sequentially and in constant currency.
Europe grew by 5.2% sequentially; and 3.8% in constant currency.
India declined by 2.5% sequentially; and grew by 6.2% in constant currency.
Rest of the world grew by 1.8% sequentially; and 6% in constant currency.
Industry segment - growth
FSI grew by 2.9% sequentially; and 3.9% in constant currency.
MFG grew by 6.8% sequentially; and 6.6% in constant currency.
RCL grew by 1.4% sequentially; and 1.2% in constant currency.
ECS grew by 4.7% sequentially; and 5.6% in constant currency.
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