Infosys (NASDAQ: INFY) Announces Results for the Quarter Ended June 30, 2011

By Infosys Technologies Ltd, PRNE
Monday, July 11, 2011

MYSORE, India, July 12, 2011 -


Q1 Revenues Grew by 23% Year on Year;
Sequentially Grew by 4.3%



Consolidated results under IFRS for the quarter ended June 30,

  1. Revenues were $1,671 million for the quarter ended June 30,
    QoQ growth was 4.3%; YoY growth was 23%
  2. Net income after tax was $384 million for the quarter ended
    June 30, 2011;
    QoQ decline was 4.5%; YoY growth was 17.8%
  3. Earnings per American Depositary Share (EPADS) was$ 0.67 for
    the quarter ended June 30, 2011; QoQ decline was 4.3%; YoY growth
    was 17.5%
  4. 26 clients were added during the quarter by Infosys and its
  5. Gross addition of 9,922 employees (net addition of 2,740) for
    the quarter by Infosys and its subsidiaries
  6. 133,560 employees as on June 30, 2011 for Infosys and its

We have re-organized the company to be more industry
domain focused which will accelerate innovation and make us more
responsive to clients
needs said
S. Gopalakrishnan, CEO and Managing Director.
We believe that Infosys is well positioned to be a
transformational partner for large clients even as they navigate
through uncertain times

Business outlook

The company’s outlook (consolidated) for the quarter ending
September 30, 2011 and for the fiscal year ending March 31, 2012,
under International Financial Reporting Standards (IFRS), is
as follows:

Outlook under IFRS - consolidated
* ]

Quarter ending September 30, 2011

  1. Revenues are expected to be in the range of $1,730 million and
    $1,755 million;
    YoY growth of 15.6% to 17.3%
  2. Earnings per American Depositary Share (EPADS) is expected to
    be in the range of $0.67 and $0.68; YoY growth of 3.1% to 4.6%

Fiscal year ending March 31, 2012

  • Revenues are expected to be in the range of $7.13 billion and
    $7.25 billion; YoY growth of 18% to 20%
  • Earnings per American Depositary Share (EPADS) is expected to
    be in the range of $2.88 to $2.92; YoY growth of 10.0% to

    Exchange rates considered for major global
currencies: AUD / USD
- 1.07; GBP / USD -
1.60; Euro / USD - 1.45

Expansion of services and significant

Infosys is focused on delivering
measurable business value to clients - whether it be initiating
transformational process changes, accelerating innovation or
driving best-in-class efficiencies.

Consulting & System

Infosys has developed a world-class
business consulting model to recharge technology-led transformation
for enterprises.

We transformed the IT environment of a large telecom Original
Equipment Manufacturer (OEM) to a cloud based model. For another
leading networking OEM, we are managing the engineering activities
for the development of a collaboration and communication

For an aerospace company, we re-engineered a large application
resulting in productivity enhancements. A leading provider of
clean, green technology, products and services partnered with us to
develop a business transformation solution to define its core
process model in emerging and developed markets.

For a U.S.-based investment management company, we are building
a technology solution to transform its dealer compensation and
management platform.

A  U.S.-based high tech major partnered with us for cloud
analytics and insights, resulting in improved return on investment
through better customer service. For a leader in aerospace products
we are managing the PeopleSoft Center of Excellence (CoE) and
services, leading to cost savings through optimized global delivery
of services.  For a global retail major, Infosys delivered a
secure cloud-based solution that tracks carbon footprints of its
supplier ecosystem to help identify preferred suppliers for its

Business Operations

Our best-practice approach to efficiently run small or large
portions of our client
s business will free up
resources for transformation and innovation-led growth

We partnered with a leading aircraft manufacturer’s
infrastructure department for application integration, release
management and infrastructure support. An aerospace major engaged
us to enhance its knowledge-based engineering tools to improve
product development performance and cycle time. A European airline
selected us to transform its business processes, governance and
organizational skill management, leading to enhanced business-IT

For a large U.K.-based communications provider we built online
self-service capabilities, resulting in substantial cost savings
through a reduction in call volumes to data centers.

We provided testing services for the Smart Meter project of a
large electric utilities company, leading to a reduction in total
cost of ownership and improving the quality of the final product. A
global energy management solutions company engaged us to enhance
its building automation database, allowing its customers to migrate
to a new framework and save licensing costs. 

A vehicle glass repair and replacement company selected us to
implement its global warehouse management system and host the
infrastructure for the program.

For a leading bank, Infosys BPO enhanced productivity by
managing back office operations including bank deposit operations,
mortgage and investment services. An electronics and industrial
engineering major partnered with Infosys BPO for transition support
for captive shared service centers, leading to operational

Products, Platforms &

We continued to partner with clients
enabling them to leverage new business growth opportunities based
on our strength and ability to co-create and accelerate

A semi-conductor major partnered with us to accelerate its
products pipeline by involving us in the designing, developing and
testing of new chipsets. Another global semiconductor company chose
us to create an Infosys Center of Excellence (CoE) for middleware

We helped a hotel supplier in the development of an iPhone and
iPad application to provide end customers access to recipes,
improving engagement with customers and marketing efforts. For a
cable Multiple System Operator (MSO) in the U.S. we
developed an iPad application for video streaming, helping the
client launch its products in the market ahead of competition.

We helped a telecom company in the Australia and New Zealand
region migrate from 3G network to higher bandwidth technologies
like High Speed Packet Access (HSPA) and Long Term Evolution (LTE),
enabling faster rollout of technologies and better customer


Finacle™, our universal banking solution won 11 deals this
quarter and 20 client projects went live this quarter. Finacle™
also announced the availability of Finacle Lite™, the banking
solution on a private cloud environment for co-operative banks,
community banks and credit unions worldwide.

Finacle™ is being used by over 148 banks across 72 countries to
power operations across 47,000 branches. Today, Finacle enables its
customer banks to serve 390 million accounts and 289 million
consumers worldwide. 

Finacle™ is also leading the financial inclusion objective in
India. 45 of the 82 Regional Rural Banks (RRBs) in the country have
opted to leverage Finacle across 9,900 branches.

Our mission to engineer rural Indias
progress through financial inclusion is rapidly gaining
SaidS. Raman, Chairman &
Managing Director, Canara Bank.
With more than 800 branches covering the states of UP,
Karnataka and Kerala through three Regional Rural Banks, we are
truly geared to further expand our rural reach.  We are happy
to have Finacle
power this journey towards enhancing our
service delivery and promoting financial inclusion.

Infosys iEngage

This quarter Infosys iEngage™ signed five strategic wins with
large global enterprises.

Infosys iEngage™ also unveiled its new Social Commerce and
enhanced Employee Engagement platform.  All five platforms of
Infosys iEngage™ are now available on smartphone-enabled devices.
Infosys iEngage™ can be delivered through Infosys cloud or client
cloud in the Software as a service (SaaS) model.

Infosys is helping a global technology company to assess and
adopt iEngage™ for their employee collaboration to help improve
workforce productivity, accelerate time to market of their products
and increase sales. A global technology major has also selected
Infosys iEngage to drive its social listening strategy and
implementation for a new product launch.

Infosys Health Benefit Exchange

This quarter we launched Infosys Health Benefit Exchange, a
cost- effective solution designed to help set up  the
insurance exchanges. This will allow payers to market plans more
efficiently while allowing them to get fast and personalized


As on June 30, 2011, cash and cash equivalents, including
investments in available-for-sale financial assets and certificates
of deposits was $ 3.8Bn ( $3.4Bn as on June 30, 2010).

We continue to focus on high-quality growth balancing
both revenue growth and margins
said V.
Balakrishnan, Member of the Board and Chief Financial
We are making the right investments to
position ourselves as the partner of choice for large global

About Infosys Ltd

Many of the world’s most successful organizations rely on the
133,560 people of Infosys to deliver measurable business value.
Infosys provides business consulting, technology, engineering and
outsourcing services to help clients in over 30 countries build
tomorrow’s enterprise.

For more information about Infosys (NASDAQ: INFY), visit

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, 2011 and on Form 6-K for the quarters ended
June 30, 2010, September 30, 2010 and December 31, 2010.These
filings are available at href=""> 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.

Condensed Consolidated Interim Financial Statements prepared in
compliance with IAS 34, Interim Financial Reporting

Infosys Limited
and subsidiaries

Consolidated Balance Sheets as of

(Dollars in millions except share data)

                                              June 30,2011  March 31,2011
    Current assets

    Cash and cash equivalents                                          $3,737
    Available-for-sale financial assets                      6              5
    Investment in certificates of deposit                    5             27
    Trade receivables                                    1,092          1,043
    Unbilled revenue                                       312            279
    Derivative financial instruments                        19             15
    Prepayments and other current assets                   213            206
    Total current assets                                 5,431          5,312
    Non-current assets
    Property, plant and equipment                        1,093          1,086
    Goodwill                                               185            185
    Intangible assets                                       10             11
    Available-for-sale financial assets                      5              5
    Deferred income tax assets                              85             85
    Income tax assets                                      220            223
    Other non-current assets                               117            103
    Total non-current assets                             1,715          1,698
    Total assets                                        $7,146         $7,010
    Current liabilities
    Trade payables                                          $5            $10
    Current income tax liabilities                         232            183
    Client deposits                                          3              5
    Unearned revenue                                       118            116
    Employee benefit obligations                            24             31
    Provisions                                              27             20
    Other current liabilities                              437            451
    Total current liabilities                              846            816
    Non-current liabilities
    Deferred income tax liabilities                          -              -
    Employee benefit obligations                            74             58
    Other non-current liabilities                           18             14
    Total liabilities                                      938            888
    Share capital- ` 5 ($0.16) par value
    600,000,000 equity shares authorized, issued
    and outstanding 571,354,092 and 570,317,959
    net of 2,833,600 treasury shares each as of
    June 30, 2011 and March 31, 2011,
    respectively                                            64             64
    Share premium                                          702            702
    Retained earnings                                    5,387          5,294
    Other components of equity                              55             62
    Total equity attributable to equity holders
    of the company                                       6,208          6,122
    Total liabilities and equity                        $7,146         $7,010

Infosys Limited
and subsidiaries

Consolidated Statements of Comprehensive Income

(Dollars in
millions except share data)

                                                   Three months  Three months
                                                     ended June    ended June
                                                        30,2011       30,2010
    Revenues                                           $1,671        $1,358
    Cost of sales                                       1,022           800
    Gross profit                                          649           558
    Operating expenses:
    Selling and marketing expenses                         89            74
    Administrative expenses                               125           100
    Total operating expenses                              214           174
    Operating profit                                      435           384
    Other income                                           99            53
    Profit before income taxes                            534           437
    Income tax expense                                    150           111
    Net profit                                           $384          $326
    Other comprehensive income
    Fair value changes on available - for-sale
    financial asset, net of tax effect                      -           $(1)
    Exchange differences on translating foreign
    operations                                             (7)         (188)
    Total other comprehensive income                       (7)        $(189)
    Total comprehensive income                           $377          $137
    Profit attributable to:
    Owners of the company                                $384          $326
    Non-controlling interest                                -             -
                                                         $384          $326
    Total comprehensive income attributable to:
    Owners of the company                                $377          $137
    Non-controlling interest                                -             -
                                                         $377          $137
    Earnings per equity share
    Basic ($)                                            0.67          0.57
    Diluted ($)                                          0.67          0.57
    Weighted average equity shares used in
    computing earnings per equity share
    Basic                                         571,333,499   571,036,067
    Diluted                                       571,396,376   571,332,571


1. The unauditedConsolidated Balance sheets &
Comprehensive Income
for the quarter ended June 30, 2011
has been taken on record at the Board meeting held at Mysore on
July 12, 2011

2. A Fact Sheet providing the operating metrics of the
company can be downloaded from

Earnings:  href=""

Fact Sheet: href="">


               Avishek Lath, India         

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              Priyanka Waghre, India      

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