Exhibit 99.4
Form of Release to Stock Exchanges
Infosys Limited Regd. office: Electronics City, Hosur Road, | CIN : L85110KA1981PLC013115 Website: www.infosys.com email: investors@infosys.com T: 91 80 2852 0261, F: 91 80 2852 0362 |
Statement of Consolidated Audited Results of Infosys Limited and its subsidiaries for the quarter and year ended March 31, 2020 prepared in compliance with the Indian Accounting Standards (Ind-AS)
(in crore, except per equity share data)
Particulars | Quarter ended March 31, | Quarter ended December 31, | Quarter ended March 31, | Year ended March 31, | |
2020 | 2019 | 2019 | 2020 | 2019 | |
Audited | Audited | Audited | Audited | Audited | |
Revenue from operations | 23,267 | 23,092 | 21,539 | 90,791 | 82,675 |
Other income, net (Refer Note 2(e)) | 614 | 827 | 665 | 2,803 | 2,882 |
Total Income | 23,881 | 23,919 | 22,204 | 93,594 | 85,557 |
Expenses | |||||
Employee benefit expenses | 12,916 | 12,994 | 12,074 | 50,887 | 45,315 |
Cost of technical sub-contractors | 1,704 | 1,721 | 1,601 | 6,714 | 6,033 |
Travel expenses | 667 | 617 | 603 | 2,710 | 2,433 |
Cost of software packages and others | 755 | 651 | 689 | 2,703 | 2,553 |
Communication expenses | 139 | 132 | 115 | 528 | 471 |
Consultancy and professional charges | 339 | 362 | 376 | 1,326 | 1,324 |
Depreciation and amortisation expenses## | 749 | 737 | 531 | 2,893 | 2,011 |
Finance cost | 45 | 42 | – | 170 | – |
Other expenses | 1,071 | 814 | 932 | 3,656 | 3,655 |
Reduction in the fair value of Disposal Group Held for Sale (Refer Note 1(a)) | – | – | – | – | 270 |
Adjustment in respect of excess of carrying amount over recoverable amount on reclassification from "Held For Sale" (Refer Note 1(a)) | – | – | – | – | 451 |
Total expenses | 18,385 | 18,070 | 16,921 | 71,587 | 64,516 |
Profit before tax | 5,496 | 5,849 | 5,283 | 22,007 | 21,041 |
Tax expense: (Refer Note 1(b)) | |||||
Current tax | 1,335 | 1,492 | 1,193 | 5,775 | 5,727 |
Deferred tax | (174) | (109) | 12 | (407) | (96) |
Profit for the period | 4,335 | 4,466 | 4,078 | 16,639 | 15,410 |
Other comprehensive income | |||||
Items that will not be reclassified subsequently to profit or loss | |||||
Remeasurement of the net defined benefit liability/asset, net*** | (21) | (120) | (3) | (180) | (22) |
Equity instruments through other comprehensive income, net | (2) | (36) | 1 | (33) | 70 |
Items that will be reclassified subsequently to profit or loss | |||||
Fair value changes on derivatives designated as cash flow hedges, net | – | (29) | (15) | (36) | 21 |
Exchange differences on translation of foreign operations | 237 | 151 | (70) | 378 | 63 |
Fair value changes on investments, net | 15 | (11) | 25 | 22 | 2 |
Total other comprehensive income/(loss), net of tax | 229 | (45) | (62) | 151 | 134 |
Total comprehensive income for the period | 4,564 | 4,421 | 4,016 | 16,790 | 15,544 |
Profit attributable to: | |||||
Owners of the company | 4,321 | 4,457 | 4,074 | 16,594 | 15,404 |
Non-controlling interest | 14 | 9 | 4 | 45 | 6 |
4,335 | 4,466 | 4,078 | 16,639 | 15,410 | |
Total comprehensive income attributable to: | |||||
Owners of the company | 4,545 | 4,406 | 4,012 | 16,732 | 15,538 |
Non-controlling interest | 19 | 15 | 4 | 58 | 6 |
4,564 | 4,421 | 4,016 | 16,790 | 15,544 | |
Paid up share capital (par value5/- each, fully paid) | 2,122 | 2,122 | 2,170 | 2,122 | 2,170 |
Other equity *# | 63,328 | 62,778 | 62,778 | 63,328 | 62,778 |
Earnings per equity share (par value5/- each)** | |||||
Basic () | 10.19 | 10.51 | 9.37 | 38.97 | 35.44 |
Diluted () | 10.18 | 10.50 | 9.36 | 38.91 | 35.38 |
* | Balances for the quarter ended December 31,2019 represents balances as per the audited Balance Sheet for the year ended March 31, 2019 as required by SEBI (Listing and Other Disclosure Requirements) Regulations, 2015 |
** | EPS is not annualized for the quarter ended March 31, 2020, December 31, 2019 and March 31, 2019 |
*** | Includes unrealised losses on certain investments carried in the PF trust for the quarter and year ended March 31, 2020 and quarter ended December 31, 2019 |
#Excludes non-controlling interest
## Effective April 1, 2019, the Group adopted Ind AS 116 "Leases", applied to all lease contracts existing on April 1, 2019 using the modified retrospective method and has taken the cumulative adjustment to retained earnings, on the date of initial application.
1. Notes pertaining to the previous quarters / periods
a) | The subsidiaries Kallidus and Skava (together referred to as "Skava”) and Panaya, are collectively referred to as the “Disposal Group”. During the year ended March 31, 2019, the Company had recorded a reduction in the fair value by270 crore in respect of its subsidiary Panaya. Further, in accordance with Ind AS 105 -" Non current Assets held for Sale and Discontinued Operations", the Company concluded that the Disposal Group did not meet the criteria for "Held for Sale" classification and accordingly, on such reclassification, the Company recorded an adjustment in respect of excess of carrying amount over recoverable amount of451 crore in respect of Skava in the consolidated statement of Profit and Loss during the year ended March 31, 2019. |
b) | During the year ended March 31, 2019, on account of the conclusion of an Advance Pricing Agreement (“APA”) in an overseas jurisdiction, the Company has reversed income tax expense provision of94 crore which pertains to previous period. |
2. Notes pertaining to the current quarter
a) | The audited interim consolidated financial statements for the quarter and year ended March 31, 2020 have been taken on record by the Board of Directors at its meeting held on April 20, 2020.The statutory auditors, Deloitte Haskins & Sells LLP have expressed an unmodified audit opinion. The information presented above is extracted from the audited interim consolidated financial statements. These interim consolidated financial statements are prepared in accordance with the Indian Accounting Standards (Ind-AS) as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules thereafter. |
b) | Estimation of uncertainties relating to the global health pandemic from COVID-19 ( COVID-19): | |
The Group has considered the possible effects that may result from the pandemic relating to COVID-19 on the carrying amounts of receivables, unbilled revenues, goodwill and intangible assets. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the Group, as at the date of approval of these financial statements has used internal and external sources of information including credit reports and related information, economic forecasts and consensus estimates from market sources on the expected future performance of the Group. The Group has performed sensitivity analysis on the assumptions used and based on current estimates expects the carrying amount of these assets will be recovered. The impact of COVID-19 on the Group's financial statements may differ from that estimated as at the date of approval of these consolidated financial statements. |
c) Changes to the Board
i) | The Board, based on the recommendation of the Nomination and Remuneration Committee, appointed Uri Levine as an additional and Independent Director of the Company effective April 20, 2020 for a period of 3 years,subject to the approval of the shareholders. | ||
ii) | D N Prahlad, Independent Director, has resigned from the company to devote more time for his other business commitments with effect from April 20, 2020. The Board placed on record its appreciation for the services rendered by him during his tenure. | ||
d) Update on the whistleblower matter | |||
i) | The Audit Committee appointed an external legal counsel to conduct an independent investigation into the whistleblower allegations which have been previously disclosed to Stock Exchanges on October 22, 2019 and to the Securities and Exchange Commission (SEC) on Form 6-K on the same date. As previously disclosed on January 10, 2020, the outcome of the investigation has not resulted in restatement of previously issued financial statements. | ||
ii) | The Company cooperated with an investigation by the SEC regarding the same matters. In March 2020, the Company received notification from the SEC that the SEC has concluded its investigation and the Company does not anticipate any further action by the SEC on this matter. The Company is responding to all the inquires received from the Indian regulatory authorities and will continue to cooperate with the authorities for any additional requests for information. Additionally, in October 2019, a shareholder class action lawsuit was filed in the United States District Court for the Eastern District of New York against the Company and certain of its current and former officers for alleged violations of the US federal securities laws. The Company is presently unable to predict the scope, duration or the outcome of these matters. | ||
e) | Other income includes interest on income tax refund of8 crore and Nil for the quarter ended March 31, 2020 and March 31, 2019 respectively,259 crore and51 crore for the year ended March 31, 2020 and March 31, 2019 respectively, and242 crore for the quarter ended December 31, 2019. |
f) Acquisition
On March 13, 2020, Infosys Nova Holdings LLC (a wholly owned subsidiary of Infosys Limited) acquired 100% of voting interests in Outbox systems Inc. dba Simplus , a US based Salesforce advisor and consulting partner in cloud consulting, implementation and training services for a total consideration of up to $250 million (approximately1,892 crore), comprising cash consideration of $180 million (approximately1,362 crore), contingent consideration of up to $20 million (approximately151 crore), additional performance bonus and retention payouts of upto $50 million (approximately378 crore) payable to the employees of Simplus over the next three years, subject to their continuous employment with the group and meeting certain targets.
The excess of the purchase consideration paid over the fair value of assets acquired has been attributed to goodwill; Simplus brings to Infosys globally recognized Salesforce expertise, industry knowledge, solution assets, deep ecosystem relationships and a broad clientele, across a variety of industries.
g) Update on employee stock grants
i) | The Board, on April 20, 2020, based on the recommendations of the Nomination and Remuneration Committee, approved the performance-based grant of RSUs amounting to13 crore for the financial year 2021 under the 2015 Stock Incentive Compensation Plan (2015 plan) to Salil Parekh, CEO and MD. This was pursuant to the approval from the shareholders through postal ballot concluded on February 20, 2018 and as per the shareholders’ approval in the Annual General meeting held on June 22, 2019. These RSUs will vest in line with the current employment agreement.The RSUs will be granted w.e.f May 2, 2020 and the number of RSU's will be calculated based on the market price at the close of trading on May 2, 2020. |
ii) | The Board, on April 20, 2020, based on the recommendation of the Board of Directors of the Company, had approved the grant of annual performance-based stock incentives in the form of Restricted Stock Units (RSU's) to Salil Parekh, CEO & MD covering Company’s equity shares having a market value of10 crore as on the date of the grant under the Infosys Expanded Stock Ownership Program-2019 (2019 Plan), which shall vest 12 months from the date of the grant subject to the Company’s achievement of certain performance criteria as laid out in the 2019 Plan.This was pursuant to the approval from the shareholders in the Annual General meeting held on June 22, 2019.The RSUs will be granted w.e.f May 2, 2020 and the number of RSU's will be calculated based on the market price at the close of trading on May 2, 2020. |
iii) | The Board, on April 20, 2020, based on the recommendation of the Board of Directors of the Company, had approved the grant of annual performance-based stock incentives in the form of Restricted Stock Units (RSU's) to U.B. Pravin Rao, COO & Whole Time Director covering Company’s equity shares having a market value of4 crore as on the date of the grant under the 2019 Plan, which shall vest 12 months from the date of the grant subject to the Company’s achievement of certain performance criteria as laid out in the 2019 Plan. This was pursuant to the approval from the shareholders in the Annual General meeting held on June 22, 2019.The RSUs will be granted w.e.f May 2, 2020 and the number of RSU's will be calculated based on the market price at the close of trading on May 2, 2020. |
iv) | Based on the recommendations of the Nominations and Remuneration Committee, the Board, on April 20, 2020, under the 2015 plan, approved an annual performance based RSU having market value of0.75 crore to a KMP. These RSU's will vest in line with the employment agreement based on the achievement of certain performance targets. The RSUs will be granted w.e.f May 2, 2020 and the number of RSU's will be calculated based on the market price at the close of trading on May 2, 2020. |
v) | On recommendation of the Nomination and Remuneration Committee, the Board in its meeting held on April 20, 2020, approved the grant of 24,600 RSUs to an eligible employee under the 2015 Plan. The grant date for these RSUs is May 2, 2020. The RSUs would vest over a period of four years and the exercise price of RSUs will be equal to the par value of the share. |
3. Information on dividends for the quarter and year ended March 31, 2020
For financial year 2020, the Board recommended a final dividend of9.50/- (par value of5/- each) per equity share. This payment is subject to the approval of shareholders in the Annual General Meeting (AGM) of the Company.The dividend will be paid on the 5th working day from the date of declaration of the final dividend by the shareholders. In view of COVID-19 the Company is working on an AGM date.The book closure date for the purpose of the payment of final dividend and AGM date will be announced in due course.For the financial year ended 2019, the Company declared a special dividend of4/- per share and a final dividend of10.50/- per share.
An interim dividend of8/- per equity share was declared on October 11, 2019 and the same was paid on October 30, 2019.The interim dividend declared in the previous year was7/- per equity share.
(in)
Particulars | Quarter ended March 31, | Quarter ended December 31, | Quarter ended March 31, | Year ended March 31, | |
2020 | 2019 | 2019 | 2020 | 2019 | |
Dividend per share (par value5/- each) | |||||
Interim dividend | – | – | – | 8.00 | 7.00 |
Final dividend | 9.50 | – | 10.50 | 9.50 | 10.50 |
Special dividend | – | – | – | – | 4.00 |
4. Audited Consolidated Balance Sheet
(in crore)
Particulars | As at | |
March 31, 2020 | March 31, 2019 | |
ASSETS | ||
Non-current assets | ||
Property, plant and equipment | 12,435 | 11,479 |
Right of use assets | 4,168 | – |
Capital work-in-progress | 954 | 1,388 |
Goodwill | 5,286 | 3,540 |
Other Intangible assets | 1,900 | 691 |
Financial assets: | ||
Investments | 4,137 | 4,634 |
Loans | 21 | 19 |
Other financial assets | 737 | 312 |
Deferred tax assets (net) | 1,744 | 1,372 |
Income tax assets (net) | 5,384 | 6,320 |
Other non-current assets | 1,426 | 2,105 |
Total non-current assets | 38,192 | 31,860 |
Current assets | ||
Financial assets | ||
Investments | 4,655 | 6,627 |
Trade receivables | 18,487 | 14,827 |
Cash and cash equivalents | 18,649 | 19,568 |
Loans | 239 | 241 |
Other financial assets | 5,457 | 5,505 |
Income tax assets (net) | 7 | 423 |
Other current assets | 7,082 | 5,687 |
Total current assets | 54,576 | 52,878 |
Total Assets | 92,768 | 84,738 |
EQUITY AND LIABILITIES | ||
Equity | ||
Equity share capital | 2,122 | 2,170 |
Other equity | 63,328 | 62,778 |
Total equity attributable to equity holders of the Company | 65,450 | 64,948 |
Non-controlling interests | 394 | 58 |
Total equity | 65,844 | 65,006 |
Liabilities | ||
Non-current liabilities | ||
Financial liabilities | ||
Lease liabilities | 4,014 | – |
Other financial liabilities | 807 | 147 |
Deferred tax liabilities (net) | 968 | 672 |
Other non-current liabilities | 279 | 275 |
Total non-current liabilities | 6,068 | 1,094 |
Current liabilities | ||
Financial liabilities | ||
Trade payables | 2,852 | 1,655 |
Lease liabilities | 619 | – |
Other financial liabilities | 10,481 | 10,452 |
Other Current Liabilities | 4,842 | 4,388 |
Provisions | 572 | 576 |
Income tax liabilities (net) | 1,490 | 1,567 |
Total current liabilities | 20,856 | 18,638 |
Total equity and liabilities | 92,768 | 84,738 |
The disclosure is an extract of the audited Consolidated Balance Sheet as at March 31, 2020 and March 31, 2019 prepared in compliance with the Indian Accounting Standards (Ind-AS).
5. Audited Consolidated Statement of Cash Flows
(in crore)
Particulars | Year ended March 31, | |
2020 | 2019 | |
Cash flow from operating activities | ||
Profit for the period | 16,639 | 15,410 |
Adjustments to reconcile net profit to net cash provided by operating activities: | ||
Income tax expense | 5,368 | 5,631 |
Depreciation and amortization | 2,893 | 2,011 |
Interest and dividend income | (1,613) | (2,052) |
Finance cost | 170 | – |
Impairment loss recognized / (reversed) under expected credit loss model | 161 | 239 |
Exchange differences on translation of assets and liabilities | 184 | 66 |
Reduction in the fair value of Disposal Group held for sale | – | 270 |
Adjustment in respect of excess of carrying amount over recoverable amount on reclassification from "Held for Sale" | – | 451 |
Stock compensation expense | 249 | 202 |
Other adjustments | (131) | (102) |
Changes in assets and liabilities | ||
Trade receivables and unbilled revenue | (3,861) | (2,881) |
Loans, other financial assets and other assets | 76 | (700) |
Trade payables | (373) | 916 |
Other financial liabilities, other liabilities and provisions | 1,791 | 2,212 |
Cash generated from operations | 21,553 | 21,673 |
Income taxes paid | (4,550) | (6,832) |
Net cash generated by operating activities | 17,003 | 14,841 |
Cash flows from investing activities | ||
Expenditure on property, plant and equipment | (3,307) | (2,445) |
Loans to employees | – | 14 |
Deposits placed with corporation | (108) | (24) |
Interest and dividend received | 1,929 | 1,557 |
Payment towards acquisition of business, net of cash acquired | (1,860) | (550) |
Payment of contingent consideration pertaining to acquisition of business | (6) | (18) |
Advance payment towards acquisition of business | – | (206) |
Redemption of escrow pertaining to Buyback | 257 | (257) |
Other receipts | 46 | – |
Payments to acquire Investments | ||
Preference, equity securities and others | (41) | (21) |
Tax free bonds and government bonds | (19) | (17) |
Liquid mutual funds and fixed maturity plan securities | (34,839) | (78,355) |
Non convertible debentures | (993) | (160) |
Certificates of deposit | (1,114) | (2,393) |
Government securities | (1,561) | (838) |
Commercial paper | – | (491) |
Others | (29) | (19) |
Proceeds on sale of financial assets | ||
Tax free bonds and government bonds | 87 | 1 |
Non-convertible debentures | 1,888 | 738 |
Government securities | 1,674 | 123 |
Commercial paper | 500 | 300 |
Certificates of deposit | 2,545 | 5,540 |
Liquid mutual funds and fixed maturity plan securities | 34,685 | 76,821 |
Preference and equity securities | 27 | 115 |
Others | – | 10 |
Net cash (used in) / from investing activities | (239) | (575) |
Cash flows from financing activities: | ||
Payment of lease liabilities | (571) | – |
Payment of dividends (including dividend distribution tax) | (9,515) | (13,705) |
Payment of dividend to non-controlling interest of subsidiary | (33) | – |
Shares issued on exercise of employee stock options | 6 | 6 |
Buyback of equity shares including transaction cost | (7,478) | (813) |
Net cash used in financing activities | (17,591) | (14,512) |
Net increase / (decrease) in cash and cash equivalents | (827) | (246) |
Cash and cash equivalents at the beginning of the period | 19,568 | 19,871 |
Effect of exchange rate changes on cash and cash equivalents | (92) | (57) |
Cash and cash equivalents at the end of the period | 18,649 | 19,568 |
Supplementary information: | ||
Restricted cash balance | 396 | 358 |
The disclosure is an extract of the audited Consolidated Statement of Cash flows for the year ended March 31, 2020 and March 31, 2019 prepared in compliance with Indian Accounting Standard (Ind AS) 34 Interim Financial Reporting.
6. Segment reporting (Consolidated - Audited)
(in crore)
Particulars | Quarter ended March 31, | Quarter ended December 31, | Quarter ended March 31, | Year ended March 31, | |
2020 | 2019 | 2019 | 2020 | 2019 | |
Revenue by business segment | |||||
Financial Services(1) | 7,282 | 7,274 | 6,805 | 28,625 | 26,477 |
Retail (2) | 3,622 | 3,530 | 3,416 | 14,035 | 13,556 |
Communication (3) | 3,017 | 3,002 | 2,921 | 11,984 | 10,426 |
Energy, Utilities, Resources and Services | 2,992 | 2,948 | 2,747 | 11,736 | 10,390 |
Manufacturing | 2,363 | 2,378 | 2,161 | 9,131 | 8,152 |
Hi-Tech | 1,831 | 1,749 | 1,650 | 6,972 | 6,177 |
Life Sciences(4) | 1,484 | 1,559 | 1,287 | 5,837 | 5,203 |
All other segments(5) | 676 | 652 | 552 | 2,471 | 2,294 |
Total | 23,267 | 23,092 | 21,539 | 90,791 | 82,675 |
Less: Inter-segment revenue | – | – | – | – | – |
Net revenue from operations | 23,267 | 23,092 | 21,539 | 90,791 | 82,675 |
Segment profit before tax, depreciation and non-controlling interests: | |||||
Financial Services(1) | 1,863 | 1,863 | 1,721 | 7,306 | 6,878 |
Retail (2) | 1,058 | 1,084 | 1,017 | 4,212 | 4,034 |
Communication (3) | 560 | 618 | 578 | 2,424 | 2,517 |
Energy, Utilities , Resources and Services | 856 | 818 | 634 | 3,216 | 2,542 |
Manufacturing | 557 | 581 | 471 | 2,059 | 1,853 |
Hi-Tech | 431 | 411 | 376 | 1,604 | 1,548 |
Life Sciences(4) | 344 | 417 | 323 | 1,431 | 1,419 |
All other segments(5) | 37 | 15 | 37 | 64 | 116 |
Total | 5,706 | 5,807 | 5,157 | 22,316 | 20,907 |
Less: Other unallocable expenditure | 779 | 743 | 539 | 2,942 | 2,027 |
Add: Unallocable other income | 614 | 827 | 665 | 2,803 | 2,882 |
Less: Finance cost | 45 | 42 | – | 170 | – |
Less: Reduction in the fair value of Disposal Group Held for Sale | – | – | – | – | 270 |
Less: Adjustment in respect of excess of carrying amount over recoverable amount on reclassification from "Held For Sale" | – | – | – | – | 451 |
Profit before tax and non-controlling interests | 5,496 | 5,849 | 5,283 | 22,007 | 21,041 |
(1) | Financial Services include enterprises in Financial Services and Insurance |
(2) | Retail includes enterprises in Retail, Consumer Packaged Goods and Logistics |
(3) | Communication includes enterprises in Communication, Telecom OEM and Media |
(4) | Life Sciences includes enterprises in Life sciences and Health care |
(5) | All other segments include operating segments of businesses in India, Japan, China, Infosys Public Services & other enterprises in Public Services |
Notes on segment information
Business segments
Based on the "management approach" as defined in Ind-AS 108 - Operating Segments, the Chief Operating Decision Maker evaluates the Group's performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented along these business segments. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments.
Segmental capital employed
Assets and liabilities used in the Group's business are not identified to any of the reportable segments, as these are used interchangeably between segments. The Management believes that it is not practicable to provide segment disclosures relating to total assets and liabilities since a meaningful segregation of the available data is onerous.
7. Audited financial results of Infosys Limited (Standalone Information)
(in crore)
Particulars | Quarter ended March 31, | Quarter ended December 31, | Quarter ended March 31, | Year ended March 31, | |
2020 | 2019 | 2019 | 2020 | 2019 | |
Revenue from operations | 20,187 | 20,064 | 18,935 | 79,047 | 73,107 |
Profit before tax (Refer notes below) | 5,128 | 5,405 | 4,953 | 20,477 | 19,927 |
Profit for the period (Refer notes below) | 4,069 | 4,076 | 3,820 | 15,543 | 14,702 |
The audited results of Infosys Limited for the above mentioned periods are available on our website, www.infosys.com and on the Stock Exchange website www.nseindia.com and www.bseindia.com. The information above has been extracted from the audited interim standalone condensed financial statements as stated.
Note:
1) | During the year ended March 31, 2019, on account of the conclusion of an Advance Pricing Agreement (“APA”) in an overseas jurisdiction, the Company has reversed income tax expense provision of94 crore which pertains to previous period. |
2) | During the year ended March 31, 2019, the Company had recorded a reduction in the fair value of its investments in Panaya, by 265 crore in the interim condensed standalone Statement of Profit and Loss of Infosys. Further, in accordance with Ind AS 105 -" Non current Assets held for Sale and Discontinued Operations", the Company reclassified the investment in subsidiaries Panaya and Skava from“Held for Sale” and recorded an adjustment in respect of excess of carrying amount over recoverable amount amounting to 469 crore in respect of Skava in the interim condensed standalone Statement of Profit and Loss for the year ended March 31, 2019. |
3) | Other income includes interest on income tax refund of8 crore and Nil for the quarter ended March 31, 2020 and March 31, 2019 respectively,250 crore and50 crore for the year ended March 31, 2020 and March 31, 2019 respectively, and242 crore for the quarter ended December 31, 2019. |
By order of the Board for Infosys Limited | |
Bengaluru, India April 20, 2020 | U.B. Pravin Rao Chief Operating Officer and Whole-time Director |
The Board has also taken on record the condensed consolidated results of Infosys Limited and its subsidiaries for the quarter and year ended March 31, 2020, prepared as per International Financial Reporting Standards (IFRS) and reported in US dollars. A summary of the financial statements is as follows:
(in US$ million, except per equity share data)
Particulars | Quarter ended March 31, | Quarter ended December 31, | Quarter ended March 31, | Year ended March 31, | |
2020 | 2019 | 2019 | 2020 | 2019 | |
Unaudited | Audited | Unaudited | Audited | Audited | |
Revenues | 3,197 | 3,243 | 3,060 | 12,780 | 11,799 |
Cost of sales | 2,133 | 2,159 | 2,028 | 8,552 | 7,687 |
Gross profit | 1,064 | 1,084 | 1,032 | 4,228 | 4,112 |
Operating expenses | 390 | 373 | 374 | 1,504 | 1,416 |
Operating profit | 674 | 711 | 658 | 2,724 | 2,696 |
Other income, net (Refer Note 3) | 84 | 116 | 94 | 395 | 411 |
Finance cost | (6) | (6) | – | (24) | – |
Reduction in the fair value of Disposal Group held for sale (Refer Note 1) | – | – | – | – | (39) |
Adjustment in respect of excess of carrying amount over recoverable amount on reclassification from "Held for Sale" (Refer Note 1) | – | – | – | – | (65) |
Profit before income taxes | 752 | 821 | 752 | 3,095 | 3,003 |
Income tax expense (Refer Note 2) | 160 | 194 | 171 | 757 | 803 |
Net profit | 592 | 627 | 581 | 2,338 | 2,200 |
Earnings per equity share * | |||||
Basic | 0.14 | 0.15 | 0.13 | 0.55 | 0.51 |
Diluted | 0.14 | 0.15 | 0.13 | 0.55 | 0.51 |
Total assets | 12,260 | 12,110 | 12,252 | 12,260 | 12,252 |
Cash and cash equivalents and current investments | 3,080 | 2,853 | 3,787 | 3,080 | 3,787 |
* EPS is not annualized for the quarter ended March 31, 2020, December 31, 2019 and March 31, 2019.
Note -
1) | The subsidiaries Kallidus and Skava (together referred to as "Skava”) and Panaya, are collectively referred to as the “Disposal Group”. During the year ended March 31, 2019, the Company had recorded a reduction in the fair value by $39 million in respect of its subsidiary Panaya. Further, in accordance with Ind AS 105 -" Non current Assets held for Sale and Discontinued Operations", the Company concluded that the Disposal Group did not meet the criteria for "Held for Sale" classification and accordingly, on such reclassification, the Company recorded an adjustment in respect of excess of carrying amount over recoverable amount of $65 million in respect of Skava in the consolidated statement of Profit and Loss during the year ended March 31, 2019. |
2) | During the year ended March 31, 2019, on account of the conclusion of an Advance Pricing Agreement (“APA”) in an overseas jurisdiction, the Company has reversed income tax expense provision of $14 million which pertains to previous period. |
3) | Other income includes interest on income tax refund of $2 million and Nil for the quarter ended March 31, 2020 and March 31, 2019 respectively, $37 million and $7 million for the year ended March 31, 2020 and March 31, 2019 respectively and $34 million for the quarter ended December 31, 2019. |
Certain statements in this release concerning our future growth prospects, financial expectations and plans for navigating the COVID-19 impact on our employees, clients and stakeholders are forward-looking statements intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995, 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 COVID-19 and the effects of government and other measures seeking to contain its spread, risks related to an economic downturn or recession in India, the United States and other countries around the world, changes in political, business, and economic conditions, 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, unauthorized use of our intellectual property and general economic conditions affecting our industry and the outcome of pending litigation and government investigation. 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, 2019. These filings are available at 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 unless it is required by law.