6-K
Infosys Ltd (INFY)
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the SecuritiesExchange Act of 1934
For the month of October 2022
Commission File Number 001-35754
Infosys Limited
(Exact name of Registrant as specified in its charter)
Not Applicable.
(Translation of Registrant's name into English)
Electronics City, Hosur Road, Bengaluru - 560 100,Karnataka, India. +91-80-2852-0261
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F:
Form 20-F þ Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o
TABLE OF CONTENTS
| DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
|---|
| INDEX TO EXHIBITS |
| EXHIBIT 99.1<br><br> <br>EXHIBIT 99.2<br><br> <br>EXHIBIT 99.3 |
DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIALCONDITION
Infosys Limited (“we” or “the Company”) hereby furnishes the United States Securities and Exchange Commission with copies of the following information concerning our public disclosures regarding our results of operations and financial condition for the quarter ended September 30, 2022.
The following information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
On October 13, 2022, we announced our results of operations for the quarter ended September 30, 2022. We issued press releases announcing our results under International Financial Reporting Standards ("IFRS"), copies of which are attached to this Form 6-K as Exhibit 99.2.
We have placed the form of release to stock exchanges concerning our results of operations for the quarter ended September 30, 2022 under Ind-AS. A copy of the release to stock exchanges is attached to this Form 6-K as Exhibit 99.3.
The
Board of Directors of the Company amongst other matters, declared an
interim dividend of 
16.50/- per equity share and fixed October 28, 2022 as record date for interim dividend and November 10, 2022
as payout date.
The
Board of Directors of the Company amongst other matters, also approved a proposal for the Company to buyback its own fully paid-up
equity shares of face value of 5/- each (“Equity Shares”) from the equity
shareholders of the Company (other than the promoters, the promoters group and persons in control of the Company), being
14.84% and 13.31% of its total paid-up capital and free reserves as on September 30, 2022 (on a standalone and consolidated basis,
respectively) for an amount, payable in cash, aggregating up to 9,300 crore (Rupees Nine Thousand
Three Hundred crore only) (“Maximum Buyback
Size”) which is less than 15% of the aggregate of the
total paid-up share capital and free reserves of the Company, based on the latest audited financial statements of the Company as at
September 30, 2022 (on a standalone and consolidated basis), for a price not exceeding 1,850/-
(Rupees One Thousand Eight Hundred and Fifty only) per Equity Share ("Maximum
Buyback Price"), through the open market route through
the Indian stock exchanges, in accordance with the provisions of the Securities and Exchange Board of India (Buy-Back of Securities)
Regulations, 2018 (as amended) ("Buyback
Regulations”) and the Companies Act, 2013 and the
rules made thereunder (“Buyback”).
A copy of the outcome of the board meeting is attached to this Form 6-K as Exhibit 99.1.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Infosys Limited | |
|---|---|
| Date: October 13, 2022 | Inderpreet Sawhney<br><br> <br>General Counsel and Chief Compliance Officer |
INDEX TO EXHIBITS
| Exhibit No. | Description of Document |
|---|---|
| 99.1 | Outcome of the Board Meeting |
| 99.2 | IFRS USD press release |
| 99.3 | Form of Release to Stock Exchanges |
Exhibit 99.1
Outcome of the Board meeting
Exhibit 99.2
IFRS USD Press Release
Broad based growth in H1 of 20.1% in constantcurrency; Q2 margins expand 150 bps sequentially
Highest large deal TCV of $2.7 bn in last7 quarters; quarterly attrition declined for 3rd quarter in a row
Share buyback of 9,300 crores ($1.13bn) and interim dividend of 6,940 crores ($0.85 bn) announced
**Bengaluru, India – October 13, 2022:**Infosys (NSE, BSE, NYSE: INFY), a global leader in next-generation digital services and consulting, reported strong Q2 performance with year-on-year growth at 18.8% and sequential growth at 4.0% in constant currency. Year on year growth was in double digits across all business segments in constant currency terms. Digital comprised 61.8% of overall revenues and grew at 31.2% in constant currency. Operating margin for the quarter increased sequentially by 150 bps to 21.5%. Large deal TCV for the quarter was robust at $2.7 bn, highest in last 7 quarters. FY 23 revenue guidance is revised to 15%-16%; operating margin guidance is also revised to 21%-22%.
Our strong large deal wins and steady all-round growth in Q2 reflect the deep relevance and differentiation of our digital and cloud solutions for clients as they navigate their business transformation”, said Salil Parekh, CEO and MD. “While concerns around the economic outlook persist, our demand pipeline is strong as clients remain confident in our ability to deliver the value they seek, both on the growth and efficiency of their businesses. This is reflected in our revised revenue guidance of 15%-16% for FY 23”, he added.
| 1. | Key highlights: |
|---|---|
| For the quarter ended September 30, 2022<br><br> <br>· <br> Revenues in CC terms grew by 18.8% YoY and 4.0% QoQ<br><br> <br>· <br> Reported revenues at $4,555 million, growth of 13.9% YoY<br><br> <br>· <br> Digital revenues at 61.8% of total revenues, YoY CC growth of 31.2%<br><br> <br>· <br> Operating margin at 21.5%, decline of 2.1% YoY and increase of 1.5% QoQ<br><br> <br>· <br> Basic EPS at $0.18, growth of 2.5% YoY<br><br> <br>· <br> FCF at $589 million, decline of 17.3% YoY; FCF conversion at 78.6% of net profit | For six months ended September 30, 2022<br><br> <br>· <br> Revenues in CC terms grew by 20.1% YoY<br><br> <br>· <br> Reported revenues at $8,999 million, growth of 15.7% YoY<br><br> <br>· <br> Digital revenues at 61.4% of total revenues, YoY CC growth of 34.5%<br><br> <br>· <br> Operating margin at 20.7%, decline of 2.9% YoY<br><br> <br>· <br> Basic EPS at $0.34, growth of 0.8% YoY<br><br> <br>· <br> FCF at $1,245 million, decline of 21.0% YoY; FCF conversion at 86.6% of net profit |
| --- | --- |
“Operating margins in Q2 expanded sequentially
by 150 bps, helped by our operational rigor. While supply side challenges are gradually abating as reflected in the reducing attrition
rates, they continue to exert pressure on our cost structure.”, said Nilanjan Roy, Chief Financial Officer. “In line
with the capital allocation policy, the Board has announced an interim dividend of 16.50 per share, an increase of 10% over FY
22 interim dividend and an open market share buyback of 9,300 crores”, he added.
| 2. | Capital allocation |
|---|
The Board in its meeting held today approved the following:
| • | Buyback of Equity Shares, from the open market route through the Indian stock exchanges,<br>amounting to 9,300 crore (Maximum Buyback Size, excluding buyback tax) (app. $1.13 bn*) at a price not exceeding 1,850<br>per share (Maximum Buyback Price), subject to shareholders' approval. |
|---|---|
| • | Interim dividend of 16.50 per share (app. $0.20 per ADS*) vs. FY 22 interim dividend<br>of 15. The total amount of interim dividend will be app. 6,940 crores (app. $0.85 bn*). |
| --- | --- |
*USD-INR rate of 82.00
| 3. | Client wins & Testimonials |
|---|---|
| • | Currys plc entered into a strategic collaboration with Infosys for technology and business<br>process services, to help accelerate profitable growth of their business across key UK and European markets. "As part of our ongoing<br>transformation, Infosys will help us design and deliver a next-generation Group Business Services capability. This collaboration will<br>give us access to world-class digital operations across UK, Europe and India, benefitting our colleagues and customers with best-in-class<br>technology, systems, and processes; and new sources of competitive advantage for our core business,” said Bruce Marsh, GroupCFO, Currys plc. |
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| • | Infosys Cyber Next platform and Palo Alto Networks strengthened Bpost’s security posture<br>as part of the cloud transformation journey. Rony Monnaie, CISO, Bpost, said, “While we embarked on our cloud transformation<br>journey, Infosys drove several well-considered cybersecurity initiatives to protect our environment and improve Bpost’s overall<br>security posture. Today, both our employees and customers benefit from the secure foundation we now have to deliver and track both mail<br>and parcels. |
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| • | Spirit AeroSystems entered into a five-year collaboration with Infosys to co-innovate Aerostructure<br>and Systems Engineering Services by leveraging Infosys’ next-gen technologies. “At Spirit AeroSystems, we believe our ability<br>to continuously advance our offering at design and engineering levels is one of our competitive differentiators. Our longstanding collaboration<br>with Infosys means we are well-positioned to co-innovate on critical stages of product development, ensuring we continue to pursue the<br>highest standards in quality and airworthiness. This strategic agreement further reinforces our strengths and will leverage mutual synergies<br>to accelerate the development of world-class, sustainable aerostructures and services across our commercial and aftermarket business<br>segments,” said, Dr. Sean Black, Senior Vice President and Chief Engineer, Engineering and Technology, Spirit AeroSystems. |
| --- | --- |
| • | Infosys collaborated with Telenor Norway to accelerate their IT modernization and establish<br>Telenor as a product-based organization through a co-managed model. Commenting on this collaboration, Birgitte Engebretsen, CEO, TelenorNorway, said, “In current times, it is imperative for an organization like Telenor Norway to stay ahead of the curve and ensure<br>that our customers are provided with superior service. To do this, we have to be future-ready. Staying true to our strategy of ‘Beyond<br>Connectivity’, combined with our powerful collaboration with Infosys, we are excited to embark on this modernization journey that<br>will empower us to serve our customers better.” |
| --- | --- |
| • | “Infosys has been our technology partner for more than 5 years. Infosys has helped<br>us transform not only our technology landscape, but also how we engage with students and colleagues helping us to develop new digital<br>solutions and build new data platforms to gain real value and insights to better inform our decision-making,” said Judi Turnbull,Director for Information Technology at Open University. |
| --- | --- |
| 4. | Recognitions |
| --- | --- |
| • | Infosys won the ‘Most Outstanding Company in India – IT Services Sector’<br>in Asia’s Outstanding Companies Poll 2022. Asiamoney has designed this poll to acknowledge the listed companies that have excelled<br>in areas such as financial performance, management team excellence, investor relations activities, and CSR initiatives |
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| • | Recognized as India’s Best Workplaces™ for Women 2022 by Great Place to Work® |
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| • | Recognized as UK’s Best Workplaces™ in Tech 2022 by Great Place to Work® |
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| • | Recognized among Mexico’s Best HR leaders of 2022 by Great Place to Work® |
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| • | Positioned as a leader in Power & Utilities Industry - Services and Solutions 2022 by<br>ISG Provider lens study in the US |
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| • | Ranked as a leader in HFS Top 10: Sustainability Services, 2022 |
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| • | Positioned as a leader in HFS Top 10: Capital Markets Services, 2022 |
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| • | Positioned as a leader in End-to-End Cloud Infrastructure Management Services 2022 by NelsonHall |
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| • | Ranked as a leader in IDC MarketScape: Asia/Pacific SAP Implementation Services Vendor Assessment,<br>2022 |
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| • | Recognized as a leader in EMEA Service Providers for Energy Transition and New Business Models<br>for Oil and Gas Companies 2022 Vendor Assessment by IDC |
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| • | Positioned as a leader by NelsonHall in Supply Chain Transformation 2022 |
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| • | Ranked as a leader by NelsonHall in Mortgage & Loan Services 2022 |
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| • | Ranked as a leader in Data and Analytics (D&A) Services PEAK Matrix® Assessment 2022<br>by Everest |
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| • | Recognized as a leader in System Integration (SI) Capabilities on Amazon Web Services (AWS)<br>PEAK Matrix® Assessment 2022 by Everest |
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| • | Recognized as a leader in ServiceNow Services PEAK Matrix® Assessment 2022 by Everest |
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| • | Positioned as a leader in System Integration (SI) Capabilities on Microsoft Azure PEAK Matrix®<br>Assessment 2022 by Everest |
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| • | Ranked as a leader in Avasant’s Digital Master’s 2022 RadarViewTM |
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| • | Positioned as a leader in Avasant’s Freight and Logistics Digital Services 2022-23<br>RadarViewTM |
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| • | Recognized as a leader in Avasant’s Life Sciences Digital services 2022-23 RadarViewTM |
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| • | Ranked as a leader in Constellation ShortList™ Blockchain Technology Services |
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| • | Positioned as a leader in Constellation ShortList™ Campaign to Commerce: Best-of-Breed<br>Commerce Platforms |
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| • | Ranked as a leader in Constellation ShortList™ Digital Transformation Services (DTX):<br>Global |
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| • | Positioned as a leader in Constellation ShortList™ Public Cloud Transformation Services:<br>Global |
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| • | Ranked as a leader in Constellation ShortList™ AI-Driven Cognitive Applications |
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| • | Recognized as a leader in Constellation ShortList™ Customer Experience (CX) Operations<br>Services: Global |
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| • | Recognized as a leader in Constellation ShortList™ Metaverse Design and Services |
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| • | Infosys BPM recognized as LEADER in Everest Group Financial Crime & Compliance Operations<br>– Services PEAK Matrix® Assessment 2022 |
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| • | Infosys BPM ranked as LEADER in Nelson Hall NEAT: Supply Chain Transformation 2022 |
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About Infosys
| Infosys is a global leader in next-generation<br> digital services and consulting. Over 300,000 of our people work to amplify human potential and create the next opportunity for people,<br> businesses and communities. With over four decades of experience in managing the systems and workings of global enterprises, we expertly<br> steer clients, in more than 50 countries, as they navigate their digital transformation powered by the cloud. We enable them with an AI-powered<br> core, empower the business with agile digital at scale and drive continuous improvement with always-on learning through the transfer of<br> digital skills, expertise, and ideas from our innovation ecosystem. We are deeply committed to being a well-governed, environmentally<br> sustainable organization where diverse talent thrives in an inclusive workplace.<br><br> <br>Visit www.infosys.com to see how Infosys (NSE,<br> BSE, NYSE: INFY) can help your enterprise navigate your next. |
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Safe Harbor
This Release contains ‘forward-looking statements’ within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance and that are based on our current expectations, assumptions, estimates and projections about the Company, our industry, economic conditions in the markets in which we operate, and certain other matters. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as ‘may’, ‘anticipate’, ‘believe’, ‘estimate’, ‘expect’, ‘continue’, ‘intend’, ‘will’, ‘project’, ‘seek’, ‘could’, ‘would’, ‘should’ and similar expressions. Those statements include, among other things, statements regarding our business strategy, our expectations concerning our market position, future operations, growth, margins, profitability, attrition, liquidity, and capital resources, our ESG vision, our capital allocation policy, the effects of COVID-19 on global economic conditions and our business and operations, wage increases, change in the regulations including immigration regulation and policies in the United States, and corporate actions including timely completion of the proposed buy-back of our equity shares. These statements are subject to known and unknown risks, uncertainties and other factors which may cause actual results or outcomes to differ materially from those implied by the forward-looking statements. 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, 2022. 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.
Contact
| Investor Relations | Sandeep Mahindroo <br>+91 80 3980 1018 <br>[email protected] | |
|---|---|---|
| Media Relations | Rishi Basu<br> +91 80 4156 3998 <br>[email protected] | Harini Babu<br> +1 469 996 3516 <br>[email protected] |
Infosys Limited and subsidiaries
Extracted from the Condensed ConsolidatedBalance Sheet under IFRS as at:
(Dollars in millions)
| September 30, 2022 | March 31, 2022 | |
|---|---|---|
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 1,828 | 2,305 |
| Current investments | 1,448 | 880 |
| Trade receivables | 3,122 | 2,995 |
| Unbilled revenue | 1,635 | 1,526 |
| Other Current assets | 1,178 | 1,159 |
| Total current assets | 9,211 | 8,865 |
| Non-current assets | ||
| Property, plant and equipment and Right-of-use assets | 2,339 | 2,429 |
| Goodwill and other Intangible assets | 1,072 | 1,042 |
| Non-current investments | 1,557 | 1,801 |
| Unbilled revenue | 174 | 124 |
| Other non-current assets | 1,287 | 1,294 |
| Total non-current assets | 6,429 | 6,690 |
| Total assets | 15,640 | 15,555 |
| LIABILITIES AND EQUITY | ||
| Current liabilities | ||
| Trade payables | 512 | 545 |
| Unearned revenue | 855 | 834 |
| Employee benefit obligations | 276 | 288 |
| Other current liabilities and provisions | 2,946 | 2,766 |
| Total current liabilities | 4,589 | 4,433 |
| Non-current liabilities | ||
| Lease liabilities | 685 | 607 |
| Other non-current liabilities | 489 | 521 |
| Total non-current liabilities | 1,174 | 1,128 |
| Total liabilities | 5,763 | 5,561 |
| Total equity attributable to equity holders of the company | 9,828 | 9,941 |
| Non-controlling interests | 49 | 53 |
| Total equity | 9,877 | 9,994 |
| Total liabilities and equity | 15,640 | 15,555 |
Extracted from the Condensed Consolidated statementof Comprehensive Income under IFRS for:
(Dollars in millions except per equity sharedata)
| 3 months ended September 30, 2022 | 3 months ended September 30, 2021 | 6 months ended September 30, 2022 | 6 months ended September 30, 2021 | |
|---|---|---|---|---|
| Revenues | 4,555 | 3,998 | 8,999 | 7,780 |
| Cost of sales | 3,170 | 2,675 | 6,315 | 5,184 |
| Gross profit | 1,385 | 1,323 | 2,684 | 2,596 |
| Operating expenses: | ||||
| Selling and marketing expenses | 185 | 167 | 378 | 336 |
| Administrative expenses | 221 | 215 | 439 | 423 |
| Total operating expenses | 406 | 382 | 817 | 759 |
| Operating profit | 979 | 941 | 1,867 | 1,837 |
| Other income, net ^(3)^ | 65 | 65 | 145 | 142 |
| Profit before income taxes | 1,044 | 1,006 | 2,012 | 1,979 |
| Income tax expense | 295 | 272 | 574 | 540 |
| Net profit (before minority interest) | 749 | 734 | 1,438 | 1,439 |
| Net profit (after minority interest) | 748 | 733 | 1,437 | 1,437 |
| Basic EPS ($) | 0.18 | 0.17 | 0.34 | 0.34 |
| Diluted EPS ($) | 0.18 | 0.17 | 0.34 | 0.34 |
NOTES:
| 1. | The above information is extracted from the audited condensed consolidated Balance sheet<br>and Statement of Comprehensive Income for the quarter and six months ended September 30, 2022, which have been taken on record at the<br>Board meeting held on October 13, 2022. |
|---|---|
| 2. | A Fact Sheet providing the operating metrics of the Company can be downloaded from www.infosys.com. |
| --- | --- |
| 3. | Other Income includes Finance Cost. |
| --- | --- |
| 4. | As the quarter and six months ended figures are taken from the source and rounded to the<br>nearest digits, the quarter figures in this statement added up to the figures reported for the previous quarter might not always add<br>up to the six months ended figures reported in this statement. |
| --- | --- |
Exhibit 99.3
Form of Release to Stock Exchanges
| Infosys Limited<br><br> <br>Regd. office: Electronics City, Hosur Road, Bengaluru<br> – 560 100, India | CIN : L85110KA1981PLC013115<br><br> <br>Website: www.infosys.com<br><br> <br>email: [email protected]<br><br> <br>T: 91 80 2852 0261, F: 91 80 2852 0362 |
|---|
Statement of Consolidated Audited Resultsof Infosys Limited and its subsidiaries for the quarter and half-year ended September 30, 2022 prepared in compliance with the IndianAccounting Standards (Ind-AS)
(in crore, except per equity share data)
| Particulars | Quarter ended September 30, | Quarter ended June 30, | Quarter ended September 30, | Half-year ended September 30, | Year ended March 31, | |
|---|---|---|---|---|---|---|
| 2022 | 2022 | 2021 | 2022 | 2021 | 2022 | |
| Audited | Audited | Audited | Audited | Audited | Audited | |
| Revenue from operations | 36,538 | 34,470 | 29,602 | 71,008 | 57,498 | 121,641 |
| Other income, net | 584 | 676 | 524 | 1,260 | 1,146 | 2,295 |
| Total Income | 37,122 | 35,146 | 30,126 | 72,268 | 58,644 | 123,936 |
| Expenses | ||||||
| Employee benefit expenses | 19,438 | 18,337 | 15,743 | 37,776 | 30,973 | 63,986 |
| Cost of technical sub-contractors | 3,694 | 3,909 | 3,054 | 7,603 | 5,508 | 12,606 |
| Travel expenses | 363 | 376 | 163 | 739 | 296 | 827 |
| Cost of software packages and others | 2,512 | 2,420 | 1,393 | 4,932 | 2,682 | 6,811 |
| Communication expenses | 189 | 170 | 146 | 359 | 294 | 611 |
| Consultancy and professional charges | 439 | 456 | 449 | 895 | 844 | 1,885 |
| Depreciation and amortisation expenses | 1,029 | 950 | 859 | 1,979 | 1,687 | 3,476 |
| Finance cost | 66 | 56 | 48 | 121 | 98 | 200 |
| Other expenses | 1,001 | 938 | 823 | 1,939 | 1,639 | 3,424 |
| Total expenses | 28,731 | 27,612 | 22,678 | 56,343 | 44,021 | 93,826 |
| Profit before tax | 8,391 | 7,534 | 7,448 | 15,925 | 14,623 | 30,110 |
| Tax expense: | ||||||
| Current tax | 2,482 | 2,350 | 1,987 | 4,832 | 3,923 | 7,811 |
| Deferred tax | (117) | (178) | 33 | (295) | 71 | 153 |
| Profit for the period | 6,026 | 5,362 | 5,428 | 11,388 | 10,629 | 22,146 |
| Other comprehensive income | ||||||
| Items that will not be reclassified subsequently to profit or loss | ||||||
| Remeasurement of the net defined benefit liability/asset, net | 40 | (86) | 14 | (46) | (19) | (85) |
| Equity instruments through other comprehensive income, net | 4 | 3 | 40 | 7 | 41 | 96 |
| Items that will be reclassified subsequently to profit or loss | ||||||
| Fair value changes on derivatives designated as cash flow hedges, net | (12) | 26 | 6 | 14 | 11 | (8) |
| Exchange differences on translation of foreign operations | (14) | 53 | (166) | 39 | 124 | 228 |
| Fair value changes on investments, net | 26 | (372) | 55 | (346) | 93 | (49) |
| Total other comprehensive income/(loss), net of tax | 44 | (376) | (51) | (332) | 250 | 182 |
| Total comprehensive income for the period | 6,070 | 4,986 | 5,377 | 11,056 | 10,879 | 22,328 |
| Profit attributable to: | ||||||
| Owners of the company | 6,021 | 5,360 | 5,421 | 11,381 | 10,616 | 22,110 |
| Non-controlling interest | 5 | 2 | 7 | 7 | 13 | 36 |
| 6,026 | 5,362 | 5,428 | 11,388 | 10,629 | 22,146 | |
| Total comprehensive income attributable to: | ||||||
| Owners of the company | 6,068 | 4,986 | 5,375 | 11,054 | 10,866 | 22,293 |
| Non-controlling interest | 2 | – | 2 | 2 | 13 | 35 |
| 6,070 | 4,986 | 5,377 | 11,056 | 10,879 | 22,328 | |
| Paid up share capital (par value 5/- each, fully paid) |
2,099 | 2,098 | 2,097 | 2,099 | 2,097 | 2,098 |
| Other equity ^*#^ | 73,252 | 73,252 | 74,227 | 73,252 | 74,227 | 73,252 |
| Earnings per equity share (par value 5/- each)** |
||||||
| Basic () |
14.35 | 12.78 | 12.88 | 27.13 | 25.11 | 52.52 |
| Diluted () |
14.34 | 12.76 | 12.85 | 27.10 | 25.06 | 52.41 |
| * | Balances for the quarter and half year ended September 30, 2022 and quarter ended June 30,<br>2022 represents balances as per the audited Balance Sheet for the year ended March 31, 2022 and balances for the quarter and half year<br>ended September 30, 2021 represents balances as per the audited Balance Sheet for the year ended March 31, 2021 as required by SEBI (Listing<br>and Other Disclosure Requirements) Regulations, 2015 | |||||
| --- | --- | |||||
| ** | EPS is not annualized for the quarter and half year ended September 30, 2022, quarter ended<br>June 30, 2022 and quarter and half year ended September 30, 2021. | |||||
| --- | --- | |||||
| # | Excludes non-controlling interest | |||||
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1. Notes pertaining to the current quarter
a) The audited interim condensed consolidated financial statements for the quarter and half-year ended September 30, 2022 have been taken on record by the Board of Directors at its meeting held on October 13, 2022. The statutory auditors, Deloitte Haskins & Sells LLP have expressed an unmodified audit opinion. The information presented above is extracted from the audited interim condensed consolidated financial statements. These interim condensed 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) Acquisition of BASE life science A/S
On September 01, 2022, Infosys Consulting Pte. Ltd (a wholly-owned subsidiary of Infosys Limited) acquired 100% voting interests in BASE life science A/S, a consulting and technology firm in the life sciences industry in Europe for a total consideration of EUR 110 million (approximately 906 crore) comprising cash, management incentive, bonuses and retention.
c) Buyback of equity shares
In line with the capital allocation policy, the
Board, at its meeting held on October 13, 2022, approved the buyback of equity shares, from the open market route through the Indian stock
exchanges, amounting to 9,300 crore (Maximum Buyback Size, excluding buyback tax) at a price not exceeding 1,850 per share
(Maximum Buyback Price), subject to shareholders' approval by way of Postal Ballot.
d) Management change
Ravi Kumar S, President resigned from the Company effective October 11, 2022. The Board placed on record its deep sense of appreciation for the services rendered by him.
e) Update on employee stock grants
On recommendation of the Nomination and Remuneration Committee, the Board on October 13, 2022 approved the grant of 48,050 Restricted Stock Units to three eligible employees under the 2015 Stock Incentive Plan (2015 Plan). The RSUs will be granted w.e.f November 1, 2022 and would vest over a period of three to four years.
On recommendation of the Nomination and Remuneration
Committee, the Board on October 13, 2022 approved the grant of annual performance based stock incentives in the form of Restricted Stock
units (RSU's) having a market value of 60 lacs to an eligible employee under the Infosys Expanded Stock Ownership Program-2019
(2019 Plan). The RSUs will be granted w.e.f November 1, 2022 and the number of RSUs will be calculated based on the market price at the
close of trading on November 1, 2022. The RSUs would vest equally over a period of three years subject to the Company’s achievement
of certain performance criteria as laid out in the 2019 Plan.
2. Information on dividends for the quarterand half year ended September 30, 2022
The Board of Directors declared an interim dividend
of 16.50 /- per equity share. The record date for the payment is October 28, 2022.The interim dividend will be paid on November
10, 2022. The interim dividend declared in the previous year was 15/- per equity share
(in )
| Particulars | Quarter ended September 30, | Quarter ended June 30, | Quarter ended September 30, | Half-year ended September 30, | Year ended March 31, | |
|---|---|---|---|---|---|---|
| 2022 | 2022 | 2021 | 2022 | 2021 | 2022 | |
| Dividend per share (par value 5/- each) |
||||||
| Interim dividend | 16.50 | – | 15.00 | 16.50 | 15.00 | 15.00 |
| Final dividend | – | – | – | – | – | 16.00 |
3. Audited Consolidated Balance Sheet
(in crore)
| Particulars | As at | |
|---|---|---|
| September 30, 2022 | March 31, 2022 | |
| ASSETS | ||
| Non-current assets | ||
| Property, plant and equipment | 12,919 | 13,075 |
| Right of use assets | 5,625 | 4,823 |
| Capital work-in-progress | 402 | 416 |
| Goodwill | 6,892 | 6,195 |
| Other Intangible assets | 1,828 | 1,707 |
| Financial assets | ||
| Investments | 12,670 | 13,651 |
| Loans | 47 | 34 |
| Other financial assets | 2,015 | 1,460 |
| Deferred tax assets (net) | 1,377 | 1,212 |
| Income tax assets (net) | 6,160 | 6,098 |
| Other non-current assets | 2,365 | 2,029 |
| Total non-current assets | 52,300 | 50,700 |
| Current assets | ||
| Financial assets | ||
| Investments | 11,778 | 6,673 |
| Trade receivables | 25,397 | 22,698 |
| Cash and cash equivalents | 14,869 | 17,472 |
| Loans | 279 | 248 |
| Other financial assets | 9,810 | 8,727 |
| Income tax assets (net) | – | 54 |
| Other current assets | 12,798 | 11,313 |
| Total current assets | 74,931 | 67,185 |
| Total Assets | 127,231 | 117,885 |
| EQUITY AND LIABILITIES | ||
| Equity | ||
| Equity share capital | 2,099 | 2,098 |
| Other equity | 77,882 | 73,252 |
| Total equity attributable to equity holders of the Company | 79,981 | 75,350 |
| Non-controlling interests | 366 | 386 |
| Total equity | 80,347 | 75,736 |
| Liabilities | ||
| Non-current liabilities | ||
| Financial liabilities | ||
| Lease liabilities | 5,572 | 4,602 |
| Other financial liabilities | 2,297 | 2,337 |
| Deferred tax liabilities (net) | 1,120 | 1,156 |
| Other non-current liabilities | 560 | 451 |
| Total non-current liabilities | 9,549 | 8,546 |
| Current liabilities | ||
| Financial liabilities | ||
| Lease liabilities | 950 | 872 |
| Trade payables | 4,162 | 4,134 |
| Other financial liabilities | 17,418 | 15,837 |
| Other Current Liabilities | 10,440 | 9,178 |
| Provisions | 1,141 | 975 |
| Income tax liabilities (net) | 3,224 | 2,607 |
| Total current liabilities | 37,335 | 33,603 |
| Total equity and liabilities | 127,231 | 117,885 |
The disclosure is an extract of the audited Consolidated Balance Sheet as at September 30, 2022 and March 31, 2022 prepared in compliance with the Indian Accounting Standards (Ind-AS).
4. Audited Consolidated Statement of CashFlows
(in crore)
| Particulars | Half-year ended September 30, | |
|---|---|---|
| 2022 | 2021 | |
| Cash flow from operating activities | ||
| Profit for the period | 11,388 | 10,629 |
| Adjustments to reconcile net profit to net cash provided by operating activities: | ||
| Income tax expense | 4,537 | 3,994 |
| Depreciation and amortization | 1,979 | 1,687 |
| Interest and dividend income | (947) | (885) |
| Finance cost | 121 | 98 |
| Impairment loss recognized / (reversed) under expected credit loss model | 91 | 87 |
| Exchange differences on translation of assets and liabilities, net | 131 | 54 |
| Stock compensation expense | 269 | 209 |
| Other adjustments | 283 | 36 |
| Changes in assets and liabilities | ||
| Trade receivables and unbilled revenue | (4,864) | (2,963) |
| Loans, other financial assets and other assets | (1,205) | (406) |
| Trade payables | (9) | 349 |
| Other financial liabilities, other liabilities and provisions | 3,213 | 2,754 |
| Cash generated from operations | 14,987 | 15,643 |
| Income taxes paid | (4,227) | (3,574) |
| Net cash generated by operating activities | 10,760 | 12,069 |
| Cash flows from investing activities | ||
| Expenditure on property, plant and equipment and intangibles | (1,234) | (1,030) |
| Deposits placed with corporation | (564) | (516) |
| Redemption of deposits placed with corporation | 384 | 343 |
| Interest and dividend received | 846 | 1,017 |
| Payment towards acquisition of business, net of cash acquired | (904) | – |
| Payment of contingent consideration pertaining to acquisition of business | (60) | (53) |
| Escrow and other deposits pertaining to Buyback | – | (420) |
| Redemption of escrow and other deposits pertaining to Buyback | – | 420 |
| Other receipts | 40 | 35 |
| Other payments | – | (22) |
| Payments to acquire Investments | ||
| Liquid mutual funds and fixed maturity plan securities | (36,310) | (25,411) |
| Certificates of deposit | (5,024) | (498) |
| Commercial Paper | (482) | – |
| Non-convertible debentures | (249) | (154) |
| Tax free bonds | (13) | – |
| Government securities | (1,569) | (653) |
| Others | (18) | (13) |
| Proceeds on sale of Investments | ||
| Equity and preference securities | 99 | – |
| Non-convertible debentures | 295 | 1,299 |
| Government securities | 1,332 | 1,336 |
| Certificates of deposit | 3,138 | 500 |
| Commercial Paper | 200 | – |
| Liquid mutual funds | 34,336 | 22,928 |
| Others | – | 1 |
| Net cash (used in) / generated from investing activities | (5,757) | (891) |
| Cash flows from financing activities: | ||
| Payment of lease liabilities | (527) | (421) |
| Payment of dividends | (6,711) | (6,369) |
| Payment of dividend to non-controlling interest of subsidiary | (22) | (2) |
| Shares issued on exercise of employee stock options | 7 | 9 |
| Other receipts | 84 | 117 |
| Other payments | (220) | (15) |
| Buyback of equity shares including transaction cost and tax on buyback | – | (11,125) |
| Net cash used in financing activities | (7,389) | (17,806) |
| Net increase / (decrease) in cash and cash equivalents | (2,386) | (6,628) |
| Effect of exchange rate changes on cash and cash equivalents | (217) | (30) |
| Cash and cash equivalents at the beginning of the period | 17,472 | 24,714 |
| Cash and cash equivalents at the end of the period | 14,869 | 18,056 |
| Supplementary information: | ||
| Restricted cash balance | 465 | 526 |
The disclosure is an extract of the audited Consolidated Statement of Cash flows for the half year ended September 30, 2022 and September 30, 2021 prepared in compliance with Indian Accounting Standard (Ind AS) 34 Interim Financial Reporting.
5. Segment reporting (Consolidated - Audited)
(in crore)
| Particulars | Quarter ended September 30, | Quarter ended June 30, | Quarter ended September 30, | Half-year ended September 30, | Year ended March 31, | |
|---|---|---|---|---|---|---|
| 2022 | 2022 | 2021 | 2022 | 2021 | 2022 | |
| Revenue by business segment | ||||||
| Financial Services ^(1)^ | 11,148 | 10,562 | 9,566 | 21,710 | 18,783 | 38,902 |
| Retail ^(2)^ | 5,183 | 5,004 | 4,330 | 10,187 | 8,505 | 17,734 |
| Communication ^(3)^ | 4,501 | 4,464 | 3,668 | 8,965 | 7,071 | 15,182 |
| Energy, Utilities, Resources and Services | 4,498 | 4,259 | 3,501 | 8,757 | 6,871 | 14,484 |
| Manufacturing | 4,686 | 4,172 | 3,219 | 8,858 | 5,922 | 13,336 |
| Hi-Tech | 2,971 | 2,812 | 2,511 | 5,783 | 4,821 | 10,036 |
| Life Sciences ^(4)^ | 2,452 | 2,257 | 2,103 | 4,709 | 3,994 | 8,517 |
| All other segments ^(5)^ | 1,099 | 940 | 704 | 2,039 | 1,531 | 3,450 |
| Total | 36,538 | 34,470 | 29,602 | 71,008 | 57,498 | 121,641 |
| Less: Inter-segment revenue | – | – | – | – | – | – |
| Net revenue from operations | 36,538 | 34,470 | 29,602 | 71,008 | 57,498 | 121,641 |
| Segment profit before tax, depreciation and non-controlling interests: | ||||||
| Financial Services ^(1)^ | 2,811 | 2,754 | 2,644 | 5,565 | 5,002 | 10,314 |
| Retail ^(2)^ | 1,578 | 1,538 | 1,503 | 3,115 | 2,985 | 6,130 |
| Communication ^(3)^ | 965 | 794 | 816 | 1,759 | 1,523 | 3,372 |
| Energy, Utilities , Resources and Services | 1,251 | 1,145 | 1,017 | 2,396 | 2,038 | 4,225 |
| Manufacturing | 792 | 385 | 724 | 1,177 | 1,350 | 2,408 |
| Hi-Tech | 724 | 672 | 619 | 1,396 | 1,186 | 2,495 |
| Life Sciences ^(4)^ | 642 | 535 | 588 | 1,177 | 1,159 | 2,380 |
| All other segments ^(5)^ | 139 | 41 | (80) | 180 | 19 | 167 |
| Total | 8,902 | 7,864 | 7,831 | 16,765 | 15,262 | 31,491 |
| Less: Other Unallocable expenditure | 1,029 | 950 | 859 | 1,979 | 1,687 | 3,476 |
| Add: Unallocable other income | 584 | 676 | 524 | 1,260 | 1,146 | 2,295 |
| Less: Finance cost | 66 | 56 | 48 | 121 | 98 | 200 |
| Profit before tax and non-controlling interests | 8,391 | 7,534 | 7,448 | 15,925 | 14,623 | 30,110 |
| ^(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<br>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.
6. Audited financial results of Infosys Limited(Standalone Information)
(in crore)
| Particulars | Quarter ended September 30, | Quarter ended June 30, | Quarter ended September 30, | Half-year ended September 30, | Year ended March 31, | |
|---|---|---|---|---|---|---|
| 2022 | 2022 | 2021 | 2022 | 2021 | 2022 | |
| Revenue from operations | 31,567 | 29,527 | 25,462 | 61,094 | 49,176 | 103,940 |
| Profit before tax | 8,488 | 6,902 | 7,303 | 15,391 | 13,796 | 28,495 |
| Profit for the period | 6,253 | 4,901 | 5,463 | 11,154 | 10,186 | 21,235 |
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.
| By order of the Board | |
|---|---|
| for Infosys Limited | |
| Bengaluru, India | Salil Parekh |
| October 13, 2022 | Chief Executive Officer and Managing Director |
The Board has also taken on record the condensed consolidated results of Infosys Limited and its subsidiaries for the quarter and half-year ended September 30, 2022, 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 September 30, | Quarter ended June 30, | Quarter ended September 30, | Half-year ended September 30, | Year ended March 31, | |
|---|---|---|---|---|---|---|
| 2022 | 2022 | 2021 | 2022 | 2021 | 2022 | |
| Audited | Audited | Audited | Audited | Audited | Audited | |
| Revenues | 4,555 | 4,444 | 3,998 | 8,999 | 7,780 | 16,311 |
| Cost of sales | 3,170 | 3,144 | 2,675 | 6,315 | 5,184 | 10,996 |
| Gross profit | 1,385 | 1,300 | 1,323 | 2,684 | 2,596 | 5,315 |
| Operating expenses | 406 | 412 | 382 | 817 | 759 | 1,560 |
| Operating profit | 979 | 888 | 941 | 1,867 | 1,837 | 3,755 |
| Other income, net | 73 | 87 | 71 | 160 | 155 | 308 |
| Finance cost | 8 | 7 | 6 | 15 | 13 | 27 |
| Profit before income taxes | 1,044 | 968 | 1,006 | 2,012 | 1,979 | 4,036 |
| Income tax expense | 295 | 279 | 272 | 574 | 540 | 1,068 |
| Net profit | 749 | 689 | 734 | 1,438 | 1,439 | 2,968 |
| Earnings per equity share * | ||||||
| Basic | 0.18 | 0.16 | 0.17 | 0.34 | 0.34 | 0.70 |
| Diluted | 0.18 | 0.16 | 0.17 | 0.34 | 0.34 | 0.70 |
| Total assets | 15,640 | 15,193 | 14,295 | 15,640 | 14,295 | 15,555 |
| Cash and cash equivalents and current investments | 3,276 | 2,798 | 3,103 | 3,276 | 3,103 | 3,185 |
| * | EPS is not annualized for the quarter and half year ended September 30, 2022, quarter ended<br>June 30, 2022 and quarter and half year ended September 30, 2021. | |||||
| --- | --- |
This Release contains ‘forward-looking statements’ within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance and that are based on our current expectations, assumptions, estimates and projections about the Company, our industry, economic conditions in the markets in which we operate, and certain other matters. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as ‘may’, ‘anticipate’, ‘believe’, ‘estimate’, ‘expect’, ‘continue’, ‘intend’, ‘will’, ‘project’, ‘seek’, ‘could’, ‘would’, ‘should’ and similar expressions. Those statements include, among other things, statements regarding our business strategy, our expectations concerning our market position, future operations, growth, margins, profitability, attrition, liquidity, and capital resources, our ESG vision, our capital allocation policy, the effects of COVID-19 on global economic conditions and our business and operations, wage increases, change in the regulations including immigration regulation and policies in the United States, and corporate actions including timely completion of the proposed buy-back of our equity shares. These statements are subject to known and unknown risks, uncertainties and other factors which may cause actual results or outcomes to differ materially from those implied by the forward-looking statements. 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, 2022. 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.