Infosys (NYSE

INFY) Announces Results for the Quarter Ended June 30, 2018

BENGALURU, India, July 13, 2018 /PRNewswire/ --

• Digital revenues at $803 million (28.4% of total revenues), sequential growth of 8.0% and year-on-year growth of 25.6% in constant currency terms
• 1:1 bonus issue of equity shares and 1:1 stock dividend of American Depositary Shares
• Q1 19 revenues grew year-on-year by 6.8% in USD terms; 6.0% in constant currency terms
• Q1 19 revenues grew sequentially by 0.9% in USD terms; 2.3% in constant currency terms
• Operating margins at 23.7%, at the upper quartile of the guidance
• Large deal wins crossed $1 billion, of which over 40% was from Financial Services
• $ 100 mn clients increased sequentially by 4 to 24
• Utilization (excluding trainees) at all-time high of 85.7%
• Free Cash Flow up sequentially by 32.1% in USD terms
• RoE increases to 25.5% as compared to 24.1% last quarter
• EPS grew by 3.9% on a year-on-year basis
• FY 19 revenue guidance in constant currency retained at 6%-8%; FY 19 operating margin guidance retained at 22%-24%

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1. Financial Highlights

Consolidated results under International Financial Reporting Standards (IFRS) for the quarter ended June 30, 2018

• Revenues were $2,831 million for the quarter ended June 30, 2018
  YoY growth of 6.8%; QoQ growth of 0.9%
• Net profit was $534 million for the quarter ended June 30, 2018, including impact of $39 million on account of reduction in the fair value of Assets held for sale
  YoY decline of 1.2%; QoQ decline of 6.5%
• Basic EPS was $0.25 for the quarter ended June 30, 2018, including impact of $0.02 on account of reduction in the fair value of Assets held for sale
  YoY growth of 3.9%; QoQ decline of 6.5%

"The strong revenue and margin performance in this quarter shows that our dual emphasis on Agile Digital and AI-driven Core services is resonating with our clients," said Salil Parekh, CEO and MD. "With our Agile Digital business growing sequentially at 8% in constant currency and increase in our large deal wins to over US$ 1 billion, we see good traction in the market."

"Our emphasis on deepening client relationships resulted in strong client metrics including increase in the number of $100 million+ clients to 24," said U B Pravin Rao, COO. "Utilization excluding trainees reached an all-time high of 85.7%."