Infosys: Second Consecutive Quarter of Double Digit Growth in Constant Currency

BENGALURU,India,April 12,2019 -- "We have completed the first year of our transformation journey with strong results on multiple dimensions including revenue growth,performance of our digital portfolio,large deal wins,and client metrics. This is a reflection of our increased client relevance stemming from our focus on digital,positioning,and long-standing client relationships," said Salil Parekh,CEO and MD. "Our planned investments have started yielding benefits.As we look ahead into fiscal 2020,we plan to deploy various measures of operational efficiencies across the business."

41.1% YoY

33.8% FY

Digital CC growth

11.7% YoY

9.0% FY

CC growth

21.5% Q4

22.8% FY

Operating margin

2.1% CC

2.4% Reported

QoQ growth

$1.57Bn Q4

$6.28Bn FY

Large deal signings

FY 19 revenues grew by 7.9% in USD; 9.0% in constant currency

FY 19 operating margin at 22.8%

Q4 19 revenues grew year-on-year by 9.1% in USD; 11.7% in constant currency

Q4 19 revenues grew sequentially by 2.4% in USD; 2.1% in constant currency

Q4 19 Digital revenues at $1,035 million (33.8% of total revenues),year-on-year growth of 41.1% and sequential growth of 9.7% in constant currency

Announces final dividend of INR 10.50 per share

FY 20 revenue guidance in the range of 7.5%-9.5% in constant currency

FY 20 Operating margin guidance in the range of 21%-23%

1.FinancialHighlights -ConsolidatedresultsunderInternationalFinancialReportingStandards(IFRS)

For the Quarter ended March 31,2019

Revenues were $3,060 million,growth of 9.1% YoY and 2.4% QoQ

Operating profit was $658 million,decline of 5.1% YoY and 2.6% QoQ#

Basic EPS was $0.13,growth of 1.6% YoY and 15.5% QoQ

For the Year ended March 31,2019

Revenues were $11,799 million,growth of 7.9% YoY

Operating profit was $2,696 million,growth of 1.4% YoY

Basic EPS was $0.51,decline of 8.2% YoY*@

#Includes additional depreciation and amortization expenses of $12 million for Panaya and Skava for the quarter ended December 31,2018.

* Includes reduction in fair value and carrying value of Panaya and Skava,respectively which resulted in reduction in EPS by$0.02

@Includes impact on account of conclusion of an APA with the US IRS which has led to increase in EPS of $0.05 for the year ended March 31,2018.

"We had another quarter of over $1.5 bn large deal TCV in Q4,as a result of which FY 19 TCV doubled over FY 18. Realization per billed employee was steady which reflects increasing usage of automation in core services and faster growth in newer digital services," said Pravin Rao,COO. "Overall attrition remains high and we are continuing our focus on arresting the same."

"Cash generation in FY 19 was strong and Dividend Per Share increased by 4.5%. During the quarter,we completed the payout of special dividend in January and initiated the share buyback program," said Nilanjan Roy,CFO. "We had another quarter of forex gains thanks to our proactive hedging strategy."

2.Capital Allocation

During Q4 19,completed payment of special dividend of INR 4 per share announced in January,2019.

Initiated buyback from March 20,2019 after receiving all requisite approvals. Out of total buyback size of INR 8,260 crore,the company has bought back shares worth INR 1,546 crore so far.

For the Financial Year 2019,the Board has recommended a final dividend of INR 10.50 per share ($0.15 per ADR*). After including the interim dividend of INR7 per share,the total dividend for Financial Year 2019 will amount to INR17.50 per share.

*US$1 = INR 69.16 as at March 31,2019

3.Client wins & Testimonials

Siemens Gamesa Renewable Energy (SGRE),a world leader and a pioneer in the renewable energy industry,has signed a seven-year global partnership with Infosys to enable an end-to-end IT Transformation program towards a digital future and industry leadership.

Alan Feeley,SGRE CIO,said,"Infrastructure & applications outsourcing deals are the norm in our business worlds already today. When considering our (SGRE) desired IT operating model for the future,we were looking for a partner that brings a careful balance of innovation,operational excellence and sustainable commercial viability. With Infosys,we are very confident that these attributes were at the core of their operating culture. We are very excited to partner with Infosys on this journey of modernization and were impressed by Infosys Next Generation Application & Infrastructure Management Framework,their agility & focus on delivery excellence,and a clear understanding of our business strategy."

With a vision to provide safe and reliable utility services and improve the customer service of about 800,000 people in the Indianapolis area,Citizens will transform its customer service by leveraging 'Infosys Preconfigured Accelerator for Customer Experience (PACE)',an industry leading framework tuned for Oracle Utilities Customer to Meter (C2M) platform.

Curtis Popp,Vice President of Customer Operations at Citizens Energy Group,"At Citizens Energy Group,we're excited to be working with Infosys and Oracle to implement a new CIS and accomplish our strategic goals,including improved customer satisfaction and employee engagement. The experience and expertise of Infosys employees is paramount to the success of this complex project."

Kraft Heinzhas selected Infosys to deliver rich digital experience for their recipes and brands to their consumers.

"Kraft Heinz has partnered with Infosys to launch new capabilities delivering rich consumer experience. We are becoming more relevant to our consumers by enabling capabilities like Shoppable Recipes,Rich Brand Experience,Personalized Recommendations,Seamless Social Media Integration. We are just getting started.," said, Leandro Balbinot,CIO Global Digital Growth,Kraft Heinz Company.

"Movement Mortgageis committed to providing loan officers,real estate agents and our borrowers with technology and a digital infrastructure that delivers an innovative,user-friendly experience on every platform and in every channel,both today and in the future. We're pleased to have selected Infosys as our strategic partner across these key business functions. Infosys' expertise in Digital Transformation,Cloud Technologies and Mortgage and Retail Lending will help Movement continue to spearhead industrywide transformation that improves the mortgage experience for everyone and makes the dream of homeownership more accessible than ever before," said Casey Crawford,CEO,Movement Mortgage