Infosys: Accelerated Double Digit Growth of 12.4%; Highest Ever Large Deal TCV at $ 2.7 Bn

BENGALURU,India,July 12,2019 -- "We had a strong start to FY 20 with constant currency growth accelerating to 12.4% on year over year basis and digital revenue growth of 41.9%. This was achieved through our consistent client focus and investments which have strengthened our client relationships," said Salil Parekh,CEO and MD. "Consequently,we are raising our revenue guidance for the year from 7.5%-9.5% to 8.5%-10%."

41.9% YoY

12.4% YoY

2.8% QoQ

20.50%

$2.7 bn

Digital CC growth

CC growth

CC growth

Operating margin

Large deal signings

Q1 20 revenues grew year-on-year by 10.6% in USD; 12.4% in constant currency

Q1 20 revenues grew sequentially by 2.3% in USD; 2.8% in constant currency

Q1 20 Digital revenues at $1,119 million (35.7% of total revenues),year-on-year growth of 41.9% and sequential growth of 8.6% in constant currency

Increased FY 20 revenue growth guidance range to 8.5%-10% in constant currency

Maintained FY 20 operating margin guidance range of 21%-23%

1.FinancialHighlights - Consolidated results under International Financial Reporting Standards (IFRS)

Revenues were $3,131 million,growth of 10.6% YoY and 2.3% QoQ

Operating profit was $642 million,decline of 4.2% YoY and 2.3% QoQ. Operating margin was 20.5%.

"We had a good quarter as we continue to leverage our digital navigation framework to help our clients build and nurture their live enterprise," said Pravin Rao,COO. "Large deal TCV was highest ever at $2.7 bn. Segment growth was robust with all large regions and most verticals growing at double digits yoy in constant currency."

"Our first quarter results and continued focus on operational efficiencies gives us the confidence on our revenue and margin guidance for the year," said Nilanjan Roy,CFO. "Continuing our objective of improving shareholder returns,we have revised our capital allocation policy upwards to distribute ~ 85% of free cash flows cumulatively over a 5-year period."

2. Capital Allocation

The Company is on track towards completing its previously announced share buyback of INR 8,260 crore. The company has till date bought back shares worth `INR 5,934 crore.

The Company's current policy is to pay up to 70% of the free cash flow annually by way of dividend and/or buyback. The Board has reviewed and approved a revised Capital Allocation Policy of the Company after taking into consideration the strategic and operational cash requirements.

"Effective from Financial year 2020,the company expects to return approximately 85% of the free cash flow cumulatively over a 5-year period through a combination of semi-annual dividends and/or share buyback and/or special dividends,subject to applicable laws and requisite approvals,if any."

Free cash flow is defined as net cash provided by operating activities less capital expenditure as per the consolidated statement of cash flows prepared under IFRS

Dividend and buyback include applicable taxes

3. Client wins & Testimonials

We were selected by Finnish postal service Posti as a strategic partner for the digital transformation of its business and IT services to drive the modernization of its IT applications and infrastructure,helping it move to a flexible IT service model. This will also strengthen Posti's ability to respond to changes in customer needs with agility and provide a seamless customer user experience through a dedicated command center.

We entered into long term strategic partnership with Toyota Material Handling Europe to help in its digital transformation journey by facilitating transformation to a scalable digital hybrid cloud platform,providing application services,digital workplace,infrastructure management and a dedicated data center operation.

Infosys McCamish,a US based subsidiary of Infosys BPM entered into a partnership with Pan-American Life Insurance Group (PALIG),a leading provider of life,accident and health insurance to provide policy administration services for PALIG's new Global Assets Indexed Universal Life product.

We have partnered with a leading consumer technology company to help them localize their virtual assistant by training their AI. Infosys is helping the client to define its overall global strategy for localization while analyzing data to identify patterns which can train the AI to respond better to the user command. This will improve their virtual assistant to provide a better user experience.

Marc Schmidt,Head of SDD and GIT-ACI,BSHsaid,"At BSH GmbH,for the software Development Platform (SDD) which is used for developing thousands of micro to large scale applications,we wanted to deploy an auto-scaling Infrastructure on AWS Cloud that can handle millions of users across the world. Infosys leveraging its Agile and DevOps methodology and expertise,automated build and deployment which led to an overall 70% reduction in environment provisioning time,Zero downtime,100% improvement in recovery time objectives."

One of the world leaders in the manufacturing of connectivity and sensor products engaged Infosys to transform their delivery of Sales solutions needed for their globally dispersed sales team,leveraging Salesforce ecosystem. Infosys over the last 12 months has moved to a Highly Agile Capability based delivery model and helped in an estimated 40% improvement in time to market for solutions,shortened release cycles from once-a-quarter to on-demand releases and improvement in time to revenue of solutions by upto 25%

Recognitions

Infosys positioned in HFS Top 10 Healthcare Services 2019

Recognized as a Leader in NelsonHall's SAP HANA and S/4HANA services report

Recognized as a Leader in the Enterprise Platform IT Services in BFS PEAK Matrix™ Assessment 2019

Recognized in the HFS Top 10: Managed Security Services (MSS)

Recognized in the HFS Top 10 Google AI Services

Recognized as a Leader in The Forrester Wave™: Global API Strategy And Delivery Service Providers,Q2 2019

Recognized as a Leader in the NEAT on Next-Generation Software Testing Services

Recognized as a Leader in the IDC MarketScape: Worldwide Microsoft Implementation Services 2019 Vendor Assessment

Recognized in the NEAT on IoT in Digital Transformation

Recognized in the HFS Top 10 Manufacturing Service Providers 2019

Recognized in the HFS Top 10 Energy Services 2019

Recognized as a Leaderin Gartner Magic Quadrant for Public Cloud Infrastructure Managed Service Providers

Awarded the "Most Valuable Partner – Commercial Cloud" Award by Oracle

Won the Golden Peacock Environment Management Award

Won the Pega partner excellence award in recognition of innovative practice development and continued investment in the growth of a strong delivery practice

Recognized with the Global Partner of the Year Award for driving customer success at TIBCO NOW

Recognized as MuleSoft Americas Growth & Emerging Partner of the Year 2019 by MuleSoft

Awarded 'System Integrator Partner of the year 2019 for Hybrid Cloud Solutions' by HPE at HPE Discover 2019

AboutInfosys

Infosys is a global leader in next-generation digital servicesandconsulting. We enable clients to navigatetheir digital transformation,leveraging our teams from over 45 countries. With over three decades of experienceinmanaging the systems and workings of global enterprises,weexpertly steer our clients through their digital journey. We doitby enabling the enterprise with an AI-powered core thathelps prioritize the execution of change. We also empowerthe business with agile digital at scale to deliverunprecedentedlevels of performance and customer delight. Ouralways-on learning agenda drives their continuous improvementthroughbuilding and transferring digital skills,expertise,and ideasfrom our innovationecosystem.

Visitwww.infosys.comtoseehowInfosys(NYSE:INFY)canhelpyourenterprisenavigateyournext.

SafeHarbor

Certain statements mentioned in this presentation concerning our future growth prospects are forward-looking statements regarding our future business expectations 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 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 31,2019. 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.

Infosys Limited and subsidiaries

Audited Condensed Consolidated Balance Sheet as at

(Dollars in millions except equity share data)

June 30,2019

March 31,2019

ASSETS

Current assets

Cash and cash equivalents

2,266

2,829

Current investments

778

958

Trade receivables

2,290

2,144

Unbilled revenue

964

777

Prepayments and other current assets

851

827

Income tax assets

38

61

Derivative financial instruments

26

48

Total current assets

7,213

7,644

Non-current assets

Property,plant and equipment

1,903

1,931

Right-of-use assets(B3)

540

-

Goodwill

589

512

Intangible assets

207

100

Non-current investments

548

670

Deferred income tax assets

204

199

Income tax assets

917

914

Other non-current assets

296

282

Total non-current assets

5,204

4,608

Total assets

12,417

12,252

LIABILITIES AND EQUITY

Current liabilities

Trade payables

317

239

Lease liabilities(B3)

72

-

Derivative financial instruments

3

2

Current income tax liabilities

305

227

Client deposits

4

4

Unearned revenue

408

406

Employee benefit obligations

248

234

Provisions

84

83

Other current liabilities

2,022

1,498

Total current liabilities

3,463

2,693

Non-current liabilities

Lease liabilities(B3)

483

-

Deferred income tax liabilities

112

98

Employee benefit obligations

7

6

Other non-current liabilities

115

55

Total liabilities

4,180

2,852

Equity

Share capital- INR 5 ($0.16) par value 4,800,000,000 (4,000) equity shares authorized,issued and outstanding 4,271,404,014 (4,335,954,462) equity shares fully paid up,net of 20,094,430 (20,324,982) treasury shares as at June 30,2019 (March 31,2019)

334

339

Share premium

286

277

Retained earnings

9,969

11,248

Cash flow hedge reserve

-

3

Other reserves

432

384

Capital redemption reserve

15

10

Other components of equity

(2,854)

(2,870)

Total equityattributable to equity holders of the company

8,182

9,391

Non-controlling interests

55

9

Total equity

8,237

9,400

Total liabilities and equity

12,252

Infosys Limited and subsidiaries

Audited Condensed Consolidated Statement of Comprehensive Income for the

(Dollars in millions except equity share and per equity share data)

Three months ended June 30,2019

Three months ended June 30,2018

Revenues

3,131

2,831

Cost of sales

2,122

1,819

Gross profit

1,009

1,012

Operating expenses

Selling and marketing expenses

169

149

Administrative expenses

198

193

Total operating expenses

367

342

Operating profit

642

670

Other income,net

106

107

Finance cost(B3)

(6)

-

Reduction in the fair value of Disposal Group held for sale(A1)

-

(39)

Profit before income taxes

742

738

Income tax expense

196

204

Net profit

546

534

Other comprehensive income

Items that will not be reclassified subsequently to profit or loss:

Re-measurements of the net defined benefit liability/asset,net

(3)

-

(3)

-

Items that will be reclassified subsequently to profit or loss:

Fair valuation of investments,net

2

(7)

Fair value changes on derivatives designated as cash flow hedge,net

(3)

1

Foreign currency translation

17

(468)

16

(474)

Total other comprehensive income/(loss),net of tax

13

(474)

Total comprehensive income

559

60

Profit attributable to:

Owners of the Company

546

534

Non-controlling interests

-

-

546

534

Total comprehensive income attributable to:

Owners of the Company

559

60

Non-controlling interests

-

-

559

60

Earnings per equity share(A2)

Basic ($)

0.13

0.12

Diluted ($)

0.13

0.12

Weighted average equity shares used in computing earnings per equity share(A2)

Basic

4,302,176,860

4,346,657,242

Diluted

4,308,286,160

4,350,710,356

NOTES:

A. Notes pertaining to previous quarters / periods

In the three months ended June 30,2018,the Company had recorded a reduction in the fair value amounting to $39 million in respect of its subsidiary Panaya. The subsidiaries Kallidus and Skava (together referred to as "Skava") and Panaya,are collectively referred to as the "Disposal Group". Subsequently the company reclassified these subsidiaries as they did not meet the criteria for "Held for Sale".

Share numbers and EPS have been adjusted for September 2018 bonus issue.

B. Notes pertaining to the current quarter

The audited interim condensed consolidated Balance sheet and Statement of Comprehensive Income for the three months ended June 30,2019 have been taken on record at the Board meeting held on July 12,2019.

A Fact Sheet providing the operating metrics of the Company can be downloaded from www.infosys.com.

On account of adoption of IFRS 16- Leases effective April 1,2019.

IFRS-INR Press Release:https://www.infosys.com/investors/reports-filings/quarterly-results/2019-2020/q1/Documents/IFRS-INR-press-release.pdf

Fact Sheet:https://www.infosys.com/investors/reports-filings/quarterly-results/2019-2020/q1/Documents/fact-sheet.pdf