Infosys : Outcome of Board Meeting

TO ALL STOCK EXCHANGES

BSE LIMITED

NATIONAL STOCK EXCHANGE OF INDIA LIMITED

NEW YORK STOCK EXCHANGE

July 24, 2022

Dear Sir, Madam,

Sub: Outcome of Board meeting

This has reference to our letter dated June 28, 2022 regarding the captioned subject. The Board, at their meeting held on July 23-24, 2022, transacted the following items of business:

Financial Results

1. Approved the audited consolidated financial results of the Company and its subsidiaries as per Indian Accounting Standards (INDAS) for the quarter ending June 30, 2022;
2. Approved the audited standalone financial results of the Company as per INDAS for the quarter ended June 30, 2022;
3. Approved the audited financial statements of the Company and its subsidiaries as per INDAS and IFRS for the quarter ended June 30, 2022;

Other matters

4. Grant of stock incentive units:

Shareholders at the 41st AGM held on June 25, 2022 have reappointed Salil Parekh as the CEO and MD of the Company for a term commencing on July 1, 2022 and ending on March 31, 2027 on the terms and conditions, including the remuneration payable as contained in the 41st AGM Notice.

In line with the shareholders' approval and revised employment contract which is effective July 1, 2022, the Board, on July 24, 2022, based on the recommendations of the Nomination and Remuneration Committee, approved:

1. The grant of annual performance-based stock incentives (Annual Performance Equity Grant) of Restricted Stock Units (RSU's) amounting to ₹21.75 crore for the financial year 2023 under the 2015 Stock Incentive Compensation Plan (2015 plan). These RSUs will vest 12 months from the date of grant subject to achievement of certain strategic milestones as determined by the Board. This is in addition to the grants made on May 2, 2022 amounting to ₹13 crore resulting in a total grant of ₹34.75 crore for fiscal 2023.
2. The grant of annual performance-based stock incentives (Annual performance equity ESG grant) in the form of RSU's covering Company's equity shares having a market value of ₹2 crore as on the date of the grant under the 2015 Plan, which shall vest 12 months from the date of the grant subject to the Company's achievement of certain environment, social and governance milestones as determined by the Board.

1. The grant of annual performance-based stock incentives (Annual performance Equity TSR grant) in the form of RSU's covering Company's equity shares having a market value of ₹5 crore as on the date of the grant under the 2015 Plan, which shall vest after March 31, 2025 subject to the Company's performance on cumulative relative TSR over the years and as determined by the Board.
   The above RSUs will be granted w.e.f August 1, 2022 and the number of RSU's will be calculated based on the market price at the close of trading on August 1, 2022.

5. Allotment of equity shares pursuant to exercise of RSU's:

Allotted 97,309 equity shares, pursuant to exercise of RSU's by eligible employees as hereunder: - 921 equity shares under the 2015 Stock Incentive Compensation Plan;

- 96,388 equity shares under the Infosys Expanded Stock Ownership Program 2019.

Consequently, on July 24, 2022, the issued and subscribed share capital of the Company stands increased to ₹ 21,038,590,140/- divided into 4,207,718,028 equity shares of ₹5/- each.

The Board meeting was held on July 23 and July 24, 2022. The Board meeting on July 24, 2022 commenced at 2.30 p.m. IST and concluded at 5.40 p.m. We are enclosing herewith the financial results and press release for your information and record. The same will also be made available on the Company's website www.infosys.com.

Yours sincerely,

For Infosys Limited

SURYANARAYANA ANUR	Digitally signed by SURYANARAYANA
GURUGOPALA RAJU	ANUR GURUGOPALA RAJU
MANIKANTHA
MANIKANTHA
Date: 2022.07.24 17:54:34 +05'30'

A.G.S. Manikantha

Company Secretary

37.5% YoY		21.4% YoY		20.0%			4.4% YoY			$1.7 bn
CC Digital growth		5.5% QoQ			Operating margin			Increase in EPS			Large deal TCV
				($ terms)				(` terms)
		CC Revenue growth
Revenue Growth- Q1 23
													Reported		CC
QoQ growth (%)													3.8		5.5
YoY growth (%)													17.5		21.4
Revenues by Offering
					Quarter ended ($ mn)				YoY Growth (%)
				Jun 30, 2022		Mar 31, 2022		Jun 30, 2021		Reported		CC
Digital				2,710		2,532	2,040		32.8		37.5
Core				1,734	1,748	1,742		(0.5)		2.4
Total				4,444		4,280	3,782		17.5		21.4
Digital Revenues as % of Total Revenues		61.0	59.2	53.9
Revenues by Business Segments
																	(in %)
							Quarter ended				YoY Growth
					Jun 30, 2022		Mar 31, 2022		Jun 30, 2021		Reported		CC
Financial services					30.6		31.3		33.0		9.0		12.1
Retail					14.5		14.3		15.0		14.0		17.8
Communication					13.0		12.8		12.2		24.7		30.0
Energy, Utilities, Resources & Services			12.4		12.0		12.1		20.2		24.6
Manufacturing					12.1		11.8		9.7		46.5		55.2
Hi-Tech					8.2		8.2		8.3		15.8		16.4
Life Sciences					6.5		6.6		6.8		13.5		15.8
Others					2.7		3.0		2.9		8.1		15.4
Total					100.0		100.0		100.0		17.5		21.4
Revenues by Client Geography
																	(in %)
							Quarter ended				YoY Growth
					Jun 30, 2022		Mar 31, 2022		Jun 30, 2021		Reported		CC
North America					61.8		61.4		61.7		17.8		18.4
Europe					25.0		25.2		24.2		21.9		33.2
Rest of the world					10.6		10.2		11.2		10.5		17.8
India					2.6		3.2		2.9		2.0		5.8
Total					100.0		100.0		100.0		17.5		21.4

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Client Data

		Quarter ended
	Jun 30, 2022	Mar 31, 2022	Jun 30, 2021
Number of Clients
Active	1,778	1,741	1,659
Added during the period (gross)	106	110	113
Number of million dollar clients*
1 Million dollar +	877	853	805
10 Million dollar +	278	275	264
50 Million dollar +	69	64	59
100 Million dollar +	38	38	34
Client contribution to revenues
Top 5 clients	13.0%	11.8%	11.3%
Top 10 clients	20.8%	19.4%	18.8%
Top 25 clients	36.3%	35.4%	34.4%
Days Sales Outstanding	63	67	70

Effort and Utilization - Consolidated IT Services

			(in %)
		Quarter ended
	Jun 30, 2022	Mar 31, 2022	Jun 30, 2021
Effort
Onsite	24.3	24.0	24.1
Offshore	75.7	76.0	75.9
Utilization
Including trainees	77.6	80.0	83.3
Excluding trainees	84.7	87.0	88.5

Employee Metrics

			(Nos.)
		Quarter ended
	Jun 30, 2022	Mar 31, 2022	Jun 30, 2021
Total employees	3,35,186	3,14,015	2,67,953
S/W professionals	3,18,447	2,97,859	2,53,493
Sales & Support	16,739	16,156	14,460
Voluntary Attrition % (LTM - IT Services)	28.4%	27.7%	13.9%
% of Women Employees	39.3%	39.6%	38.8%
Revenue per Employee - Consolidated (In US $ K)	56.9	57.7	56.6

Cash Flow

			In US $ million
		Quarter ended
	Jun 30, 2022	Mar 31, 2022	Jun 30, 2021
Free cash flow (1)	656	761	863
Consolidated cash and investments (2)	4,414	4,937	5,076
			In ` crore
		Quarter ended
	Jun 30, 2022	Mar 31, 2022	Jun 30, 2021
Free cash flow (1)	5,106	5,769	6,363
Consolidated cash and investments (2)	34,854	37,419	37,727

1. 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 (Non-IFRS measure)
2. Consolidated cash and investments comprise of cash and cash equivalents, current and non-current investments excluding investments in unquoted equity and preference shares, unquoted compulsorily convertible debentures and others (Non-IFRS measure)

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Consolidated statement of Comprehensive Income for three months ended,

(Extracted from IFRS Financial Statement)								In US $ million, except per equity share data
				Jun 30,			Jun 30,			Growth %			Mar 31,			Growth %
	Particulars							Q1 23 over					Q1 23 over
			2022			2021					2022
								Q1 22					Q4 22
Revenues	4,444	3,782		17.5		4,280		3.8
	Cost of sales			3,144			2,509			25.3			2,955			6.4
Gross Profit	1,300	1,273		2.1		1,325		(1.9)
	Operating Expenses:
	Selling and marketing expenses	193		169			14.2		179			7.8
	Administrative expenses			219			208			5.3			226			(3.1)
Total Operating Expenses	412		377			9.3		405			1.7
	Operating Profit			888			896			(0.8)			920			(3.5)
Operating Margin %	20.0		23.7			(3.7)		21.5			(1.5)
	Other Income, net(1)			80			77			3.9			78			2.6
Profit before income taxes	968		973			(0.5)		998			(3.0)
	Income tax expense			279			268			4.1			245			13.9
Net Profit (before minority interest)	689		705			(2.4)		753			(8.6)
Net Profit (after minority interest)	689		704			(2.3)		752			(8.4)
	Basic EPS ($)			0.16			0.17			(1.1)			0.18			(8.5)
Diluted EPS ($)	0.16		0.17			(1.0)		0.18			(8.4)
Dividend Per Share ($) (2)	-		-			-		0.21			-

Consolidated statement of Comprehensive Income for three months ended,

(Extracted from IFRS Financial Statement)								In ` crore, except per equity share data
				Jun 30,			Jun 30,			Growth %			Mar 31,			Growth %
	Particulars							Q1 23 over					Q1 23 over
			2022			2021					2022
								Q1 22					Q4 22
Revenues	34,470	27,896		23.6		32,276			6.8
	Cost of sales			24,369			18,506			31.7			22,272			9.4
Gross Profit	10,101	9,390		7.6		10,004			1.0
	Operating Expenses:
	Selling and marketing expenses	1,493		1,248			19.6		1,347			10.8
	Administrative expenses			1,694			1,539			10.1			1,701			(0.4)
Total Operating Expenses	3,187	2,787		14.4		3,048			4.6
	Operating Profit			6,914			6,603			4.7			6,956			(0.6)
Operating Margin %	20.1		23.7			(3.6)		21.5			(1.4)
	Other Income, net(1)			620			573			8.2			587			5.6
Profit before income taxes	7,534	7,176		5.0		7,543			(0.1)
	Income tax expense			2,172			1,975			10.0			1,848			17.5
Net Profit (before minority interest)	5,362	5,201		3.1		5,695			(5.9)
Net Profit (after minority interest)	5,360	5,195		3.2		5,686			(5.7)
	Basic EPS (`)			12.78			12.24			4.4			13.56			(5.8)
Diluted EPS (`)	12.76		12.21			4.5		13.54			(5.7)
Dividend Per Share (`)	-		-			-		16.00			-

(1) Other income includes Finance Cost

(2) USD/INR exchange rate of 75.00

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