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January 10, 2014

Infosys Ltd. (INFY)

ESTIMATE CHANGE
Stock Rating Price Target

Decent 3Q Results, FY14 Guidance Raised; Valuation Fair; Maintain Hold


INVESTMENT HIGHLIGHTS: This morning, Infosys reported solid 3Q results, with revenue coming in roughly in line with expectations and EPS beating estimates comfortably. Commentary on the demand outlook was incrementally upbeat, consistent with our view that industry demand is healthy, and management bumped up FY14 guidance. While we are encouraged by the demand outlook, we remain on the sidelines on INFY since we believe execution remains choppy and there is limited potential for estimate upgrades and multiple expansion. Maintain Hold.

HOLD
Unchanged

NA

IT Services/BPO
Mayank Tandon (617) 457-0943 mtandon@needhamco.com Elizabeth Colley (617) 457-0925 ecolley@needhamco.com

Results. Revenue rose 1.6% Q/Q to $2.100 billion, slightly ahead of our $2.076 billion estimate and roughly in line with consensus of $2.108 billion. Europe, India, and ROW improved sequentially, while North America surprisingly declined. Management attributed the sequential decline in revenue in North America to lumpiness in the business and indicated it anticipates growth to rebound as recent large transformation deals start to ramp. Gross margins increased due to a higher offshore mix, while cost controls drove additional operating margin improvement. Margin outperformance led to the earnings upside in 3Q, with INFY posting $0.81 in EPS, above our $0.73 estimate and consensus of $0.75. Outlook. Management raised FY14 revenue growth guidance to 11.5-12.0% Y/Y, up from the 9-10% Y/Y range provided last quarter (INFY began the year with revenue growth guidance of 6-10% Y/Y). Management expects to run the business at a 25-26% operating margin long term, although we believe in the near term increased investments may lead to margins running about 100 bps below the range. We are raising our FY14 estimates though to reflect the 3Q upside and better revenue and margin trends in 4Q. We are also increasing our FY15 revenue and EPS estimates, reflecting both a healthier demand outlook and higher margin levels. Valuation. While we are encouraged by the demand outlook, we remain on the sidelines on INFY since we believe execution remains choppy and there is limited potential for estimate upgrades and multiple expansion. With the stock recently trading around $59, which is roughly 12x ex-cash our CY4 EPS estimate, we believe the stock is fairly valued based on INFY's sub industry growth rate. Maintain Hold.

Stock Price Performance


Infosys Ltd.
25 Volume (mil.) 20 15 10 5 0 Price (USD)

01/10/14
$65.00 $60.00 $55.00 $50.00 $45.00 $40.00 $35.00

May-13

Aug-13

Sep-13

Nov-13

Dec-13

Feb-13

Mar-13

Jun-13

Rev. (MM) Growth Op. Margin EPS: 1Q EPS: 2Q EPS: 3Q EPS: 4Q EPS: Year Growth P/E Ratio

FY 03/31/2013 Actual 7,398.0A 5.8% 25.8%A 0.73A 0.75A 0.76A 0.78A 3.02A 0.7% 18.6x

FY 03/31/2014 Old New 8,220.0E 8,278.0E 11.9% 22.9%E 23.7%E 0.73A 0.73A 0.67A 0.67A 0.73E 0.81A 0.73E 0.79E 2.87E 3.00E (0.7)% 18.7x

FY 03/31/2015 Old New 8,772.1E 8,916.2E 7.7% 21.9%E 24.1%E 0.75E 0.78E 0.70E 0.81E 0.75E 0.83E 0.78E 0.84E 2.98E 3.26E 8.7% 17.2x

Market Data
Price (01/09/2014) 52-Week Range Shares Out. (MM) Market Cap. (MM) Avg. Daily Volume Total Debt/Cap. Cash & ST INV/Share $58.33 - $38.91 1,120,119.0 $410.48 0.00% $32,241.3 574.2 $56.15

Relevant disclosures begin on page 6 of this report.

Jan-14

Apr-13

Oct-13

Jul-13

Needham & Company, LLC

January 10, 2014

The table below details how INFY fared versus our estimates for 3Q FY14. Revenue came in slightly above our estimates, but slightly below the Street, growing 1.6% sequentially. Gross margins were 110 bps above our estimate, mainly due to a shift to higher offshore effort and a 0.7% Q/Q increase in pricing. Operating margins were 190 bps above our forecast, boosted by lower sales and marketing expenses. The margin outperformance led to a healthy beat on earnings, with INFY posting $0.81 in EPS, above our $0.73 estimate and consensus of $0.75. Figure 1
3Q FY14: Actuals Vs Estimates
($ in thousands, except per share data) Dec-13 Fiscal Year March Revenue Q/Q growth Y/Y growth Cost of revenue Gross Profit Gross margin S&M % of revenue G&A % of revenue Total operating expenses % of revenue Operating incom e (GAAP) Operating margin Total other income (expense), net % of revenue Pretax income Pretax margin Provision for income taxes Tax rate Net income - Operating (GAAP) Net margin EPS - Operating (GAAP) Y/Y growth Diluted shares Y/Y growth 3Q 14A 2,100 1.6% 9.9% 1,341 759 36.1% 104 5.0% 129 6.1% 233 11.1% 526 25.0% 117 5.6% 643 30.6% 180 28.0% 463 22.0% 0.81 6.7% 571.4 0.0% Dec-13 3Q 14E 2,076 0.5% 8.7% 1,350 727 35.0% 123 5.9% 125 6.0% 247 11.9% 480 23.1% 104 5.0% 583 28.1% 166 28.5% 417 20.1% 0.73 -3.9% 571.4 0.0% Variance % 1.1% 1.1% 1.2% -0.6% 4.4% 1.1% -15.1% -0.9% 3.5% 0.1% -5.7% -0.8% 9.7% 1.9% 12.7% 0.6% 10.2% 2.5% 8.2% -0.5% 11.0% 2.0% 11.0% 10.6% 0.0% 0.0%

Source: Company Reports and Needham Estimates

Source: Needham & Company, LLC

Infosys Ltd.

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Needham & Company, LLC

January 10, 2014

The table below highlights the key operating metrics for the last five quarters. Headcount growth and utilization dropped sequentially. While we anticipate utilization will remain in the low to mid-70s, we believe INFY could look to ramp hiring as the demand picture, particularly for large transformation deals, is improving. Attrition increased for the seventh straight quarter and is the highest among INFYs major peers. We see the rising attrition rate as a concern since it could place incremental pressure on margins as it leads to higher costs to acquire and retain employees. Geographic growth was concentrated in Europe/India/ROW, while North America was down slightly sequentially. The BFSI and Retail/Life Sciences segments drove the growth by industry group. Figure 2
Key Operating Metrics Q3 13 155,629 1.2% 15.1% Q4 13 156,688 0.7% 16.3% Q1 14 157,263 0.4% 16.9% Infosys (INFY) Q2 14 160,227 1.9% 17.3% Q3 14 158,404 -1.1% 18.1%

Total Employees q/q growth Attrition (LTM) Utilization Including trainees Excluding trainees Constant currency growth (q/q %) By geography North America Europe ROW India By vertical Financial Services and Insurance Manufacturing Retail, Logistics, CPG and Life Sciences Energy & Utilities, Communications and Services
Source: Needham & Company, LLC

67.1% 70.6%

68.5% 71.4%

70.7% 74.3%

73.1% 77.5%

72.5% 76.9%

1.6% 14.4% 7.4%

0.1% 6.5% -0.9%

5.0% -2.4% 6.5%

3.9% 3.8% 6.0% 6.2%

-0.8% 3.5% 5.2% 8.1%

6.0% 4.0% 6.2% 7.1%

2.7% 3.9% 0.8% -1.0%

2.9% 4.5% 6.7% -0.6%

3.9% 6.6% 1.2% 5.6%

1.5% -0.3% 2.9% 0.3%

Infosys Ltd.

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Needham & Company, LLC

January 10, 2014

Figure 3
Income Statement
($ in millions, except per share data) FY 2012 6,994.0 15.8% 4118.0 2876.0 41.1% 366.0 5.2% 497.0 7.1% 863.0 12.3% 2013.0 28.8% 397.0 5.7% 2410.0 34.5% 694.0 28.8% 1716.0 24.5% 1716.0 24.5% 3.00 14.5% 571.4 0.0% Jun-12 1Q 13 1,752.0 -1.1% 4.8% 1059.0 693.0 39.6% 86.0 4.9% 118.0 6.7% 204.0 11.6% 489.0 27.9% 87.0 5.0% 576.0 32.9% 160.0 27.8% 416.0 23.7% 416.0 23.7% 0.73 8.3% 571.4 0.0% Sep-12 2Q 13 1,797.0 2.6% 2.9% 1114.0 683.0 38.0% 92.0 5.1% 119.0 6.6% 211.0 11.7% 472.0 26.3% 129.0 7.2% 601.0 33.4% 170.0 28.3% 431.0 24.0% 431.0 24.0% 0.75 4.9% 571.4 0.0% Dec-12 3Q 13 1,911.0 6.3% 5.8% 1203.0 708.0 37.0% 99.0 5.2% 118.0 6.2% 217.0 11.4% 491.0 25.7% 92.0 4.8% 583.0 30.5% 149.0 25.6% 434.0 22.7% 434.0 22.7% 0.76 -5.2% 571.4 0.0% Mar-13 4Q 13 1,938.0 1.4% 9.4% 1261.0 677.0 34.9% 96.0 5.0% 124.0 6.4% 220.0 11.4% 457.0 23.6% 125.0 6.4% 582.0 30.0% 138.0 23.7% 444.0 22.9% 444.0 22.9% 0.78 -4.1% 571.4 0.0% FY 2013 7,398.0 5.8% 4,637.00 2761.0 37.3% 373.0 5.0% 479.0 6.5% 852.0 11.5% 1909.0 25.8% 433.0 5.9% 2342.0 31.7% 617.0 26.3% 1725.0 23.3% 1725.0 23.3% 3.02 0.5% 571.4 0.0% Jun-13 1Q 14 1,991.0 2.7% 13.6% 1296.0 695.0 34.9% 103.0 5.2% 124.0 6.2% 227.0 11.4% 468.0 23.5% 103.0 5.2% 571.0 28.7% 153.0 26.8% 418.0 21.0% 418.0 21.0% 0.73 0.5% 571.4 0.0% Sep-13 2Q 14 2,066.0 3.8% 15.0% 1337.0 729.0 35.3% 120.0 5.8% 158.0 7.6% 278.0 13.5% 451.0 21.8% 81.0 3.9% 532.0 25.8% 149.0 28.0% 383.0 18.5% 383.0 18.5% 0.67 -11.1% 571.4 0.0% Dec-13 3Q 14 2,100.0 1.6% 9.9% 1341.0 759.0 36.1% 104.0 5.0% 129.0 6.1% 233.0 11.1% 526.0 25.0% 117.0 5.6% 643.0 30.6% 180.0 28.0% 463.0 22.0% 463.0 22.0% 0.81 6.7% 571.4 0.0% Mar-14 4Q 14E 2,121.0 1.0% 9.4% 1361.7 759.3 35.8% 110.3 5.2% 131.5 6.2% 241.8 11.4% 517.5 24.4% 106.1 5.0% 623.6 29.4% 174.6 28.0% 449.0 21.2% 449.0 21.2% 0.79 1.1% 571.4 0.0% FY 2014E 8,278.0 11.9% 5,335.68 2942.3 35.5% 437.3 5.3% 542.5 6.6% 979.8 11.8% 1962.5 23.7% 407.1 4.9% 2369.6 28.6% 656.6 27.7% 1713.0 20.7% 1713.0 20.7% 3.00 -0.7% 571.4 0.0% Jun-13 1Q 14E 2,163.4 2.0% 8.7% 1399.7 763.7 35.3% 114.7 5.3% 136.3 6.3% 251.0 11.6% 512.7 23.7% 108.2 5.0% 620.9 28.7% 173.9 28.0% 447.0 20.7% 447.0 20.7% 0.78 7.0% 571.4 0.0% Sep-13 2Q 14E 2,217.5 2.5% 7.3% 1425.9 791.6 35.7% 119.7 5.4% 139.7 6.3% 259.4 11.7% 532.2 24.0% 110.9 5.0% 643.1 29.0% 180.1 28.0% 463.0 20.9% 463.0 20.9% 0.81 20.9% 571.4 0.0% Dec-13 3Q 14E 2,250.8 1.5% 7.2% 1440.5 810.3 36.0% 123.8 5.5% 139.5 6.2% 263.3 11.7% 546.9 24.3% 112.5 5.0% 659.5 29.3% 184.7 28.0% 474.8 21.1% 474.8 21.1% 0.83 2.6% 571.4 0.0% Mar-14 4Q 14E 2,284.5 1.5% 7.7% 1462.1 822.4 36.0% 127.9 5.6% 141.6 6.2% 269.6 11.8% 552.9 24.2% 114.2 5.0% 667.1 29.2% 186.8 28.0% 480.3 21.0% 480.3 21.0% 0.84 7.0% 571.4 0.0% FY 2015E 8,916.2 7.7% 5,728.18 3188.0 35.8% 486.1 5.5% 557.2 6.2% 1043.3 11.7% 2144.7 24.1% 445.8 5.0% 2590.5 29.1% 725.4 28.0% 1865.2 20.9% 1865.2 20.9% 3.26 8.9% 571.4 0.0%

Infosys [INFY]

Fiscal Year March Revenue Q/Q growth Y/Y growth Cost of revenue Gross profit Gross margin Selling & marketing % of revenue General & administrative % of revenue Total operating expenses % of revenue Operating incom e Operating margin Other income (expense), net % of revenue Pretax income Pretax margin Income taxes Tax rate Net income - operating Net margin Net income - reported Net margin Diluted EPS - operating Y/Y growth Diluted shares Y/Y growth

Source: Company Reports and Needham Estimates

Source: Needham and Company, LLC

Infosys Ltd.

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Needham & Company, LLC

January 10, 2014

Figure 4
Operating Metrics FY 11 Employee Metrics Employees, period end Total Employees (Consolidated) S/W professionals (IT Services and Consulting) Billable Banking Product Group Trainees Support and sales Infosys BPO Gross additions - consolidated Net additions - consolidated Laterals hired - consolidated LTM Attrition (Standalone) Voluntary LTM Attrition (Standalone) FY 12 Q1 13 Q2 13 Q3 13 Q4 13 FY13 Q1 14 Q2 14 Infosys (INFY) Q3 14

130,820 106,696 92,183 6,220 8,293 6,011 18,113 43,120 17,024 15,883 17.0% 15.5%

149,994 122,337 105,957 8,139 8,241 7,134 20,523 45,605 19,174 14,966 14.7% 14.0%

151,151 121,245 108,375 8,097 4,773 7,585 22,321 9,236 1,157 5,233 14.9% 14.2%

153,761 123,076 110,744 7,677 4,655 7,767 22,918 10,420 2,610 3,656 15.0% 14.3%

155,629 123,796 112,439 7,460 3,897 8,119 23,714 8,390 1,868 4,351 15.1% 14.4%

156,688 123,666 112,440 7,249 3,977 8,388 24,634 8,990 1,059 3,545 16.3% 15.0%

156,688 123,666 112,440 7,249 3,977 8,388 24,634 37,036 6,694 16,781 16.3% 15.0%

157,263 122,687 110,102 7,004 5,581 8,369 26,207 10,138 575 3,008 16.9% 15.5%

160,227 125,019 111,133 6,580 7,306 8,374 26,834 12,168 2,964 3,806 17.3% 15.8%

158,404 123,657 111,022 6,977 5,658 8,272 26,475 6,682 (1,823) 3,333 18.1% 16.6%

Utilization measures (IT Services and Consulting) Including trainees Excluding trainees

70.3% 78.2%

66.9% 74.1%

64.7% 69.5%

67.5% 71.6%

67.1% 70.6%

68.5% 71.4%

67.0% 70.7%

70.7% 74.3%

73.1% 77.5%

72.5% 76.9%

Utilization measures (IT Services and Consulting + Product) Including trainees 72.1% Excluding trainees 79.6% Revenue segmentation Revenue by geography North America Europe India ROW Total Revenue by industry - new classification FSI (Financial Services and Insurance) Banking & financial services Insurance Manufacturing RCL (Retail, Logistics, CPG and Life Sciences) Retail & CPG Transport & Logistics Life Sciences Healthcare ECS (Energy & Utilities, Communications and Services) Energy & Utilities Communication and Services Others Total 35.9% 27.7% 8.1% 19.6% 20.5% 14.2% 1.9% 3.5% 1.0% 24.0% 6.1% 12.9% 5.0% 100.0%

69.0% 75.9%

66.9% 71.5%

69.5% 73.4%

69.0% 72.3%

70.2% 73.0%

68.9% 72.5%

72.3% 75.8%

74.5% 78.7%

73.8% 78.1%

65.3% 21.5% 2.2% 11.0% 100.0%

63.9% 21.9% 2.2% 12.0% 100.0%

64.1% 21.4% 2.0% 12.5% 100.0%

63.9% 21.9% 1.6% 12.6% 100.0%

61.0% 24.0% 2.2% 12.8% 100.0%

60.2% 25.0% 2.4% 12.4% 100.0%

62.2% 23.1% 2.1% 12.6% 100.0%

61.4% 23.6% 2.6% 12.4% 100.0%

61.5% 24.0% 2.4% 12.1% 100.0%

60.0% 24.9% 2.6% 12.5% 100.0%

35.1% 27.9% 7.2% 20.5% 23.0% 15.7% 1.8% 3.9% 1.6% 21.4% 5.9% 10.2% 5.3% 100.0%

34.3% 27.7% 6.6% 22.0% 23.7% 16.9% 1.7% 3.7% 1.4% 20.0% 4.6% 10.1% 5.3% 100.0%

33.7% 27.0% 6.7% 22.1% 24.0% 17.0% 1.7% 3.9% 1.4% 20.2% 5.3% 9.9% 5.0% 100.0%

33.7% 26.8% 6.9% 21.7% 24.1% 16.0% 1.8% 4.8% 1.5% 20.5% 5.4% 9.6% 5.5% 100.0%

33.9% 27.2% 6.7% 22.2% 23.9% 15.4% 1.8% 4.8% 1.9% 20.0% 5.2% 9.3% 5.5% 100.0%

33.9% 27.1% 6.8% 22.0% 23.9% 16.3% 1.7% 4.3% 1.6% 20.2% 5.2% 9.7% 5.3% 100.0%

33.7% 27.0% 6.7% 22.5% 24.7% 15.8% 1.8% 4.7% 2.4% 19.1% 4.9% 8.5% 5.7% 100.0%

33.4% 27.1% 6.3% 23.2% 24.2% 15.7% 1.8% 4.6% 2.1% 19.2% 5.1% 8.3% 5.8% 100.0%

33.5% 27.2% 6.3% 22.8% 24.6% 16.0% 1.6% 5.0% 2.0% 19.1% 5.2% 7.9% 6.0% 100.0%

Contract type (IT Services and Consulting) Fixed price Time and Material Total

42.4% 57.6% 100.0%

41.0% 59.0% 100.0%

39.9% 60.1% 100.0%

42.5% 57.5% 100.0%

43.4% 56.6% 100.0%

42.5% 57.5% 100.0%

42.1% 57.9% 100.0%

42.1% 57.9% 100.0%

42.1% 57.9% 100.0%

42.9% 57.1% 100.0%

Revenue by service offering - new classification Business Operations Application Development Application Maintenance Infrastructure Management Services Testing Services Business Process Management Product Engineering Services Others Consulting & Systems Integration Consulting & Package Implementation Systems Integration Others Products, Platforms and Solutions Products BPM Platforms Others Total Constant currency growth (qoq %) By geography - North America - Europe - ROW - India By vertical FSI (Financial Services and Insurance) Manufacturing RCL (Retail, Logistics, CPG and Life Sciences) ECS (Energy & Utilities, Communications and Services) 63.5% 16.0% 22.9% 6.3% 7.5% 5.6% 2.4% 2.8% 31.2% 25.6% 5.4% 0.2% 5.3% 4.9% 0.4% 100.0% 25.5% 63.0% 16.8% 21.6% 6.0% 7.9% 4.6% 3.4% 2.7% 31.2% 24.9% 6.2% 0.4% 5.8% 4.6% 0.9% 0.3% 100.0% 64.0% 17.1% 20.9% 6.6% 8.3% 4.9% 3.5% 2.7% 29.9% 64.5% 17.0% 21.4% 6.8% 8.6% 4.7% 3.4% 2.6% 30.0% 61.9% 15.8% 20.0% 6.9% 8.4% 5.2% 3.2% 2.4% 32.6% 61.6% 15.5% 19.9% 7.2% 8.3% 5.2% 3.2% 2.3% 32.7% 62.9% 16.3% 20.5% 6.9% 8.4% 5.0% 3.3% 2.5% 31.4% 61.0% 15.7% 19.3% 7.0% 8.4% 5.1% 3.2% 2.3% 33.6% 61.4% 16.0% 19.1% 7.2% 8.4% 5.1% 3.3% 2.3% 33.3% 61.3% 15.9% 19.2% 6.9% 8.7% 5.3% 3.2% 2.1% 33.4%

6.1% 4.5% 1.3% 0.3% 100.0% -0.4% 1.7% -7.2% 2.2%

5.5% 3.8% 1.3% 0.4% 100.0% 2.4% 2.2% 5.1% 1.8%

5.5% 3.9% 1.3% 0.3% 100.0% 5.8% 1.6% 14.4% 7.4%

5.7% 4.0% 1.3% 0.4% 100.0% 1.7% 0.1% 6.5% -0.9%

5.7% 4.0% 1.3% 0.4% 100.0%

5.4% 3.7% 1.2% 0.5% 100.0%

5.3% 3.7% 1.2% 0.4% 100.0%

5.3% 3.8% 1.1% 0.4% 100.0%

5.0% -2.4% 6.5%

3.9% 3.8% 6.0% 6.2%

-0.8% 3.5% 5.2% 8.1%

-0.4% 3.1% 2.6% -7.3%

0.3% 2.9% 3.9% 3.7%

6.0% 4.0% 6.2% 7.1%

2.7% 3.9% 0.8% -1.0%

2.9% 4.5% 6.7% -0.6%

3.9% 6.6% 1.2% 5.6%

1.5% -0.3% 2.9% 0.3%

Source: Needham & Company, LLC

Infosys Ltd.

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January 10, 2014

Infosys Ltd.

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January 10, 2014

ANALYST CERTIFICATION
I, Mayank Tandon hereby certify that the views expressed in this research report accurately reflect my personal views about the subject company (ies) and its (their) securities. I, also certify that I, have not been, and will not be receiving direct or indirect compensation in exchange for expressing the specific recommendation(s) in this report.

RATINGS DISTRIBUTIONS FOR NEEDHAM & COMPANY, LLC

Strong Buy Buy Hold Underperform Rating Suspended Restricted Under Review

% of companies under coverage with this rating 4 62 34 <1 0 0 <1

% for which investment banking services have been provided for in the past 12 months 31 24 7 0 0 0 0

Needham & Company, LLC employs a rating system based on the following:

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Buy: A security, which at the time the rating is instituted, indicates an expectation of a total return between 10% and 25% over the next 12 months. Underperform: A security, which at the time the rating is instituted, indicates an expectation that the price will depreciate by more than 10% over the next 12 months.

Under Review: Stocks may be placed UR by the analyst, indicating that the stock rating and/or price target are subject to possible change in the near term, usually in response to an event that may effect the investment case or valuation. Rating Suspended: Needham & Company, LLC has suspended the rating and/or price target, if any, for this stock, because there is not a sufficient fundamental basis for determining a rating or price target. The previous rating and price target, if any, are no longer in effect and should not be relied upon. Restricted: Needham & Company, LLC policy and/or applicable law and regulations preclude certain types of communications, including an investment recommendation, during the course of Needham & Company, LLCs engagement in an investment banking transaction and in certain other circumstances. For disclosure purposes, in accordance with FINRA requirements, please note that our Strong Buy and Buy ratings most closely correspond to a "Buy" recommendation. When combined, 65% of companies under coverage would have a "Buy" rating and 25% have had investment banking services provided within the past 12 months. Hold ratings mostly correspond to a "Hold/Neutral" recommendation; while our Underperform rating closely corresponds to the "Sell" recommendation required by the FINRA.

Our rating system attempts to incorporate industry, company and/or overall market risk and volatility. Consequently, at any given point in time, our investment rating on a stock and its implied price appreciation may not correspond to the stated 12-month price target. For valuation methods used to determine our price targets and risks related to our price targets, please contact your Needham & Company, LLC salesperson for a copy of the most recent research report. Stock price charts and rating histories for companies under coverage and discussed in this report are available at http://www.needhamco.com/. You may also request this information by writing to: Needham & Company, LLC, Attn: Compliance/Research, 445 Park Ave., 3rd Floor, New York, NY 10022 By issuing this research report, each Needham & Company, LLC analyst and associate whose name appears within this report hereby certifies that (i) the recommendations and opinions expressed in the research report accurately reflect the research analysts and associates personal views about any and all of the subject securities or issuers discussed herein and (ii) no part of the research analysts or associates compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst or associate in the research report. Disclosures The research analyst and research associate have received compensation based upon various factors, including quality of research, investor client feedback, and the Firm's overall revenues, which includes investment banking revenues for the following: Infosys Ltd. Equity Options Disclosure Any Equity Options Opinions (Opinions) contained within this report was prepared by the Equity Options Sales and Trading Desk of Needham & Company, LLC (Needham or the Firm) for distribution to Needhams clients. This Opinion consists of market information and general market commentary only. It is not intended to be an analysis of any security or to provide any information sufficient upon which to base an investment decision.

THIS EQUITY OPTIONS OPINION IS NOT A PRODUCT OF NEEDHAMS RESEARCH DEPARTMENT AND IS NOT A RESEARCH REPORT. Unless otherwise specifically stated, the information and commentary expressed herein are solely those of the author and may differ from the information, views and analysis expressed by Needhams Research Department or other departments of the Firm or its affiliates. Needham and its affiliates may have positions (long or short), effect transactions or make a market in the securities or financial instruments referenced in this Opinion. Needham or its affiliates may engage in securities transactions that are not consistent with the information and commentary expressed in this Opinion. Needham may have provided investment banking or other services to the issuers mentioned herein and may solicit such services in the future. If this Opinion includes extracts or summary material derived from research reports produced by Needhams Research Department, you are directed to the most recent research report for further details, including analyst certifications and other important disclosures. Copies of such reports may be obtained from your Needham sales representative or at www.needhamco.com This material is provided for informational purposes only and is not intended as a recommendation or an offer or solicitation for the purchase or sale of any security or financial instrument. Any investment decision by you should be based on your specific investment objectives and financial situation. Please contact your Needham sales representative for specific guidance.

Infosys Ltd.

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January 10, 2014

The information contained in this Opinion has been obtained from or is based upon sources believed to be reliable, but neither Needham nor the author makes any representation or warranty as to its accuracy or completeness. The information contained in this Opinion is as of the date specified herein. Needham does not undertake any obligation to monitor or update the information. Past performance is not indicative of future results and no representation or warranty, express or implied, is made with respect to future performance. Needham disclaims all liability for any loss that may arise (whether direct or consequential) from any use of the information contained in this Opinion.

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This report is for informational purposes only and does not constitute a solicitation or an offer to buy or sell any securities mentioned herein. Information contained in this report has been obtained from sources believed to be reliable, but Needham & Company, LLC makes no representation as to its accuracy or completeness, except with respect to the Disclosure Section of the report. Any opinions expressed herein reflect our judgment as of the date of the materials and are subject to change without notice. The securities discussed in this report may not be suitable for all investors and are not intended as recommendations of particular securities, financial instruments or strategies to particular clients. Investors must make their own investment decisions based on their financial situations and investment objectives. The value of income from your investment may vary because of changes in interest rates, changes in the financial and operational conditions of the companies and other factors. Investors should be aware that the market price of securities discussed in this report may be volatile. Due to industry, company and overall market risk and volatility, at the securities current price, our investment rating may not correspond to the stated price target. Additional information regarding the securities mentioned in this report is available upon request. Copyright 2013, Needham & Company, LLC, Member FINRA, SIPC.

Infosys Ltd.

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