Sample Report

18/04/2009

Darshan R.Nikam

Management Team

Sample Report

Company Overview
The company was incorporated as Infosys Consultants Private Limited on 2nd July 1981 at Mumbai. Infosys was promoted by professionals Viz. Mr. S. Gopalakrishnan, Mr. K. Dinesh, Mr. Nandan M Nilekani, Mr. N.R. Narayana Murthy & Mr. N S Raghavan. On 21st April 1992 the name changed to Infosys Technologies Private Limited, and the registered office moved to Bangalore. On 2nd June 1992 the company was converted into a Public Limited Company under the name Infosys Technologies Limited. In 1993 the company turned up with ISO 9000 certification. Infosys became the first Indian company to be listed on an American Stock Exchange. It is listed on the Nasdaq Composite Index as INFY. It has been clarified at level 5, a level achieved by only 1.5 per cent of the more than 1000 software companies tested under the capability maturity model of the Software Engineering Institute (SEI). Infosys Technologies Limited along with its majority owned and controlled subsidiary, Infosys BPO Limited, India (Infosys BPO) formerly known as Progeon Limited, and wholly-owned subsidiaries, Infosys Technologies (Australia) Pty. Limited (Infosys Australia), Infosys Technologies (China) Company Limited (Infosys China) formerly known as Infosys Technologies (Shanghai) Company Limited, Infosys Consulting, Inc., USA (Infosys Consulting) and Infosys Technologies S. de R.L. de C.V. (Infosys Mexico) is a leading global technology services organization.

Sample Report

Products and Services

Company is engaged in software development in the form of services, turnkey projects and products for domestic and export market. The software development is targeted towards the distribution, telecommunication and manufacturing sector world wide. The company provides software maintenance, re-engineering and downsizing of software applications for various market segments. The company provides end-to-end business solutions that leverage technology thereby enabling clients to enhance business performance. The solutions span the entire software life cycle encompassing technical consulting, design, development, re-engineering, maintenance, system integration, package evaluation and implementation, and testing and infrastructure management services. In addition, the company offers software products for the banking industry. In 2000, the company launched Finacle an integrated, centralized, multi-currency and multi-language-enabled and functionally rich banking solution to address retail and corporate banking requirements. Infosys has an e-platform for the banking and finance industry called Finacle to streamline the entire banking process for an entire gamut of services that banks offer, including insurance, venture capital and e-commerce. It integrates a wide range of delivery channels such as ATM/POS, call centers, internet, mobiles and hand held devices. Avaya Inc, a leading global provider of voice and data networks to businesses, has a partnership with Infosys to provide consulting and IT services to strengthen its customer relationship management (CRM) solutions that include Avaya Interaction Centre, Avaya Commitment Manager and Avaya Business Intelligence.

Global Reach
Company has a strategic global relationship with US-based Microsoft Corporation, the worldwide leader in computing software, for developing, promoting and delivering a comprehensive portfolio of Infosys business solution offerings and enterprise services built using the Microsoft.NET Enterprise Server platform. As part of the strategic global relationship, Infosys and Microsoft will develop business solution offerings in areas such as Customer Relationship Management, ecommerce, Financial Services, Insurance and Retail. Infosys has tie-ups with Franklin Templeton Investments (FTI) for interactive information infrastructure. The company has tie up in the telecom solution area with US-based Quintessent Communications Inc, a leader in the telecom industry integrated service. Infosys and Quintessent working together to develop and test selected applications that automate data exchange between telecommunications carriers. The company has also tied up with another U.S.-based firm, Jetstream Communications Inc, to co-develop broadband solutions. Infosys has an alliance with Kakawa Discount House, Nigeria a discount house formed by a consortium of key banks in Nigeria. Kakawa Discount House will deploy Infosys Finacle suite of solutions. Aircraft maker Airbus Industries has hired Infosys Technologies for wing design. Infosys is focusing on avionics domain as a high priority area. Infosys avionics group has already started began working the project and expects to do more for the aircraft maker. The avionics group is part of the Infosys engineering services consulting practice (ESCP) group. It was set up recently

Sample Report

to target global leaders in the avionics business, and comprises professionals and senior industry consultants. The Company has 52 Global Development Centers, the majority of which are located in India. The Company also has development centers in various countries including Australia, Canada, China, Japan, Mauritius, Mexico, Poland and at multiple locations in the United States and Europe.

Branding
During the year 2008, the company received Diamond Award for the best global brand campaign in the category of Sharpening Brand and Competitive Differentiation from the IT Services Marketing Association (ITSMA). The company got extensive coverage in leading global print, electronic and digital media. The company was also featured on leading online business and technology destinations like www.cio.com , www.businessweek.com and www.forbes.com. CNBC promoted the Infosys brand on its channels across the US, Europe and Asia as a sponsor of the Whos in charge? debate and as the host of the 2020: Future by design breakfast at Davos. The company is recognized as a leader by leading analyst firms for many of its offerings. A leading analyst firm ranked the company as a leader in global IT infrastructure outsourcing, SAP implementation providers and Oracle implementation providers. The company is also figured as a leader for North America and Europe Offshore Applications Services. Infosys BPO was ranked amongst the top six comprehensive FAO service providers by a leading analyst firm. The company has leveraged Web 2.0 technologies for effective online branding. The Companys blogs ran on www.economist.com, videos ran on YouTube and the investor section of the companys website was voted as the winner in the Best Investors Relations Website and Best Corporate Governance categories in Asia Pacific and Africa by MZ Consult NY LLC, in the 2008 investor relations global rankings. The company also has its own intranet-based TV channel, Infy TV, for internal commutation and branding. With Infosys, clients are assured of a transparent business partner, world class processes, speed of execution and the power to stretch their IT budget by leveraging the Global Delivery Model that Infosys pioneered. Infosys has over 103,000 employees in over 50 offices worldwide.

Sample Report

Recent News
Infosys adds net of 1,772 employees in Q4 2009 15/04/2009

Infosys Technologies and its subsidiaries added net of 1,772 employees during the quarter ended March 31, 2009. The gross addition during the last quarter was 4,935 employees. ``The year ahead would be challenging on the people front, `` said T V Mohandas Pai, Member of the Board and Head - HRD and Education & Research. ``Our continuous investment in capability development, training and certification would make us more competitive. We have tightened our performance management system to create a more focused workforce, `` he said.

Infosys eyes acquisitions in US

28/03/2009

Infosys Technologies Ltd eyeing at some acquisition in US during the downturn, cochairman Nandan Nilekani was quoted as saying on Friday. "Acquisitions will definitely be very accessible in this market from a price point of view', Nilekani told the Wall Street Journal in an interview.If it makes sense, we'll do it". He said that the companies operating in the areas of healthcare and pharmaceuticals space might make particularly interesting targets, he said. In the interview, Nilekani reiterated Infosys's previous guidance regarding the revenue growth of about 12 per cent for the financial year ending March 31. That would be a sharp deceleration from growth of 35 per cent in the year ended March 31, 2008. Regarding the economic crisis, Nilekani said "I've never seen this level of lack of clarity." He said the executives are "more focused on short-term tactical issues" than making bigger decisions about outsourcing. In response, Nilekani said Infosys is working on alternative payment arrangements with customers that include some that would link fees to business results. However, the other customers are asking to pay on a per-transaction basis, rather than a lump sum for a system. Nilekani said the rising protectionist sentiment in the U.S. also is affecting the decision making of the customers about outsourcing.

Sample Report

Infosys Technologies

16/3/2009

Infosys Technologies Limited announced that it has worked with Bekins Van Lines to successfully transform its enterprise application architecture to support new business channels and growth opportunities. Bekins is one of the largest North American integrated networks and provides services for movement of household, tradeshow and high value and military goods. Working closely with Infosys, Bekins simultaneously modernized all critical operational Quote-to-Cash Logistics systems from a 25-year old legacy platform to a service-oriented architecture (SOA) workflow-based system in only 18 months while maintaining business continuity, "Infosys was a strategic partner throughout our implementation, working with us to help define the modernization strategy and create a migration roadmap at each step of the transformation journey," said Randy Valentino, chief technology officer and vice president of Information Technology at Bekins Van Lines, "The success of this project has not only delivered a highly flexible and efficient IT infrastructure, it has positioned our business for future growth opportunities," As a result of the transformation, Bekins has eliminated significant system inefficiencies leading to improved business processes and reduction in IT costs. The flexible SOA platform facilitates easier integration with external service providers and channel partners, including internet-based lead generation with core shipment and transportation execution systems, and management of the sales process from prospecting to order booking and rating. Bekins has already reduced IT costs over 50 percent through reduced maintenance, license, system hardware and branch communication costs. "We worked closely with the team at Bekins to ensure the success of this project," said Sandeep Dadlani, vice president of Retail, Consumer Packaged Goods and Logistics at Infosys Technologies. "Modernization of legacy applications is a challenge that spans industries and geographies and we were pleased to work with Bekins throughout each phase of this successful project from addressing challenges to achieving benefits.

Sample Report

16/03/2009

Indian IT industry will tide over current crisis: Infosys chief

Indian IT industry would tide over the current crisis and may beat the US in terms of having the largest number IT professionals in the world in the next 3 years, according to Infosys chief and co-founder S Gopalakrishnan, reports Business Standard. He said that the industry offers considerable opportunities over the next 30 years He was speaking during the event - Systems Continuum 2009, organized by IIT Bombays Shailesh J Mehta School of Management. Shares of the company gained Rs 69.2, or 5.64%, to end at Rs 1,296.35. The total volume of shares traded was 314,600 at the BSE (Friday).

Sample Report

Financial Highlights (Stand alone basis)

Sample Report

Ratios
P&L Ratios
200708 98.60 56.72 43.28 4.67 6.90 49.89 31.72 28.23 3.49 4.03 28.57 41.38 71.12 200506 98.18 54.13 45.87 5.53 7.23 47.29 33.12 28.58 4.53 3.36 26.82 44.89 93.96 200304 98.61 52.41 47.59 7.04 7.29 49.69 33.26 28.41 4.85 4.77 26.12 48.10 137.46

Particulars Export revenue/ Total revenue (%) Software dev expenses/ Total revenue (%) Gross Profit/ Total revenue (%) Selling and marketing expenses/Totalrevenue(%) General and administration expenses/ Total revenue (%) Employee costs/ Total revenue (%) Operating profit/ Total revenue (%) Operating profit after depreciation and interest/ Total revenue (%) Depreciation and amortization/Total revenue (%) Tax/ Total revenue (%) PAT from ordinary activities/ Total revenue (%) ROCE (%) Return on invested capital (%)

2006-07 98.40 55.35 44.65 5.47 7.05 48.02 32.13 28.56 3.57 2.68 28.72 45.73 89.10

2004-05 98.05 53.28 46.72 5.72 7.11 46.39 33.90 29.99 3.91 4.74 27.10 51.43 123.56

Growth ratios
Particulars Export revenue (%) Total revenue (%) Operating profit (%) Net profit from ordinary activities (%) EPS from ordinary activities (%) 2007-08 19.28 19.01 17.47 18.35 15.36 2006-07 45.97 45.65 41.35 56.01 52.95 2005-06 31.79 31.60 28.56 30.23 28.02 2004-05 43.27 44.08 46.82 49.52 47.87 2003-04 32.49 31.42 24.50 29.81 29.51

Sample Report

Balance Sheet Ratios

Particulars Debt-equity ratio Debtors revenue (days) Current ratio Cash and cash equivalents/ Total assets (%) Cash and cash equivalents/ Total revenue (%)

2007-08 72 3.28 57.00 49.14

2006-07 64 4.91 50.62 42.97

2005-06 61 2.73 64.71 49.44

2004-05 67 2.77 54.38 41.56

2003-04 48 1.65 85.11 58.16

Ratios - Return
Particulars PAT before exceptional items / average net worth (%) ROCE (PBIT / Average capital employed) (%) Return on average invested capital (%) 2007-08 36.26 41.38 71.12 1.27 2.76 85.97 4.76 1,785 1,94,008 2006-07 41.83 45.73 88.81 1.46 3.29 80.71 8.34 1,549 2,71,987 2005-06 39.89 44.89 93.96 1.49 3.74 80.79 8.61 1,011 2,00,852

Capital out put ratio Invested capital out put ratio Value added / total revenue (%) Enterprise value / Total Revenue (%) Dividend / adjusted public offer price (%) Market Price / adjusted public offer price (%)

10

Sample Report

Infosys Vs Peers
Company Infosys Technologies Ltd. Tata Consultancy Services Ltd. Wipro Ltd. HCL Technologies Ltd. Oracle Financial Services Software Ltd. Sales Rs. Cr. 15,648.00 18,533.72 17,492.60 3,768.62 1,792.97 PAT Rs. Cr. 4,470.00 4,508.76 3,063.30 1,101.82 410.87 Market Capital Rs. Cr. 81,684.45 59,029.79 40,135.34 8,177.95 6,484.59

Parameter a. Key Indicator Sales PAT Net Margin(% of OI) b.Growth Rate sales % PAT % c.Financial Health Debt/Equity d.Price Performance 3 months 6 months 9 months

Infosys (Rs. mn.) TCS (Rs. mn.) Wipro (Rs. mn.) 156480.00 44700.00 28.5 19.01 18.16 0.00 13.77 0.39 -22.36 185337.20 45087.60 27.2 24.3 24.05 20.00 0.01 6.34 -7.42 -34.63 102271.17 20204.80 24.3 19.7 0.00 0.00 0.01 12.78 -13.59 -36.71

Operating Margin(% of OI) 31.8

This page is intentionally left blank

11

Sample Report

12