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INFOSYS
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Contents
History........................................................................................................................ 3
Milestones............................................................................................................ 3
Geography:................................................................................................................. 6
Business..................................................................................................................... 6
Current shareholding.................................................................................................. 7
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Subsidiaries................................................................................................................ 7
Infosys have 10 subsidiaries (excluding step-down subsidiaries) :..........................7
Infosyshave 26 step-down subsidiaries :.................................................................7
Products and platforms............................................................................................... 8
Listing in NYSE............................................................................................................ 8
Foreign exchange earnings and outgo........................................................................8
Global Delivery Model................................................................................................. 9
Revenue Analysis....................................................................................................... 9
Conclusion................................................................................................................ 11
Foreign Exchange Risks ........................................................................................ 11

History
Established in 1981, Infosys is a NYSE listed global consulting and IT services company with more than
158,000 employees. From a capital of US$ 250, Infosys have grown to become a US$ 8.095 billion (LTM Q3
FY14 revenues) company with a market capitalization of approximately US$ 33 billion.
In Infosys's journey of over 30 years, Infosys have catalyzed some of the major changes that have led to
India's emergence as the global destination for software services talent. Infosys pioneered the Global
Delivery Model and became the first IT company from India to be listed on NASDAQ. Infosys's employee stock
options program created some of India's first salaried millionaires.

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Milestones
2013

Infosys Board appoints N. R. Narayana Murthy as Executive Chairman of the Board

Infosys Edge wins the NASSCOM Business Innovation Award for 2013

Infosys presented with 2013 Environmental Tracking Carbon Ranking Leader award

Infosys begins trading on NYSE Euronext London and Paris markets

2012

Listed on the NYSE market

Forbes ranks Infosys among the world's most innovative companies

Infosys among top 25 performers in Caring for Climate Initiative

Infosys crosses the US$ 7 billion revenue mark

Infosys acquires Lodestone Holding AG, a leading management consultancy based in Switzerland

2011

N. R. Narayana Murthy hands over chairmanship to K.V. Kamath

Infosys crosses US$ 6 billion revenue mark, employee strength grows to over 130,000

2010

Infosys crosses the US$ 5 billion revenue mark

2009

Infosys opens its first development center in Brazil and second Latin American development center
in Monterrey, Mexico
Infosys selected as a member of The Global Dow

Employee strength grows to over 100,000

2008

Infosys crosses revenues of US$ $ 4.18 billion

Annual net profits cross US$ 1 billion

2007

Infosys crosses revenues of US$ 3 billion. Employees grow to over 70,000

Opens new subsidiary in Latin America

Kris Gopalakrishnan, COO, takes over as CEO. Nandan M. Nilekani is appointed Co-Chairman of the
Board of Directors

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Reports Q2 revenue of over US$ 1billion

2006

Infosys celebrates 25 years. Revenues cross US$ 2 billion. Employees grow to 50,000+
N. R. Narayana Murthy retires from the services of the company on turning 60. The Board of
Directors appoints him as an Additional Director. He continues as Chairman and Chief Mentor of
Infosys

2005

Records the largest international equity offering of US$ 1 billion from India
Selected to the Global MAKE Hall of Fame

2004

Revenues reach US$ 1 billion

Infosys Consulting Inc. is launched

2003

Establishes subsidiaries in China and Australia

Expands operations in Pune and China, and sets up a development center in Thiruvananthapuram

2002

Touches revenues of US$ 500 million

Opens offices in the Netherlands, Singapore and Switzerland

Sponsors secondary ADS offering

Infosys and the Wharton School of the University of Pennsylvania set up The Wharton Infosys
Business Transformation Awards (WIBTA)

Launches Progeon, offering business process outsourcing services

Nandan M. Nilekani takes over as CEO from N.R. Narayana Murthy, who is appointed Chairman and
Chief Mentor

2001

Touches revenues of US$ 400 million. Opens offices in UAE and Argentina, and a development center
in Japan
N. R. Narayana Murthy is rated among Time Magazine/CNN's 25 most influential businessmen in the
world
Infosys is rated as the Best Employer by Business World/Hewitt

2000

Touches revenues of US$ 200 million

Opens offices in France and Hong Kong, a global development center in Canada and UK, and three
development centers in the US

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Re-launches Banks 2000, the universal banking solution from Infosys, as Finacle

1999

Touches revenues of US$ 100 million. Listed on NASDAQ

Opens offices in Germany, Sweden, Belgium, Australia, and two development centers in the US

Infosys Business Consulting Services is launched

Infosys becomes the 21st company in the world to achieve a CMM Level 5 certification

1998

Starts Enterprise Solutions (packaged applications) practice

1997

Opens an office in Toronto, Canada

Infosys is assessed at CMM Level 4

1996

The Infosys Foundation is established

1995

Opens first European office in the UK and global development centers at Toronto and Mangalore.
Sets up e-Business practice

1994

Moves corporate headquarters to Electronic City, Bangalore. Opens a development center at

Fremont

1993

Introduces Employee Stock Options (ESOP) program

Goes public

Acquires ISO 9001/TickIT certification

1987

Opens first international office in Boston, US

1983

Relocates corporate headquarters to Bangalore

1981

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Infosys is established by N. R. Narayana Murthy and six engineers in Pune, India, with an initial
capital of US$ 250
Signs up its first client, Data Basics Corporation, in New York

Geography:
Infosys is heavily weighed towards North America, and more specifically the US. . Out of the total revenue,
63.8% came from North America, 21.8% from Europe, 2.3% from India and 12.1% from the Rest
of the World.

Business
Infosys total income increased to 36,765 crore from 31,254 crore in the previous year, at a growth rate of
17.6%. Infosys software export revenues aggregated to 35,932 crore, up by 17.8% from 30,514 crore in the
previous year. Infosys revenues from India have increased to 833 crore from 740 crore, with a growth rate
of 12.6%. The share of the fixed-price component of the business was 40.0%, compared to 39.3% during the
previous year Infosys gross profit amounted to 15,103 crore (41.1% of revenue) as against 13,419 crore
(42.9% of revenue) in the previous year. The Profit Before Interest, Depreciation, Taxes and Amortization
(PBIDTA) amounted to 11,015 crore (30.0% of revenue) as against 10,061 crore (32.2% of revenue) in the
previous year. Sales and marketing costs were 5.1% and 4.6% of Infosys revenue for the years ended March
31, 2013 and March 31, 2012, respectively. General and administration expenses were 6.0% and 6.1% of
Infosys revenues during the current year and previous year, respectively. The net profit before exceptional
item and tax was 12,274 crore (33.4% of revenue) as against 11,096 crore (35.5% of revenue) in the
previous year. Infosys seek long-term partnerships with Infosys clients that will enhance their value while
addressing their IT requirements. Infosys client-centric approach has resulted in high levels of client
satisfaction. Infosys derived 97.8% of Infosys consolidated revenues from repeat business. Infosys along with
Infosys subsidiaries, added 235 new clients, including a substantial number of large global corporations. The
total client base at the end of the year stood at 798. The client list for the current and previous years on a
consolidated basis are as follows :

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During the year 2012-13, Infosys added 23.11 lakh sq. ft. of physical infrastructure space. The total available
space as on March 31, 2013
stands at 316.44 lakh sq. ft. The number of marketing offices as at March 31, 2013 was 69 as compared to
65 in the previous year.

Current shareholding
As of 30 September 2013:
Shareholders
Promoters group
Life Insurance Corporation of
India
Aberdeen Asset Management
PLC
Abu Dhabi Investment Authority
Oppenheimer Developing
Markets Fund
Government of Singapore
Others
Total

Shareholdi
ng
15.94%
04.95%
03.89%
02.48%
02.33%
01.98%
68.43%
100.0%

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Subsidiaries
During the year under review, Infosys entered into share purchase agreement with Lodestone Holding AG to
purchase 100% shareholding in Lodestone Holding AG, as a result of which Lodestone Holding AG has
become a 100% wholly-owned subsidiary of Infosys Limited. The cost of acquisition is CHF 311 million.
Lodestone Holding AG, headquartered in Zurich, is a global consulting firm advising international companies
on strategy and process optimization as well as IT transformation. With a value-integration approach,
Lodestone Holding AG pursues a combination of management and IT consulting. Founded in
2005, the firm has presence in 17 countries across five continents. Lodestone Holding AG's advisory
services are primarily geared to the life science, chemical and financial services industries along with the
investment, automotive and consumer goods sectors.

Infosys have 10 subsidiaries (excluding step-down

subsidiaries) :
Infosys BPO Limited; Infosys Technologies (Australia) Pty. Limited; Infosys Technologies (China) Co. Limited;
Infosys Consulting India Limited; Infosys Technologies S. de R. L. de C. V.; Infosys Technologies (Sweden) AB;
Infosys Tecnologia do Brasil Ltda; Infosys Public Services Inc.; Infosys Technologies (Shanghai) Co. Limited;
and Lodestone Holding AG.

Infosys have 26 step-down subsidiaries :

Infosys BPO s.r.o.; Infosys BPO (Poland) Sp.Z.o.o; McCamish Systems LLC; Portland Procurement Services Pty.
Limited; Portland Group Pty. Limited; Lodestone Management Consultants (Canada) Inc.; Lodestone
Management Consultants Inc.; Lodestone Management Consultants Pty. Limited; Lodestone Management
Consultants (Asia Pacific) Limited (liquidated); Lodestone Management Consultants AG; Lodestone Augmentis
AG; Hafner Bauer & dman GmbH; Lodestone Management Consultants (Belgium) S.A.; Lodestone
Management Consultants GmbH, Austria; Lodestone Management Consultants Pte Ltd.; Lodestone
Management Consultants SAS; Lodestone Management Consultants s.r.o; Lodestone Management
Consultants GmbH, Germany; Lodestone Management Consultants China Co., Ltd; Lodestone Management
Consultants Ltd; Lodestone Management Consultants B.V.; Lodestone Management Consultants Ltda;
Lodestone Management Consultants sp. z.o.o.; Lodestone Management Consultants Portugal, Unipessoal,
Lda; S.C. Lodestone Management Consultants S.R.L; and Lodestone Management Consultants S.R.L.

Products and platforms

Infosys Products, Platforms and Solutions (PPS) are geared to drive innovation-led growth for Infosys clients
that will power tomorrow's
enterprise, today. Combining Infosys market-leading products Cloud-based hosting and platform operations
Infosys offerings help enterprises accelerate growth, maximize profitability and increase asset efficiency.
Infosys PPS offerings have been recognized as an industry best practice for developing and managing
software assets by Forrester Research, in a July 2012 report Asset-Based IT Services Shift Service Vendors
Operating Models.
Infosys PPS portfolio includes :

Finacle

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Finacle partners with banks to transform process, product and customer experience, arming them with
accelerated innovation that is key to building tomorrow's bank. Infosys solutions address the core banking,
e-banking, mobile banking, customer relationship
management, wealth management, treasury, and Islamic banking requirements of retail, corporate and
universal banks worldwide.
Keeping up with global trends, Finacle also offers new-age solutions like digital commerce for enabling
cashless transactions and financial inclusion for banking the unbanked. With these offerings Finacle enables
banks to stay ahead of changing customer demands,
competition and mounting global regulations as they transform into tomorrow's banks. The Finacle R&D unit
is engaged in research and
development of new technologies in the banking domain. Today Finacle is the choice of 168 banks across 81
countries and powers operations across 49,600 branches globally. It enables its customer banks to serve 447
million accounts and 359 million consumers worldwide. Finacle is regarded as a leader in the core banking
market space by industry analysts for years now. 44% of the banks leveraging Finacle are among the
World's Top 1000.

Infosys Edge suite of Products and Platforms

Infosys Edge suite of products, platforms and solutions caters to next-generation market needs driven by
global trends, including digital consumers, emerging economies, new commerce and healthcare. Infosys
offerings leverage technologies in the areas of cloud computing, mobility, Big Data, rich media and social
media. By combining products from us and Infosys partners, Cloud-based hosting and platform operations,
Infosyshelp clients achieve the business outcomes they seek. Infosys Edge is adopted by more than 75
global clients across industries and has also won key industry recognitions.

Listing in NYSE
During the year, Infosys withdrew the listing of Infosys American Depositary Shares (ADSs) from NASDAQ and
listed the same in the New York Stock Exchange (NYSE) and NYSE Euronext London and Paris. The delisting
and listing is to leverage the NYSE-Euronext partnership to seek listing in Paris and London stock exchanges
which are home to many of Infosys investors, clients and employees. This will also empower Infosys investor
base and increase the trading window available for Infosys global investors. Infosys believe this will support
Infosys aspirational and strategic goals to grow the Company.

Foreign exchange earnings and outgo

Activities relating to exports, initiatives taken to increase exports, development of new export markets for
products and services, and export plans Infosys have established a substantial direct marketing network
around the world, including North America, Europe and Asia Pacific. These offices are staffed with sales and
marketing specialists who sell Infosys services to large international clients.

Global Delivery Model

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Infosys Global Delivery Model allows us to take work to the location where the best talent is available and
where it makes the best economic sense with the least amount of acceptable risk. Infosys Global Delivery
Model enables us to derive maximum benefit from :
Infosys large pool of highly-skilled technology professionals
24-hInfosys execution capabilities across multiple time zones
The ability to accelerate delivery times of large projects by simultaneously processing project components
The cost competitiveness across geographic regions
The built-in redundancy to ensure uninterrupted services, and
A knowledge management system that enables us to reuse solutions where appropriate. In a typical
offshore development project, Infosys assign a team of Infosys technology professionals to visit a client's site
to determine the scope and requirements of the project. Once the initial specifications of the project have
been established, Infosys project managers return to the relevant global development center to supervise a
larger team of technology professionals dedicated to the development or implementation of the solution.
Typically, a small team remains at the client's site to manage project coordination and address changes in
requirements as the project progresses. Teams return to the client's site when necessary to ensure seamless
integration. To the extent required, a dedicated team provides ongoing maintenance from Infosys global
development centers. The client's systems are linked to Infosys facilities enabling simultaneous processing in
Infosys global development centers. Infosys model ensures that project managers remain in control of
execution throughout the life of the project, regardless of their geographical location. Infosys have
successfully executed projects at all of Infosys global development centers. Infosys have 87 global
development centers, of which 32 are located in India, 17 are in North and South America, 22
are in the Asia-Pacific region and 16 are in Europe. Infosys largest development centers are located in
India. Approximately 71.5% of the total billed person months for Infosys services rendered during fiscal 2013
originated from Infosys global development centers in India, with the balance efforts being rendered at client
sites and Infosys global development centers located outside India. Infosys Global Delivery Model mitigates
risks associated with providing offshore technology services to Infosys clients. For Infosys communications
needs, Infosys use multiple service providers and a mix of terrestrial and optical fiber links with alternate
routing. In India, Infosys rely on two telecommunications carriers to provide high-speed links connecting
Infosys global development centers. Internationally, Infosys rely on multiple links on submarine cable paths
provided by various service providers to connect Infosys Indian global development centers with network
hubs in other parts of the world. Infosys significant investment in redundant infrastructure enables us to
provide uninterrupted service to Infosys client

Revenue Analysis
Infosys net profit increased by 7.6% to ` 9,116 crore for the year ended March 31, 2013 from ` 8,470 crore in
the previous year. This
represents 24.8% and 27.1% of total revenue for the years ended March 31, 2013 and March 31, 2012,
respectively.
Geographic segment wise income and operating income are given below

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Infosys treasury policy calls for investing cash surplus in a combination of instruments. (a) Deposits in highlyrated scheduled banks and financial institutions (b) Debt mutual funds (c) Tax free bonds in highly-rated and
Government backed entities (d) Certificate of deposits, Commercial paper or any other similar instrument
issued by highly-rated banks and financial institutions. The increase in interest income during the year was
on account of higher cash generation in the business and higher average cash surplus.
Infosys use foreign exchange forward contracts and option contracts to hedge Infosys exposure to
movements in foreign exchange rates.
Foreign exchange gains / (losses) include transaction and translation gain of ` 189 crore and ` 344 crore for
the years ended March 31, 2013 and March 31, 2012, respectively and forward / option contracts gain of ` 68
crore and a loss of ` 263 crore for the years ended March 31, 2013 and March 31, 2012, respectively. The
composition of currency-wise revenues for the years ended
March 31, 2013 and March 31, 2012 is as follows :

Geographic segmentation is based on business sourced from that geographic region and delivered from both
onsite and offshore. North America comprises the U.S., Canada and Mexico, Europe includes continental
Europe (both the east and the west), Ireland and the U.K., and the Rest of the World comprising all other
places except those mentioned above and India. Consequent to the above change in the composition of
reportable segments, the prior year comparatives have been restated.

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Conclusion
Infosys has been a prime beneficiary of the outsourcing boom that has taken place in India throughout the
2000s. In recent years, however, Infosys along with other Indian firms have also faced rapid wage inflation,
as U.S. corporations have flocked to India in search of inexpensive but skilled labor for their own overseas
operations.

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Although Infosys' margins have dropped in recent years, the company is still significantly more profitable
than Wipro, its closest competitor. It commands larger, more lucrative projects, resulting in higher revenue
per employee. At the same time, it pays its employees, particularly new recruits, less than the industry
average. The company's reputation and its best in industry training make it easy for it to attract high caliber
candidates, despite lower salaries.
In the near term, Infosys' biggest risk is its continued rapid growth. Infosys' business is employee intensive,
meaning that the company has to hire large numbers of employees to in order to grow revenue. While the
company's reputation is a major asset in attracting new recruits, training and integrating increasingly large
numbers of new recruits will prove a major challenge for the company.

Foreign Exchange Risks

Infosys gets the majority of its business from outside India. As a result, Infosys feels the impact of foreign
exchange fluctuations more than most companies. Although Infosys is able to adjust its fees to
compensate for a weaker dollar, continuing weakening of the dollar will make outsourcing to India less
attractive to American firms. Infosys is also focused on becoming a more global firm and has hired
employees in Eastern Europe as well as other parts of Asia resulting in an increase in currency risk.

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