Done

INTRODUCTION
Infosys Technologies Limited (Infosys), incorporated on July 2, 1981, is a

global technology services firm that defines, designs and delivers information
technology (IT)-enabled business solutions to its clients. The Company provides
end-to-end business solutions that leverage technology for its clients, including
consulting, design, development, software re-engineering, maintenance, systems
integration, package evaluation, and implementation and infrastructure
management services. Infosys also provides software products to the banking
industry. Infosys BPO (formerly Progeon Limited) is a majority owned
subsidiary. Infosys Australia, Infosys China and Infosys Consulting are the
Company's wholly owned subsidiaries. In June 2006, Infosys acquired the
shares in Infosys BPO held by Citicorp International Finance Corporation
(CIFC). As a result, Infosys effectively holds 99.98% of the equity share capital
of Infosys BPO as of March 31, 2007.
The Company complements its service offerings with specialist support for
clients using its domain competency group that has expertise in areas, such as
securities, insurance, telecommunication, banking and cash management,
supply chain management, manufacturing, retail and distribution, energy and
utilities, healthcare, and travel and tourism. It also uses its software engineering
group and technology lab to create customized solutions for its clients. In
addition, it continually evaluates and trains its professionals in new technologies
and methodologies.
Nilekani, Nandan M. 52 1987 Co-Chairman of the Board Trade
Activity
Murthy, N. R. Narayana 60 1981 Non-Executive Chairman of the Board Trade
and Chief Mentor Activity
Gopalakrishnan, S. 52 1987 Chief Executive Officer and Managing Trade
Director Activity
Bal Krishnan, Vibin 42 1999 Chief Financial Officer Trade
Activity
Shibulal, S. D. 52 1997 Chief Operating Officer, Director Trade
Activity
Parvatheesam, K. -- 2006 Secretary, Compliance Officer Trade
Activity
Pai, T. V. Mohandas 48 1994 Director and Head - Administration, Trade
Education & Research and Human Activity
Resources, Director
Krishnaswamy, Dinesh 52 1996 Head - Communication Design Group, Trade
Information Systems, Quality & Activity
Productivity, Director
Batni, Srinath 52 1996 Group Co Head - World-wide Customer Trade
Delivery, Director Activity
Key people
HISTORY
Established in 1981, Infosys is a NASDAQ listed global consulting and IT
services company with more than 105,000 employees. From a capital of US$
250, we have grown to become a US$ 4 billion company with a market
capitalization of approximately US$ 27 billion. In our journey of over 28 years,
we have catalyzed some of the major changes that have led to India's emergence
as the global destination for software services talent. We pioneered the Global
Delivery Model and became the first IT Company from India to be listed on
NASDAQ. Our employee stock options program created some of India's first
salaried millionaires. Infosys Technologies Limited is a leader in software
development and was co founded by N.R. Narayana Murthy and a group of
seven IT professionals in the year 1981 with an investment of $1000. He
emerged as the company's chairman and CEO and is regarded as a great
manager because of his numerical abilities and Western style of management. It
has created several firsts in Indian industry like being the first Indian company
to be listed on NASDAQ in 1999 and the first to provide employee stock
options plan (ESOP).
The company opened its first international office in USA in 1987. It became a
public limited company in 1992 and offered its IPO in three of the nine Indian
exchanges in 1993. It received its ISO 2001 certification in 1993 and opened
other development centers in India in 1995.
By 1995 the firm was worth $200 million, had 900 employees and annual
revenue of $20 million. It opened its first European office in United Kingdom in
1996. Infosys established its headquarters in Bangalore as there the workforces
were not required to be unionized, benefits to the workforce were relatively a
minor cost, and there was a huge potential for profit.
The late 1990s was a time for exponential growth and the main reason for this
was its offshore software development model. By 2000 its market capitalization
was more than $20 billion.
In 2003 it established subsidiaries in China and Australia. In 2004 it crossed $1
billion in revenue. In 2006 its revenue crossed $2 billion and it completed 25
years.
CORE SERVICES
Custom Application Development
The Company provides customized software solutions for its clients. Infosys
creates new applications and enhances the functionality of its clients' existing
software applications. The Company's projects vary in size and duration. The
Company's application development services span the entire range of
mainframe, client server and Internet technologies. An increasing proportion of
Infosys' applications development engagements are related to emerging
platforms, such as Microsoft's .NET or open platforms, such as Java 2
Enterprise Edition (J2EE) and Linux.
Maintenance and Production Support
Infosys provides maintenance services for its clients' large software systems that
cover a range of technologies and businesses, and are typically critical to a
client's business. The Company focuses on long-term functionality, stability and
preventive maintenance to avoid problems that typically arise from incomplete
or short-term solutions. While Infosys performs most of the maintenance work
at its global development centers using secure and redundant communication
links to its client's systems, it also maintain a team at the client's facility to
coordinate certain key interface and support function.
Software Re-engineering
The Company's software re-engineering services assist its clients in converting

their existing IT systems to newer technologies and platforms developed by
third-party vendors. Infosys' re-engineering services include Web-enabling its
clients' existing legacy systems, database migration, implementing product
upgrades, and platform migrations, such as mainframe to client-server and
client-server to Internet platforms.
Package Evaluation and Implementation
Infosys assists its clients in the evaluation and implementation of software

packages developed by third-party vendors. It also provides training and support
services in the course of their implementation. The Company specializes in
enterprise resource planning packages developed by vendors, including Oracle,
PeopleSoft, Retek and SAP; supply chain management packages developed by
vendors, including i2, Oracle; customer relationship management packages
developed by vendors, including PeopleSoft and Siebel; business intelligence
packages developed by vendors, such as Business Objects and Cognos, and
enterprise application integration packages developed by vendors, such as IBM
and TIBCO.
Information Technology Consulting
The Company's IT consulting professionals assist its clients by providing

technical advice in developing and recommending appropriate IT architecture,
hardware and software specifications to deliver IT solutions designed to meet
specific business and computing objectives. Infosys offers IT consulting in the
areas of migration planning, institution-wide implementation and overall project
management involving multiple vendors under a common architecture; IT
infrastructure assessment, which includes assessing its clients' IT capabilities
against existing and future business requirements and recommending
appropriate technology infrastructure, and technology roadmap development,
which allows clients to evaluate emerging technologies and develop the
standards and methodologies for applying those emerging technologies.
Other Solutions
Infosys' service offerings including testing services, engineering services,

business process management, systems integration, infrastructure management,
and operational and business process consulting. The Company offers end-to-
end validation solutions and services, including enterprise test management,
performance benchmarking, test automation and product certification.
For each particular client, Infosys focuses on developing a framework for

ongoing testing in order to seek continuous improvement in the predictability of
its client's internal systems. The Company's service professionals are trained in
test management tools from developers, such as Mercury Interactive, IBM-
Rational and Segue.
Finacle from infosys
Original Infosys
author(s)
Developer(s) infosys
Initial release 1999
Stable release 3.06 / January 11, 2009; 19 months

ago
Development Active
status
Written in Java
Operating Cross-platform
system
Type Banking and financial suite
License Q Public License
Website http://www.infosys.com/finacle/
Finacle
Finacle the universal banking solution from Infosys, helps banks by enabling
them to shift their strategic and operational priorities. It maximizes their
opportunities for growth ,while minimizing the risks that come with large-scale
business transformation Finacle currently powers 91 banks across 54 countries,
helping them serve over 100 million customers, 150 million accounts,
80,000users and supporting over 36 million peak banking transactions per day
spread across multiple installations
Key industries
Infosys serves various industries through its vertical business units, such as:
A. Aerospace and Automobile (ANA)

B. Banking & Capital Markets (BCM)
C. Communication Service Providers (CSP)
D. Resources, Energy & Utilities (REU)
E. Hi Tech & Discrete Manufacturing (HTDM)
F. Insurance, Healthcare & Life Sciences (IHL)
G. Media and Entertainment
H. Product Lifecycle and Engineering Solutions (PLES)
I. Retail, Distribution & CPG (RETL)
J. Transportation & Services (TNS)
K. Independent Validation Solutions (IVS) - provides software testing
services.
L. IT Infrastructure Management Services (IMS) - manages core networks,
data centers and servers of clients.
M.Real Estate
N. Life science
In addition to these, there are business units aligned to clients' geographies,

such as EMEA (Europe, Middle East & Africa), APAC (Asia-Pacific) and
CAND (Canada). There are also horizontal business units such as ES
(Enterprise Solutions), which specializes in ERP and package
implementation and works with clients across industries and geographies and
SI (Systems Integration).
Key Clients
ABN AMRO
AIRBUS
AETNA INC
RATIO ANALYSIS:
Fundamental Analysis has a very broad scope. One aspect looks at the
general (qualitative) factors of a company. The other side considers tangible and
measurable factors (quantitative). This means crunching and analyzing numbers
from the financial statements. If used in conjunction with other methods,
quantitative analysis can produce excellent results.
Ratio analysis isn't just comparing different numbers from the balance
sheet, income statement, and cash flow statement. It's comparing the number
against previous years, other companies, the industry, or even the economy in
general. Ratios look at the relationships between individual values and relate
them to how a company has performed in the past, and might perform in the
future.
MEANING OF RATIO:
A ratio is one figure express in terms of another figure. It is a
mathematical yardstick that measures the relationship two figures, which are
related to each other and mutually interdependent. Ratio is express by dividing
one figure by the other related figure. Thus a ratio is an expression relating one
number to another. It is simply the quotient of two numbers. It can be expressed
as a fraction or as a decimal or as a pure ratio or in absolute figures as “so many
times”. As accounting ratio is an expression relating two figures or accounts or
two sets of account heads or group contain in the financial statements.
MEANING OF RATIO ANALYSIS:
Ratio analysis is the method or process by which the relationship of items
or group of items in the financial statement are computed, determined and
presented.
Ratio analysis is an attempt to derive quantitative measure or guides
concerning the financial health and profitability of business enterprises. Ratio
analysis can be used both in trend and static analysis. There are several ratios at
the disposal of an annalist but their group of ratio he would prefer depends on
the purpose and the objective of analysis.
While a detailed explanation of ratio analysis is beyond the scope of this

section, we will focus on a technique, which is easy to use. It can provide you
with a valuable investment analysis tool.
This technique is called cross-sectional analysis. Cross-sectional analysis

compares financial ratios of several companies from the same industry. Ratio
analysis can provide valuable information about a company's financial health. A
financial ratio measures a company's performance in a specific area. For
example, you could use a ratio of a company's debt to its equity to measure a
company's leverage. By comparing the leverage ratios of two companies, you
can determine which company uses greater debt in the conduct of its business.
A company whose leverage ratio is higher than a competitor's has more debt per
equity. You can use this information to make a judgment as to which company
is a better investment risk.
However, you must be careful not to place too much importance on one ratio.
You obtain a better indication of the direction in which a company is moving
when several ratios are taken as a group.
1- Operational & Financial Ratios
(a) Earnings Per Share (Rs)
Meaning:
Earnings per Share are calculated to find out overall profitability of the
organization. Earnings per Share represent earning of the company whether or
not dividends are declared. If there is only one class of shares, the earning per
share are determined by dividing net profit by the number of equity shares.
EPS measures the profits available to the equity shareholders on each share
held.
Formula:
NPAT
Earnings per share =

Number of equity share
The higher EPS will attract more investors to acquire shares in the company as
it indicates that the business is more profitable enough to pay the dividends in
time. But remember not all profit earned is going to be distributed as dividends
the company also retains some profits for the business.
For Infosys the variance of EPS ratio for 5 years is -
Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
108.08 78.06 65.42 90.65 68.38

Earnings Per Share (Rs)
120
100
80
Earnings Per Share (Rs)
60
40
20
0
(b)Cash earnings per share Ratio :
Formula:
(Net operating cash flow-current depreciation of fixed assets-amortization of

intangible assets-amortization deferred charges-interest expense and cost of
raising funds in cash + investment income in cash)
Total equity
For Infosys the variance of CEP ratio for 5 years is –
Mar- Mar- Mar- Mar- Mar-

09 08 07 06 05
113.86 87.69 74.34 102.54 80.44
CEPS(Rs)
120
100
80
CEPS(Rs)
60
40
20
0
Mar/05 Mar/06 Mar/07 Mar/08 Mar/09
(c) DIVIDEND PER SHARE:-
Meaning:
DPS shows how much is paid as dividend to the shareholders on each share
held.
Formula:
Dividend Paid to Ordinary Shareholders
Dividend per Share =
Number of Ordinary Shares
For Infosys the variance of DPS ratio for 5 years is
Mar-09 Mar-08 Mar-07 Mar-06 Mar-05

24.15 44.35 17.66 49.89 16.2
Dividend per share

60
50
40
Dividend per share
30
20
10
0
(d)Book NAV/Share(Rs)
An expression for net asset value that represents a fund's (mutual, exchange-
traded, and closed-end) value per share. It is calculated by dividing the total net
asset value of the fund or company by the number of shares outstanding.
It is also referred to as "book value per share".
Calculated as:

09 08 07 06 05
311.35 235.84 195.14 249.89 194.15
Book NAV/Share(Rs)
350
300
250
200 Book NAV/Share(Rs)
150
100
50
0
(e) Tax Rate:

An average tax rate is the ratio of the amount of taxes paid to the tax base
(taxable income or spending).
To calculate the average tax rate on an income tax, divide total tax liability by
taxable income:
• Let a be the average tax rate.
• Let t be the tax liability.
Let i be the taxable income.
For Infosys the variance of tax ratio for 5 years is

09 08 07 06 05
13.33 12.35 8.51 11.12 14.58
Tax Rate(%)
16
14
12
10
Tax Rate(%)
8
0
2- Margin Ratios
(a) Core EBITDA Margin ratio :
EBITDA is the acronym for Earnings before Interest, Taxes, Depreciation, and
Amortization.
EBITDA Margin refers to EBITDA divided by total revenue. EBITDA margin

measures the extent to which cash operating expenses use up revenue.

09 08 07 06 05
36.57 36.09 34.98 34.71 35.76
Core EBITDA Margin(%)

37
36.5
36
35.5 Core EBITDA Margin(%)
35
34.5
34
33.5
(b)EBIT Margin ratio:
In financial and business accounting, earnings before interest and taxes (EBIT)
or operating income is a measure of a firm's profitability that excludes interest
and income tax expenses.[1]
EBIT = Operating Revenue – Operating Expenses (OPEX) + Non-operating
Income
Operating Income = Operating Revenue – Operating Expenses

09 08 07 06 05
33.14 32.6 31.45 30.18 32.51
EBIT Margin(%)
33.5
33
32.5
32
31.5
EBIT Margin(%)
31
30.5
30
29.5
29
28.5
(c)Pre Tax Margin:
Net Earnings + Income Tax

Pre tax Margin =
Net Sales
Explanation of Pre tax Margin:
The Pre tax Margin measures how well a company can generate before-tax
profits at the current level of sales.
Importance of Pretax Margin:
As with any margin, a high or increasing Pretax Margin is usually a positive

sign, showing the company is able to keep its operations costs low, while being
able to pull in strong earnings. The Pretax Margin varies greatly between
industries, so you will have to compare the results for the company you are
analyzing to industry averages.

09 08 07 06 05
33.13 32.59 31.45 30.17 32.49
Pre Tax Margin(%)

33.5
33
32.5
32
31.5
Pre Tax Margin(%)
31
30.5
30
29.5
29
28.5
(d)PAT Margin rate :
The after tax profit margin ratio tells you the profit per sales dollar after all
expenses are deducted from sales. In other words, the after tax profit margin
ratio shows you the percentage of net sales that remains after deducting the cost
of goods sold and all other expenses including income tax expense. The
calculation is: Net Income after Tax /Net Sales.
The profit margin ratio is most useful when it is compared to 1) the same
company’s profit margin ratios from earlier accounting periods, 2) the same
company’s targeted or planned profit margin ratio for the current accounting
period, and 3) the profit margin ratios of other companies in the same industry
during the same accounting period.

27.52 27.37 28.05 26.17 27.28
PAT Margin rate

28.5
28
27.5
27 PAT Margin rate
26.5
26
25.5
25
(e) Cash Profit Margin ratio

30.66 28.23 28.57 28.58 30
Cash Profit Margin ratio

31
30.5
30
29.5
Cash Profit Margin ratio
29
28.5
28
27.5
27
3- Performance Ratios
(a) ROA ratio :

The return on assets (ROA) percentage shows how profitable a company's
assets are in generating revenue.
ROA can be computed as:
This number tells you what the company can do with what it has, i.e. how many
dollars of earnings they derive from each dollar of assets they control. Its a
useful number for comparing competing companies in the same industry. The
number will vary widely across different industries. Return on assets gives an
indication of the capital intensity of the company, which will depend on the
industry; companies that require large initial investments will generally have
lower return on assets.

34.76 33.09 33.47 36.21 35.29
ROA (%)
36.5
36
35.5
35
34.5
ROA (%)
34
33.5
33
32.5
32
31.5
(b) ROE ratio :
Return on Equity (ROE, Return on average common equity, return on net

worth, Return on ordinary shareholders' funds) (requity) measures the rate of
return on the ownership interest (shareholders' equity) of the common stock
owners. It measures a firm's efficiency at generating profits from every unit of
shareholders' equity (also known as net assets or assets minus liabilities). ROE
shows how well a company uses investment funds to generate earnings growth.

32.67 33.13 33.89 35.1 36.33
ROE(%)
37
36
35
34 ROE(%)
33
32
31
30
(c) ROCE Ratio :
Return on Capital Employed (ROCE) is used in finance as a measure of the

returns that a company is realising from its capital employed. It is commonly
used as a measure for comparing the performance between businesses and for
assessing whether a business generates enough returns to pay for its cost of
capital.

09 08 07 06 05
37.71 37.81 37.05 39.51 42.54
ROCE(%)
43
42
41
40
39 ROCE(%)
38
37
36
35
34
(d)Asset Turnover:
Asset turnover is a financial ratio that measures the efficiency of a company's
use of its assets in generating sales revenue or sales income to the company.[1]
• "Sales" is the value of "Net Sales" or "Sales" from the company's income
statement
• "Average Total Assets" is the value of "Total assets" from the company's
balance sheet in the beginning and the end of the fiscal period divided by 2.

09 08 07 06 05
0.77 0.79 0.69 0.67 0.62
Asset Turnover (x)

0.9
0.8
0.7
0.6
0.5 Asset Turnover (x)
0.4
0.3
0.2
0.1
0
(f)Working Capital/Sales(x)
The Working Capital Productivity Ratio helps explain how well the company is
using its working capital. Historically this has been a useful guide to investors
or stakeholders seeking to assess a company’s ability to manage cash. Any
measure of cash management is important to understand since a business needs
cash to operate, this is the oxygen that businesses need to live. This ratio is
purported to have been established by the US management consultant George
Stalk while working in Japan. The ratio gives a possible indication of the
relationship between financial performance and process improvement.
The Working Capital Productivity ratio can be defined as:
Revenue
Working Capital Productivity Ratio =
(Current Assets – Current Liabilities)

09 08 07 06 05
0.61 0.54 0.54 0.42 0.35
Working Capital/Sales(x)
0.7
0.6
0.5
0.4 Working Capital/Sales(x)
0.3
0.2
0.1
0
3- Efficiency Ratios
(a)Fixed Capital/Sales(x)

09 08 07 06 05
25.89 26.83 25.58 27.8 27.36
Fixed Capital/Sales(x)
28
27.5
27
26.5
Fixed Capital/Sales(x)
26
25.5
25
24.5
24
(b)Receivable days
09 08 07 06 05
58.39 62.8 52.88 56.02 50.16
Receivable days
70
60
50
40 Receivable days
30
20
10
0
(d) PER Ratio
The P/E ratio (price-to-earnings ratio) of a stock (also called its "P/E", "PER",
"earnings multiple," or simply "multiple") is a measure of the price paid for a share
relative to the annual net income or profit earned by the firm per share.[2] It is a
financial ratio used for valuation: a higher P/E ratio means that investors are paying
more for each unit of net income, so the stock is more expensive compared to one
with lower P/E ratio
There are various P/E ratios, all defined as:

09 08 07 06 05
13.03 18.3 30.43 16.99 15.97
PER(x)
35
30
25
20 PER(x)
15
10
0
Yield Ratio
The return on an investment. This refers to the interest or dividends received
from a security and are usually expressed annually as a percentage based on the
investment's cost, its current market value or its face value.
It is a comparison of the expected yield of one bond to the expected yield of

another. A yield ratio is important when deciding whether to invest in one bond
or another; generally, the one with the higher yield wins out. However, it is
important to take into account the after tax basis when taking the yield ratio of a
corporate bond and a tax-exempt municipal bond. A corporate bond yields less
than its stated interest rate because of taxation, whereas a tax-exempt municipal
bond does not. Thus, a municipal bond paying a lower interest rate will often
net the bondholder more than a corporate bond with a slightly higher interest
rate, depending upon one's tax bracket.

09 08 07 06 05
1.77 2.32 0.57 1.51 0.51
Yield(%)
2.5
1.5
Yield(%)
0.5
0
(h) EV/Net Sales(x)
A valuation measure that compares the enterprise value of a company to the

company's sales. EV/sales gives investors an idea of how much it costs to
buy the company's sales. This measure is an expansion of the price-to-sales
valuation, which uses market capitalization instead of enterprise value. EV/sales
is seen as more accurate because market capitalization does not take into
account as well as enterprise value the amount of debt a company has, which
needs to be paid back at some point

09 08 07 06 05
3.29 4.82 8.34 4.19 4.22
EV/Net Sales(x)
9
5 EV/Net Sales(x)
0
4- Financial Stability Ratios
(a) Total Debt/Equity(x)
A measure of a company's financial leverage, calculated by dividing its total

liabilities by stockholders' equity. It indicates what proportion of equity and
debt the company is using to finance its assets.


09 08 07 06 05
0 0 0 0 0
Total Debt/Equity(x)
1
0.9
0.8
0.7
0.6
Total Debt/Equity(x)
0.5
0.4
0.3
0.2
0.1
0
(b) Current Ratio :

A liquidity ratio that measures a company's ability to pay short-term obligations.
The Current Ratio formula is:

Also known as "liquidity ratio", "cash asset ratio" and "cash ratio".

4.71 3.3 4.96 2.75 2.8
Current ratio
6
4
Current ratio
3
0
(c) Quick Ratio
It is an indicator of a company's short-term liquidity. The quick ratio measures a

company's ability to meet its short-term obligations with its most liquid assets.
The higher the quick ratio, the better the position of the company.
The quick ratio is calculated as:


4.67 3.28 4.91 2.73 2.77
Quick ratio
6
4
Quick ratio
3
0
Analysis of Financial Ratios:
1- Sales amount increase by 19% but Cost of sales increase by 22%

(because salaries paid to software development employees increase by
26% ). This has resulted in a less proportionate increase by in Gross profit
(15%).
2- Sales increase by 19% but debtors increase by significant 35%.
It is due to the increase in Debtors collection period from 64 to 72 days
i.e. debtors are given more credit period. This has resulted in decrease of
Debtors turnover ratio.
3- As it is a Service oriented company , it does not have any stock kept with
it. So there is no amount blocked in stock. So the investment required in
working capital is less.
4- Gross Profit Amount increase by approx 15% and Operating Net profit
amount increase by approx 18 %.This means that Operating activities of
Infosys is more efficient as compared to Software development
activities(production activities).
5- But if we see ,ultimately its Operating net profit ratio has still decrease
from 32.13 to 31.72.This is due to a significant increase in Cost of sales
by 22%.
6- Therefore we analyze that its Cost of sales has so much material affect
that it is reducing both GP Ratio & operating profit ratio.
7- As we will see further there is a healthy % increase in Net profit amount
by approx 18% (as compared to Gross Profit Amount by approx 15% ).
This improvement in its performance is majorly due to improvement in
Extra-ordinary items like interest received on deposits from banks
(increase by 257 % ).
8- Funds available with the company has increases by approx 21% . In
2007-08 company has not issued any new equity or debt .Therefore the
company has raised its funds only through its Reserves & Surplus which
is approx 21%.
9- Now the company has employed these funds in following ways:
1) Acquired new fixed assets . This has resulted in more depreciation
charged to profits in P & L a/c. This has ultimately decreases the
Operating profit ratio.
2) used to finance the working capital requirements.
3) has also made some new Investments in the current year(increases by
15 )
10- There is a decreases in Fixed assets turnover ratio. At first look it
may appears that the company has utilized its Fixed assets less
efficiently. However it has acquired New Fixed assets worth Rs 1050
crores in the year 2007-08 which may help the company in Future
growth.
11- Company has no Debt and Preference capital which means that
there is no Capital Gearing ratio, no Debt-Equity ratio and no Interest
Coverage ratio.
SWOT ANALYSIS
STRENGTHS
Leadership in sophisticated solutions that enable clients to optimize the

efficiency of their business:
The company bring together expertise in consulting, IT services and business

process outsourcing to create solutions that allow clients to increase their
customer loyalty through faster innovation, restructure their cost base, and help
them achieve greater success through shifting business cycles. Expertise helps
our clients improve their own efficiencies, create better value for their end
customers and become more competitive. They’re able to capture a greater
share of our clients’ technology budgets.
Proven global delivery model:
Highly evolved Global Delivery Model represents a key competitive advantage.

Over the past decade, they have developed our onsite and offshore execution
capabilities to deliver high quality and scalable services. In doing so, Infosys
have made substantial investments in processes, infrastructure and systems, and
have refined our Global Delivery Model to effectively integrate onsite and
offshore technology services. The Global Delivery Model provides clients with
seamless, high quality solutions in reduced time frames enabling them to
achieve operating efficiencies.
Commitment to superior quality and process execution:
Infosys have developed a sophisticated project management methodology to

ensure timely, consistent and accurate delivery of superior quality solutions to
maintain a high level of client satisfaction.
Strong Brand and Long-Standing Client Relationships:
They have long-standing relationships with large multinational corporations

built on successful prior engagements with them.
Status as an employer of choice:
Infosys has among the best talent in the Indian technology services industry and
are committed to remaining among the industry’s leading employers. We have a
presence in 13 cities in India, allowing us to recruit technology professionals
with specific geographic preferences. We have a diverse workforce which
includes employees from 70 nationalities.
Ability to scale:
Infosys have successfully managed their growth by investing in infrastructure

and by rapidly recruiting, training and deploying new professionals. We
currently have 52 global development centers.
Innovation and leadership:
A pioneer in the technology services industry. We are one of the first Indian
companies to achieve a number of significant milestones, which has enhanced
our reputation in the marketplace.
WEAKNESSES
Revenues and expenses are difficult to predict and can vary significantly from
period to period, which could cause share Price to decline 26 May not be able to
sustain our previous profit margins or levels of profitability. The economic
environment, pricing pressure and rising wages in India and overseas could
negatively impact revenues and operating results. Revenues are highly
dependent on clients primarily located in the United States and Europe, as well
as on clients concentrated in certain industries. Economic slowdowns or factors
that affect the economic health of the United States, Europe or these industries
may affect our business. Any inability to manage growth could disrupt our
business and reduce our profitability may face difficulties in providing end-to-
end business solutions for our clients, which could lead to clients discontinuing
their work. Revenues are highly dependent upon a small number of clients, and
the loss of any one of our major clients could significantly impact the business
Failure to complete fixed-price, fixed-time frame contracts within budget and
on time may negatively affect our profitability client contracts can typically be
terminated without cause and with little or no notice or penalty, which could
negatively impact our revenues and profitability
The engagements with customers are singular in nature and do not necessarily
provide for subsequent engagements
OPPORTUNITIES
Huge untapped potential for in the global market as IT will become the need of
almost every industry. The IT industry can be the reason for India being a
global leader of tomorrow
THREATS
Legislation in certain of the countries, in which Infosys operates, including the

United States and the United Kingdom, may restrict companies in those
countries from outsourcing work overseas Intense competition in the market for
technology services could affect cost advantages, which could reduce the share
of business from clients and decrease the company’s revenues Our client
contracts are often conditioned upon our performance, which, if unsatisfactory,
could result in less revenue than previously anticipated Some of our long-term
client contracts contain benchmarking provisions which, if triggered, could
result in lower future revenues and profitability under the contract.
References-
1- www.infosys.com
2- www.moneycontrol.com
3- www.rediffmoney.com

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INTRODUCTION

Infosys Technologies Limited (Infosys), incorporated on July 2, 1981, is a

Nilekani, Nandan M. 52 1987 Co-Chairman of the Board Trade

and Chief Mentor Activity

Gopalakrishnan, S. 52 1987 Chief Executive Officer and Managing Trade

Bal Krishnan, Vibin 42 1999 Chief Financial Officer Trade

Shibulal, S. D. 52 1997 Chief Operating Officer, Director Trade

Parvatheesam, K. -- 2006 Secretary, Compliance Officer Trade

Pai, T. V. Mohandas 48 1994 Director and Head - Administration, Trade

Education & Research and Human Activity

Krishnaswamy, Dinesh 52 1996 Head - Communication Design Group, Trade

Information Systems, Quality & Activity

Batni, Srinath 52 1996 Group Co Head - World-wide Customer Trade

Delivery, Director Activity

Maintenance and Production Support

The Company's software re-engineering services assist its clients in converting

Package Evaluation and Implementation

Infosys assists its clients in the evaluation and implementation of software

Information Technology Consulting

The Company's IT consulting professionals assist its clients by providing

Infosys' service offerings including testing services, engineering services,

For each particular client, Infosys focuses on developing a framework for

Initial release 1999

Stable release 3.06 / January 11, 2009; 19 months

Type Banking and financial suite

License Q Public License

A. Aerospace and Automobile (ANA)

In addition to these, there are business units aligned to clients' geographies,

While a detailed explanation of ratio analysis is beyond the scope of this

This technique is called cross-sectional analysis. Cross-sectional analysis

Earnings per share =

108.08 78.06 65.42 90.65 68.38

(Net operating cash flow-current depreciation of fixed assets-amortization of

For Infosys the variance of CEP ratio for 5 years is –

Mar- Mar- Mar- Mar- Mar-

Dividend Paid to Ordinary Shareholders

Dividend per Share =

Number of Ordinary Shares

For Infosys the variance of DPS ratio for 5 years is

Mar-09 Mar-08 Mar-07 Mar-06 Mar-05

Dividend per share

It is also referred to as "book value per share".

Mar- Mar- Mar- Mar- Mar-

200 Book NAV/Share(Rs)

(e) Tax Rate:

For Infosys the variance of tax ratio for 5 years is

Mar- Mar- Mar- Mar- Mar-

EBITDA Margin refers to EBITDA divided by total revenue. EBITDA margin

Mar- Mar- Mar- Mar- Mar-

Core EBITDA Margin(%)

35.5 Core EBITDA Margin(%)

Mar- Mar- Mar- Mar- Mar-

(c)Pre Tax Margin:

Net Earnings + Income Tax

Explanation of Pre tax Margin:

Importance of Pretax Margin:

As with any margin, a high or increasing Pretax Margin is usually a positive

Mar- Mar- Mar- Mar- Mar-

Pre Tax Margin(%)

Mar-09 Mar-08 Mar-07 Mar-06 Mar-05

PAT Margin rate

27 PAT Margin rate

Mar-09 Mar-08 Mar-07 Mar-06 Mar-05

Cash Profit Margin ratio