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By: Sohel Rangrej (1246) Asif Bhaiyat (1201

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In 1981, seven engineers started Infosys Limited with just $250 Now, Global leader in consulting, technology and outsourcing solutions Ranked in Forbes’ 100 most innovative companies, Infosys – with $7.4bn in annual revenues and 155,000+ employees

Highly Liquid (Cash & Cash equivalent stand at $4.1 bn)* Zero Debt High quality receivables (94% aging less than 60 days)* Dividend up to 30% of annual post-tax profits

 Fundamental

business involves analyzing its financial statements and health, its management and competitive advantages, and its competitors and markets.
◦ Economic Analysis

analysis of a

◦ Industry Analysis ◦ Company Analysis


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The Political Equation
Presently India has a stable government at the centre. The PM, Dr. Manmohan Singh led UPA government is working efficiently for the development of country. Currently industrial growth is about 9%, the GDP is about 6.2%, which is expected to touch double ± digit in 2014 ± 15..

Global Recession & Indian Economy

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In 2007-09, the World had seen a worst recession after The Great Depression of 1930’s. The Indian stock market have hit by the global crisis. India’s growing service sector and manufacturing sector are adversely affected by this. But, still due to our mixed economy policy and proper steps taken by the government, Indian economy is least affected by the global meltdown.

Economic Growth

The growth rate of 9.8% in 2007/08 decreased to 5.5% in last fiscal due to global recession. Even now with a sign of not good recovery Indian economy is growing at only 4.8% which is expected to touch double ± digit in 2014/15. But, one can easily say, the economic growth of India is steady and continuous.

Government Policy

The liberalization policy of Indian government excited the developed World and foreign investors to invest in India. Mr.Modi is also conducting Vibrant Gujarat which is also fully supported to industry in Gujarat. Due to this step Gujarat had developed by 18.12% faster in India.

Budget

Huge public expenditure and stimulus packages announced in last fiscal, India has one of the largest budget deficit in the World which was about 6.8% of its GDP.

In the current budget the Finance minister has given priority to two things i.e. economic development and fiscal consolidation.

Tax Policy

Tax policy has a direct impact on the economy. If tax rates are low, people have more disposable income, which is a incentive to invest.

Interest Rate

High interest rates result in higher cost of production and lower consumption. In India, the government, through Reserve Bank of India, is successful in lowering the interest rates. Increasing competition among the banks also helped. It is quit higher from last to month due to short of funds in market because of many FII taken money from market in last some months.

Inflation

Indian scenario, fuelled by rising wages, property prices and food prices, inflation in India is an increasing problem. The food inflation is about 17.81% and the WPI- inflation is about 11.5 % which may touch higher digit soon as stated by RBI Deputy Governor, which may affect adversely the economy of the country as well as the industry.

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Past Performance After USA, Indian is second in producing software. The growth rate of IT industry in 1995 was 1.1%, which is about 8.7% now.

Competitive structure

IT sector of India, which indicates the competitiveness in the industry. Out of these TCS, Infosys, Wipro, HCL, Cognizent are major IT giants of the country.

Growth

The Indian IT industry has contributed significantly to the Indian economy, clocking 30 per cent growth year over year, over the last decade. While today, over two million individuals are directly employed by the industry ± another seven to eight million jobs have been created downstream. With exports of USD 40.4 billion in 2011-12, the industry today constitutes 25 per cent of the country’s exports.

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INFOSYS Mission: Infosys International Inc. is dedicated to providing the people, services and solutions our clients need to meet their information technology challenges and business goals.

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Information Technology Consulting Package Evaluation and Implementation Software Re-engineering Other Solution

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Aerospace and Automobile (AnA) Banking & Capital Markets (BCM) Communication Service Providers (CSP) Resources, Energy & Utilities (REU) Hi Tech & Discrete Manufacturing (HTDM) Insurance, Healthcare & Life Sciences (IHL) Media and Entertainment Product Lifecycle and Engineering Solutions (PLES) Retail, Distribution & CPG (RETL) Transportation & Services (TnS) Independent Validation Solutions (IVS) - provides software testing services. IT Infrastructure Management Services (IMS) - manages core networks, data centres and servers of clients. Real Estate Life science


The Management
The Management of Infosys consist of N.R. Narayana Murty, S. Gopalkrishan, S.D. Shibulal, Dr. Omkar Goswami, and many eminent person from diversified field. The name in the management team is well known and they are considered as top management practitioner of the country. Thus, it can be said that the investor’s money are in the safe hands of a well experienced and professional management. This also gives Infosys a competitive advantage over its competitors

The Annual Report Income increased by 19.24% Export Revenue up by 29.7% of which 65.5% of revenue came from North America, 25.3% from Europe and 9.1% from rest of the world. Net profit increased by Rs646 Cr. Net foreign exchange earning stands at Rs 478 Cr.
Particular Income Expenditure PBIDTA Tax Profit after Tax EPS 2012 31252 17835 13419 3358 10061 47 2013 36765 21662 15103 3602 11501 42

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