Result Update

Infosys Technologies Ltd.

BSE : INFOSYS Infosys declared its third quarter result today. The results
NSE : INFOSYSTCH came better than than the street expectations. The sales
Bloomberg : INFO IS Equity were around 3% above the Bloomberg consensus estimate,
CMP : Rs. 2,587.45 whereas the net profit was around 12% below, which was
Sector : IT Services
boosted on account of higher other income.
View : Neutral with positive bias

RESULT HIGHLIGHTS:
MARKET DATA (As on 12th Jan 2010)
§ The consolidated net sales for the quarter ended December
LISTING NSE/ BSE
09 contracted by 1% to Rs. 5,741 cr, this was mainly on
MARKET CAP (Cr.) Rs. 1,48.399 account of recovery by the North American Financial
52-WEEK HIGH Rs. 2629.7 Services Sector
52-WEEK LOW Rs. 1101.0 § Its other income grew by a whopping 505% to Rs. 230 cr this
BETA 0.68 was on account of a Rs 20 cr gain from forex transactions as
CURRENT PE (x) 24.95 compared to a Rs 218 cr loss in Q3 2008
INDUSTRY PE (x) 25 § Company’s net profit contracted by around 4% to a level of
Rs. 1,582 cr, this is mainly on account of a strengthening of
rupee on a YoY basis
PRICE PERFORMANCE (%) as on 12.01.2010
§ Company’s operating margin remained fairly stable around
Time Period Stock Nifty 50 35.5% on account of increased utilizations
§ Company’s diluted EPS fell by around 3%, to Rs. 27.72/
1 MONTH 5.13% 1.82 share
3 MONTH 15.52% 3.09 § The company plans to be aggressive on the hiring front. It
1 YEAR 123.07% 87.89 plans to add 6,000 employees to its rolls in Q4. It is
comfortable with utilisation between 76-80%
§ Its Q4 guidance is muted but has improved compared to the
FINANCIALS last quarter’s guidance and the company has also increased
its full year EPS and revenue guidance both in rupee and
Rs Cr. Q3 2009 Q3 2008 Growth dollar terms
Income 5741 5786 -1% § The management says clients are still cautious about the
business environment and budgets from the clients side has
Total Expenditure 3703 3755 -1%
not been finalised yet
EBITDA 2038 2031 0%
Depreciation 231 187 24% § Dollar Guidance:
Operating (EBIT) 1807 1844 -2%
Other Income 230 38 505% o FY10 consolidated revenue seen at USD 4.75-4.76
billion, YoY growth of 1.8%-2.0%.
Profit Before Tax 2037 1882 8%
o FY10 EPS seen at USD 2.26 a share, YoY growth of
Tax Provison 455 241 89% 0.4%
Net Profit 1582 1641 -4%
Diluted EPS 27.72 28.63 -3% § Rupee Guidance:
EBITDA Margin 35.50% 35.10% -0.25% o FY10 revenues seen at Rs 22,473 cr-Rs. 22,519 cr,
Operating Margin 31.48% 31.87% -0.32% growth of 3.6% to 3.8%
Net Profit Margin 26.49% 28.18% -0.43% o FY10 EPS seen at Rs 106.85-107.06, YoY growth of
2.2% to 2.4%

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 Result Update

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