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Add Your Company Slogan

ek into the performance of the IT bellwether .


Prepared by -
Nikhilesh Kumar V
Ranjit Pisharody
Ramya H V
Satheesh KumarA P
Sree Murugan S
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Contents

1 Introduction
2 Balance sheet
3 Financial Ratios
4 Cash flow statements
5 Inference
6 How investors see it?
7 Bibliography

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 Infosys arrives ..

• Seed money of Rs. 10000
• Softronics opened in 1976
 but was soon shut down due to
poor market response
• Quit Patni in 1981 and set up
Infosys at Pune.
• Signs up its first client, Data
Basics corporation
• The Early Trials & Failures
• The Change from 1989

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The story continues ..
 Goes public in 1993
 In 2006, it became the first Indian
company to ring the NASDAQ Stock
Market Opening Bell
 In 2002: Business World named Infosys
"India's Most Respected Company“
 2006: August 20, N. R. Narayana
Murthy retired from his position as the
executive chairman
 2007: April 13, Nandan Nilekani
stepped down as CEO and made way for
Kris Gopalakrishnan to occupy his chair
effective June 2007

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Key Industries

      
Infosys serves various industries through its Industrial Business Units (IBU), such as:
•    Banking & Capital Markets (BCM)
•    Communications, Media and Entertainment (CME)
•    Energy, Utilities and Services (EUS)
•    Insurance, Healthcare and Life Sciences (IHL)
•    Manufacturing (MFG)
•    Retail, Consumer Product Goods and Logistics (RETL)
•    New Markets and Services (NMS) : Non US and Non European markets, SaaS,   
     Learning Services

•    India Business Unit (IND)

In addition to these, there are Horizontal Business Units (HBUs)

•   Consulting (CS)
•   Enterprise Solutions (ES): ERP, CRM, HCM, SCM, BI/DW, BPM-EAI
•   Infrastructure Management Services (IMS)
•   Product Engineering and Validation Services (PEVS)
•   Systems Integration (SI)
•   Finacle : Core Banking Product

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Balance Sheet (Rs Crore)
Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Sources of funds
Owner's fund
Equity share capital 286.00 286.00 286.00 138.00 135.29
Reserves & surplus 17,523.00 13,204.00 10,876.00 6,759.00 5,106.44
Total 17,809.00 13,490.00 11,162.00 6,897.00 5,241.73
Uses of funds
Fixed assets
Gross block 5,986.00 4,508.00 3,889.00 2,837.00 2,182.72
Less : accumulated depreciation 2,187.00 1,837.00 1,739.00 1,275.00 1,005.82
Net block 3,799.00 2,671.00 2,150.00 1,562.00 1,176.90
Capital work-in-progress 615.00 1,260.00 957.00 571.00 317.52
Investments 1,005.00 964.00 839.00 876.00 1,328.70

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Contd.. (Rs Crore)
Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Net current assets
Current assets, loans &  15,732.00 12,326.00 9,040.00 6,105.00 3,764.65
advances
Less : current liabilities & 3,342.00 3,731.00 1,824.00 2,217.00 1,346.04
provisions
Total net current assets 12,390.00 8,595.00 7,216.00 3,888.00 2,418.61

Miscellaneous expenses  - - - - -
not written
Total 17,809.00 13,490.00 11,162.00 6,897.00 5,241.73
Notes:
Book value of unquoted  1,005.00 964.00 839.00 876.00 1,328.70
investments
Market value of quoted  - - - - -
investments
Contingent liabilities 347.00 603.00 670.00 523.00 289.87

Number of equity  5728.30 5719.96 5712.10 2755.55 2705.71


sharesoutstanding (Lacs)
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Financial ratios - Liquidity
Liquidity ratios
Mar ‘09 Mar ‘08 Mar ‘07 Mar ’06 Mar ‘05
Current ratio 4.71 3.3 4.96 2.75 2.8
Quick ratio 4.67 3.28 4.91 2.73 2.77

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Solvency
Leverage ratios
Mar ‘09 Mar ‘08 Mar ‘07 Mar ’06 Mar ‘05
Long term debt / Equity - - - - -
Total debt/equity - - - - -
Owners fund as % of total source 100 100 100 100 100
Total Liabilities/Total Assets 13.8

Total Liabilities/Total Assets 13.8


Industry Comparison

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Valuation
Per share ratios
Mar ‘09 Mar ‘08 Mar ‘07 Mar ’06 Mar ‘05
Adjusted EPS (Rs) 108.08 78.06 65.42 90.65 68.38
Reported EPS (Rs) 101.58 78.15 66.23 87.86 70.38
Dividend per share 23.5 33.25 11.5 45 11.5
Profit/Earning 21.07 - - - -

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Payout ratios
Payout ratios
Mar ‘09 Mar ‘08 Mar ‘07 Mar ’06 Mar ‘05
Dividend payout ratio (net profit) 27.03 49.77 19.85 58.32 18.48
Earning retention ratio 74.6 50.17 79.91 43.48 80.98

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Profitability ratios
Profitability ratios
Mar ‘09 Mar ‘08 Mar ‘07 Mar ’06 Mar ‘05
Operating margin (%) 34.09 31.72 32.13 33.11 33.91
Gross profit margin (%) 30.66 28.23 28.57 28.58 30
Net profit margin (%) 27.52 27.37 28.05 26.17 27.28

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Healthy Bottom-line

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Adjusted PBT 7,086.00 5,095.00 4,089.00 2,801.00 2,175.57
Adjusted PAT 6,191.00 4,465.00 3,737.00 2,498.00 1,850.27

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Per share ratios

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Adjusted EPS (Rs) 108.08 78.06 65.42 90.65 68.38
Dividend per share 23.5 33.25 11.5 45 11.5

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PROFITABILITY - INFOSYS TECHNOLOGIES LTD (INFY)

Return on Assets 18.61%


Industry Comparison

Return on Capital 21.73%


Industry Comparison

Return on Equity 32.07%


Industry Comparison

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ASSET TURNOVER - INFOSYS TECHNOLOGIES LTD
(INFY)

Total Assets Turnover 1.0


Industry Comparison

Fixed Assets Turnover 4.8


Industry Comparison

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Cash flow statements

(Rs Crore)
Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Profit before tax 6,714.00 5,100.00 4,129.00 2,724.00 2,184.49
Net cashflow-operating activity 5,152.00 3,816.00 3,256.00 2,237.00 1,359.70

Net cash used in investing activity -195.00 -978.00 -1,065.00 -392.00 -939.88

Netcash used in fin. activity -2,430.00 -777.00 -316.00 244.00 -580.10

Net inc/dec in cash and equivlnt 2,600.00 2,079.00 1,871.00 2,096.00 -156.32

Cash and equivalnt begin of year 7,689.00 5,610.00 3,779.00 1,683.00 1,839.40

Cash and equivalnt end of year 10,289.00 7,689.00 5,650.00 3,779.00 1,683.08

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Net cash flow

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Funds from  Funds from  Funds from 
operation financing investment
+ + +
+ + -
+ - -
- + -
- - +
- - -

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Inference

• Funds from operation: +   
• Funds from investments: -
• Funds from financing:  -
     Hence, we see that INFY is a well managed 
company. It does not depend on capital market, it has 
its own funds.

 During the 14-year period from its IPO in 1993 to 2007, the price of an
Infosys share increased 3000 fold. This excludes the dividends that the
company has paid out over that duration.

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 How investors see it?

 Infosys Q2 profit up 7.5 pct, raises FY10 f'cast


     10.09.09, 12:14 AM EDTINFOSYS/ (UPDATE 1)

 :UPDATE 1-Infosys Q2 profit up 7.5 pct, raises FY10 f'cast


 

* Sees FY10 revenue falling 1.0-1.3 pct to $4.60-$4.62 bln
      * Sees FY10 EPS dropping 6.7-7.1 percent to $2.09-$2.10


* Business climate improves, but currency volatility worrying (Adds details, company 
comments)
      BANGALORE, Oct 9 (Reuters) -Infosys Technologies Ltd ( INFY- news - people ) beat 

street expectations with a 7.5 percent rise in quarterly profit and raised its full year forecast as 
demand for outsourcing grows and pricing pressure eases.
       India's second-biggest software services exporter, a trend setter for the industry, said 

business environment improved in the September quarter and pricing stabilized, but currency 
volatility was a worry.
      "The global currency markets continue to be extremely volatile, even though we have seen

some stability in the rupee against the U.S. dollar this quarter," Chief Financial Officer V.
Balakrishnan said in a statement.

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Strengths
 Immerses new workers in 
the value system which is 
summed up in the letters C-
L-I-F-E
   No single client contributes 
for more than 10% of the 
revenue
   No single technology 
contributes for more than 
25% of the revenue
   Dynamic leadership – no 
single leader for a long time
   Ethics
   Highly customer driven

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Bibliography

• http://www.infosys.com/investors/reports-filings/default.as
• http://en.wikipedia.org/wiki/Infosys
• http://finapps.forbes.com/finapps/jsp/finance/compinfo/Ra
• http://www.kamalsinha.com/iit/people/narayana-murthy/in

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Thank you
hank you !

Questions?
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