Infosys Limited · NSE:INFY
Infosys — Q1 FY2006 Earnings Presentation
26 slides from Infosys's earnings presentation, Jul 12, 2005
Slide 1: Performance of Infosys group for the First Quarter ended June 30, 2005
Performance of Infosys group for the First Quarter ended June 30, 2005 Nandan M. Nilekani Chief Executive Officer, President and Managing Director S. Gopalakrishnan Chief Operating Officer and Deputy Managing Director
Slide 2: Safe Harbour
Safe Harbour Certain statements in this release concerning our future growth prospects are forward-looking statements within the meaning of Section 27(a) of the U.S. Securities Act of 1933 and Section 21(e) of the U.S. Securities Exchange Act of 1934, and involve a number of risks and uncertainties
Slide 3: Agenda
Agenda ¾ Financial Performance ¾ Operational Performance ¾ Client Acquisition & Expansion of Services ¾ Human Resources ¾ Capex and Infrastructure ¾ Outlook ¾ Summary © Infosys Technologies Limited 2005-2006 Slide 3
Slide 4: Financial Performance
Financial Performance
Slide 5: Highlights
Highlights Q1 FY 06 Q4 FY 05 Q1 FY 05 Indian GAAP Y-O-Y Growth Income 36.5% 47.3% 38.6% PAT from ord. Activities 37.0% 53.2% 39.2% US GAAP Y-O-Y Growth Revenues 42.1% 50.2% 43.4% Net income 47.0% 64.9% 42.4% New clients 36 37 29 Repeat business 98.7% 92.9% 98.5% Headcount Gross addition 4,537 2,506
Slide 6: Highlights (Indian GAAP - Consolidated)
Highlights (Indian GAAP - Consolidated) (Rs. crore) FY2006 FY2005 FY 2005 % growth over Q1 Q4 Q1 Q4 05 Q1 05 Income 2,071.59 1,987.32 1,517.38 4.24 36.52 S/w development expenses 1,104.44 1,041.31 805.22 6.06 37.16 Gross profit 967.15 946.01 712.16 2.23 35.81 S,G&A expenses 303.34 279.30 222.89 8.61
Slide 7: Balance Sheet Summary
Balance Sheet Summary (Rs. crore) June 30, 2005 % June 30, 2004 % LIABILITIES Shareholders’ funds 5,906.55 99 3,812.89 100 Minority interest 43.66 1 - - Total liabilities 5,950.21 100 3,812.89 100 ASSETS Fixed assets 1,746.49 29 1,133.79 30 Investments 2.04 0 2.04 0 Deferred tax assets 47.96 1 44.20
Slide 8: Operational Performance
Operational Performance
Slide 9: Region wise Revenue
Region wise Revenue % FY2006 FY2005 FY2005 Q1 Q4 Q1 North America 63.6 63.9 65.2 Europe 23.9 23.3 22.2 India 2.4 2.0 1.6 Rest of the world 10.1 10.8 11.0 Total 100.0 100.0 100.0 © Infosys Technologies Limited 2005-2006 Slide 9
Slide 10: Utilization Rates
Utilization Rates 100.0% 74.1% 76.6% 77.5% 73.2% 0.0% Including training Excluding training Q4 FY 2005 73.2% 76.6% Q1 FY 2006 74.1% 77.5% Q4 FY 2005 Q1 FY 2006 © Infosys Technologies Limited 2005-2006 Slide 10
Slide 11: Revenues by Project type
Revenues by Project type % FY2006 FY2005 FY 2005 Q1 Q4 Q1 Fixed Price 28.6 29.4 29.7 Time & Materials 71.4 70.6 70.3 Total 100.0 100.0 100.0 © Infosys Technologies Limited 2005-2006 Slide 11
Slide 12: Onsite-Offshore Revenue split
Onsite-Offshore Revenue split % FY2006 FY2005 FY 2005 Q1 Q4 Q1 Onsite 47.9 48.1 51.9 Offshore 52.1 51.9 48.1 Total 100.0 100.0 100.0 © Infosys Technologies Limited 2005-2006 Slide 12
Slide 13: Customer Concentration
Customer Concentration Q1 2006 Q4 2005 Q1 2005 Client contribution to revenues(%) Top Client 5.2 6.3 5.3 Top 5 clients 19.1 21.2 21.6 Top 10 clients 31.8 33.8 34.3 No. of clients* Million dollar 172 166 141 5 million+ 73 71 53 10 million+ 43 42 27 20 million+ 22 19 15 30 million+ 14 11 8 40 million+
Slide 14: Client Acquisition & Expansion of Services
Client Acquisition & Expansion of Services
Slide 15: Client Acquisition & Expansion of Services
Client Acquisition & Expansion of Services ¾ Client acquisitions during the quarter were 36 ¾ Infosys continued to build a leaner, more scalable and aligned organization to handle greater business complexity and provide higher client Value • Infosys opened relationship with nine global 500 companies
Slide 16: Client Acquisition & Expansion of Services
Client Acquisition & Expansion of Services • Infosys will build a centralized financial and management reporting system for a leading bank in the US. This implementation is part of a larger initiative aimed at building a finance and credit risk data warehouse to support compliance with Basel ll requ
Slide 17: Banking Products
Banking Products Finacle™, the universal banking solution from Infosys, continued to empower banks in transforming their business by leveraging agile, next-generation technologies • One of Australia’s top five banks has chosen to deploy the Finacle™ consumer e-banking solution to power its internet
Slide 18: Human Resources
Human Resources
Slide 19: Human Resources
Human Resources ¾ Total employee strength at 39,806 as on June 30, 2005, up from 36,750 as on March 31, 2005 ¾ Net addition of 3,056 employees during the quarter as compared to 1,521 during the quarter ended March 31, 2005 ¾ Gross addition of employees during the quarter was 4,537 out of which 1,129
Slide 20: Capex and Infrastructure
Capex and Infrastructure
Slide 21: Capex and Infrastructure
Capex and Infrastructure ¾ Capital expenditure of Rs. 252.49 crore was incurred during the quarter ¾ As on June 30, 2005, the company had 75,19,350* sq. ft of space capable of accommodating 34,711 professionals and 34,58,500 sq. ft under completion capable of accommodating 21,105 professionals *Excl
Slide 22: Outlook
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Slide 23: Indian GAAP – Consolidated
Indian GAAP – Consolidated ¾ Quarter ending September 30, 2005 • Income is expected to be between Rs. 2,202 crore and Rs. 2,215 crore; YOY growth of 25.88% - 26.62% • Earnings per share is expected to be between Rs. 19.80 and Rs. 20.30; YOY growth of 18.49% - 21.48% ¾ Fiscal year ending March 31, 20
Slide 24: Summary
Summary
Slide 25: Summary
Summary ¾ Maintained our margins despite absorbing annual salary increase and the adverse impact of a depreciating Euro and Pound Sterling ¾ Started relationships with nine Global 500 companies in diverse industries ¾ Infosys Consulting commended by clients and analysts as having the right business
Slide 26: Thank You
Thank You