Infosys Limited · NSE:INFY
Infosys — Q4 FY2007 Earnings Presentation
34 slides from Infosys's earnings presentation, Mar 31, 2007
Slide 1: Performance for the Fourth Quarter and Year ended March 31, 2007
Performance for the Fourth Quarter and Year ended March 31, 2007 Nandan M. Nilekani Chief Executive Officer and Managing Director S. Gopalakrishnan Chief Operating Officer, President and Joint Managing Director © Infosys Technologies Limited 2006-07
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 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, which involve a number of
Slide 3: Agenda
Agenda ! Senior Management Changes ! Financial Performance ! Operational Performance ! Client Acquisition & Expansion of Services ! Exchange of Stock Options ! Human Resources ! Capex and Infrastructure ! Outlook for the Future ! Summary © Infosys Technologies Limited 2006-07
Slide 4: Senior Management Changes
Senior Management Changes © Infosys Technologies Limited 2006-07
Slide 5: Senior Management Changes (w.e.f June 22, 2007)
Senior Management Changes (w.e.f June 22, 2007) ! Mr. Nandan M. Nilekani becomes Co- Chairman of the Board ! Mr. S. Gopalakrishnan assumes the role of Chief Executive Officer and Managing Director ! Mr. S. D. Shibulal assumes the role of Chief Operating Officer © Infosys Technologies Limited 2006-07
Slide 6: Financial Performance
Financial Performance © Infosys Technologies Limited 2006-07
Slide 7: Highlights
Highlights Q4 FY 07 Q3 FY 07 FY 07 Indian GAAP Y-O-Y Growth Income 43.8% 44.4% 45.9% PAT from ord. Activities 68.4% 50.0% 55.7% US GAAP Y-O-Y Growth Revenues 45.5% 46.9% 43.6% Net income 70.4% 52.4% 53.1% New clients 34 43 160 Repeat business 93.3% 94.7% 95.3% Headcount Gross addition 5,992 6,062 30
Slide 8: Highlights (Indian GAAP- Quarterly)
Highlights (Indian GAAP- Quarterly) (Rs. crore) FY2007 FY2007 FY2006 % growth over Q4 Q3 Q4 Q3 07 Q4 06 Income 3,772 3,655 2,624 3.2 43.8 S/w development expenses 2,021 1,938 1,422 4.3 42.1 Gross profit 1,751 1,717 1,202 2.0 45.7 S,G&A expenses 554 521 369 6.3 50.1 Operating profit 1,197 1,196 833 0
Slide 9: Highlights (Indian GAAP - Annual)
Highlights (Indian GAAP - Annual) (Rs. crore) FY2007 % FY2006 % Growth% Income 13,893 100.0 9,521 100.0 45.9 S/w development expenses 7,458 53.7 5,066 53.2 47.2 Gross profit 6,435 46.3 4,455 46.8 44.4 S,G&A expenses 2,044 14.7 1,364 14.3 49.9 Operating profit 4,391 31.6 3,091 32.5 42.1 Depreciation
Slide 10: Balance Sheet Summary
Balance Sheet Summary (Rs. crore) Mar 31, 2007 % Mar 31, 2006 % LIABILITIES Shareholders’ funds 11,255 100 6,966 99 Minority Interest 4 - 68 1 Total liabilities 11,259 100 7,034 100 ASSETS Fixed assets 3,771 33 2,226 32 Investments - - 2 0 Deferred tax assets 92 1 65 1 Current assets Cash & equivale
Slide 11: Operational Performance
Operational Performance © Infosys Technologies Limited 2006-07
Slide 12: Region-wise Revenue
Region-wise Revenue % Q4 2007 Q3 2007 Q4 2006 FY 2007 FY 2006 North America 62.6 63.2 65.0 63.3 64.8 Europe 26.6 26.8 25.5 26.4 24.5 India 1.5 1.8 1.8 1.6 1.7 Rest of the World 9.3 8.2 7.7 8.7 9.0 Total 100.0 100.0 100.0 100.0 100.0 © Infosys Technologies Limited 2006-07
Slide 13: Utilization
Utilization 100.0% 75.8% 73.0% 67.5% 67.9% 0.0% Including training Excluding training Q3 2007 67.5% 75.8% Q4 2007 67.9% 73.0% Q3 2007 Q4 2007 © Infosys Technologies Limited 2006-07
Slide 14: Revenues by Project type
Revenues by Project type % Q4 2007 Q3 2007 Q4 2006 FY 2007 FY 2006 Fixed Price 25.9 27.7 27.0 26.7 28.1 Time & 74.1 72.3 73.0 73.3 71.9 Material Total 100.0 100.0 100.0 100.0 100.0 © Infosys Technologies Limited 2006-07
Slide 15: Onsite-Offshore Revenue
Onsite-Offshore Revenue % Q4 2007 Q3 2007 Q4 2006 Onsite 49.8 49.2 49.3 Offshore 50.2 50.8 50.7 Total 100.0 100.0 100.0 © Infosys Technologies Limited 2006-07
Slide 16: Customer Concentration
Customer Concentration Q4 2007 Q3 2007 Q4 2006 Client contribution to revenues (%) Top client 8.5 6.9 4.7 Top 5 clients 21.3 18.9 18.6 Top 10 clients 33.4 31.0 31.0 No. of clients* Million dollar 275 256 221 5 million+ 107 108 81 10 million+ 71 67 54 20 million+ 36 35 26 30 million+ 25 22 19 40 mill
Slide 17: Client Acquisition & Expansion of Services
Client Acquisition & Expansion of Services © Infosys Technologies Limited 2006-07
Slide 18: Client Acquisition & Expansion of Services
Client Acquisition & Expansion of Services ! Client acquisitions during the quarter were 34 ! In the Retail sector, Infosys won a large project for integrating the PeopleSoft Human Capital Management (HCM) systems of the third largest broadline retailer in the US. The integrated system will enable t
Slide 19: Client Acquisition & Expansion of Services
Client Acquisition & Expansion of Services ! Infosys implemented a new order management system for the world’s largest employee-owned photography company that will significantly reduce possible financial leakage ! An Aerospace major in Europe has implemented an Infosys solution that harmonizes dispa
Slide 20: Client Acquisition & Expansion of Services
Client Acquisition & Expansion of Services ! Infosys’ integrated performance management and compensation solution for a top independent software vendor will enable the company to streamline employee rewards, ratings and assessment while helping its employees and managers enjoy a better user experien
Slide 21: Client Acquisition & Expansion of Services
Client Acquisition & Expansion of Services ! Industry leaders in various sectors are using Infosys’ Independent Validation Services to boost the predictability of their applications. A leading specialty beverage brand chose Infosys to build a Testing Center of Excellence (TCOE), which brought all it
Slide 22: Banking Products
Banking Products TM ! Finacle strengthened its relationship with a leading global bank by TM initiating the deployment of Finacle multi-channel alerts solution at its European home base TM ! Finacle also won 3 new clients in the Middle East and Latin America growth markets. In the North American mar
Slide 23: Subsidiaries
Subsidiaries ! Infosys BPO Limited ! One of the world’s largest media and entertainment conglomerates has signed up Infosys BPO to provide a range of services across the media process outsourcing spectrum ! Infosys BPO was ranked fourth globally in the first-ever FAO (Finance & Accounting Outsourcin
Slide 24: Exchange of Stock Options
Exchange of Stock Options © Infosys Technologies Limited 2006-07
Slide 25: Exchange of Stock Options
Exchange of Stock Options ! During the quarter, Infosys acquired 2,11,909 shares of Infosys BPO and entered into a forward agreement to acquire 3,60,417 shares of Infosys BPO by February 2008 from various employees of Infosys BPO. Infosys also paid Rs. 58 crore during the quarter to acquire the stoc
Slide 26: Human Resources
Human Resources © Infosys Technologies Limited 2006-07
Slide 27: Human Resources
Human Resources Q4 2007 Q3 2007 Total employee strength 72,241 69,432 Software professionals 68,156 65,393 Gross addition 5,992 6,062 Laterals 1,647 1,676 Net addition 2,809 3,282 © Infosys Technologies Limited 2006-07
Slide 28: Capex and Infrastructure
Capex and Infrastructure © Infosys Technologies Limited 2006-07
Slide 29: Capex and Infrastructure
Capex and Infrastructure ! Capital expenditure of Rs. 644 crore was incurred during the quarter, total for the year Rs. 1,201 crore ! As on March 31, 2007, the company had 1,19,64,601* sq. ft of space capable of accommodating 58,488 professionals; and 1,03,12,039 sq. ft under completion capable of a
Slide 30: Outlook for the Future
Outlook for the Future © Infosys Technologies Limited 2006-07
Slide 31: Indian GAAP - Consolidated
Indian GAAP - Consolidated ! Quarter ending June 30, 2007 ! Income from ordinary activities is expected to be between Rs. 3,896 crore and Rs. 3,913 crore; YoY growth of 29% - 30% ! Earnings per share* from ordinary activities is expected to be Rs. 17.84; YoY growth of 24% ! Fiscal year ending March
Slide 32: Summary
Summary © Infosys Technologies Limited 2006-07
Slide 33: Summary
Summary ! Revenues grew by around US $ 1 billion this year ! Our continued focus on large clients has yielded results. Our largest client today contributes more than US $ 200 million in revenues ! The global IT services industry continues to show strong growth with exciting opportunities.Infosys is
Slide 34: Thank You
Thank You © Infosys Technologies Limited 2006-07