Infosys Limited · NSE:INFY
Infosys — Q3 FY2007 Earnings Presentation
28 slides from Infosys's earnings presentation, Jan 11, 2007
Slide 1: Performance of Infosys group for the Third Quarter ended December 31, 2006
Performance of Infosys group for the Third Quarter ended December 31, 2006 Nandan M. Nilekani Chief Executive Officer and Managing Director S. Gopalakrishnan President, Chief Operating Officer 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 ¾ Financial Performance ¾ Operational Performance ¾ Client Acquisition & Expansion of Services ¾ Human Resources ¾ Capex and Infrastructure ¾ Outlook for the future ¾ Summary © Infosys Technologies Limited 2006-07
Slide 4: Financial Performance
Financial Performance © Infosys Technologies Limited 2006-07
Slide 5: Highlights
Highlights Q3 FY 07 Q2 FY 07 Q3 FY 06 Indian GAAP Y-O-Y Growth Income 44.4% 50.4% 35.0% PAT from ord. Activities 50.0% 52.0% 30.6% US GAAP Y-O-Y Growth Revenues 46.9 % 42.4% 32.2% Net income 52.4 % 44.2% 27.7% New clients 43 45 36 Repeat business 94.7% 95.2% 93.2% Headcount Gross addition 6,062 10,7
Slide 6: Highlights (Indian GAAP)
Highlights (Indian GAAP) (Rs. crore) FY2007 FY2007 FY2006 %growth over Q3 Q2 Q3 Q2 07 Q3 06 Income 3,655 3,451 2,532 5.9 44.4 S/w development expenses 1,938 1,833 1,327 5.7 46.0 Gross profit 1,717 1,618 1,205 6.1 42.5 S,G&A expenses 521 509 344 2.4 51.5 Operating profit 1,196 1,109 861 7.8 38.9 Depr
Slide 7: Balance Sheet Summary
Balance Sheet Summary (Rs. crore) Dec 31, 2006 % Dec 31, 2005 % LIABILITIES Shareholders’ funds 9,715 100 7,312 99 Minority interest - - 60 1 Total liabilities 9,715 100 7,372 100 ASSETS Fixed assets 3,191 33 2,096 28 Investments - - 2 - Deferred tax assets 83 1 57 1 Current assets Cash & equivalent
Slide 8: Operational Performance
Operational Performance © Infosys Technologies Limited 2006-07
Slide 9: Region wise Revenue
Region wise Revenue (%) Q3 2007 Q2 2007 Q3 2006 North America 63.2 63.7 65.0 Europe 26.8 25.8 24.9 India 1.8 1.6 1.4 Rest of the world 8.2 8.9 8.7 Total 100.0 100.0 100.0 © Infosys Technologies Limited 2006-07
Slide 10: Utilization Rates
Utilization Rates 100.0% 77.5% 75.8% 67.5% 67.5% 0.0% Including training Excluding training Q2 2007 67.5% 77.5% Q3 2007 67.5% 75.8% Q2 2007 Q3 2007 © Infosys Technologies Limited 2006-07
Slide 11: Revenues by Project type
Revenues by Project type (%) Q3 2007 Q2 2007 Q3 2006 Fixed Price 27.7 26.2 28.4 Time & Materials 72.3 73.8 71.6 Total 100.0 100.0 100.0 © Infosys Technologies Limited 2006-07
Slide 12: Onsite-Offshore Revenue split
Onsite-Offshore Revenue split (%) Q3 2007 Q2 2007 Q3 2006 Onsite 49.2 50.3 48.6 Offshore 50.8 49.7 51.4 Total 100.0 100.0 100.0 © Infosys Technologies Limited 2006-07
Slide 13: Customer Concentration
Customer Concentration Q3 2007 Q2 2007 Q3 2006 Client contribution to revenues(%) Top Client 6.9 6.6 4.5 Top 5 clients 18.9 21.0 17.6 Top 10 clients 31.0 32.9 29.9 No. of clients* Million dollar 256 232 206 5 million+ 108 97 78 10 million+ 67 61 51 20 million+ 35 29 25 30 million+ 22 20 18 40 millio
Slide 14: Client Acquisition & Expansion of Services
Client Acquisition & Expansion of Services © Infosys Technologies Limited 2006-07
Slide 15: Client Acquisition & Expansion of Services
Client Acquisition & Expansion of Services ¾ Client acquisitions during the quarter were 43 ¾ A leading US grocery chain selected Infosys to enhance its IT systems to support warehouse operations and improve business-IT alignment ¾ A large distributor of paper products in the US is working with Info
Slide 16: Client Acquisition & Expansion of Services
Client Acquisition & Expansion of Services ¾ Infosys strengthened relationships in Europe, partnering with a top global retailer to implement infrastructure standards for better service levels and cost optimization ¾ In the UK, Infosys is transforming the customer service processes of a major energy
Slide 17: Finacle
Finacle™ ¾ Finacle registered a key win this quarter – a large nationalized bank in India TM with about 1,200 branches. Finacle will power the bank’s front- and back-office TM operations, enabling it to consolidate customer information, achieve better regulatory compliance and lower operational cost
Slide 18: Subsidiaries
Subsidiaries ¾ Infosys BPO Limited ¾ Maintained its growth momentum ¾ Recent customers include one of the largest integrated oil companies in the world, and one of the best known US media companies ¾ Infosys Consulting Inc. ¾ For a large pharmaceutical company, Infosys Consulting is developing a mas
Slide 19: Others
Others ¾ During the quarter, Infosys completed a sponsored secondary offering of 3,00,00,000 American Depositary Shares (ADSs), representing 3,00,00,000 equity shares (one equity share represents one ADS) at a price of US$ 53.50 per ADS excluding underwriting discounts and commissions. The aggregate
Slide 20: Human Resources
Human Resources © Infosys Technologies Limited 2006-07
Slide 21: Human Resources
Human Resources Q3 2007 Q2 2007 Total employee strength 69,432 66,150 Software professionals 65,393 61,966 Gross addition 6,062 10,795 Laterals 1,676 2,560 Net addition 3,282 7,741 © Infosys Technologies Limited 2006-07
Slide 22: Capex and Infrastructure
Capex and Infrastructure © Infosys Technologies Limited 2006-07
Slide 23: Capex and Infrastructure
Capex and Infrastructure ¾ Capital expenditure of Rs. 343 crore was incurred during the quarter ¾ As on December 31, 2006, the company had 1,15,08,389* sq. ft of space capable of accommodating 58,488 professionals and 93,50,251 sq. ft under completion capable of accommodating 23,217 professionals *
Slide 24: Outlook for the Future
Outlook for the Future © Infosys Technologies Limited 2006-07
Slide 25: Indian GAAP – Consolidated
Indian GAAP – Consolidated Quarter ending March 31, 2007* ¾ Income is expected to be between Rs. 3,789 crore and Rs. 3,798 crore; YOY growth of 44.4% to 44.7% ¾ Earnings per share** is expected to be Rs. 17.88; YOY growth of 46.3% Fiscal year ending March 31, 2007* ¾ Income is expected to be between
Slide 26: Summary
Summary © Infosys Technologies Limited 2006-07
Slide 27: Summary
Summary ¾ Our investments in enriching and synergizing our portfolio of services have created compelling value propositions for our clients ¾ We have delivered double digit revenue growth in dollar terms for the third consecutive quarter during this fiscal ¾ The pricing environment continues to be s
Slide 28: Thank You
Thank You © Infosys Technologies Limited 2006-07