Infosys Limited · NSE:INFY

Infosys — Q1 FY2003 Earnings Presentation

33 slides from Infosys's earnings presentation, Jun 30, 2002

  1. Slide 1: Performance of Infosys for the First Quarter ended June 30, 2002

    Performance of Infosys for the First Quarter ended June 30, 2002 Nandan M. Nilekani Chief Executive Officer, President and Managing Director © Infosys Technologies Limited 2002-2003

  2. Slide 2: Safe Harbour

    Safe Harbour Certain statements in this release concerning our future growth prospects are forward-looking statements which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties rela

  3. Slide 3: Agenda

    Agenda » Financial Performance » Operational Performance » Client Acquisition & Expansion of Services » Human Resources » Strategic Investments and Acquisitions » Business Process Management (BPM) » Capex and Infrastructure » Outlook for the Future » Summary © Infosys Technologies Limited 2002-2003

  4. Slide 4: Financial Performance

    Financial Performance © Infosys Technologies Limited 2002-2003

  5. Slide 5: Highlights

    Highlights Q1 FY 03 Q4 FY 02 Q1 FY 02 Indian GAAP * Y-O-Y Growth Income 24.8%21.0% 72.3% PAT from ord. Activities 14.1%15.8% 56.7% US GAAP ** Y-O-Y Growth Revenues 19.7%15.7% 62.6% Net income 9.2%10.3% 46.3% New clients 2329 26 Repeat business 98.5%80.1% 95.2% Headcount Gross addition 772181 315 Net

  6. Slide 6: Highlights (Indian GAAP)

    Highlights (Indian GAAP*) (Rs. crore) FY2003 FY2002 FY 2002 % growth over Q1 Q4 Q1 Q4 02 Q1 02 Income 764.62 680.13 612.52 12.42% 24.83% S/w development expenses 377.39 322.81 285.56 16.91% 32.16% Gross profit 387.23 357.32 326.96 8.37% 18.43% S,G&A expenses 112.30 86.58 86.44 29.71% 29.92% Operatin

  7. Slide 7: Balance Sheet Summary

    Balance Sheet Summary* (Rs. crore) June 30, 2002 % June 30, 2001 % LIABILITIES Shareholders’ funds 2,297.56 100 1,595.61 100 Total liabilities 2,297.56 100 1,595.61 100 ASSETS Fixed assets 755.93 33 623.88 39 Investments 56.96 3 44.44 3 Deferred tax assets 24.84 1 16.59 1 Current assets Cash & equiv

  8. Slide 8: Region wise Revenue (%)

    Region wise Revenue (%) FY2003 FY2002FY2002 Q1Q4 Q1 North America 72.370.7 72.2 Europe 19.319.7 19.8 India 1.81.6 2.6 Rest of the world 6.68.0 5.4 Total 100.0 100.0 100.0 © Infosys Technologies Limited 2002-2003 Slide 8

  9. Slide 9: Operational Performance

    Operational Performance © Infosys Technologies Limited 2002-2003

  10. Slide 10: Utilization Rates

    Utilization Rates 100.0% 78.9% 80.2% 72.4% 72.9% 0.0% Including training Excluding training Q4 FY 2002 72.4% 72.9% Q1 FY 2003 78.9% 80.2% Q4 FY 2002 Q1 FY 2003 © Infosys Technologies Limited 2002-2003 Slide 10

  11. Slide 11: Project type segmentation (%)

    Project type segmentation (%) FY2003 FY2002 FY2002 Q1 Q4 Q1 Fixed Price 35.5 34.0 27.0 Time & Material 64.5 66.0 73.0 Total 100.0 100.0 100.0 © Infosys Technologies Limited 2002-2003 Slide 11

  12. Slide 12: Onsite-Offshore Revenue split (%)

    Onsite-Offshore Revenue split (%) FY2003 FY2002 FY2002 Q1 Q4 Q1 Onsite 52.7 52.2 50.5 Offshore 47.3 47.8 49.5 Total 100.0 100.0 100.0 © Infosys Technologies Limited 2002-2003 Slide 12

  13. Slide 13: Customer Concentration

    Customer Concentration FY2003 FY2002FY2002 Q1 Q4Q1 Top client contribution to revenues 5.8%5.6% 6.7% Top 5 client contribution to revenues 23.6%24.4% 27.4% Top 10 client contribution to revenues 39.1%39.0% 43.7% Million dollar clients* 8383 84 Five million dollar clients* 2825 21 Ten million dollar

  14. Slide 14: Accounts Receivable

    Accounts Receivable June 30, 2002 June 30, 2001 Days Sales Outstanding (LTM) 55 52 AGE PROFILE June 30, 2002 June 30, 2001 4.9% 2.0% 5.5% 1.3% 14.5% 12.2% 78.6% 81.0% 0-30 31-60 61-90 >90 0-30 31-60 61-90 >90 © Infosys Technologies Limited 2002-2003 Slide 14

  15. Slide 15: Other Highlights

    Other Highlights » Software revenues in US dollar terms grew by 11.9% for the quarter as compared to the quarter ended March 31, 2002. Revenue growth comprised volume growth of 12.5% offset by a price decline of 0.6%, as compared to the quarter ended March 31, 2002 © Infosys Technologies Limited 200

  16. Slide 16: Client Acquisition & Expansion of Services

    Client Acquisition & Expansion of Services © Infosys Technologies Limited 2002-2003

  17. Slide 17: Client Acquisition & Expansion of Services

    Client Acquisition & Expansion of Services » Client acquisitions during the quarter were 23 » Won the following new assignments in the financial sector » Selected by Bear Stearns, the seventh largest securities firm in the US, to provide long-term strategic solutions in simplifying business processe

  18. Slide 18: Client Acquisition & Expansion of Services

    Client Acquisition & Expansion of Services » Supply chain efficiencies contributed extensively to gaining and maintaining competitive edge and business growth in the retail sector » Working with Food Lion, a US-based retail supermarket chain, to redefine workflows and processes » Other wins include

  19. Slide 19: Client Acquisition & Expansion of Services

    Client Acquisition & Expansion of Services » Engagements in the transportation sector » Working with one of the global leaders in transportation and logistics to develop a global billing solution to achieve geographical synergy and improve process flexibility » Engaged by easyRentaCar in the UK to e

  20. Slide 20: Banking Products

    Banking Products » FINACLE™ continued to gain increased acceptance » Engaged by National Commercial Bank Jamaica Ltd., for deploying the entire FINACLE™ suite of solutions » Strategic relationship with Saudi Investment Bank, for deploying FINACLE™ eCorporate » Infosys and Wipro Infotech entered into

  21. Slide 21: Human Resources

    Human Resources © Infosys Technologies Limited 2002-2003

  22. Slide 22: Human Resources

    Human Resources » Total employee strength at 11,304 as on June 30, 2002, up from 10,738 as on March 31, 2002 » Net addition of 566 employees during the quarter as compared to 75 during the quarter ended March 31, 2002 » Gross addition of employees during the quarter was 772, out of which 144 were la

  23. Slide 23: Strategic Investments and Acquisitions

    Strategic Investments and Acquisitions © Infosys Technologies Limited 2002-2003

  24. Slide 24: Strategic investments and acquisitions

    Strategic investments and acquisitions » Acquired the Intellectual Property (IP) of the Trade IQ product from IQ Financial Systems Inc, USA for the Banking Business Unit for Rs. 14.14 cr. Additional Rs. 4.88 cr has been retained in escrow pending completion of certain obligations by the seller » Ent

  25. Slide 25: Business Process Management (BPM)

    Business Process Management (BPM) © Infosys Technologies Limited 2002-2003

  26. Slide 26: Business Process Management (BPM)

    Business Process Management (BPM) » A subsidiary for BPM, Progeon Limited, was incorporated on April 3, 2002 » In the first tranche of funding, Infosys invested Rs. 12.25 cr and Citicorp invested Rs 49 cr in Progeon » Progeon acquired 2 clients during the quarter and generated revenue of Rs. 0.21 cr

  27. Slide 27: Capex and Infrastructure

    Capex and Infrastructure © Infosys Technologies Limited 2002-2003

  28. Slide 28: Capex and Infrastructure

    Capex and Infrastructure » Capital expenditure of Rs. 53.79 cr was incurred during the quarter » As of June 30, 2002, the company had 30,02,350 sq. ft of space capable of accommodating 13,800 professionals and 5,91,400 sq. ft under completion © Infosys Technologies Limited 2002-2003 Slide 28

  29. Slide 29: Outlook for the Future

    Outlook for the Future © Infosys Technologies Limited 2002-2003

  30. Slide 30: Indian GAAP

    Indian GAAP » Quarter ending Sep 30, 2002 » Income from software development services and products is projected to be between Rs. 762 cr to Rs. 781 cr » Earnings per share is expected to be between Rs. 33 and Rs. 34 » Fiscal year ending March 31, 2003 » Income from software development services and

  31. Slide 31: Summary

    Summary © Infosys Technologies Limited 2002-2003

  32. Slide 32: Summary

    Summary » Achieved a robust revenue growth during the quarter » Incremental revenue achieved substantially due to higher project starts which are predominantly onsite driven » Impact in margins due to increased investment in sales and marketing » Increased brand building efforts globally » Moved to

  33. Slide 33: Thank You

    Thank You © Infosys Technologies Limited 2002-2003

Infosys — Q1 FY2003 Earnings Presentation on 6ix