Infosys Limited · NSE:INFY
Infosys — Investor Presentation (2011)
32 slides from Infosys's investor presentation, 2011
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Slide 2: Safe harbor
Safe harbor Certain statements made here concerning Infosys’ 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 relati
Slide 3: Infosys at 30
Infosys at 30 Balakrishnan V. Chief Financial Officer
Slide 4: Infosys – A unique story of high quality growth
Infosys – A unique story of high quality growth Revenue (in ` crore) PAT (in ` crore) 27,501 6,823 0.12 0.04 1982 2011* 1982 2011* There are very few companies in the world which has consistently earned a minimum of 25% net profit and 25% ROCE in the last 15 years * Based on IFRS consolidated financ
Slide 5: Infosys – One of the biggest wealth creator in the country
Infosys – One of the biggest wealth creator in the country • Market cap CAGR 50% from 1994 till now • Total dividend payout of ` 11,623 crore till now • 100 shares issued in IPO at ` 9,500 is 12,800 shares valued at ` 4.15 crore (as of March 31, 2011) an annual CAGR of 59% and a total gain of 4,64,4
Slide 6: Infosys - An employee delight
Infosys - An employee delight • No. of employees increased from 375 in 1993 to 1,30,820 as of March 31, 2011 • Total value of stocks issued to employees till now approximately ` 50,000 crore • All employees who joined the company till March 2010 is a shareholder in the company Copyright © 2011 Infos
Slide 7: Infosys – A case study for scalability and execution
Infosys – A case study for scalability and execution Year 1993 Year 2011 No. of employees 375 1,30,820 No. of customers 9 620 No. of projects handled 25 6,508 Total built-up area (in square feet) 0.10 million 27.66 million No. of investors in India 925 4,16,623 No. of vendors 316 17,996 Copyright ©
Slide 8: Infosys – An innovator and leader
Infosys – An innovator and leader in India to publish US GAAP financial statements in India to get listed in the US market to do a Secondary ADR to do Public Offer Without Listing (POWL) in Japan in India to get into NASDAQ-100 index in India to publish IFRS financial statements We got awards for be
Slide 9: Infosys – A torch bearer in corporate governance and disclosures
Infosys – A torch bearer in corporate governance and disclosures • Set standards for financial disclosures and reporting in the country • Set benchmark for Corporate Governance norms in the country • Used transparency and disclosures on our competitive advantage • Won many awards for financial repor
Slide 10: Re-inventing itself at 30: Infosys 3.0
Re-inventing itself at 30 Infosys 3.0 • Focus on Business operations, Business transformation and Business innovation • Focus on four large verticals • FSI – Financial Services and Insurance • MFG – Manufacturing • ECS – Energy, Utilities, Communication and Services • RCL – Retail, Consumer Product
Slide 11: Financial Highlights 2010-11
Financial Highlights 2010-11
Slide 12: Highlights of the year
Highlights of the year • Revenue guidance in US$ terms for FY11 was 16.0% to 18.0%, Actual achieved was 25.8% • Achieved revenues of US$ 6.04 billion and net profit of US$ 1.50 billion in fiscal 2011 • Added 139 new clients during the year • Gross addition of 43,120 employees (net addition of 17,024
Slide 13: Our revenues grew better than expected…
Our revenues grew better than expected… Industry Segment FY 2011 Rev % FY 2010 Rev % Growth % Insurance, Banking & Financial services 2,166 35.8% 1,633 34.0% 32.6% Manufacturing 1,185 19.6% 952 19.8% 24.5% Retail 856 14.2% 640 13.3% 33.8% Telecom 779 12.9% 773 16.1% 0.8% Others 1,055 17.5% 806 16.8%
Slide 14: While our revenue productivity increased…
While our revenue productivity increased… FY 11 FY 10 Onsite 5.4% 0.0% Offshore (3.2%) (5.1%) Blended 1.8% (4.0%) Blended in constant $ terms 1.5% (4.1%) Copyright © 2011 Infosys Technologies Limited
Slide 15: Our costs have marginally increased during the year
Our costs have marginally increased during the year in ` crore FY 11 % of revenue FY 10 % of revenue Software development expenses 15,916 57.9% 13,020 57.3% Selling and Marketing expenses 1,512 5.5% 1,184 5.2% General & Administration expenses 1,971 7.2% 1,628 7.2% Total 19,399 70.6% 15,832 69.7% Ba
Slide 16: The global currencies were highly volatile…
The global currencies were highly volatile… Average rate of USD against 2011 2010 AUD 0.94 0.85 EURO 1.32 1.41 GBP 1.55 1.60 Revenues by currency (%) AUD 6.5 5.8 EURO 6.9 6.9 GBP 7.2 9.2 Copyright © 2011 Infosys Technologies Limited
Slide 17: …while the Indian Rupee appreciated against the US Dollar
…while the Indian Rupee appreciated against the US Dollar 2011 2010 Average rupee dollar rate This year 45.54 47.44 Previous year 47.44 46.54 % change (4.01%) 1.93% Period end rupee dollar rate This year 44.60 44.90 Previous year 44.90 50.72 % change (0.67%) (11.47%) Copyright © 2011 Infosys Technol
Slide 18: We proactively managed our currency exposures…
We proactively managed our currency exposures… Q1 Q2 Q3 Q4 Period closing rate 46.45 44.94 44.71 44.60 Period average rate 45.58 46.48 44.83 45.25 Hedge position (US$ mn) 699 556 584 620 Copyright © 2011 Infosys Technologies Limited
Slide 19: …thereby minimizing the impact of currency movements
…thereby minimizing the impact of currency movements on the margins US$ mn FY 11 FY 10 Impact Operating income (6) (47) % to revenue (0.1%) (1.0%) Non-operating income 9 6 % to revenue 0.1% 0.1% Translation (3) (58) Hedging 12 64 Total 9 6 Net impact 3 (41) % to revenue 0.0% (0.9%) Copyright © 2011
Slide 20: Our effective tax rate went up further during the year
Our effective tax rate went up further during the year FY 11 FY 10 Effective tax rate 26.7% 21.3% Non STPI/SEZ revenue 75.4% 70.2% Based on IFRS consolidated financials Copyright © 2011 Infosys Technologies Limited
Slide 21: We had a profitable growth
We had a profitable growth ` crore March 31, Growth Particulars 2011 2010 (%) Revenues 27,501 100.0% 22,742 100.0% 20.9% Cost of sales 15,054 54.7% 12,071 53.1% 24.7% Gross Profit 12,447 45.3% 10,671 46.9% 16.6% Operating Expenses: Selling and marketing expenses 1,512 5.5% 1,184 5.2% 27.7% Administr
Slide 22: We have a strong Balance Sheet…
We have a strong Balance Sheet… ` crore 2011 % 2010 % SHAREHOLDERS' FUNDS Share Capital 286 1% 286 1% Reserves & Surplus 25,690 98% 22,763 98% Deferred tax liabilities 176 1% 232 1% 26,152 100% 23,281 100% APPLICATION OF FUNDS Fixed assets 5,760 22% 5,355 23% Investments 144 1% 3,702 16% Deferred ta
Slide 23: While the receivables have marginally gone up
While the receivables have marginally gone up Ageing of accounts receivables FY 2011 FY 2010 9% 4% 5% 5% 15% 15% 71% 76% 0 - 30 31 - 60 61 - 90 > 90 0 - 30 31 - 60 61 - 90 > 90 Days of sales receivable – 63 days Days of sales receivable – 59 days Based on IFRS USD Copyright © 2011 Infosys Technologi
Slide 24: We continue to balance between liquidity and returns
We continue to balance between liquidity and returns Target 2011 2010 2009 ROCE (%) 37.6% 37.3% 42.9% Times cost of capital 2 3.4 3.5 3.5 ROIC (%) 67.7% 68.7% 78.8% Times cost of capital 3 6.04 6.48 6.47 Cash & cash equivalents / total assets* 40.0% 61.9% 66.5% 57.7% Cash & cash equivalents / revenu
Slide 25: The power of intangibles
The power of intangibles 2011 2010 2009 Average age of employees (years) 27 27 26 Women employees / total employees (%) 33.8% 33.5% 33.4% HR value (` cr.) 1,35,105 1,13,287 1,02,133 Brand value (` cr.) 40,509 36,907 32,345 EVA (` cr.) 2,732 2,936 3,379 Value added (` cr.) 25,031 20,935 19,073 R&D ex
Slide 26: Subsidiaries
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Slide 27: Subsidiaries
Subsidiaries Infosys BPO Limited Infosys Consulting FY 11 FY 10 Growth (%) FY 11 FY 10 Growth (%) Revenue (` cr.) 1,472 1,387 6.1% Revenue (` cr.) 849 464 83.0% PAT (` cr.) 209 279 (25.1%) PAT (` cr.) 80 106 (24.5%) PAT / Revenue (%) 14.2% 20.1% PAT / Revenue (%) 9.4% 22.8% No. of Employees 18,113 1
Slide 28: Subsidiaries
Subsidiaries Infosys Mexico Infosys Sweden FY 11 FY 10 Growth (%) FY 11 FY 10 Growth (%) Revenue (` cr.) 99 70 41% Revenue (` cr.) 11 10 10% PAT (` cr.) (1) – – PAT (` cr.) 1 – – No. of Employees 521 346 51% No. of Employees 13 20 (35%) Infosys Brazil Infosys Public Services FY 11 FY 10 Growth (%) F
Slide 29: IFRS
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Slide 30: Financial highlights
Financial highlights Revenues Gross profit (US$ million) (US$ million) 2,544 6,041 2,055 4,804 2010 2011 2010 2011 Operating income (US$ million) Net Profit (US$ million) 1,779 1,499 1,460 1,313 2010 2011 2010 2011 Copyright © 2011 Infosys Technologies Limited
Slide 31: Thank You
POWERED BY INTELLECT DRIVEN BY VALUES a Thank You www.infosys.com
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