Infosys Limited · NSE:INFY

Infosys — Infosys Technologies — Q4 FY2005 Earnings Presentation

29 slides from Infosys's earnings presentation, Apr 14, 2005

  1. Slide 1: Performance for the Fourth Quarter ended March 31, 2005

    Performance for the Fourth Quarter ended March 31, 2005 Nandan M. Nilekani Chief Executive Officer, President and Managing Director S. Gopalakrishnan Chief Operating Officer and Deputy Managing Director 1 © Infosys Technologies Limited 2004-2005

  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 rel

  3. 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 2004-2005 Slide 3

  4. Slide 4: Financial Performance

    Financial Performance 4 © Infosys Technologies Limited 2004-2005

  5. Slide 5: Highlights

    Highlights This quarter Last quarter FY 05 Indian GAAP - Consolidated Y-O-Y Growth Income 47.3% 49.2% 46.9% PAT from ordinary activities 53.2% 51.4% 48.5% US GAAP Y-O-Y Growth Revenues 50.2% 53.3% 49.8% Net income 64.9% 57.8% 55.2% New clients 37 38 136 Repeat business 92.9% 95.0% 95.4% Headcount -

  6. Slide 6: Highlights (Indian GAAP - Consolidated)

    Highlights (Indian GAAP - Consolidated) (Rs. crore) FY2005 FY2005 FY2004 % growth over Q4 Q3 Q4 Q3 05 Q4 04 Income 1,987.32 1,875.61 1,349.45 5.96 47.27 S/w development expenses 1,041.31 991.48 707.09 5.03 47.27 Gross profit 946.01 884.13 642.36 7.00 47.27 S,G&A expenses 279.30 266.15 193.19 4.94 44

  7. Slide 7: Highlights (Indian GAAP - Annual)

    Highlights (Indian GAAP - Annual) (Rs. crore) FY2005 % FY2004 % Growth% Income 7,129.65 100.0 4,852.95 100.0 46.9 S/w development expenses 3,764.66 52.8 2,538.67 52.3 48.3 Gross profit 3,364.99 47.2 2,314.28 47.7 45.4 S,G&A expenses 1,029.98 14.4 720.09 14.8 43.0 Operating profit 2,335.01 32.8 1,594

  8. Slide 8: Balance Sheet Summary

    Balance Sheet Summary (Rs. crore) Mar 31, 2005 % Mar 31, 2004 % LIABILITIES Shareholders’ funds 5,318.76 100 3,343.14 100 Total liabilities 5,318.76 100 3,343.14 100 ASSETS Fixed assets 1,574.15 30 1,031.86 31 Investments 2.04 0 2.04 0 Deferred tax assets 44.37 1 39.97 1 Current assets Cash & equiva

  9. Slide 9: Operational Performance

    Operational Performance 9 © Infosys Technologies Limited 2004-2005

  10. Slide 10: Geography-wise Revenue

    Geography-wise Revenue % FY2005 FY2005 FY2004 FY2005 FY2004 Q4 Q3 Q4 North America 63.9 66.6 65.5 65.2 71.2 Europe 23.3 22.1 20.3 22.3 19.2 India 2.0 2.1 1.2 1.9 1.4 Rest of World 10.8 9.2 13.0 10.6 8.2 Total 100.0 100.0 100.0 100.0 100.0 © Infosys Technologies Limited 2004-2005 Slide 10

  11. Slide 11: Utilization

    Utilization 100.0% 76.6% 79.3% 73.2% 71.4% 0.0% Including training Excluding training Q4 FY 2005 73.2% 76.6% Q3 FY 2005 71.4% 79.3% Q4 FY 2005 Q3 FY 2005 © Infosys Technologies Limited 2004-2005 Slide 11

  12. Slide 12: Revenues by Project type

    Revenues by Project type % FY 2005 FY 2005 FY 2004 FY 2005 FY 2004 Q4 Q3 Q4 Fixed 29.4 31.4 30.6 30.0 33.8 Price Time & 70.6 68.6 69.4 70.0 66.2 Materials Total 100.0 100.0 100.0 100.0 100.0 © Infosys Technologies Limited 2004-2005 Slide 12

  13. Slide 13: Onsite-Offshore Revenue

    Onsite-Offshore Revenue % FY 2005 FY 2005 FY 2004 Q4 Q3 Q4 Onsite 48.1 49.0 53.0 Offshore 51.9 51.0 47.0 Total 100.0 100.0 100.0 © Infosys Technologies Limited 2004-2005 Slide 13

  14. Slide 14: Customer Concentration

    Customer Concentration Q42005 Q32005 Q4 2004 Client contribution to revenues (%) Top client 6.3 4.9 6.5 Top 5 clients 21.2 19.8 23.3 Top 10 clients 33.8 32.1 37.1 No. of clients* Million dollar 166 156 131 Five million+ 71 65 51 Ten million+ 42 37 25 Twenty million+ 19 18 12 Thirty million+ 11 10 6

  15. Slide 15: Client Acquisition & Expansion of Services

    Client Acquisition & Expansion of Services 15 © Infosys Technologies Limited 2004-2005

  16. Slide 16: Client Acquisition & Expansion of Services

    Client Acquisition & Expansion of Services ¾ Client acquisitions during the quarter were 37. No. of active clients on March 31, 2005 were 438 ¾ Infosys’ Radio-Frequency Identification (RFID) solutions continued to make global corporations more competitive ¾ A global advanced electronics and high tec

  17. Slide 17: Client Acquisition & Expansion of Services

    Client Acquisition & Expansion of Services ¾ A large independent distributor of office equipment and document management services is using Infosys’ business intelligence solution for Sarbanes Oxley compliance ¾ Two leading specialty retailers are using Infosys’ expertise to improve their inventory a

  18. Slide 18: Client Acquisition & Expansion of Services

    Client Acquisition & Expansion of Services ¾ Infosys is consolidating multiple billing systems for a prominent integrated telecommunications services provider in the US ¾ Infosys enabled a global telecom service provider to set up a regional customer service center to provide data, voice, mobile and

  19. Slide 19: Client Acquisition & Expansion of Services

    Client Acquisition & Expansion of Services ¾ Infosys completed a web-based risk management program for a leading mortgage insurance services company in the US ¾ A power and automation technologies leader engaged Infosys in China to assess internal controls for Sarbanes Oxley compliance ¾ A leading i

  20. Slide 20: Banking Products

    Banking Products ¾ Finacle™, the universal banking solution from Infosys, continued to empower banks to transform their business by leveraging next generation technologies ¾ Among the new wins in this quarter include a major financial services group in Western Europe, two leading banks in Central an

  21. Slide 21: Human Resources

    Human Resources 21 © Infosys Technologies Limited 2004-2005

  22. Slide 22: Human Resources

    Human Resources* ¾ Gross addition of employees during the quarter was 2,506, out of which 969 were laterals ¾ Net addition of 1,521 employees during the quarter as compared to 2,280 during the quarter ended December 31, 2004 ¾ Total employee strength at 36,750 as on March 31, 2005, up from 35,229 as

  23. Slide 23: Capex and Infrastructure

    Capex and Infrastructure 23 © Infosys Technologies Limited 2004-2005

  24. Slide 24: Capex and Infrastructure

    Capex and Infrastructure ¾ Capital expenditure of Rs. 244.14 crore was incurred during the quarter ¾ As on March 31, 2005, the company had 69,27,450* sq. ft of space capable of accommodating 33,511 professionals; and 31,76,400 sq. ft under completion capable of accommodating 16,615 professionals *Ex

  25. Slide 25: Outlook for the Future

    Outlook for the Future 25 © Infosys Technologies Limited 2004-2005

  26. Slide 26: Indian GAAP - Consolidated

    Indian GAAP - Consolidated ¾ Quarter ending June 30, 2005 * ¾ Income from ordinary activities is expected to be between Rs. 2,002 crore and Rs. 2,020 crore; YOY growth of 32% - 33% ¾ Earnings per share from ordinary activities is expected to be Rs. 19.30; YOY growth of 33% ¾ Fiscal year ending March

  27. Slide 27: Summary

    Summary 27 © Infosys Technologies Limited 2004-2005

  28. Slide 28: Summary

    Summary ¾ We have been taking steps towards transforming the way we manage our large accounts ¾ Our clients increasingly see us as a strategic long-term partner who can offer a wide range of services ¾ Pricing has been stable ¾ Our variable compensation plan helped align our employee cost to the gro

  29. Slide 29: Thank You

    Thank You 29 © Infosys Technologies Limited 2004-2005

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