Infosys Limited · NSE:INFY

Infosys — Q2 FY2006 Earnings Presentation

28 slides from Infosys's earnings presentation, Oct 11, 2005

  1. Slide 1: Performance of Infosys group for the Second Quarter ended September 30, 2005

    Performance of Infosys group for the Second Quarter ended September 30, 2005 Nandan M. Nilekani S. Gopalakrishnan Chief Executive Officer, President and Managing Director Chief Operating Officer and Deputy Managing Director © Infosys Technologies Limited 2005-06

  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 Addition & Expansion of Services ¾ Human Resources ¾ Capex and Infrastructure ¾ Outlook for the Future ¾ Summary © Infosys Technologies Limited 2005-06 Slide 3

  4. Slide 4: Financial Performance

    Financial Performance © Infosys Technologies Limited 2005-06

  5. Slide 5: Highlights

    Highlights ¾ Half-year FY 2006 revenue reaches US$ 1 billion ¾ Sequential revenue growth of 10.7% Q2 FY 06 Q1 FY 06 H1 FY 06 Indian GAAP Y-O-Y Growth Income 31.2% 36.5% 33.6% Net Profit 35.6% 37.0% 36.2% US GAAP Y-O-Y Growth Revenues 38.3% 42.1% 40.3% Net income 42.3% 47.0% 44.4% New clients added 3

  6. Slide 6: Highlights (Indian GAAP)

    Highlights (Indian GAAP) (Rs. crore) FY2006 FY2006 FY2005 % growth over Q2 Q1 Q2 Q1 06 Q2 05 Income 2,294 2,072 1,749 10.7 31.2 Software dev expenses 1,212 1,105 927 9.7 30.7 Gross profit 1,082 967 822 11.9 31.6 S,G&A expenses 348 303 261 14.9 33.3 Operating profit 734 664 561 10.5 30.8 Depreciation

  7. Slide 7: Highlights (Indian GAAP) H1

    Highlights (Indian GAAP) (Rs. crore) FY2006 % FY2005 % growth H1 H1 Income 4,366 100.0 3,267 100.0 33.6 Software dev expenses 2,316 53.0 1,732 53.0 33.7 Gross profit 2,050 47.0 1,535 47.0 33.6 S,G&A expenses 652 14.9 485 14.8 34.4 Operating profit 1,398 32.0 1,050 32.2 33.1 Depreciation 176 4.0 113

  8. Slide 8: Balance Sheet Summary

    Balance Sheet Summary (Rs. crore) Sep 30, 2005 % Mar 31, 2005 % LIABILITIES Shareholders’ funds 6,459 99 5,319 100 Minority interest 52 1 - - Total liabilities 6,511 100 5,319 100 ASSETS Fixed assets 1,953 30 1,574 30 Investments 2 0 2 0 Deferred tax assets 52 1 45 1 Current assets Cash & equivalent

  9. Slide 9: Operational Performance

    Operational Performance © Infosys Technologies Limited 2005-06

  10. Slide 10: Region-wise Revenue

    Region-wise Revenue % Q2 2006 Q1 2006 Q2 2005 North America 65.4 63.6 65.2 Europe 23.7 23.9 21.4 India 1.5 2.4 1.7 Rest of the world 9.4 10.1 11.7 Total 100.0 100.0 100.0 © Infosys Technologies Limited 2005-06 Slide 10

  11. Slide 11: Utilization

    Utilization 100.0% 77.5% 79.1% 74.1% 72.9% 0.0% Including training Excluding training Q1 2006 74.1% 77.5% Q2 2006 72.9% 79.1% Q1 2006 Q2 2006 © Infosys Technologies Limited 2005-06 Slide 11

  12. Slide 12: Revenues by Project type

    Revenues by Project type % Q2 2006 Q1 2006 Q2 2005 Fixed Price 28.7 28.6 29.7 Time & Materials 71.3 71.4 70.3 Total 100.0 100.0 100.0 © Infosys Technologies Limited 2005-06 Slide 12

  13. Slide 13: Onsite-Offshore Revenue split

    Onsite-Offshore Revenue split % Q2 2006 Q1 2006 Q2 2005 Onsite 48.8 47.9 49.8 Offshore 51.2 52.1 50.2 Total 100.0 100.0 100.0 © Infosys Technologies Limited 2005-06 Slide 13

  14. Slide 14: Customer Concentration

    Customer Concentration Q2 2006 Q1 2006 Q2 2005 Client contribution to revenues (%) Top Client 4.4 5.2 5.5 Top 5 clients 17.8 19.1 21.6 Top 10 clients 30.6 31.8 34.7 No. of clients* Million dollar 191 172 146 5 million+ 76 73 60 10 million+ 48 43 31 20 million+ 23 22 16 30 million+ 16 14 10 40 millio

  15. Slide 15: Client Addition & Expansion of Services

    Client Addition & Expansion of Services © Infosys Technologies Limited 2005-06

  16. Slide 16: Client Addition & Expansion of Services

    Client Addition & Expansion of Services ¾ Clients added during the quarter were 34 ¾ Infosys won its single largest multi-year, multi-million dollar contract from ABN AMRO to develop, support and enhance a wide spectrum of applications ¾ Infosys entered into a high-volume, multi-year strategic engag

  17. Slide 17: Client Addition & Expansion of Services: New Service lines

    Client Addition & Expansion of Services New Service lines ¾ Infosys is helping clients realize value from investments in Enterprise Resource Planning (ERP), Customer Relationship Management (CRM) and other enterprise applications for business transformation ¾ Infosys is working with a leading certif

  18. Slide 18: Client Addition & Expansion of Services: Financial Services

    Client Addition & Expansion of Services Financial Services ¾ A leading diversified financial services company engaged Infosys to define a strategy for streamlining systems and processes to improve operational efficiency ¾ Infosys’ Operational Risk Management Solution is enabling an investment manage

  19. Slide 19: Finacle

    Finacle™ Finacle™ consolidated its position among global Tier 1, Tier 2 and large regional banks, particularly in the strategic Europe market ¾ A global top 100 bank headquartered in Europe licensed Finacle™ core banking, CRM, consumer e-banking and wealth management solutions to power its retail ba

  20. Slide 20: Human Resources

    Human Resources © Infosys Technologies Limited 2005-06

  21. Slide 21: Human Resources

    Human Resources Q2 2006 Q1 2006 Total employee strength 46,196 39,806 Software professionals 43,441 37,146 Gross addition 8,026 4,532 Laterals 1,166 1,129 Net addition 6,390 3,056 © Infosys Technologies Limited 2005-06 Slide 21

  22. Slide 22: Capex and Infrastructure

    Capex and Infrastructure © Infosys Technologies Limited 2005-06

  23. Slide 23: Capex and Infrastructure

    Capex and Infrastructure ¾ Capital expenditure of Rs. 303 crore was incurred during the quarter ¾ As on September 30, 2005, the company had 81,65,350* sq. ft of space capable of accommodating 36,466 professionals and 3,177,756* sq. ft under completion capable of accommodating 20,614 professionals *E

  24. Slide 24: Outlook for the Future

    Outlook for the Future © Infosys Technologies Limited 2005-06

  25. Slide 25: Indian GAAP - Consolidated

    Indian GAAP - Consolidated Quarter ending December 31, 2005 ¾ Income is expected to be between Rs. 2,443 crore and Rs. 2,452 crore; YOY growth of 30.25% to 30.73% ¾ Earnings per share is expected to be Rs. 23.10; YOY growth of 24.86% Fiscal year ending March 31, 2006 ¾ Income is expected to be betwe

  26. Slide 26: Summary

    Summary © Infosys Technologies Limited 2005-06

  27. Slide 27: Summary

    Summary ¾ Half-year FY 2006 revenue reaches US$ 1 billion ¾ Guidance for FY 2006 revised upwards. Revenues expected to grow 31% in FY 2006 (34% in US Dollar terms) ¾ Robust growth during the quarter due to our effective focus on offering a broad array of services to our clients ¾ The pricing environ

  28. Slide 28: Thank You

    Thank You © Infosys Technologies Limited 2005-06

Infosys — Q2 FY2006 Earnings Presentation on 6ix