Infosys Limited · NSE:INFY
Infosys — Q3 FY2006 Earnings Presentation
27 slides from Infosys's earnings presentation, Jan 11, 2006
Slide 1: Performance of Infosys for the Third Quarter ended December 31, 2005
Performance of Infosys for the Third Quarter ended December 31, 2005 Nandan M. Nilekani S. Gopalakrishnan Chief Executive Officer, Chief Operating Officer and President and Managing Director Deputy Managing Director © Infosys Technologies Limited 2005-2006
Slide 2: Safe Harbour
Safe Harbour Certain statements in this presentation 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 num
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 2005-2006 3
Slide 4: Financial Performance
Financial Performance © Infosys Technologies Limited 2005-2006
Slide 5: Highlights
Highlights Q3 FY 06 Q2 FY 06 Q3 FY 05 Indian GAAP YOY Growth Income 35.0% 31.2% 49.2% Net profit 30.6% 35.6% 51.4% US GAAP YOY Growth Revenues 32.2% 38.3% 53.3% Net income 27.7% 42.3% 57.8% New clients added 36 34 38 Repeat business 93.2% 96.5% 95.0% Employees Period end headcount 49,422 46,196 35,2
Slide 6: Highlights (Indian GAAP)
Highlights (Indian GAAP) (Rs. crore) FY2006 FY2006 FY2005 % growth over Q3 Q2 Q3 Q2 06 Q3 05 Income 2,532 2,294 1,876 10.4 35.0 Software dev expenses 1,327 1,212 992 9.5 33.8 Gross profit 1,205 1,082 884 11.4 36.3 S,G&A expenses 344 348 266 -1.1 29.3 Operating profit 861 734 618 17.3 39.3 Depreciati
Slide 7: Balance Sheet Summary
Balance Sheet Summary (Rs. crore) Dec 31, 2005 % Dec 31, 2004 % LIABILITIES Shareholders’ funds 7,312 99 4,821 100 Minority interest 60 1 - - Total liabilities 7,372 100 4,821 100 ASSETS Fixed assets 2,096 28 1,431 30 Investments 2 - 2 - Deferred tax assets 57 1 43 1 Current assets Cash & equivalent
Slide 8: Operational Performance
Operational Performance © Infosys Technologies Limited 2005-2006
Slide 9: Region-wise Revenue
Region-wise Revenue % Q3 2006 Q2 2006 Q3 2005 North America 65.0 65.4 66.6 Europe 24.9 23.7 22.1 India 1.4 1.5 2.1 Rest of the world 8.7 9.4 9.2 Total 100.0 100.0 100.0 © Infosys Technologies Limited 2005-2006 9
Slide 10: Utilization
Utilization 100.0% 78.7% 79.1% 70.0% 72.9% 0.0% Including training Excluding training Q3 FY 2006 70.0% 78.7% Q2 FY 2006 72.9% 79.1% Q3 FY 2006 Q2 FY 2006 © Infosys Technologies Limited 2005-2006 10
Slide 11: Revenues by Project type
Revenues by Project type % Q3 2006 Q2 2006 Q3 2005 Fixed Price 28.4 28.7 31.4 Time & Materials 71.6 71.3 68.6 Total 100.0 100.0 100.0 © Infosys Technologies Limited 2005-2006 11
Slide 12: Onsite-Offshore Revenue
Onsite-Offshore Revenue % Q3 2006 Q2 2006 Q3 2005 Onsite 48.6 48.8 49.0 Offshore 51.4 51.2 51.0 Total 100.0 100.0 100.0 © Infosys Technologies Limited 2005-2006 12
Slide 13: Customer Concentration
Customer Concentration Q3 2006 Q2 2006 Q3 2005 Client contribution to revenues (%) Top client 4.5 4.4 4.9 Top 5 clients 17.6 17.8 19.8 Top 10 clients 29.9 30.6 32.1 No. of clients* Million dollar 206 191 156 5 million+ 78 76 65 10 million+ 51 48 37 20 million+ 25 23 18 30 million+ 18 16 10 40 millio
Slide 14: Client Addition & Expansion of Services
Client Addition & Expansion of Services © Infosys Technologies Limited 2005-2006
Slide 15: Client Addition & Expansion of Services
Client Addition & Expansion of Services ¾ Client acquisitions during the quarter were 36 ¾ Infosys’ Strategic Global Sourcing Unit and Infosys Consulting Inc. undertook an assessment of the sourcing strategy and processes for a leading hi-tech company ¾ Infosys Hi-Tech and Discrete Manufacturing uni
Slide 16: Client Addition & Expansion of Services
Client Addition & Expansion of Services ¾ One of the largest insurance and financial services companies in North America has sought Infosys’ expertise in developing an agency front-end portal that will strengthen its distribution capacity and drive product performance, while providing a common techn
Slide 17: Client Addition & Expansion of Services
Client Addition & Expansion of Services ¾ Australia ¾ A pharmaceutical multinational in Australia has engaged Infosys to undertake a complete upgrade of its worldwide Oracle database, operating system and applications infrastructure ¾ Other new accounts include one of the largest privately owned pro
Slide 18: Finacle
Finacle® ¾ ANB Bank, a Global 500 bank headquartered in Saudi Arabia, licensed Finacle® to power its retail banking initiative ¾ Centurion Bank of Punjab selected Finacle® for its technology- led business transformation initiative ¾ UCO Bank has also deployed Finacle® to achieve cost advantage and d
Slide 19: Human Resources
Human Resources © Infosys Technologies Limited 2005-2006
Slide 20: Human Resources
Human Resources Dec 2005 Sep 2005 Total employee strength 49,422 46,196 Software professionals 46,484 43,441 Gross addition 5,135 8,026 Laterals 927 1,166 Net addition 3,226 6,390 © Infosys Technologies Limited 2005-2006 20
Slide 21: Capex and Infrastructure
Capex and Infrastructure © Infosys Technologies Limited 2005-2006
Slide 22: Capex and Infrastructure
Capex and Infrastructure ¾ Capital expenditure of Rs. 260 crore was incurred during the quarter ¾ As on December 31, 2005, the company had 90,11,739* sq. ft of space capable of accommodating 41,666 professionals and 38,01,880* sq. ft under completion capable of accommodating 16,900 professionals *Ex
Slide 23: Outlook for the Future
Outlook for the Future © Infosys Technologies Limited 2005-2006
Slide 24: Indian GAAP - Consolidated
Indian GAAP - Consolidated ¾ Quarter ending March 31, 2006 ¾ Income is expected to be between Rs. 2,590 crore and Rs. 2,599 crore; YOY growth of 30.35% to 30.80% ¾ Earnings per share before exceptional items is expected to be between Rs. 24.30 and Rs. 24.70; YOY growth of 27.83% to 29.93% ¾ Fiscal y
Slide 25: Summary
Summary © Infosys Technologies Limited 2005-2006
Slide 26: Summary
Summary ¾ Another quarter of steady growth ¾ Client addition continues to be strong ¾ Our initiatives in strategic alignment, capability building and operational excellence are all on track ¾ Our collaborative approach to the market-place, combined with the strengths of our various business units, i
Slide 27: Thank You
Thank You © Infosys Technologies Limited 2005-2006