Infosys Limited · NSE:INFY
Infosys — Q2 FY2002 Earnings Presentation
34 slides from Infosys's earnings presentation, Oct 10, 2001
Slide 1: Performance of Infosys for the Second Quarter and Half Year ended September 30, 2001
Performance of Infosys for the Second Quarter and Half Year ended September 30, 2001 Nandan M. Nilekani Managing Director, President and Chief Operating Officer 10-October-2001
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
Slide 3: Agenda
Agenda Financial Performance Operational Performance Client acquisition and significant projects undertaken Human resources Infrastructure Outlook for the future
Slide 4: Financial Performance
Financial Performance
Slide 5: The Quarter at a Glance
The Quarter at a Glance (Indian GAAP) 650.13 % 638.27 % 258.92 46 % 47 45 446.10 441.26 176.42 Q2 01 Q2 02 Q2 01 Q2 02 Q2 01 Q2 02 Total income Exports Operating profit (Rs.cr) (Rs.cr) (Rs.cr)
Slide 6: The Quarter at a Glance
The Quarter at a Glance (Indian GAAP) % 201.56 31 234.56 % 30.47 % 31 37 154.01 171.76 23.28 Q2 01 Q2 02 Q2 01 Q2 02 Q2 01 Q2 02 PBT PAT* Basic EPS* (Rs.cr) (Rs.cr) (Rs) *From ordinary activities
Slide 7: Highlights (Indian GAAP)
Highlights (Indian GAAP) (Rs.cr) FY2002 FY2002 FY2001 % growth over Q2 Q1 Q2 Q1 02 Q2 01 Income 650.13 612.52 446.10 6.1 45.7 S/w development expenses 306.95 285.56 204.57 7.5 50.0 Gross profit 343.18 326.96 241.52 5.0 42.1 S,G&A expenses 84.26 86.44 65.10 (2.5) 29.4 Operating profit 258.92 240.51 1
Slide 8: Half Year at a Glance
Half Year at a Glance (Indian GAAP) 1262.65 % 1234.58 % 499.43 58 % 59 56 801.63 792.32 314.06 H1 01 H1 02 H1 01 H1 02 H1 01 H1 02 Total income Exports Operating profit (Rs.cr) (Rs.cr) (Rs.cr)
Slide 9: Half Year at a Glance
Half Year at a Glance (Indian GAAP) % 391.59 42 453.09 % 59.19 % 39 48 275.31 306.77 42.45 H1 01 H1 02 H1 01 H1 02 H1 01 H1 02 PBT PAT* Basic EPS* (Rs.cr) (Rs.cr) (Rs) *From ordinary activities
Slide 10: Highlights (Indian GAAP)
Highlights (Indian GAAP) (Rs.cr) FY2002 % FY2001 % Growth H1 H1 Income 1262.65 100.0 801.62 100.0 57.5 S/w development expenses 592.51 46.9 375.42 46.8 57.8 Gross profit 670.13 53.1 426.20 53.2 57.2 S,G&A expenses 170.71 13.5 112.15 14.0 52.2 Operating profit 499.43 39.6 314.06 39.2 59.0 Depreciatio
Slide 11: Highlights
Highlights Q1 FY 02 Q2 FY 02H1 FY 02 Indian GAAP Y-O-Y Growth Income 72.3%45.7% 57.5% PAT from ord. activities 56.7%30.9% 42.2% US GAAP Y-O-Y Growth Revenues 62.6% 40.1% 50.3% Net income 46.3%26.0% 35.1% New clients 2628 54 Repeat business 95.2%90.0% 92.5% Headcount Gross add
Slide 12: Balance Sheet Summary
Balance Sheet Summary (Rs.cr) Sep 30, 01%Sep 30, 00 % LIABILITIES Shareholders’ funds* 1,742.491001,094.04 100 Total liabilities 1,742.491001,094.04 100 ASSETS Fixed assets 713.6641365.19 33 Investments 44.443 45.734 Deferred tax assets 18.641 -- Current assets Cash & equivalents 714.8541535.90 49 A
Slide 13: Region wise Revenue (%)
Region wise Revenue (%) FY2002 FY2002FY2001FY2002FY2001 LTM LTM Q2Q1 Q2H1 H1Sep01Sep 00 North America 71.1%72.2% 75.0%71.6% 74.7%72.1%76.1% Europe 18.9%19.8%18.1% 19.4%17.7%19.5% 16.3% India 1.8%2.6%1.1% 2.2%1.2%1.9% 1.3% Rest of the world 8.1%5.3%5.8% 6.8%6.4%6.5% 6.3% Total 100.0% 100.0%100.0% 100
Slide 14: Operational Performance
Operational Performance
Slide 15: Utilization Rates
Utilization Rates 80.0 73.2 72.7 69.5 68.8 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 Including training Excluding training Q1 FY 2002 69.5 73.2 Q2 FY 2002 68.8 72.7 Q1 FY 2002 Q2 FY 2002
Slide 16: Revenues by Project type
Revenues by Project type FY2002 FY2002FY2001FY2002FY 2001 LTMLTM Q2 Q1Q2 H1H1 Sep 01Sep 00 Fixed Price 29.9%27.0%27.6% 28.5%27.1%28.7% 29.3% Time & Materials 70.1%73.0% 72.4% 71.5%72.9%71.3% 70.7% Total 100.0% 100.0%100.0% 100.0%100.0% 100.0%100.0%
Slide 17: Onsite-Offshore Revenue split
Onsite-Offshore Revenue split FY2002 FY2002FY2001FY2002FY2001 LTMLTM Q2 Q1Q2 H1H1Sep 01 Sep 00 Onsite 50.3%50.5%54.6% 50.4%53.7%50.1% 52.2% Offshore 49.7%49.5% 45.4% 49.6% 46.3%49.9%47.8% Total 100.0%100.0%100.0% 100.0%100.0% 100.0%100.0%
Slide 18: Customer Concentration
Customer Concentration FY2002 FY2002FY2001FY2002FY2001 Q2 Q1Q2 H1H1 Top client contribution to revenues 6.4%6.7%7.7% 6.6%7.4% Top 5 client contribution to revenues 25.3%27.4% 24.9% 26.1% 24.4% Top 10 client contribution to revenues 39.7% 43.7%38.0% 41.2% 36.9% Million dollar clients* 8484 5784 57 Fi
Slide 19: Diversifying Customer Risk
Diversifying Customer Risk 270 277 293 240 210 180 150 120 90 60 26 28 30 0 Q1 FY 2002 Q2 FY 2002 New Customers Active Clients
Slide 20: Accounts Receivables
Accounts Receivables Year AR % of DSO (mn$) Operating Revenue H1 FY 02 71.81 13.6 50 H1 FY 01 52.82 15.2 55 FY 2001 64.94 15.9 58
Slide 21: Other Highlights
Other Highlights Software revenues in US dollar terms grew by 5.2% during the quarter over the quarter ended June 30, 2001. Revenue growth comprised volume growth of 2.6% and price growth of 2.6%, as compared to the quarter ended June 30, 2001 Interim dividend of Rs. 7.50 per share (150% on an e
Slide 22: Client Acquisition and Significant Projects Undertaken
Client Acquisition and Significant Projects Undertaken
Slide 23: Client Acquisition
Client Acquisition Client acquisitions during the quarter was 28 as compared to 26 in Q1 of FY 2002 Strengthened presence in the financial services industry through strategic services like Post merger integration for UFJ Holdings, The Sanwa Bank, The Tokai Bank and the Toyo Trust and Banking C
Slide 24: Projects Undertaken
Projects Undertaken Currently working with Lear Corporation and Visteon, two of the largest automotive suppliers in the world Started work for the Japan-based JGC Corporation, a fully integrated engineering procurement construction company Won engagements from a leading apparel company and a l
Slide 25: Banking Products
Banking Products Successfully deployed FinacleTM, Infosys’ core banking solution, for Kenya Commercial Bank, the largest bank in East Africa with over 100 branches in Kenya and a presence in Tanzania Successfully completed the implementation of BankAway corporate banking and WAP banking at Natio
Slide 26: Human Resources
Human Resources
Slide 27: Human Resources
Human Resources Total employees strength at 10,554 as on September 30, 2001, up from 9,831 as on March 31, 2001 and 7,925 as on September 30, 2000 Net addition of 607 employees during the quarter as compared to 116 during the quarter ended June 30, 2001 92 lateral employees joined during the q
Slide 28: Infrastructure
Infrastructure
Slide 29: Infrastructure
Infrastructure Capital expenditure of Rs. 129.77 cr was incurred during the quarter As of September 30, 2001, the company had 19,98,800 sq. ft of space capable of accommodating 11,100 professionals and 15,61,000 sq. ft under construction including the Infosys Leadership Institute
Slide 30: Outlook for the Future
Outlook for the Future
Slide 31: Indian GAAP
Indian GAAP Quarter ending December 31, 2001 Income from software development services and products is expected to be in the range of Rs. 640 cr to Rs. 656 cr Earnings per share is expected to be in the range of Rs. 29.00 to Rs. 31.00 Fiscal year ending March 31, 2002 Income from software
Slide 32: Summary
Summary
Slide 33: Summary
Summary Reported a comfortable quarter amidst turbulent conditions Pricing pressure continues Challenging business environment Phased-out joining schedules of campus recruits to align with business requirements Effective cost management Increase breadth and depth of services Prepared t
Slide 34: Thank You
Thank You