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INFOSYS
Company Overview
The Company complements its service offerings with specialist support for clients using
its domain competency group that has expertise in areas, such as securities, insurance,
telecommunication, banking and cash management, supply chain management,
manufacturing, retail and distribution, energy and utilities, healthcare, and travel and
tourism. It also uses its software engineering group and technology lab to create
customized solutions for its clients. In addition, it continually evaluates and trains its
professionals in new technologies and methodologies.
Core Services
• The Company provides customized software solutions for its clients. Infosys creates
new applications and enhances the functionality of its clients' existing software
applications. The Company's projects vary in size and duration.
• The Company's application development services span the entire range of
mainframe, client server and Internet technologies. An increasing proportion of
Infosys' applications development engagements are related to emerging platforms,
such as Microsoft's .NET or open platforms, such as Java 2 Enterprise Edition
(J2EE) and Linux
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AUTHOR: SAMEER AHUJA
Infosys provides maintenance services for its clients' large software systems that cover
a range of technologies and businesses, and are typically critical to a client's business.
The Company focuses on long-term functionality, stability and preventive maintenance
to avoid problems that typically arise from incomplete or short-term solutions. While
Infosys performs most of the maintenance work at its global development centers using
secure and redundant communication links to its client's systems, it also maintain a
team at the client's facility to coordinate certain key interface and support functions
Software Re-engineering
The Company's software re-engineering services assist its clients in converting their
existing IT systems to newer technologies and platforms developed by third-party
vendors. Infosys' re-engineering services include Web-enabling its clients' existing
legacy systems, database migration, implementing product upgrades, and platform
migrations, such as mainframe to client-server and client-server to Internet platforms.
• Infosys assists its clients in the evaluation and implementation of software packages
developed by third-party vendors. It also provides training and support services in
the course of their implementation.
• The Company specializes in enterprise resource planning packages developed by
vendors, including Oracle, PeopleSoft, Retek and SAP; supply chain management
packages developed by vendors, including i2, Manugistics and Oracle; customer
relationship management packages developed by vendors, including PeopleSoft
(Vantive) and Siebel; business intelligence packages developed by vendors, such as
Business Objects and Cognos, and enterprise application integration packages
developed by vendors, such as IBM and TIBCO.
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AUTHOR: SAMEER AHUJA
Other Solutions
Finacle
• Finacle®, the universal banking solution from Infosys, helps banksby enabling them
to shift their strategic and operational priorities. It maximizes their opportunities for
growth,while minimizing the risks that come with large-scale business transformation
• Finacle® currently powers 91 banks across 54 countries, helpingthem serve over
100 million customers, 150 million accounts, 80,000users and supporting over 36
million peak banking transactions per day spread across multiple installations
Key industries
Infosys serves various industries through its vertical business units, such as:
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AUTHOR: SAMEER AHUJA
In addition to these, there are business units aligned to clients' geographies, such as
EMEA (Europe, Middle East & Africa), APAC (Asia-Pacific) and CAND (Canada). There
are also horizontal business units such as ES (Enterprise Solutions), which specializes
in ERP and package implementation and works with clients across industries and
geographies and SI (Systems Integration), which provides integration services to clients
Revenue Segments :
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AUTHOR: SAMEER AHUJA
Key People
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AUTHOR: SAMEER AHUJA
Key Competitors
Key Clients
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AUTHOR: SAMEER AHUJA
During fiscal 2007, 95.3% of revenues came as repeat business and during 2006,
95.0% revenues came from repeat business from existing clients
Key Numbers
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AUTHOR: SAMEER AHUJA
FINANCIAL HIGHLIGHTS
Fiscal Year
Fiscal Year Ends: 31-Mar
Most Recent Quarter (mrq): 30-Jun-07
Profitability
Profit Margin (ttm): 27.96%
Operating Margin (ttm): 27.13%
Management Effectiveness
Return on Assets (ttm): 21.37%
Return on Equity (ttm): 39.37%
Income Statement
Revenue (ttm): 3.36B
Revenue Per Share (ttm): 6.01
Qtrly Revenue Growth (yoy): 40.60%
Gross Profit (ttm): 1.31B
EBITDA (ttm): 1.05B
Net Income Avl to Common (ttm): 939.00M
Diluted EPS (ttm): 1.65
Qtrly Earnings Growth (yoy): 51.10%
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AUTHOR: SAMEER AHUJA
Balance Sheet
Total Cash (mrq): 1.59B
Total Cash Per Share (mrq): 2.778
Total Debt (mrq): 0
Total Debt/Equity (mrq): N/A
Current Ratio (mrq): 6.302
Book Value Per Share (mrq): 5.33
Latest Developments
Analysis :
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AUTHOR: SAMEER AHUJA
Infy can overcome this risk by growing up the value chain so that it can afford to
increase its billing rates and still add value to its customers .Second thing it can do is to
move their operations to second level cities in India that have low cost of living and
where wage pressure is less. One of the good steps Infy has taken to this regard was
by opening its Bhubhneashwar centre. Its cost of living is way less than that of
Bangalore. Another good example is Gandhinagar where Patni computers was one of
the first big IT companies to open its office.
Infy should grow its client base in India and China where the impact of foreign exchange
is negligent. TCS is a good example with this regard.Its 2006 revenues had 12.5%
revenues generated from India. This is around $300 mn. With the present Indian IT
market valued at $5bn (obtained from TCS's 2006 annual report) and expected to grow
at 11%, Infy has scope of getting a good maket share.
Infy's 2006 capital expenses was $246mn compared to that of $185mn in 2005. This is
an increase of over 30%. In order to continue this pace the company needs to invest a
large amount of capital in building new facilities. With recent surge in real estate prices
in India, Infy would face challenges in controlling its capital expenditures towards
expanding its facilities
The present Reserve Bank of India guidelines state that in ceratin cases Indian
companies have to take the central bank's permission to acquire a foreign company.
This increases the lead time required to acquire a company.
One way is to employ local talent.Another way can be employing virtual classroom
techniques by which a person sitting in India can get US experience that he would
otherwise get by being physically present in USA. Multinational companies like
Accenture are doing a great job in this front and are not so much dependent on wok
visas as the Indian companies like Infy.
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AUTHOR: SAMEER AHUJA
Most Indian IT companies are enjoying a tax holiday which exempts them from taxes on
exports performed from designated export promotion zones. This helps Indian IT
companies to reduce their tax rate.But this benefit is only applicable till fiscal 2009. After
that the Indian IT companies would be taxed the same way as other Indian companies
Infosys in UAE
Contact Information
Z3 Office 11, SAIF Zone,
P.O. Box 8230,
Sharjah - UAE.
Phone: +971 6 557 1068
Fax: +971 6 557 3768
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