Infosys

technologies ltd.
Win In The Flat World

N.R.Narayana Murthy
 Infosys today is a global leader in the “next generation” of IT and Consulting
•Infosys selected as a member of The Global Dow in 2009
•Named India’s Most Respected Company in the Businessworld 2006
survey for the fourth consecutive time
•Adjudged “India’s Best Managed Company” in a study conducted by
Business Today and A.T. Kearney
•Forbes: “Infosys is a role model for companies everywhere in financial
transparency.”
•“Dream company to work for” in India and amongst the “100 best places
to work for in IT” in the US
•Amongst the first companies in world to be certified at CMMI Level 5
•BusinessWeek: Amongst the top 3 IT Services companies in the world
•Wired rated Infosys among its top 40 companies that have reshaped the
global economy.

Exceptional Financial Performance Increase in number of Active Clients Strong Growth in Employees
Revenue ($M)

Active Clients

Employees
Offshore Outsourcing is a Global Mega Trend
Offshore
Offshore Outsourcing
Outsourcing Rationale
Rationale Global
Global 500
500 and
and Fortune
Fortune 1000
1000 IT
IT Spending
Spending
•Deliver
•Deliver high
high quality
quality at
at great
great value
value •Trend
•Trend setters
setters for
for the
the rest
rest of
of the
the business
business world
world
•Highly
•Highly scalable
scalable with
with aa large
large resource
resource pool
pool available
available •Combined
•Combined IT
IT spend
spend represents
represents 40%
40% of
of the
the global
global IT
IT
•Proven spending
spending
•Proven track
track record
record
•IT
•IT budget
budget constitutes
constitutes 2.3%
2.3% of
of $20
$20 trillion
trillion combined
combined
revenues
revenues

Offshore Addressable Market is Increasing Infosys Market Positioning

GDM+
Consulting Consulting

Onsite Firms

GDM+
(present)

(~1990s)

(~1980s)
ADM

Non-GDM GDM
Profit & Loss A/c Of Infosys
Balance-sheet of the infosys
Financial status of the Infosys
Per Share Data
Per Share Ratios
Employee Data
Liquidity Ratios
Year 2010 2009 2008 2007 2006
Current 4.28 4.71 3.30 4.96 2.75
Ratio
Quick 4.20 4.67 3.28 4.91 2.73
Ratio
Inventory - - - - -
Turnover
Fixed 5.59 3.39 3.47 3.38 3.18
Ratio
Assets
Turnover
Ratio
 Liquidity Ratios
 Current ratio – Strong financial condition

 Quick ratio – Enough liquidity

 Inventory Turnover Ratio – Not applicable

 Fixed Assets Turnover Ratio – Efficient
utilization of assets



Leverage ratios
Year 2010 2009 2008 2007 2006
Owner’s 100.00 100.00 100.00 100.00 100.00
fund as -
Debt- - - - -
% of
equity
Long - - - - -
total
Ratio
term
Interest 3761.00 3891.00 5642.00 4559.00 3211.00
source
Debt-
Coverage
equity
Ratio
Ratio
 Leverage ratios
 Debt-equity ratio – Not applicable as no
borrowings from the market

 Long term Debt-equity ratio – Not applicable
as company has no borrowings from the
market

 InterestCoverage ratio – Strong check
required

Profitability ratios
Year 2010 2009 2008 2007 2006
Operatin 34.85 34.09 31.72 32.13 33.11
g Margin 31.04
Gross 30.66 28.23 28.57 28.58
%
Profit
Net 26.31 27.52 27.37 28.05 26.17
Margin
Profit
Return 33.90 39.80 37.77 36.64 40.62
%
Margin
on Long
%
Term
Funds %
Profitability ratios
 Operating Margin – Efficient Working
capital /Operations management

 Gross Profit Margin – Higher productivity

 Net Profit Margin – Efficient management

 Return on Long Term Funds – Reaping good
returns


Payout ratios
Year 2010 2009 2008 2007 2006
Dividend 28.34 27.03 49.77 19.85 58.32
Payout 70.92
Earning 74.60 50.17 79.91 43.48
Ratios
Retention 74.49
Cash 77.16 55.60 82.15 51.43
Ratio
Earnings
Retention
Ratio
Payout ratios
 Dividend Payout Ratios – Providing good
returns to the stakeholders

 Earning Retention Ratio – Good reserves

 CashEarnings Retention Ratio – Efficient
management of funds





Component ratios
Year 2010 2009 2008 2007 2006
Material - 0.09 0.11 0.16 0.17
cost % of 1.01
Selling 0.40 0.56 0.47 0.60
Sales
Cost % of
Exports as - 97.88 92.59 92.44 95.86
Sales
% of Term
Long Sales 0.33 0.25 0.28 0.30 0.33
Assets/Tota
l Assets
Component ratios
 Material cost – Less input cost

 Selling Cost – Low cost of sales

 Exports as percentage of Total Sales – High
ratio of exports

 Long Term Assets/Total Assets – Less capital
investment

ratios of industry
conclusion
Thank you
•

•
Pratik Tanwar (152)
•
Ishaan Sabarwaal (156)
• Niket Shah (153)
• Dipesh Sankhala (158)
• Umang agarwal (102)
•
Prateek Golchha (118)
•
Paresh Rathi (141)
•