© Infosys Technologies Limited 2004-2005
InfosysInvestor RelationsInfosysInvestor Relations
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Slide 2© Infosys Technologies Limited 2004-2005
Infosys Technologies Limited Financial Year 2004 - 2005
First Quarter Results
July 13, 2004
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Slide 3© Infosys Technologies Limited 2004-2005
Safe Harbor
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 relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed- price, fixed-time frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2004. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward looking statements, including statements contained in the company’s filings with the Securities and Exchange Commission and our reports to shareholders. The company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company.
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Slide 4© Infosys Technologies Limited 2004-2005
Contents
Highlights
Operational Performance
Financial Performance
Guidance
© Infosys Technologies Limited 2004-2005
HighlightsHighlights
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Slide 6© Infosys Technologies Limited 2004-2005
Highlights
At the beginning of the quarter Uncertainty existed relating to
• Debate on Outsourcing
• Rupee – US$ movement
Income was projected to be between Rs. 1,363 crore and Rs. 1,371 crore; YoY growth of 25%
Income grew to Rs. 1,517.38 crore; YoY growth of 38.61% and
sequential growth of 12.44%
We have increased guidance for fiscal 2005. Income is projected to be
between Rs.6,731 crore and Rs.6,772 crore; YoY growth of 39% to
40%
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Slide 7© Infosys Technologies Limited 2004-2005
Highlights
Our business model enabled us to respond quickly to enhanced business opportunities in the market place
Continue to see a stable pricing environment Restructuring into Integrated Business Units has created multiple
engines of growth with strong leadership Recently introduced a new approach to outsourcing called ‘Modular
Global Sourcing’ Continued investment in developing new solutions Ongoing focus on integration of Infosys’ subsidiaries with the overall
strategy and operations of the corporation
Good improvement in business environment with healthy pipeline
© Infosys Technologies Limited 2004-2005
Operational PerformanceOperational Performance
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Slide 9© Infosys Technologies Limited 2004-2005
Client Concentration
23.321.6 23.7
37.134.3 36.7
05
10152025303540
Q1 FY 2005 Q4 FY 2004 Q1 FY 2003Top 5 Top 10
% Revenues* FY 2005 FY 2004 FY 2004 Q1 Q4 Q1
New Clients 29 38 22
Top client contribution to revenues 5.3% 6.5% 5.7%
Million dollar clients* 141 131 113
Fifty million + dollar clients* 3 3 -
Active Clients 419 393 346
Repeat Business 98.5% 88.6% 97.8%
*LTM – Last Twelve Months
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Slide 10© Infosys Technologies Limited 2004-2005
15.6%
13.9%
23.5%
11.6%
7.1%
5.1%
5.1%
3.5%
14.6%
Q4 2003-04Q1 2003-04
Vertical DomainsQ1 2004-05
Manufacturing Insurance
Banking & Financial Services Telecom
Retail Energy & Utilities
Transportation & Logistics Services
15.0%
9.6%
24.4%
11.4%
7.6%
6.1%5.1%
2.9%
17.9%
14.4%
10.2%
23.0%
11.2%
7.3%
5.6%
5.7%
2.2%
20.4%
Others
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Q4 2003-04Q1 2003-04
Revenue by Service Offering
Q1 2004-05
Development Maintenance
Re-engineering Package Implementation
Consulting Testing
Engineering Services Business Process Management
26.1%
28.8%
5.8%
3.4%
1.9%
2.1%
9.2%2.4%
5.3%
15.0%
Other Services
25.6%
29.9%
6.0%
3.4%
2.0%
1.9%7.8%
2.2%
4.7%
16.5%
27.8%
26.9%
6.7%
4.4%
2.6%
1.2%
8.9%
3.6%
4.4%
13.5%
Product
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Slide 12© Infosys Technologies Limited 2004-2005
Q4 2003-04 Q1 2003-04
Geographical Footprint
Q1 2004-05
North America Europe
Rest of the World India
74.7%
17.4%
5.8%2.1%
65.5%20.3%
13.0%1.2%
65.2%
22.2%
11.0%1.6%
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Slide 13© Infosys Technologies Limited 2004-2005
Q4 FY 2004
Time & Materials Fixed Price
30.6%
69.4%
Q1 FY 2004
35.9%
64.1%
Q1 FY 2005
29.7%
70.3%
Revenue by Project type
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Effort and Utilization
Quarter ended
Jun 30, 2004 Mar 31, 2004 Jun 30, 2003
Effort – Services
Onsite 29.4% 30.5% 32.1%
Offshore 70.6% 69.5% 67.9%
Revenue – Services
Onsite 51.9% 53.0% 53.9%
Offshore 48.1% 47.0% 46.1%
Utilization
Including trainees 73.4% 70.2% 76.6%
Excluding trainees 79.7% 79.3% 83.7%
*Excluding software products and business management revenue
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Slide 15© Infosys Technologies Limited 2004-2005
Employee Metrics
Quarter ended
Jun 30, 2004 Mar 31, 2004 Jun 30, 2003
Total Employees 27,939 25,634 17,977
S/w professionals 26,028 23,860 16,434
Billable 23,761 21,189 14,009
Banking Product Group 685 604 516
Trainees 1,582 2,067 1,909
Sales & Support 1,911 1,774 1,534
Gross Addition 3,233 2,849 2,592
Net Addition 2,305 2,425 2,101
Lateral Employees 746 774 330
Attrition % (LTM)* 10.90 10.45 7.90
*Excluding subsidiaries
© Infosys Technologies Limited 2004-2005
Financial PerformanceFinancial Performance
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Slide 17© Infosys Technologies Limited 2004-2005
The Quarter at a Glance (Indian GAAP-YoY)
1094.70
Q1 04 Q1 05
1517.38
Total Income(Rs.cr)
38.6
1%
350.48
489.27
Operating Profit (Rs.cr)
39.6
0%
14.54
Basic EPS (Rs.)
38.0
8%
Q1 04 Q1 05 Q1 05Q1 04
10.53
278.92
388.34
PAT (Rs.cr)
39.2
3%
Q1 04 Q1 05
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Slide 18© Infosys Technologies Limited 2004-2005
The Quarter at a Glance (Indian GAAP-QoQ)
1349.45
Q4 04 Q1 05
1517.38
Total Income(Rs.cr)
12.4
4%
449.17
489.27
Operating Profit (Rs.cr)
8.93
%
14.54
Basic EPS (Rs.)
15.4
9%
Q4 04 Q1 05 Q1 05Q4 04
12.59
335.23
388.34
PAT (Rs.cr)
15.8
4%
Q4 04 Q1 05
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Slide 19© Infosys Technologies Limited 2004-2005
Consolidated Financials (Indian GAAP) Particulars
June 30
Growth (%) March 31, 2004Growth % in Q1 FY 2005
over Q4 FY 20042004 2003
INCOME
Software services, products and business process management
Overseas 1,493.45 1,071.38 39.39 1,333.28 12.01
Domestic 23.93 23.32 2.61 16.17 47.99
TOTAL INCOME 1,517.38 1,094.70 38.61 1,349.45 12.44
Software development and business process management expenses 805.22 579.60 38.93 707.09 13.88
GROSS PROFIT 712.16 515.10 38.26 642.36 10.87
Selling and marketing expenses 105.21 81.64 28.87 91.67 14.77
General and administration expenses 117.68 82.98 41.82 101.52
15.92
222.89 164.62 35.40 193.19 15.37
OPERATING PROFIT (EBIDTA) 489.27 350.48 39.60 449.17 8.93
Interest - - - - -
Depreciation and amortization 52.53 45.14 16.37 64.42 (18.46)
OPERATING PROFIT AFTER INTEREST, DEPRECIATION AND AMORTIZATION 436.74 305.34 43.04 384.75 13.51
Other income 15.70 31.94 (50.85) 1.82 762.64
Provision for investments (0.01) 6.36 - 0.80 -
PROFIT BEFORE TAX 452.45 330.92 36.72 385.77 17.28
Provision for taxation 64.11 52.00 23.29 50.54 26.85
NET PROFIT AFTER TAX 388.34 278.92 39.23 335.23 15.84
EARNINGS PER SHARE*(Equity shares, par value Rs. 5/- each)
Basic 14.54 10.53 38.08 12.59 15.49
Diluted 14.29 10.49 36.22 12.34 15.80
In Rs.Crore , except per share data
*adjusted for the 3 :1 bonus issue of shares distributed on July 6, 2004
© Infosys Technologies Limited 2004-2005
GuidanceGuidance
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Slide 21© Infosys Technologies Limited 2004-2005
Indian GAAP – Consolidated
Quarter ending Sept 30, 2004*
Income is projected to be between Rs.1,631crore to Rs. 1,645
crore; YoY growth of 42% to 43%
Earnings per share is expected to be Rs.15.10; YoY growth of
33%
Fiscal year ending March 31, 2005*
Income is projected to be between Rs. 6,731crore to Rs. 6,772
crore; growth of 39% to 40%
Earnings per share is expected to be Rs. 62.70; YoY growth of
34%
*adjusted for the 3 :1 bonus issue of shares distributed on July 6, 2004
Thank You