EX-99.7 9 f95575exv99w7.htm EXHIBIT 99.7 Exhibit 99.7
 

Exhibit 99.7

(INFOSYS LOGO)

Profit and Loss Account summary for the Quarter ended

(non-consolidated as per Indian GAAP)

                                           
      in Rs. crore, except per share data
     
                                      Growth % in
      December 31,           Quarter ended   Q3 FY 2004
     
  Growth   September 30,   over Q2 FY
Particulars   2003   2002   (%)   2003   2004
 
 
 
 
 
INCOME
                                        
Software services and products
                                        
 
Overseas
     1227.30       945.18       29.85       1,115.98       9.98  
 
Domestic
     7.96       13.46       (40.86 )     18.77       (57.59 )
TOTAL INCOME
     1235.26       958.64       28.86       1,134.75       8.86  
Software Development Expenses
     645.48       481.62       34.02       587.16       9.93  
GROSS PROFIT
     589.78       477.02       23.64       547.59       7.70  
Selling and marketing expenses
     92.35       73.60       25.48       80.44       14.81  
General and administration expenses
     87.25       69.93       24.77       88.72       (1.66 )
 
     179.60       143.53       25.13       169.16       6.17  
OPERATING PROFIT (EBIDTA)
     410.18       333.49       23.00       378.43       8.39  
Interest
     —       —       —       —       —  
Depreciation and amortization
     62.23       49.48       25.77       62.33       (0.16 )
OPERATING PROFIT AFTER INTEREST, DEPRECIATION AND AMORTIZATION
     347.95       284.01       22.51       316.10       10.08  
Other income
     47.78       29.80       60.34       44.28       7.90  
Provision for investments
     2.29       —       —       0.22       —  
PROFIT BEFORE TAX
     393.14       313.81       25.28       360.16       9.16  
Provision for taxation
     65.00       57.50       13.04       60.00       8.33  
NET PROFIT AFTER TAX
     328.14       256.31       28.02       300.16       9.32  
EARNINGS PER SHARE
(Equity shares, par value Rs.5/- each)
                                        
Basic
     49.43       38.70       27.73       45.30       9.12  
Diluted
     48.54       38.22       27.00       44.92       8.06  

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(INFOSYS LOGO)

Profit and Loss Account summary for the Nine months ended

(non-consolidated as per Indian GAAP)

                                   
      in Rs. crore, except per share data
     
      December 31,           Year ended
     
  Growth   March 31,
Particulars   2003   2002   (%)   2003
 
 
 
 
INCOME
                                
Software services and products
                                
 
Overseas
     3,401.93       2,552.93       33.26       3,543.51  
 
Domestic
     50.06       49.90       0.32       79.18  
TOTAL INCOME
     3,451.99       2,602.83       32.62       3,622.69  
Software Development Expenses
     1,805.42       1,283.50       40.66       1,813.30  
GROSS PROFIT
     1,646.57       1,319.33       24.80       1,809.39  
Selling and marketing expenses
     252.51       198.02       27.52       266.98  
General and administration expenses
     257.15       189.65       35.59       270.37  
 
     509.66       387.67       31.47       537.35  
OPERATING PROFIT (EBIDTA)
     1,136.91       931.66       22.03       1,272.04  
Interest
     —       —       —       —  
Depreciation and amortization
     168.82       136.19       23.96       188.95  
OPERATING PROFIT AFTER INTEREST, DEPRECIATION AND AMORTIZATION
     968.09       795.47       21.70       1,083.09  
Other income
     124.21       72.22       71.99       99.61  
Provision for investments
     8.88       23.76       (62.63 )     23.77  
PROFIT BEFORE TAX
     1083.42       843.93       28.38       1,158.93  
Provision for taxation
     177.00       145.00       22.07       201.00  
NET PROFIT AFTER TAX
     906.42       698.93       29.69       957.93  
EARNINGS PER SHARE
(Equity shares, par value Rs.5/- each)
                                
Basic
     136.73       105.57       29.52       144.68  
Diluted
     135.43       104.70       29.35       143.37  

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(INFOSYS LOGO)

REVENUE BY GEOGRAPHICAL SEGMENT

                                         
                            LTM   LTM
    Dec 31, 2003   Sept 30, 2003   Dec 31, 2002   Dec 31, 2003   Dec 31, 2002
    %   %   %   %   %
   
 
 
 
 
North America
     72.2       73.9       74.2       73.1       72.9  
Europe
     20.7       18.0       16.4       18.8       17.8  
India
     0.6       1.6       1.2       1.7       1.8  
Rest of the world
     6.5       6.5       8.2       6.4       7.5  
Total
     100.0       100.0       100.0       100.0       100.0  

REVENUE BY SERVICE OFFERING

                                         
                            LTM   LTM
    Dec 31, 2003   Sept 30, 2003   Dec 31, 2002   Dec 31, 2003   Dec 31, 2002
    %   %   %   %   %
   
 
 
 
 
Development
     24.2       25.2       32.8       26.9       32.2  
Maintenance
     31.5       31.6       27.9       29.3       29.1  
Re-engineering
     5.9       5.9       5.0       6.0       6.0  
Package implementation
     14.8       12.6       11.0       13.8       10.0  
Consulting
     3.6       3.4       4.5       3.8       4.3  
Testing
     5.9       6.0       3.5       5.1       3.2  
Engineering services
     2.1       2.1       2.4       2.3       2.7  
Other services
     9.4       10.4       8.6       9.4       7.9  
Total services
     97.4       97.2       95.7       96.6       95.4  
Products
     2.6       2.8       4.3       3.4       4.6  
Total revenues
     100.0       100.0       100.0       100.0       100.0  

REVENUE BY PROJECT TYPE

                                         
                            LTM   LTM
    Dec 31, 2003   Sept 30, 2003   Dec 31, 2002   Dec 31, 2003   Dec 31, 2002
    %   %   %   %   %
   
 
 
 
 
Fixed Price
     34.7       35.4       37.6       35.7       36.0  
Time & Materials
     65.3       64.6       62.4       64.3       64.0  
Total
     100.0       100.0       100.0       100.0       100.0  

“LTM” - Last Twelve Months

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(INFOSYS LOGO)

REVENUE BY INDUSTRY

                                           
                              LTM   LTM
      Dec 31, 2003   Sept 30, 2003   Dec 31, 2002   Dec 31, 2003   Dec 31, 2002
      %   %   %   %   %
     
 
 
 
 
Insurance, banking & financial services
     37.7       38.9       37.7       37.8       37.7  
 
Insurance
     12.8       15.2       14.1       13.5       15.2  
 
Banking & financial services
     24.9       23.7       23.6       24.3       22.5  
Manufacturing
     14.2       15.0       17.2       14.9       17.0  
Retail
     12.1       11.7       11.7       11.6       11.8  
Telecom
     15.0       15.4       14.5       15.3       14.9  
Energy & Utilities
     3.3       3.0       2.6       3.3       2.5  
Transportation & logistics
     6.9       7.1       6.6       7.1       6.0  
Others
     10.8       8.9       9.7       10.0       10.1  
Total
     100.0       100.0       100.0       100.0       100.0  

CLIENT DATA

                         
    Dec 31, 2003   Sept 30, 2003   Dec 31, 2002
   
 
 
Active Clients
     357       347       315  
Added during the quarter
     30       29       23  
Number of million dollar clients
     130       119       99  
Number of 5-million dollar clients
     48       40       30  
Number of 10-million dollar clients
     22       22       14  
Number of 20-million dollar clients
     10       10       7  
Number of 30-million dollar clients
     6       5       3  
Number of 40-million dollar clients
     4       3       —  
Number of 50-million dollar clients
     2       —       —  
Clients accounting for >5% of revenue
     2       2       2  
Revenue – top client
     5.5 %     6.6 %     6.3 %
Revenue – top 5 clients
     22.8 %     24.6 %     23.8 %
Revenue – top 10 clients
     36.1 %     37.9 %     37.9 %
Repeat business
     92.1 %     95.7 %     89.7 %
Account receivables – LTM (in days)
     56       50       54  

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(INFOSYS LOGO)

EFFORT AND UTILIZATION

                           
      Dec 31, 2003   Sept 30, 2003   Dec 31, 2002
     
 
 
Effort – Services
                        
 
Onsite
     32.2 %     32.6 %     36.1 %
 
Offshore
     67.8 %     67.4 %     63.9 %
Revenue – Services
                        
 
Onsite
     53.4 %     54.1 %     58.0 %
 
Offshore
     46.6 %     45.9 %     42.0 %
Utilization
                        
 
Including trainees
     73.1 %     74.3 %     76.1 %
 
Excluding trainees
     82.5 %     83.8 %     82.2 %

“LTM” - Last Twelve Months

PERSON MONTHS DATA

                         
    Dec 31, 2003   Sept 30, 2003   Dec 31, 2002
   
 
 
Onsite – Billed
     12,978       11,873       9,634  
Offshore – Billed
     29,244       26,355       18,672  
TOTAL - Billed
     42,222       38,228       28,306  
Non Billable
     8,967       7,373       6,139  
Trainee
     6,607       5,836       2,756  
Sales & Support
     3,838       3,740       3,499  
TOTAL
     61,634       55,177       40,700  

EMPLOYEE METRICS

                           
      Dec 31, 2003   Sept 30, 2003   Dec 31, 2002
     
 
 
Total Employees
     21,809       19,120       14,058  
S/W professionals
     20,253       17,625       12,801  
 
Billable
     17,270       15,152       11,538  
 
Banking Product Group
     544       501       538  
 
Trainees
     2,439       1,972       725  
Sales & Support
     1,556       1,495       1,257  
Gross Addition
     3,179       2,595       1,133  
Net Addition
     2,689       2,025       948  
Lateral Employees
     545       328       272  
Attrition % (LTM)
     10.0       9.1       6.5  

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(INFOSYS LOGO)

INFRASTRUCTURE (as on Dec 31, 2003)

                                         
    Completed   Work in Progress    
   
 
  Land
    Built-Up Area           Built-Up Area           acquired during
    (Sq Ft)   No. of Seats   (Sq Ft)   No. of Seats   the Qtr (acres)
   
 
 
 
 
Bangalore
     16,24,836       9,152       4,00,000       3,500       —  
Pune
     5,89,647       3,626       —       —       —  
Chennai
     4,21,317       2,906       75,000       —       —  
Hyderabad
     3,17,000       1,645       2,45,000       2,170       19.70  
Bhubaneshwar
     1,89,000       1,200       95,000       800       20.89  
Mangalore
     1,98,000       1,077       —       —       —  
Mysore (including ILI)*
     4,18,450       634       4,50,000       850       —  
Mohali
     21,000       200       —       —       —  
Trivandrum
     22,000       220       —       —       —  
Total
     38,01,250       20,660       12,65,000       7,320       40.59  

* Infosys Leadership Institute

Consolidated (Including Progeon)

                         
    Dec 31, 2003   Sept 30, 2003   Dec 31, 2002
   
 
 
Total Employees
     23,209       20,158       14.484  
Gross Additions
     3,667       2,845       1,290  
Net Additions
     3,051       2,181       1,087  
Revenue (Rs. crore)
     1,257.0       1,151.8       965.0  
Net Profit After Tax (Rs. crore)
     328.5       301.0       254.9  

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(INFOSYS LOGO)

Reconciliation of accounts as per Indian GAAP and US GAAP

                 
    in Rs. Crore
   
    Three months ended   Year ended
    December 31, 2003   March 31, 2003
   
 
Consolidated Net Profit as per Indian GAAP
     328.5       954.8  
Amortization of deferred stock compensation
     (3.1 )     (23.2 )
Deferred taxes
     1.3       (0.9 )
Gain on forward foreign exchange contracts
     (3.8 )     2.4  
Net provision for investments
     —       9.1  
Others
     (1.5 )     —  
Consolidated Net income as per US GAAP
     321.4       942.2  

Reasons for differences in net income as per Indian GAAP and US GAAP

Amortization of deferred stock compensation

The Accounting Principles Board Opinion No. 25 of US GAAP requires the accounting of deferred stock compensation on issue of stock options to employees, being the difference between the exercise price and the fair value as determined by the quoted market prices of the common stock on the grant date. In complying with this requirement, Infosys has charged to revenue under US GAAP an amount of Rs. 3.1 crore and Rs. 23.2 crore for the quarter ended December 31, 2003 and year ended March 31, 2003, respectively, as amortization of deferred stock compensation.

Gain on forward exchange contracts

Under Indian GAAP, premium on forward contract is recognized as income or expenditure over the life of the related contract. Whereas, under US GAAP, the same is marked-to-market as on the reporting date. The resultant gain / loss is recognized immediately in the income statement.

Net provision for investments

Under US GAAP recognition of unrealized gains on transfer of intellectual property rights is not permitted. Under Indian GAAP an amount of Rs. 9.1 crore was recognized during the year ended March 31, 2001. Provision has been made for this investment under Indian GAAP during the quarter ended September 30, 2002.

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