EX-99.6 7 f02440exv99w6.htm EXHIBIT 99.6 exv99w6
 

Exhibit 99.6

(PICTURE OF PERFORMANCE OF INFOSYS)
Performance of Infosys for the Second Quarter ended September 30, 2004
© Infosys Technologies Limited 2004-2005 Nandan M. Nilekani            S. Gopalakrishnan Chief Executive Officer, President and Managing Director            Chief Operating Officer and Deputy Managing Director

 


 

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 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 and Quarterly Report on Form 6-K for the quarter ended June 30, 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.

     
© Infosys Technologies Limited 2004-2005
  Slide 2

 


 

Agenda

Ø   Financial Performance
 
Ø   Operational Performance
 
Ø   Client Acquisition & Expansion of Services
 
Ø   Human Resources
 
Ø   Capex and Infrastructure
 
Ø   Outlook for the Future
 
Ø   Summary

     
© Infosys Technologies Limited 2004-2005
  Slide 3

 


 

(PICTURE OF FINANCIAL PERFORMANCE)
Financial Performance
© Infosys Technologies Limited 2004-2005

 


 

Highlights

                         
    Q2 FY 05
  Q1 FY 05
  H1 FY 05
Indian GAAP
                       
Y-O-Y Growth
                       
Income
    51.9 %     38.6 %     45.4 %
PAT from ord. Activities
    48.6 %     39.2 %     44.1 %
US GAAP
                       
Y-O-Y Growth
                       
Revenues
    51.0 %     43.4 %     47.3 %
Net income
    49.3 %     42.4 %     46.0 %
New clients
    32       29       61  
Repeat business
    96.3 %     98.5 %     97.3 %
Headcount Gross addition
    6,078       3,233       9,311  
Net addition
    5,010       2,305       7,315  
Period end headcount
    32,949       27,939       32,949  
     
© Infosys Technologies Limited 2004-2005
  Slide 5

 


 

Highlights (Indian GAAP - Quarterly)

(Rs. crore)

                                         
    FY2005   FY2005   FY2004   % growth over
    Q2
  Q1
  Q2
  Q1 05
  Q2 04
Income
    1,749.33       1,517.38       1,151.80       15.29       51.88  
S/w development expenses
    926.66       805.22       595.28       15.08       55.67  
Gross profit
    822.67       712.16       556.52       15.52       47.82  
S,G&A expenses
    261.64       222.89       175.06       17.39       49.46  
Operating profit
    561.03       489.27       381.46       14.67       47.07  
Depreciation
    60.63       52.53       63.42       15.42       (4.40 )
Operating profit after depreciation
    500.40       436.74       318.04       14.58       57.34  
Other income
    29.60       15.70       43.16       88.54       (31.42 )
Provision for investment
    0.07       (0.01 )     0.22              
PBT
    529.93       452.45       360.98       17.12       46.80  
Provision for tax
    82.56       64.11       60.00       28.78       37.60  
PAT from ordinary activities
    447.37       388.34       300.98       15.20       48.64  
     
© Infosys Technologies Limited 2004-2005
  Slide 6

 


 

Highlights (Indian GAAP - Half yearly)

(Rs. crore)

                                         
    FY2005           FY2004        
    H1
  %
  H1
  %
  growth
Income
    3,266.71       100.0       2,246.50       100.0       45.4  
S/w development expenses
    1,731.88       53.0       1,174.87       52.3       47.4  
Gross profit
    1,534.83       47.0       1,071.63       47.7       43.2  
S,G&A expenses
    484.51       14.8       339.69       15.1       42.6  
Operating profit
    1,050.32       32.2       731.94       32.6       43.5  
Depreciation
    113.20       3.5       108.56       4.8       4.3  
Operating profit after depreciation
    937.12       28.7       623.38       27.8       50.3  
Other income
    45.31       1.4       75.10       3.3       (39.7 )
Provision for investment
    0.06             6.59       0.3        
PBT
    982.37       30.1       691.89       30.8       42.0  
Provision for tax
    146.67       4.5       112.00       5.0       31.0  
PAT from ordinary activities
    835.70       25.6       579.89       25.8       44.1  
     
© Infosys Technologies Limited 2004-2005
  Slide 7

 


 

Balance Sheet Summary

(Rs. crore)

                                 
    Sept 30, 2004
  %
  Sept 30, 2003
  %
LIABILITIES
                               
Shareholders’ funds
    4,148.90       100       3,383.06       100  
Total liabilities
    4,148.90       100       3,383.06       100  
ASSETS
                               
Fixed assets
    1,249.10       30       802.85       24  
Investments
    2.04             14.93        
Deferred tax assets
    44.50       1       33.87       1  
Current assets
                               
Cash & equivalents
    2,502.07       60       2,185.91       65  
Accounts receivables
    926.32       22       592.59       17  
Other current assets
    639.32       16       488.83       14  
Less: Current liabilities
    (1,214.45 )     (29 )     (720.99 )     (21 )
 
   
 
     
 
     
 
     
 
 
Net current assets
    2,853.26       69       2,546.34       75  
Total assets
    4,148.90       100       3,383.06       100  
     
© Infosys Technologies Limited 2004-2005
  Slide 8

 


 

(PICTURE OF OPERATIONAL PERFORMANCE)
Operational Performance © Infosys Technologies Limited 2004-2005

 


 

Region-wise Revenue

%

                         
    FY2005   FY2005   FY2004
    Q2
  Q1
  Q2
North America
    65.2       65.2       73.9  
Europe
    21.4       22.2       18.0  
India
    1.7       1.6       1.6  
Rest of the world
    11.7       11.0       6.5  
Total
    100.0       100.0       100.0  
     
© Infosys Technologies Limited 2004-2005
  Slide 10

 


 

(UTILIZATION RATES BAR CHART)

     
© Infosys Technologies Limited 2004-2005
  Slide 11

 


 

Revenues by Project type

%

                         
    FY2005   FY2005   FY2004
    Q2
  Q1
  Q2
Fixed Price
    29.7       29.7       35.2  
Time & Materials
    70.3       70.3       64.8  
Total
    100.0       100.0       100.0  
     
© Infosys Technologies Limited 2004-2005   Slide 12

 


 

Onsite-Offshore Revenue split

%

                         
    FY2005   FY2005   FY2004
    Q2
  Q1
  Q2
Onsite
    49.8       51.9       51.7  
Offshore
    50.2       48.1       48.3  
Total
    100.0       100.0       100.0  
     
© Infosys Technologies Limited 2004-2005   Slide 13

 


 

Customer Concentration

                         
    FY2005   FY2005   FY 2004
    Q2
  Q1
  Q2
Top client contribution to revenues
    5.5 %     5.3 %     6.6 %
Top 5 client contribution to revenues
    21.6 %     21.6 %     24.6 %
Top 10 client contribution to revenues
    34.7 %     34.3 %     37.9 %
Million dollar clients*
    146       141       119  
Five-million+ dollar clients*
    60       53       40  
Ten-million+ dollar clients*
    31       27       22  
Twenty-million+ dollar clients*
    16       15       10  
Thirty-million+ dollar clients*
    10       8       5  
Forty-million+ dollar clients*
    7       5       3  
Fifty-million+ dollar clients*
    3       3        

*Last Twelve Months

     
© Infosys Technologies Limited 2004-2005
  Slide 14

 


 

Client Acquisition & Expansion of Services © Infosys Technologies Limited 2004-2005

(PICTURE OF CLIENT ACQUISITION & EXPANSION OF SERVICES)

 


 

Client Acquisition & Expansion of Services

Ø   Client acquisitions during the quarter were 32
 
Ø   Retail industry

  A leading discount retailer in the US has selected Infosys as a preferred provider of IT consulting for a strategic sourcing initiative
 
  A major European Retailer chose Infosys to implement an RFID solution. This solution enables the retailer to achieve faster throughput and high visibility in Retail Supply Chain processes

Ø   Financial Sector

  Infosys strengthened its presence in the financial and insurance industries with the addition of a German multi-billion euro insurance organization. Infosys was selected to help in replacing an existing hierarchical database, and thereby achieve organization-wide uniformity and reduced licensing costs
 
  A Company providing proxy voting and corporate governance solutions to its global client base selected Infosys to provide business consulting services

     
© Infosys Technologies Limited 2004-2005
  Slide 16

 


 

Client Acquisition & Expansion of Services

Ø   Telecom sector

  Infosys’ relationship with large telecom players continued, with the addition of one of the largest wholesale telecom carriers in Europe to its client portfolio
 
  Infosys is engaged in a critical assignment to re-architect the account management portal of a large US-based carrier providing voice and data services
 
  We also started providing Oracle application support to another premier communications service provider in the US

Ø   Automotive and Aerospace sector

  A premier UK-based Aerospace services company chose Infosys’ services for a design and analysis project of an aircraft sub-system
 
  A well-known player in the European auto industry also started working with Infosys for a design and analysis project

     
© Infosys Technologies Limited 2004-2005
  Slide 17


 

Client Acquisition & Expansion of Services

Ø   Energy and Utilities Sector

  A Fortune 500 company in the US chose Infosys to provide application development and maintenance services in the area of customer relationship management
 
  A large utility company is using Infosys’ expertise in rewriting its customer information systems

Ø   Others

  One of the top 10 technology companies in the world, and one of the largest companies in the IT storage space is partnering with Infosys for the development of a storage management product
 
  Infosys started working with a pan-European government organization in the deployment of payroll and financial solutions

     
© Infosys Technologies Limited 2004-2005
  Slide 18

 


 

Banking Products

Ø   The sale of the Finacle® suite of products made significant headway during the quarter

  Union Bank of the Philippines (UBP), one of the top 10 banks in Philippines, has licensed Finacle® core banking and e-Banking solutions. This win marks a key breakthrough for Finacle® in the core banking space in South East Asia
 
  IDBI Ltd. has chosen to deploy Finacle® as the bank’s core banking platform across 101 locations, by March 2005
 
  UTI Bank, an existing customer, chose Finacle® treasury solution making it Finacle’s first win in the treasury solution space in India
 
  A leading private sector bank in India licensed Finacle® wealth management solution and Finacle® CRM solutions during the quarter

     
© Infosys Technologies Limited 2004-2005
  Slide 19

 


 

(PICTURE OF HUMAN RESOURCES)
Human Resources
© Infosys Technologies Limited 2004-2005

 


 

Human Resources

  Total employee strength at 32,949 as on September 30, 2004, up from 27,939 as on June 30, 2004
 
  30,922 software professionals as on September, 2004, up from 26,028 as on June 30, 2004
 
  Of these software professionals, 838 belong to the Banking Business Unit
 
  Gross addition of employees during the quarter was 6,078 out of which 1,052 were laterals
 
  Net addition of 5,010 employees during the quarter as compared to 2,305 during the quarter ended June 30, 2004

     
© Infosys Technologies Limited 2004-2005
  Slide 21

 


 

(PICTURE OF CAPEX AND INFRASTRUCTURE)
Capex and Infrastructure
© Infosys Technologies Limited 2004-2005

 


 

Capex and Infrastructure

  Capital expenditure of Rs.176.06 crores was incurred during the quarter
 
  As on September 30, 2004, the company had 50,41,250* sq. ft of space capable of accommodating 25,803 professionals and 34,86,900* sq. ft under completion capable of accommodating 14,365 professionals

* Excluding subsidiaries

     
© Infosys Technologies Limited 2004-2005
  Slide 23

 


 

(PICTURE OF OUTLOOK FOR THE FUTURE)
Outlook for the Future © Infosys Technologies Limited 2004-2005

 


 

Indian GAAP - Consolidated

Ø   Quarter ending December 31, 2004

  Income is expected to be between Rs. 1,869 crore and Rs. 1,882 crore; YOY growth of 49% to 50%
 
  Earnings per share is expected to be Rs. 17.10; YOY growth of 38%

Ø   Fiscal year ending March 31, 2005

  Income is expected to be between Rs. 7,132 crore and Rs. 7,160 crore; growth of 47% to 48%
 
  Earnings per share is expected to be Rs. 67.00; growth of 43%

     
© Infosys Technologies Limited 2004-2005
  Slide 25

 


 

(PICTURE OF SUMMARY)
Summary © Infosys Technologies Limited 2004-2005

 


 

Summary

Ø   Guidance for FY 2005 revised upwards
 
Ø   Interim dividend of Rs. 5.00 per share (100% on an equity share of par value of Rs. 5 each)
 
Ø   Growth momentum continues in Q2. Total volume growth during the quarter was 12.60%, with offshore volume growing more rapidly, at 15.30%
 
Ø   Sourcing strategically from service providers has become the outsourcing approach for many companies across all industries
 
Ø   Pricing has been stable
 
Ø   We continue to focus on scalability, which is the key to rapid growth, and on differentiation, which is the key to higher client value
 
Ø   Hired 5,010 net employees for the group during the quarter
 
Ø   Our expense management model has demonstrated the flexibility in absorbing the cost of recruiting 5,010 net employees while maintaining margins

     
© Infosys Technologies Limited 2004-2005
  Slide 27

 


 

(PICTURE OF THANK YOU)
Thank You
© Infosys Technologies Limited 2004-2005