ANALYSIS OF THE COMPANY

INFOSYS TECHNOLOGY LIMITED

Presented by :
Mona chakraborty
Infosys today is a global leader in the “next generation”
of IT services and Consulting…
Company Name: Infosys Technologies
Limited.

Headquarter :   Bangalore, India

Year of Establishment: 2nd July 1981

Ownership Pattern: Public Limited

Company

Paid up capitals as at March 31, 2010:

Rs. 287 crore

Scripcode: BSE 500209

 Motto
Powered by Intellect , Driven by Values

Vision
"To be a globally respected corporation that provides
best-of-breed business solutions, leveraging
technology, delivered by best-in-class people."
Mission
"To achieve our objectives in an environment of
fairness, honesty, and courtesy towards our clients,
employees, vendors and society at large."
 IT Industry Structure

28% 30%

IT-Services ITES-BPO

Software Hardware

15% 27%
 Service Line:
Indian IT Services market
The domestic IT market is at a nascent stage
(compared with the global IT industry), as
most users in India are in the initial stages of
IT development. Hence, Indian IT service
industry is dependent on exports for more
than 3/4th of its total revenues.
 Break up of Infosys’s revenues(FY09)

6% 4% 2%

IT- Services
ITES-BPO
Software Products
Engineering Services
88%

Source: NASSCOM, Company

 Service Line (Contd…)
Breakup of revenue from IT Services
Service Lines % of Infosys ‘s IT Services (FY09)
Application Development& 51.0%
Maintenance
Consulting Services & Package 26.7%
Implementation
Infrastructure management 5.5%
System Integration 3.1%
Testing Services 8.4%
Others 5.3%
Total 100.0%

Source: NASSCOM, Company

 IT Services provided by Infosys
Application
Development&
8% 5% Maintenance
3% Consulting Services &
6% Package
Implementation
51%
Infrastructure
management
27% System Integration

Testing Services

Others

Source: NASSCOM, Company

 Service Line (Contd…)

Infosys’s share in India’s IT exports (FY09):

(In USD Bn) India’s IT Infosys Infosys’s share in
exports Indian IT
exports (%)
IT services 23.1 3.32 16.1%

ITES-BPO 10.9 0.24 2.2%

Software 6.3 0.22 3.4%

Products &
Engineering
Services

Source: NASSCOM, Company

Board of Directors
Non-Executive Chairman and Chief Mentor : N. R. Narayana Murthy
Co-Chairman: Nandan M. Nilekani
Chief Executive Officer (CEO) and Managing Director: S. Gopalakrishnan
Chief Operating Officer (COO) and Director : S. D. Shibulal.

Other members of board of directors:

Whole-time directors
 K. Dinesh
 T. V. Mohandas Pai
 Srinath Batni
Independent directors
 Deepak M. Satwalekar
 Prof. Marti G. Subrahmanyam
 Dr. Omkar Goswami
 Rama Bijapurkar
 Claude Smadja
 Sridar A. Iyengar
 David L. Boyles
 Prof. Jeffrey S. Lehman
 Share holding pattern:

Shareholding %
• Promoters 16.5
• Mutual Funds / UTI 3.9
• Financial Institutions / Banks 4.0
• Foreign Institutional Investors 33.6
• Individuals 18.7
• Bodies Corporate 3.1
• Non Resident Indians and others 20.2
• Total 100.0
 PROMOTERS
Name Shares Percentage
• N R Narayana Murthy 31,79,672 0.56
• Sudha N Murty 93,14,660 1.63
• Akshata Murty 81,06,412 1.42
• Rohan Murty 79,49,782 1.39
• Nandan M Nilekani 83,45,870 1.46
• Rohini Nilekani 80,78,174 1.40
• Jahnavi Nilekani 16,65,791 0.29
• Nihar Nilekani 16,65,810 0.29
• S Gopalakrishnan 62,56,726 1.09
• Sudha Gopalakrishnan 1,22,94,525 2.15
• Meghana Gopalakrishnan 6,04,366 0.11
• K Dinesh 45,96,537 .80
• Asha Dinesh 70,47,482 1.23
• Divya Dinesh 13,75,130 0.24
• Deeksha Dinesh 13,75,130 0.24
• S D Shibulal 24,69,711 0.43
• Kumari Shibulal 28,11,044 0.49
• Shruti Shibulal 36,71,924 0.64
• Shreyas Shibulal 36,76,232 0.64
• Total 9,44,84,978 16.50
 EVENTS(Last 10 years)
1993
• Introduces Employee Stock Options (ESOP) program
• Acquires ISO 9001/TickIT certification
• Goes public
 
1994
• Moves corporate headquarters to Electronics City, Bangalore.
Opens a Development Center at Fremont

1995
• Opens first European office in the UK and Global Development
Centers at Toronto and Mangalore. Sets up e-Business practice
 
1996
• The Infosys Foundation is established

1997
• Opens an office in Toronto, Canada
• Infosys is assessed at CMM Level 4
 
1998
• Starts enterprise solutions (packaged applications) practice

• 1999
• Touches revenues of US$ 100 million. Listed on NASDAQ
• Infosys becomes the 21st company in the world to achieve a CMM
Level 5 certification
• Opens offices in Germany, Sweden, Belgium, Australia, and two
development centers in the US
• Infosys Business Consulting Services is launched
2000
• Touches revenues of US$ 200 million
• Opens offices in France and Hong Kong, a global development
center in Canada and UK, and three development centers in the
US
• Re-launches Banks 2000, the universal banking solution from
Infosys, as Finacle™
 
• 2001
• Touches revenues of US$ 400 million. Opens offices in UAE and
Argentina, and a Development Center in Japan
• N. R. Narayana Murthy is rated among Time Magazine/CNN's 25
most influential businessmen in the world
• Infosys is rated as the Best Employer by Business World/Hewitt
•  
 2002
• Touches revenues of US$ 500 million
• Nandan M. Nilekani takes over as CEO from N.R.
Narayana Murthy, who is appointed Chairman and Chief
Mentor
• Opens offices in The Netherlands, Singapore and
Switzerland
• Sponsors secondary ADS offering
• Infosys and the Wharton School of the University of
Pennsylvania set up The Wharton Infosys Business
Transformation Awards (WIBTA)
• Launches Progeon, offering business process
outsourcing services
 2003
• Establishes subsidiaries in China and Australia
• Expands operations in Pune and China, and sets up a
Development Center in Thiruvananthapuram

2004
• Revenues reach US$ 1 billion
• Infosys Consulting Inc. is launched

2005
• Records the largest international equity offering of US$
1 billion from India
• Selected to the Global MAKE Hall of Fam
2006
• Infosys celebrates 25 years. Revenues cross US$ 2 billion.
Employees grow to 50,000+
• N. R. Narayana Murthy retires from the services of the company
on turning 60. The Board of Directors appoints him as an
Additional Director. He continues as Chairman and Chief Mentor of
Infosys
 
• 2007
• Infosys crosses revenues of US$ 3 billion. Employees grow to over
70,000+
• Kris Gopalakrishnan, COO, takes over as CEO. Nandan M. Nilekani
is appointed Co-Chairman of the Board of Directors
• Opens new subsidiary in Latin America
• Reports Q2 revenue of over US$ 1billion
2008
• Infosys crosses revenues of US$ $ 4.18 billion
• Annual net profits cross US$ 1 billion
 
2009
• Infosys selected as a member of The Global
Dow
• Employee strength grows to over 100,000
 
 Operational Data
1. Sales
Year (Rs. Crore)

2000-01 1,958.94
2001-02 2,603.59
2002-03 3,623
2003-04 4,761
2004-05 6,861
2005-06 9,028
2006-07 13,149
2007-08 15,684
2008-09 20,264
2oo9-10 21,104
 Sales
Sales
25000

21140
20000 20264

15648
15000
Sales
13149 Linear (Sales)

10000
9028

6861

5000 4761
3623
2603.57
1959.94

0
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
 Operational Data
2. Gross Profit
Year (Rs. Crore)

2000-01 2002.37
2001-02 1378.77
2002-03 1809.39
2003-04 2265.58
2004-05 3204.73
2005-06 4141
2006-07 5871
2007-08 6772
2008-09 9119
2oo9-10 9581
 Gross Profit
Gross Profit(Rs. Crore)
12000

10000
9581
9119

8000

6771 Gross Profit(Rs. Crore)

Linear (Gross Profit(Rs. Crore))
6000 5871

4000 4141

3204.73

2265.58
2000 2002.37 1809.39
1378.77

0
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
 Operational Data
3. Profit After Tax
Year (Rs. Crore)

2000-01 622.33
2001-02 807.96
2002-03 958
2003-04 1243.47
2004-05 1904.38
2005-06 2421
2006-07 3777
2007-08 4470
2008-09 5819
2oo9-10 5755
 3. Profit After Tax
Profit after tax (Rs. Crore)
7000

6000
5819 5755

5000

4470
4000 Profit after tax (Rs. Crore)
3777 Linear (Profit after tax (Rs. Crore))

3000

2421
2000 1904.38

1243.47
1000 958
807.96
622.33

0
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
 Operational Data
4. Paid up capital
Year (Rs. Crore)

2000-01 33.08
2001-02 33.09
2002-03 33.12
2003-04 33.32
2004-05 135.28
2005-06 137.78
2006-07 285.60
2007-08 286.99
2008-09 286
2oo9-10 287
 Paid up capital

Profit after tax (Rs. Crore)

350

300
285.6 286.99 286 287

250

200

150 Paid up capital

135.28 137.78

100 Linear-paid up
capital

50
33.08 33.09 33.12 33.32

0
200 200 200 200 200 200 200 200 200 200
 Operational Data
5. Net Worth
Year (Rs. Crore)

2000-01 1389
2001-02 2080
2002-03 2861
2003-04 3253
2004-05 5241
2005-06 6897
2006-07 11162
2007-08 13490
2008-09 17809
2oo9-10 22036
 Net Worth
Networth(Rs. Crore)
25000

22036

20000

17809

15000
Networth(Rs. Crore)
13490 Linear (Networth(Rs. Crore))

11162
10000

6897

5000 5241

2861 3253
2080
1389
0
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
 Operational Data
6.Earnings Per Share
Year Basic Diluted
Rs. Rs.
2000-01 94.23 93.93
2001-02 112.12 121.27
2002-03 144.68 143.37
2003-04 187.38 185.05
2004-05 69.26 67.46
2005-06 88.67 86.20
2006-07 67.93 66.44
2007-08 78.32 77.98
2008-09 101.65 101.48
2oo9-10 109.84 109.72
 Earnings Per Share
200

185.05
180

160

143.37
140

120 121.27
109.72
101.48 Basic(Rs)
100
93.93 Diluted(Rs)
86.2 Linear (Diluted(Rs))
80 77.98
67.46 66.44
60

40

20

0
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
 Operational Data
7. Market Capitalization
Year (Rs. Crore)

2000-01 26926
2001-02 24645
2002-03 268407
2003-04 32909
2004-05 61073
2005-06 82154
2006-07 115307
2007-08 82362
2008-09 75837
2oo9-10 150110
 Market Capitalization
Market Capitalization (Rs. Crore)
160000
150110
140000

120000
115307

100000
Market Capitalization (Rs. Crore)
82154 82362 Linear (Market Capitalization (Rs. Crore))
80000
75837

60000 61073

40000
32909
26926 24645 26847
20000

0
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
 Ratios
Particulars FY06 FY07 FY08 FY09 FY10E

Current Ratio 2.4 4.4 3.1 3.8 4.9

Liquidity Ratio 2.75 4.91 3.28 4.67 4.28

Debt/ Equity - - - - -
Ratio

Profit to Net .6 .52 .5 .512 .43

Worth

Operational .62 .72 .73 .7 .69

ratio
 WHY INFOSYS
• It has grown from under US $ 1 billion to more
than US $ 4 billion revenues in less than a decade.
It was also the first IT Company from India to be
listed on NASDAQ stock exchange.
• Infosys differentiates itself from other Indian
competitors by focusing on higher-value-added
services (e.g., consulting and systems integration).
• Also competing with the most stable and
renowned IT companies like TATA and WIPRO.
• Infosys is India second largest outsourcing
company with more than $4 billion in annual sales.
PESTEL ANALYSIS
 ECONOMIC ENVIRONMENT

• Currency fluctuation
• Economic attractiveness-due to cost
advantage and other factors
 SOCIAL ENVIRONMENT
• Language spoken-English medium is the most accepted
medium of education in India

• Education -A number of technical institutes and

universities over the country offer IT education.

• working age population-India is one of the few countries

to have an increasing share of working population.
 TECHNOLOGICAL ENVIRONMENT
• Telephony-India has the world’s lowest call rates and
also India has the second largest telephone network
after china.
• Internet backbone-New IT technologies-Due to IT
revolution of 90s, Indian cities and India is well
connected with undersea optical cables
• New IT technologies-Technologies like SOA, Web 2.0,
High-definition content, grid computing, etc and
innovation in low cost technologies is presenting new
challenges and opportunities for Indian IT industry.
• Enterprise telephone services, 3G, Wi-max and VPN
are poised to grow.
 ENVIRONMENTAL
• Energy Efficient processes and equipments: Infosys is
focusing on reducing the carbon footprints, energy
utilization, water consumption, etc.
 LEGAL ENVIRONMENT
• IT SEZ requirement-IT companies can set up SEZ with
minimum area of 10 hectares
• IT Act- Indian government is strengthening the IT act,
2000 to provide a sound legal environment for
companies to operate esp. related to security of data
in transmission and storage, etc.
• Companies operating in Software Technology Park
(STPI) scheme will continue to get tax-benefit till
2010.
MARKET
11%

SHARE
10%

8%

55%

4%

4%

3%

2%
2%

1%

TCS Infosys Wipro Mahindra Satyam HCL Technologies Financial Technologies IBM India Tech Mahindra Capgemini India Others
SWOT ANALYSIS
 STRENGTH
• Cost effectiveness-As the company is based in India The
workforce has relatively high skills levels in Information
Technology with low cost compared to international standards.
• Finance position- Infosys is in a strong financial position.
• Global presence-The company has bases in 44 global
development centers, most of which are located in India,
although the company has offices in many developed and
developing nations.
• Global and 24/7 delivery capability – excellent internet
backbone and telecommunications facilities enabling companies
to develop 24/7 delivery capabilities from India itself
• Proven global delivery model
• Strong brand
 WEAKNESS
• Low penetration-Presences of Infosys in the US markets is low
compared to Global competitor .
• Strong competition- Faces a strong competition from Global
players like Hewlett-Packard, IBM, EDS and Accenture. 
• Small in size in global competition- Even though it is big
player in India with turnover more than $4 billion, Infosys is
much smaller than its global competitors. 
• Low R & D spending- Infosys spends less as compared to
global IT companies – only 1.3 % of total revenues
 OPPORTUNITIES

• Opening offices and development centers in cost advantage

countries such as those in Latin America and Eastern Europe.
• Domestic market for IT sector is growing
• Infosys is cash rich - Acquiring companies to
increase expertise in Consultancy and package
implementation
 THREAT

• Competition-Intense competition in the market for

technology services could affect cost advantages.
• Currency fluctuations
• Termination of Client contracts can typically be terminated
without cause and with little or no notice or penalty.
• Increased competition from low-wage countries like China,
Indonesia etc.
• Other global players have realized that India has the benefit of
low cost, high skilled labor
THANK YOU