INFOSYS LTD.

ANALYSIS

Devulapalli Visishtha #99 Aditya Doshi #100 Pratik Dudani #101

Supriya Gunthey #102

Nishit Hathi #103

INTRODUCTION
Founded in 1981. Leader in technology, consulting & outsourcing. Headquartered in Bangalore. Founded by NRM, Nandan Nilekani, Kris Gopalakrishnan, N.S. Raghavan, S.D. Shibhulal. High Concentration in US and UK Markets.

PRODUCTION LOCATIONS

REVENUE STREAM

Key Competitors

PRICING
Pricing under pressure Rebids

ECONOMIC IMPACT
Theoretically : Infosys should benefit Practically : Not happening -Loss of senior business heads -Stress on hedging strategies Not enough Forex cover FY14: Loss of $13.4mln Slower growth in developed markets European Debt crisis

CAPITAL EXPENDITURE

Current Annual capitalization -Rs. 1,422 crore. This comprises Rs. 640 crore (includes Rs. 62 crore transferred from Infosys Australia) for investment in computer equipment, Rs. 30 crore (includes Rs. 21 crore transferred from Infosys Australia) in Intellectual Property rights, Rs. 1 crore on vehicles The balance of Rs. 751 crore (includes Rs. 13 crore transferred from Infosys Australia) on infrastructure investments. The company has invested Rs. 145 crore to acquire 119.35 acres of land in Bangalore, Hubli, Mysore, and Thiruvananthapuram.

LIQUIDITY

Infosys continues to be debt-free. During fiscal 2013, internal cash flows have more than adequately covered working capital requirements, capital expenditure, investment in subsidiaries and dividend payments. As at March 31, 2013, the company had liquid assets of Rs. 22,289 crore. These funds have been invested in deposits with banks, highly-rated financial institutions, liquid mutual funds , certificates of deposit and tax free bonds. The tax free bonds are disclosed under non-current investments.

IMPACT OF CURRENT COST STRUCTURE

INCREASE IN SHARE CAPITAL

During the year, the company issued 6,165 shares on the exercise of stock options under the 1999 Employee Stock Option Plans. As a result of this, the outstanding issued, subscribed and paid-up equity shares increased from 57,42,30,001 as at March 31, 2012 to 57,42,36,166 shares as at March 31, 2013. Transfer to reserves :

The company has to transfer Rs. 911 crore (10% of the standalone net profit for the year) to the general reserve. An amount of Rs. 25,383 crore is proposed to be retained in the Statement of Profit and Loss.

DIVIDEND POLICY

The companys policy is to pay dividend of up to 30% of the consolidated net profit after tax. In October 2012, we paid an interim dividend of Rs. 15/- per share. We recommended a final dividend of Rs. 27/- per share (par value of Rs. 5/- each), making in all Rs. 42/- per share as dividend for the year. The total dividend amount pay out (excluding dividend tax) for the current year is Rs. 2,412 crore, as against Rs. 2,699 crore in the previous year.

Dividend (including dividend tax) as a percentage of consolidated net profit after tax is 29.9% as compared to 29.7% in the previous year.

LISTING IN NYSE

The company withdrew the listing of our American Depositary Shares (ADSs) from NASDAQ and listed the same in the New York Stock Exchange (NYSE) and NYSE Euronext - London and Paris.

The delisting and listing is to leverage the NYSEEuronext partnership to seek listing in Paris and London stock exchanges which are home to many of their investors, clients and employees.
This will also empower their investor base and increase the trading window available for our global investors.

HIGHLIGHTS OF FINANCIAL STATEMENTS

High liquidity (Cash & Cash Equivalents stand at $4.1bn) Zero Debt High quality receivables Dividends up to 30% of annual post tax profits.

CHALLENGES

Economic uncertainty Foreign Exchange rate fluctuations

Wage Inflation
Top Management Issues

FINANCIAL PERFORMANCE

Offering base comprises of application development & maintenance services, infrastructure mgmt, testing, product engineering, consulting, business intelligence solutions and others In FY12-13, the companys revenue breakup: IT Servies- 63%, Consulting- 31%, Product& platform solutions- 6%

Infosys and its subsidiaries added 235 new clients taking the existing client base to 798 Infosys has low client concentration risk It derives 97% of its revenue from repeat business clients

RATIOS