infosys technologies ltd final edition
TRANSCRIPT
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Infosys
technologies ltd.Win In The Flat World
N.R.Narayana Murthy
http://tmp/sve7g.tmp/http://en.wikipedia.org/wiki/N.R.Narayana_Murthyhttp://tmp/sve7g.tmp/http://en.wikipedia.org/wiki/N.R.Narayana_Murthyhttp://tmp/sve7g.tmp/http://en.wikipedia.org/wiki/N.R.Narayana_Murthyhttp://en.wikipedia.org/wiki/N.R.Narayana_Murthy -
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Infosys today is a global leader in the next generation of IT and Consulting
Infosys selected as a member of The Global Dow in 2009
Named Indias Most Respected Company in the Businessworld 2006
survey for the fourth consecutive timeAdjudged Indias Best Managed Company in a study conducted by
Business Today and A.T. Kearney
Forbes: Infosys is a role model for companies everywhere in financialtransparency.
Dream company to work for in India and amongst the 100 best placesto work for in IT in the US
Amongst the first companies in world to be certified at CMMI Level 5
BusinessWeek: Amongst the top 3 IT Services companies in the worldWired rated Infosys among its top 40 companies that have reshaped the
global economy.
Exceptional Financial Performance Increase in number of Active Clients Strong Growth in Employees
Revenue($M
)
Employees
ActiveClients
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Offshore Outsourcing is a Global Mega Trend
Offshore Outsourcing Rationale
Deliver high quality at great value
Highly scalable with a large resource pool available
Proven track record
Offshore Outsourcing Rationale
Deliver high quality at great value
Highly scalable with a large resource pool available
Proven track record
OffshoreAddressable Market is Increasing
Non-GDM GDM
Onsite Firms
GDM+Consulting
GDM+
(~1980s)
(~1990s)
(present)
ADM
Consulting
Global 500 and Fortune 1000 IT Spending
Trend setters for the rest of the business worldCombined IT spend represents 40% of the global ITspending
IT budget constitutes 2.3% of $20 trillion combinedrevenues
Global 500 and Fortune 1000 IT Spending
Trend setters for the rest of the business world
Combined IT spend represents 40% of the global ITspending
IT budget constitutes 2.3% of $20 trillion combinedrevenues
Infosys Market Positioning
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Profit & Loss A/c Of Infosys
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Balance-sheet of the infosys
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Financial status of the Infosys
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Per Share Data
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Per Share Ratios
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Employee Data
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Liquidity Ratios
Current ratio Strong financial condition
Quick ratio Enough liquidity
Inventory Turnover Ratio Not applicable
Fixed Assets Turnover Ratio Efficientutilization of assets
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Leverage ratiosYearYear 2010 2009 2008 2007 2006
Ownersfund as% of
totalsource
100.00 100.00 100.00 100.00 100.00
Debt-equity
Ratio
- - - - -
Long
termDebt-equityRatio
- - - - -
InterestCoverageRatio
3761.00 3891.00 5642.00 4559.00 3211.00
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Leverage ratios
Debt-equity ratio Not applicable as noborrowings from the market
Long term Debt-equity ratio Not applicableas company has no borrowings from themarket
Interest Coverage ratio Strong checkrequired
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Profitability ratiosYear 2010 2009 2008 2007 2006
Operating Margin%
34.85 34.09 31.72 32.13 33.11
GrossProfit
Margin%
31.04 30.66 28.23 28.57 28.58
Net
ProfitMargin%
26.31 27.52 27.37 28.05 26.17
Returnon LongTermFunds %
33.90 39.80 37.77 36.64 40.62
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Profitability ratios
Operating Margin Efficient Workingcapital /Operations management
Gross Profit Margin Higher productivity
Net Profit Margin Efficient management
Return on Long Term Funds Reaping goodreturns
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Payout ratiosYear 2010 2009 2008 2007 2006
DividendPayoutRatios
28.34 27.03 49.77 19.85 58.32
EarningRetention
Ratio
70.92 74.60 50.17 79.91 43.48
Cash
EarningsRetentionRatio
74.49 77.16 55.60 82.15 51.43
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Payout ratios
Dividend Payout Ratios Providing goodreturns to the stakeholders
Earning Retention Ratio Good reserves
Cash Earnings Retention Ratio Efficientmanagement of funds
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Component ratios
Year 2010 2009 2008 2007 2006Materialcost % ofSales
- 0.09 0.11 0.16 0.17
SellingCost % ofSales
1.01 0.40 0.56 0.47 0.60
Exports as% of Sales
- 97.88 92.59 92.44 95.86
Long TermAssets/Total Assets
0.33 0.25 0.28 0.30 0.33
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Component ratios
Material cost Less input cost
Selling Cost Low cost of sales
Exports as percentage of Total Sales Highratio of exports
Long Term Assets/Total Assets Less capitalinvestment
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ratios of industry
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conclusion
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Thank you
Pratik Tanwar (152) Ishaan Sabarwaal (156) Niket Shah (153) Dipesh Sankhala (158) Umang agarwal (102) Prateek Golchha (118) Paresh Rathi (141)