Infosys
This document was uploaded by user and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this DMCA report form. Report DMCA
Overview
Download & View Infosys as PDF for free.
More details
- Words: 1,919
- Pages: 11
AUTHOR: SAMEER AHUJA
INFOSYS
Company Overview Infosys Technologies Limited (Infosys), incorporated on July 2, 1981, is a global technology services firm that defines, designs and delivers information technology (IT)enabled business solutions to its clients. The Company provides end-to-end business solutions that leverage technology for its clients, including consulting, design, development, software re-engineering, maintenance, systems integration, package evaluation, and implementation and infrastructure management services. Infosys also provides software products to the banking industry. Infosys BPO (formerly Progeon Limited) is a majority owned subsidiary. Infosys Australia, Infosys China and Infosys Consulting are the Company's wholly owned subsidiaries. In June 2006, Infosys acquired the shares in Infosys BPO held by Citicorp International Finance Corporation (CIFC). As a result, Infosys effectively holds 99.98% of the equity share capital of Infosys BPO as of March 31, 2007. The Company complements its service offerings with specialist support for clients using its domain competency group that has expertise in areas, such as securities, insurance, telecommunication, banking and cash management, supply chain management, manufacturing, retail and distribution, energy and utilities, healthcare, and travel and tourism. It also uses its software engineering group and technology lab to create customized solutions for its clients. In addition, it continually evaluates and trains its professionals in new technologies and methodologies. . Core Services Custom Application Development • •
The Company provides customized software solutions for its clients. Infosys creates new applications and enhances the functionality of its clients' existing software applications. The Company's projects vary in size and duration. The Company's application development services span the entire range of mainframe, client server and Internet technologies. An increasing proportion of Infosys' applications development engagements are related to emerging platforms, such as Microsoft's .NET or open platforms, such as Java 2 Enterprise Edition (J2EE) and Linux
1
AUTHOR: SAMEER AHUJA
Maintenance and Production Support Infosys provides maintenance services for its clients' large software systems that cover a range of technologies and businesses, and are typically critical to a client's business. The Company focuses on long-term functionality, stability and preventive maintenance to avoid problems that typically arise from incomplete or short-term solutions. While Infosys performs most of the maintenance work at its global development centers using secure and redundant communication links to its client's systems, it also maintain a team at the client's facility to coordinate certain key interface and support functions Software Re-engineering The Company's software re-engineering services assist its clients in converting their existing IT systems to newer technologies and platforms developed by third-party vendors. Infosys' re-engineering services include Web-enabling its clients' existing legacy systems, database migration, implementing product upgrades, and platform migrations, such as mainframe to client-server and client-server to Internet platforms. Package Evaluation and Implementation • •
Infosys assists its clients in the evaluation and implementation of software packages developed by third-party vendors. It also provides training and support services in the course of their implementation. The Company specializes in enterprise resource planning packages developed by vendors, including Oracle, PeopleSoft, Retek and SAP; supply chain management packages developed by vendors, including i2, Manugistics and Oracle; customer relationship management packages developed by vendors, including PeopleSoft (Vantive) and Siebel; business intelligence packages developed by vendors, such as Business Objects and Cognos, and enterprise application integration packages developed by vendors, such as IBM and TIBCO.
Information Technology Consulting •
The Company's IT consulting professionals assist its clients by providing technical advice in developing and recommending appropriate IT architecture, hardware and software specifications to deliver IT solutions designed to meet specific business and computing objectives.
2
AUTHOR: SAMEER AHUJA •
•
Infosys offers IT consulting in the areas of migration planning, institution-wide implementation and overall project management involving multiple vendors under a common architecture; IT infrastructure assessment, which includes assessing its clients' IT capabilities against existing and future business requirements and recommending appropriate technology infrastructure, and technology roadmap development, which allows clients to evaluate emerging technologies and develop the standards and methodologies for applying those emerging technologies.
Other Solutions •
•
Infosys' service offerings including testing services, engineering services, business process management, systems integration, infrastructure management, and operational and business process consulting. The Company offers end-to-end validation solutions and services, including enterprise test management, performance benchmarking, test automation and product certification. For each particular client, Infosys focuses on developing a framework for ongoing testing in order to seek continuous improvement in the predictability of its client's internal systems. The Company's service professionals are trained in test management tools from developers, such as Mercury Interactive, IBM-Rational and Segue.
Finacle •
Finacle®, the universal banking solution from Infosys, helps banksby enabling them to shift their strategic and operational priorities. It maximizes their opportunities for growth,while minimizing the risks that come with large-scale business transformation
•
Finacle® currently powers 91 banks across 54 countries, helpingthem serve over 100 million customers, 150 million accounts, 80,000users and supporting over 36 million peak banking transactions per day spread across multiple installations
Key industries Infosys serves various industries through its vertical business units, such as: •
Aerospace and Automobile (AnA)
•
Banking & Capital Markets (BCM)
•
Communication Service Providers (CSP)
•
Resources, Energy & Utilities (REU)
3
AUTHOR: SAMEER AHUJA •
Hi Tech & Discrete Manufacturing (HTDM)
•
Insurance, Healthcare & Life Sciences (IHL)
•
Media and Entertainment
•
Product Lifecycle and Engineering Solutions (PLES)
•
Retail, Distribution & CPG (RETL)
•
Transportation & Services (TnS)
•
Independent Validation Solutions (IVS) - provides software testing services.
•
IT Infrastructure Management Services (IMS) - manages core networks, data centers and servers of clients.
•
Real Estate
•
Life science
In addition to these, there are business units aligned to clients' geographies, such as EMEA (Europe, Middle East & Africa), APAC (Asia-Pacific) and CAND (Canada). There are also horizontal business units such as ES (Enterprise Solutions), which specializes in ERP and package implementation and works with clients across industries and geographies and SI (Systems Integration), which provides integration services to clients
Revenue Segments :
4
AUTHOR: SAMEER AHUJA
Key People Nilekani, Nandan M.
52
1987Co-Chairman of the Board
Trade Activity
Murthy, N. R. Narayana
60
1981Non-Executive Chairman of the Board and Chief
Trade Activity
Mentor Gopalakrishnan, S.
52
1987Chief Executive Officer and Managing Director
Trade Activity
Balakrishnan, Vibin
42
1999Chief Financial Officer
Trade Activity
Shibulal, S. D.
52
1997Chief Operating Officer, Director
Trade Activity
2006Secretary, Compliance Officer
Trade Activity
1994Director and Head - Administration, Education &
Trade Activity
Parvatheesam, K. Pai, T. V. Mohandas
-48
Research and Human Resources, Director Krishnaswamy, Dinesh
52
1996Head - Communication Design Group, Information Trade Activity
Batni, Srinath
52
1996Group Co Head - World-wide Customer Delivery,
Systems, Quality & Productivity, Director Trade Activity
Director
Company Strategy for future
5
AUTHOR: SAMEER AHUJA • • • • • •
Increase businesses from existing and new clients Expand geographically Continue to develop deep industry knowledge Enhance brand visibility Pursue alliance and strategic acquisitions Continue to invest in infrastructure and employees
Key Competitors •
Offshore Technology services firms such as Cognizant Technologies, Satyam Computer Services, Tata Consultancy Services and Wipro
•
Consulting firms as Accenture , Cap Gemini
•
IT Outsourcing firms such as EDS ,CSC
Key Clients ABN AMRO , AIRBUS, AETNA INC,GOLDMAN SACHS
6
AUTHOR: SAMEER AHUJA During fiscal 2007, 95.3% of revenues came as repeat business and during 2006, 95.0% revenues came from repeat business from existing clients
Key Numbers 2007 Sales (mil.)
$3,090.0
1-Year Sales Growth
43.6%
2007 Net Income (mil.)
$850.0
1-Year Net Income Growth
53.2%
2007 Employees
72,200
1-Year Employee Growth
37.0%
Financials &Stock Performance
7
AUTHOR: SAMEER AHUJA FINANCIAL HIGHLIGHTS
Fiscal Year Fiscal Year Ends:
31-Mar
Most Recent Quarter (mrq):
30-Jun-07
Profitability Profit Margin (ttm):
27.96%
Operating Margin (ttm):
27.13%
Management Effectiveness Return on Assets (ttm):
21.37%
Return on Equity (ttm):
39.37%
Income Statement Revenue (ttm):
3.36B
Revenue Per Share (ttm):
6.01
Qtrly Revenue Growth (yoy):
40.60%
Gross Profit (ttm):
1.31B
EBITDA (ttm):
1.05B
Net Income Avl to Common (ttm):
939.00M
Diluted EPS (ttm):
1.65
Qtrly Earnings Growth (yoy):
51.10%
8
AUTHOR: SAMEER AHUJA
Balance Sheet Total Cash (mrq):
1.59B
Total Cash Per Share (mrq):
2.778
Total Debt (mrq):
0
Total Debt/Equity (mrq):
N/A
Current Ratio (mrq):
6.302
Book Value Per Share (mrq):
5.33
Cash Flow Statement Operating Cash Flow (ttm):
1.02B
Levered Free Cash Flow (ttm):
240.50M
Latest Developments •
NASDAQ-listed Infosys (INFY.O) will provide services like application development, management and maintenance of railway operations of Canadian Pacific, which operates a 13,500-mile (21,700-kilometre) transcontinental railway, a company statement said
•
Infosys Technologies Ltd. (INFY.BO) signed a $250 million outsourcing contract with Royal Philips Electronics (PHG.AS: Quote, Profile , Research) on Wednesday and bought three of the Dutch firm's back-office centres to extend its presence in Europe.
Analysis : Key challenges faced by Infosys are
9
AUTHOR: SAMEER AHUJA •
Rise in Wage levels on Indian IT workers.
Infy can overcome this risk by growing up the value chain so that it can afford to increase its billing rates and still add value to its customers .Second thing it can do is to move their operations to second level cities in India that have low cost of living and where wage pressure is less. One of the good steps Infy has taken to this regard was by opening its Bhubhneashwar centre. Its cost of living is way less than that of Bangalore. Another good example is Gandhinagar where Patni computers was one of the first big IT companies to open its office.
•
Change in exchange rates.
Infy should grow its client base in India and China where the impact of foreign exchange is negligent. TCS is a good example with this regard.Its 2006 revenues had 12.5% revenues generated from India. This is around $300 mn. With the present Indian IT market valued at $5bn (obtained from TCS's 2006 annual report) and expected to grow at 11%, Infy has scope of getting a good maket share. •
Rise in Infrastructure costs
Infy's 2006 capital expenses was $246mn compared to that of $185mn in 2005. This is an increase of over 30%. In order to continue this pace the company needs to invest a large amount of capital in building new facilities. With recent surge in real estate prices in India, Infy would face challenges in controlling its capital expenditures towards expanding its facilities •
Inability to acquire foreign companies
The present Reserve Bank of India guidelines state that in ceratin cases Indian companies have to take the central bank's permission to acquire a foreign company. This increases the lead time required to acquire a company. •
Backlash towards outsourcing in foreign countries
One way is to employ local talent.Another way can be employing virtual classroom techniques by which a person sitting in India can get US experience that he would otherwise get by being physically present in USA. Multinational companies like Accenture are doing a great job in this front and are not so much dependent on wok visas as the Indian companies like Infy.
10
AUTHOR: SAMEER AHUJA •
Present Tax benefits are limited till 2009
Most Indian IT companies are enjoying a tax holiday which exempts them from taxes on exports performed from designated export promotion zones. This helps Indian IT companies to reduce their tax rate.But this benefit is only applicable till fiscal 2009. After that the Indian IT companies would be taxed the same way as other Indian companies
Infosys in UAE
Contact Information Z3 Office 11, SAIF Zone, P.O. Box 8230, Sharjah - UAE. Phone: +971 6 557 1068 Fax: +971 6 557 3768 Industry offerings : Retail Services offered : Package Implementation .Infrastructure services ,Enterprise Solutions
11
INFOSYS
Company Overview Infosys Technologies Limited (Infosys), incorporated on July 2, 1981, is a global technology services firm that defines, designs and delivers information technology (IT)enabled business solutions to its clients. The Company provides end-to-end business solutions that leverage technology for its clients, including consulting, design, development, software re-engineering, maintenance, systems integration, package evaluation, and implementation and infrastructure management services. Infosys also provides software products to the banking industry. Infosys BPO (formerly Progeon Limited) is a majority owned subsidiary. Infosys Australia, Infosys China and Infosys Consulting are the Company's wholly owned subsidiaries. In June 2006, Infosys acquired the shares in Infosys BPO held by Citicorp International Finance Corporation (CIFC). As a result, Infosys effectively holds 99.98% of the equity share capital of Infosys BPO as of March 31, 2007. The Company complements its service offerings with specialist support for clients using its domain competency group that has expertise in areas, such as securities, insurance, telecommunication, banking and cash management, supply chain management, manufacturing, retail and distribution, energy and utilities, healthcare, and travel and tourism. It also uses its software engineering group and technology lab to create customized solutions for its clients. In addition, it continually evaluates and trains its professionals in new technologies and methodologies. . Core Services Custom Application Development • •
The Company provides customized software solutions for its clients. Infosys creates new applications and enhances the functionality of its clients' existing software applications. The Company's projects vary in size and duration. The Company's application development services span the entire range of mainframe, client server and Internet technologies. An increasing proportion of Infosys' applications development engagements are related to emerging platforms, such as Microsoft's .NET or open platforms, such as Java 2 Enterprise Edition (J2EE) and Linux
1
AUTHOR: SAMEER AHUJA
Maintenance and Production Support Infosys provides maintenance services for its clients' large software systems that cover a range of technologies and businesses, and are typically critical to a client's business. The Company focuses on long-term functionality, stability and preventive maintenance to avoid problems that typically arise from incomplete or short-term solutions. While Infosys performs most of the maintenance work at its global development centers using secure and redundant communication links to its client's systems, it also maintain a team at the client's facility to coordinate certain key interface and support functions Software Re-engineering The Company's software re-engineering services assist its clients in converting their existing IT systems to newer technologies and platforms developed by third-party vendors. Infosys' re-engineering services include Web-enabling its clients' existing legacy systems, database migration, implementing product upgrades, and platform migrations, such as mainframe to client-server and client-server to Internet platforms. Package Evaluation and Implementation • •
Infosys assists its clients in the evaluation and implementation of software packages developed by third-party vendors. It also provides training and support services in the course of their implementation. The Company specializes in enterprise resource planning packages developed by vendors, including Oracle, PeopleSoft, Retek and SAP; supply chain management packages developed by vendors, including i2, Manugistics and Oracle; customer relationship management packages developed by vendors, including PeopleSoft (Vantive) and Siebel; business intelligence packages developed by vendors, such as Business Objects and Cognos, and enterprise application integration packages developed by vendors, such as IBM and TIBCO.
Information Technology Consulting •
The Company's IT consulting professionals assist its clients by providing technical advice in developing and recommending appropriate IT architecture, hardware and software specifications to deliver IT solutions designed to meet specific business and computing objectives.
2
AUTHOR: SAMEER AHUJA •
•
Infosys offers IT consulting in the areas of migration planning, institution-wide implementation and overall project management involving multiple vendors under a common architecture; IT infrastructure assessment, which includes assessing its clients' IT capabilities against existing and future business requirements and recommending appropriate technology infrastructure, and technology roadmap development, which allows clients to evaluate emerging technologies and develop the standards and methodologies for applying those emerging technologies.
Other Solutions •
•
Infosys' service offerings including testing services, engineering services, business process management, systems integration, infrastructure management, and operational and business process consulting. The Company offers end-to-end validation solutions and services, including enterprise test management, performance benchmarking, test automation and product certification. For each particular client, Infosys focuses on developing a framework for ongoing testing in order to seek continuous improvement in the predictability of its client's internal systems. The Company's service professionals are trained in test management tools from developers, such as Mercury Interactive, IBM-Rational and Segue.
Finacle •
Finacle®, the universal banking solution from Infosys, helps banksby enabling them to shift their strategic and operational priorities. It maximizes their opportunities for growth,while minimizing the risks that come with large-scale business transformation
•
Finacle® currently powers 91 banks across 54 countries, helpingthem serve over 100 million customers, 150 million accounts, 80,000users and supporting over 36 million peak banking transactions per day spread across multiple installations
Key industries Infosys serves various industries through its vertical business units, such as: •
Aerospace and Automobile (AnA)
•
Banking & Capital Markets (BCM)
•
Communication Service Providers (CSP)
•
Resources, Energy & Utilities (REU)
3
AUTHOR: SAMEER AHUJA •
Hi Tech & Discrete Manufacturing (HTDM)
•
Insurance, Healthcare & Life Sciences (IHL)
•
Media and Entertainment
•
Product Lifecycle and Engineering Solutions (PLES)
•
Retail, Distribution & CPG (RETL)
•
Transportation & Services (TnS)
•
Independent Validation Solutions (IVS) - provides software testing services.
•
IT Infrastructure Management Services (IMS) - manages core networks, data centers and servers of clients.
•
Real Estate
•
Life science
In addition to these, there are business units aligned to clients' geographies, such as EMEA (Europe, Middle East & Africa), APAC (Asia-Pacific) and CAND (Canada). There are also horizontal business units such as ES (Enterprise Solutions), which specializes in ERP and package implementation and works with clients across industries and geographies and SI (Systems Integration), which provides integration services to clients
Revenue Segments :
4
AUTHOR: SAMEER AHUJA
Key People Nilekani, Nandan M.
52
1987Co-Chairman of the Board
Trade Activity
Murthy, N. R. Narayana
60
1981Non-Executive Chairman of the Board and Chief
Trade Activity
Mentor Gopalakrishnan, S.
52
1987Chief Executive Officer and Managing Director
Trade Activity
Balakrishnan, Vibin
42
1999Chief Financial Officer
Trade Activity
Shibulal, S. D.
52
1997Chief Operating Officer, Director
Trade Activity
2006Secretary, Compliance Officer
Trade Activity
1994Director and Head - Administration, Education &
Trade Activity
Parvatheesam, K. Pai, T. V. Mohandas
-48
Research and Human Resources, Director Krishnaswamy, Dinesh
52
1996Head - Communication Design Group, Information Trade Activity
Batni, Srinath
52
1996Group Co Head - World-wide Customer Delivery,
Systems, Quality & Productivity, Director Trade Activity
Director
Company Strategy for future
5
AUTHOR: SAMEER AHUJA • • • • • •
Increase businesses from existing and new clients Expand geographically Continue to develop deep industry knowledge Enhance brand visibility Pursue alliance and strategic acquisitions Continue to invest in infrastructure and employees
Key Competitors •
Offshore Technology services firms such as Cognizant Technologies, Satyam Computer Services, Tata Consultancy Services and Wipro
•
Consulting firms as Accenture , Cap Gemini
•
IT Outsourcing firms such as EDS ,CSC
Key Clients ABN AMRO , AIRBUS, AETNA INC,GOLDMAN SACHS
6
AUTHOR: SAMEER AHUJA During fiscal 2007, 95.3% of revenues came as repeat business and during 2006, 95.0% revenues came from repeat business from existing clients
Key Numbers 2007 Sales (mil.)
$3,090.0
1-Year Sales Growth
43.6%
2007 Net Income (mil.)
$850.0
1-Year Net Income Growth
53.2%
2007 Employees
72,200
1-Year Employee Growth
37.0%
Financials &Stock Performance
7
AUTHOR: SAMEER AHUJA FINANCIAL HIGHLIGHTS
Fiscal Year Fiscal Year Ends:
31-Mar
Most Recent Quarter (mrq):
30-Jun-07
Profitability Profit Margin (ttm):
27.96%
Operating Margin (ttm):
27.13%
Management Effectiveness Return on Assets (ttm):
21.37%
Return on Equity (ttm):
39.37%
Income Statement Revenue (ttm):
3.36B
Revenue Per Share (ttm):
6.01
Qtrly Revenue Growth (yoy):
40.60%
Gross Profit (ttm):
1.31B
EBITDA (ttm):
1.05B
Net Income Avl to Common (ttm):
939.00M
Diluted EPS (ttm):
1.65
Qtrly Earnings Growth (yoy):
51.10%
8
AUTHOR: SAMEER AHUJA
Balance Sheet Total Cash (mrq):
1.59B
Total Cash Per Share (mrq):
2.778
Total Debt (mrq):
0
Total Debt/Equity (mrq):
N/A
Current Ratio (mrq):
6.302
Book Value Per Share (mrq):
5.33
Cash Flow Statement Operating Cash Flow (ttm):
1.02B
Levered Free Cash Flow (ttm):
240.50M
Latest Developments •
NASDAQ-listed Infosys (INFY.O) will provide services like application development, management and maintenance of railway operations of Canadian Pacific, which operates a 13,500-mile (21,700-kilometre) transcontinental railway, a company statement said
•
Infosys Technologies Ltd. (INFY.BO) signed a $250 million outsourcing contract with Royal Philips Electronics (PHG.AS: Quote, Profile , Research) on Wednesday and bought three of the Dutch firm's back-office centres to extend its presence in Europe.
Analysis : Key challenges faced by Infosys are
9
AUTHOR: SAMEER AHUJA •
Rise in Wage levels on Indian IT workers.
Infy can overcome this risk by growing up the value chain so that it can afford to increase its billing rates and still add value to its customers .Second thing it can do is to move their operations to second level cities in India that have low cost of living and where wage pressure is less. One of the good steps Infy has taken to this regard was by opening its Bhubhneashwar centre. Its cost of living is way less than that of Bangalore. Another good example is Gandhinagar where Patni computers was one of the first big IT companies to open its office.
•
Change in exchange rates.
Infy should grow its client base in India and China where the impact of foreign exchange is negligent. TCS is a good example with this regard.Its 2006 revenues had 12.5% revenues generated from India. This is around $300 mn. With the present Indian IT market valued at $5bn (obtained from TCS's 2006 annual report) and expected to grow at 11%, Infy has scope of getting a good maket share. •
Rise in Infrastructure costs
Infy's 2006 capital expenses was $246mn compared to that of $185mn in 2005. This is an increase of over 30%. In order to continue this pace the company needs to invest a large amount of capital in building new facilities. With recent surge in real estate prices in India, Infy would face challenges in controlling its capital expenditures towards expanding its facilities •
Inability to acquire foreign companies
The present Reserve Bank of India guidelines state that in ceratin cases Indian companies have to take the central bank's permission to acquire a foreign company. This increases the lead time required to acquire a company. •
Backlash towards outsourcing in foreign countries
One way is to employ local talent.Another way can be employing virtual classroom techniques by which a person sitting in India can get US experience that he would otherwise get by being physically present in USA. Multinational companies like Accenture are doing a great job in this front and are not so much dependent on wok visas as the Indian companies like Infy.
10
AUTHOR: SAMEER AHUJA •
Present Tax benefits are limited till 2009
Most Indian IT companies are enjoying a tax holiday which exempts them from taxes on exports performed from designated export promotion zones. This helps Indian IT companies to reduce their tax rate.But this benefit is only applicable till fiscal 2009. After that the Indian IT companies would be taxed the same way as other Indian companies
Infosys in UAE
Contact Information Z3 Office 11, SAIF Zone, P.O. Box 8230, Sharjah - UAE. Phone: +971 6 557 1068 Fax: +971 6 557 3768 Industry offerings : Retail Services offered : Package Implementation .Infrastructure services ,Enterprise Solutions
11
