Tuesday, July 13, 2010

INFOSYS = Q1 FY 11 RESULT = OUTLOOK FOR FY11 = EXPECTS FY11 EPS OF Rs.112.21 to Rs. 116.73 = GOOD CLIENT ADDITIONS IN Q1



INFOSYS TECHNOLOGIES LIMITED
QUARTERLY RESULTS
Q2 FY11 COMPARED

INFOSYS TECHONLOGIES LIMITED  has announced its second quarter results for Q/E 30th, June,2010. Market seems to have received the result with a little disappointment – due to its higher expectations.

The (non-consolidated) results for the last 5 quarters are compared below :
Net Sales has been going up sequentially in all the 5 quarters as can be seen from the figures – Rs.5758 Cr in June2010 (increase over previous qtr of 4.7% and increase over Q/E June2009 of 12.8%), Rs.5500 Cr in Q/E  March 2010; Rs.5335 Cr in Q/E Dec2009; Rs.5201 Cr in Sep 2009; and Rs.5104 Cr in  Q/E June2009.
Total Expenditure has also been going up sequentially in all 5 Quarters –Rs.3282 Cr in Q/E June2010 (which is a 8% increase over Q/E March 2010 and 18.5% increase over Q/E June 2009); Rs.3038 Cr in  Q/E March 2010; Rs.2900 Cr in Q/E Dec,2009; Rs.2851 Cr in Q/E Sep 2009; and Rs.2770 Cr in Q/E June2009.

Hence, at Gross Profit level, the increase over previous Quarter is just 0.6% and the increase over the q/e June 2009 is  just 6.1%.
At operational Profit level the decrease over preceding Quarter is 1.1% though there is increase over q/e June2009 at  7%.
But, other Income has gone up by  18.5%  in Q/e June 2010 compared to Q/E March 2010 – though the same is down by 10.6% compared to Q/E June 2009.
The Profit Before Tax at Rs.1919 Cr is up 1% compared to Rs.1900 Cr in Q/Y March 2010 and up by 4.5% compared to  Rs.1837 Cr in Q/E June 2009.
Finally - Net Profit  at Rs.1431 Cr is up by just 0.1% from Rs.1430 Cr in Q/E March 2010 but down by 2.3% compared to Rs.1464 Cr in Q/E June 2009.
The Basic EPS at Rs.24.93 for Q/E June 2010 is up by 3.6% compared to Rs.24.07 of Q/E march 2010, but down by 2.5% compared to Rs.25.56 in Q/E June 2009.

Below the non-consolidated figures – the company’s  further data and its outlook for the FY11 are also presented. The most important of them is
“Earnings per share is expected to be in the range of Rs. 112.21 to Rs. 116.73; YoY growth of 2.9% to 7.1%”
Last year’s consolidated EPS was 108.99 and non-consolidated EPS was 100.37.Infosys expects the YOY growth to be between 2.9% to 7.1%. Infy has already added 38 clients in the first quarter itself and the progress will continue in remaining 3 quarters and reflect well in its final annual income and profits.
At current Market price of Rs.2803 and the predicted EPS of Rs.114 (average outlook / prediction) the PE Ratio works out to 24.57 – which is not very high for a company like Infosys. But, INFOSYS can be expected to surprise the market – going forward in the year.

Quarterly figures (Non Consolidated) :

Jun-10
Mar-10
dif%1
Dec-09
Sep-09
Jun-09
dif%2
Net Sales
575800
550000
4.7
533500
520100
510400
12.8
SIT & WIP
-
-

-
-
-
Raw Materials
328200
303800
8
290000
285100
277000
18.5
 Traded Goods
-
-

-
-
-
Other Expdr
-
-

-
-
-
Total Expdr
328200
303800
8
290000
285100
277000
18.5
Gross Profit
247600
246200
0.6
243500
235000
233400
6.1
Genl.AdmnExp
34100
30200
12.9
28200
31700
34600
-1.4
Sell+Distr.Exp
27300
26600
2.6
25900
23400
21500
27
Depreciation
18000
19400
-7.2
20500
20700
20100
-10.4
OPT Bef.INT
168200
170000
-1.1
168900
159200
157200
7
Interest
-
-

-
-
-
Excepti.Items
-
-

-
-
-
Depreciation
-
-

-
-
-
OPT Aft.Int&EI
168200
170000
-1.1
168900
159200
157200
7
Other Income
23700
20000
18.5
22200
23200
26500
-10.6
P B T
191900
190000
1
191100
182400
183700
4.5
Tax Expenses
48800
51800
-5.8
44000
38600
37300
30.8
Other Provisions
-
-

-
-
-
Misc Expd.w/o
-
-

-
-
-
P A T
143100
138200
3.5
147100
143800
146400
-2.3
Extrao.Items
-
-4800

-
-
-
Net Profit
143100
143000
0.1
147100
143800
146400
-2.3
Face Value-Rs
5
5
0
5
5
5
0
Paid-up Equity
28700
28700
0
28700
28700
28700
0
Reserves
2318400
2174900
6.6
2128400
1979400
1900400
22
Dividend-%
-
300

-
200
-
Basic EPS bef.EI
24.93
24.07
3.6
25.66
25.08
25.56
-2.5
Diluted EPS bef.EI
24.92
24.06
3.6
25.63
25.05
25.52
-2.4
Basic EPS aft.EI
24.93
24.92
0
25.66
25.08
25.56
-2.5
Diluted EPS aft.EI
24.92
24.9
0.1
25.63
25.05
25.52
-2.4
Public holding-%
65.34
65.32
0
65.19
64.99
65.24
0.2


OTHER DETAILS PROVIDED
 BY THE COMPANY

(NOTE : The following details are taken from Various other Data available with the results . These are presented in an abridged form. For further details – readers can refer materials at company web site and other News items else where.)

Highlights
Consolidated results for quarter ended June 30, 2010
Income was Rs. 6,198 Crore for the quarter ended June 30, 2010;
QoQ growth was 4.3%; YoY growth was 13.3%
Net profit after tax was Rs. 1,488 crore for the quarter ended June 30, 2010; QoQ decline was 7.0%; YoY decline was 2.4%
Earnings per share declined to Rs. 26.06 from Rs. 26.76 in the corresponding quarter of the previous year; QoQ decline was 7.0%; YoY decline was 2.6%
* Excluding the income from investment in OnMobile Systems, Inc. of Rs. 48 crore in Q4 FY10, the QoQ decline was 4.1% towards Net profit and Earnings per share
Others :
 38 clients were added during the quarter by Infosys and its subsidiaries
 Gross addition of 8,859 employees (net addition of 1,026) for the quarter by Infosys and its subsidiaries
 1,14,822 employees as on June 30, 2010 for Infosys and its subsidiaries
Business outlook - Outlook under IFRS – consolidated
The company’s outlook (consolidated) for the quarter ending September 30, 2010 and for the fiscal year ending March 31, 2011, under International Financial Reporting Standards (IFRS) is as follows:
Quarter ending September 30, 2010
 Income is expected to be in the range of Rs. 6,563 Crore to Rs. 6,626 Crore; YoY growth of 17.5% to 18.6%
 Earnings per share is expected to be in the range of Rs. 27.42 to Rs. 27.95; YoY growth of 1.9% to 3.9%
Fiscal year ending March 31, 2011***
 Income is expected to be in the range of Rs. 26,441 crore to Rs. 26,885 crore; YoY growth of 16.3% to 18.2%
 Earnings per share is expected to be in the range of Rs. 112.21 to Rs. 116.73; YoY growth of 2.9% to 7.1%
** Conversion 1 US$ = Rs. 46.45
*** Excluding the income from the sale of our investment in OnMobile Systems, Inc. of Rs. 48 crore in fiscal
2010, the EPS growth is expected to be in the range of 3.7% to7.9%
Products and Platforms
Some of our biggest and most successful projects this quarter have been in the products and platforms space. We have forged a number of new partnerships through Finacle, our star-performing banking solution; Flypp, our new mobile application platform; and Infosys iEngage, the recently launched digital consumer platform.
Process Innovation
During the first quarter, Infosys submitted 20 patent applications in India and the U.S. With this, Infosys has an aggregate of 241 patent applications (pending) in India and the U.S. and has been granted 12 patents by the United States Patent and Trademark Office.
Liquidity and capital expenditure
As on June 30, 2010, cash and cash equivalents, including investments in available-for-sale financial assets and certificates of deposits was Rs. 16,005 crore (Rs. 12,030 crore as on June 30, 2009).
Human resources
During the quarter, Infosys and its subsidiaries added 8,859 employees (gross). The net addition during the quarter was 1,026.
“With the market opening up, attrition has increased this quarter,” said T.V. Mohandas Pai, Member of the Board and Head – HRD and Education & Research. “We have taken several steps to reduce attrition, including a compensation hike and are enhancing lateral hiring.”




Note : As always, all comments, suggestions and corrections, if any, from Readers will be received gratefully.


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