Friday, April 15, 2011




Announces Results for the Quarter and Year 
Ended March 31, 2011

Q4 revenues sequentially grew by 2.0%;

FY11 revenues grew by 20.9%

Fiscal 2012 revenues expected to grow by 15.4% to 17.3% in rupee terms; to grow by 18.0% to 20.0% in US dollar terms


Consolidated results under IFRS for the quarter ended March 31, 2011

Revenues were `7,250 crore for the quarter ended March 31, 2011; QoQ growth was 2.0%; YoY growth was 22.0%
Net profit after tax was `1,818 crore for the quarter ended March 31, 2011; QoQ growth was 2.1%; YoY growth was 17.1%*
Earnings per Share (EPS) was `31.82 for the quarter ended March 31, 2011; QoQ growth was 2.2%; YoY growth was 17.1%*
34 clients were added during the quarter by Infosys and its subsidiaries
Gross addition of 8,930 employees (net addition of 3,041) for the quarter by Infosys and its subsidiaries
1,30,820 employees as on March 31, 2011 for Infosys and its subsidiaries
 The Board of Directors recommended a final dividend of `20 per share for fiscal 2011.

* Excluding the income from the sale of our investment in OnMobile Systems, Inc. of `48 crore in fiscal 2010

“We expect the demand environment to be normal this year for the industry” said S. Gopala krishnan, CEO and Managing Director. “We have created a structure with strong customer driven vertical focus and have enhanced our investment to take advantage of the opportunities we see in the market.”

Business outlook

Outlook under IFRS – consolidated**

Quarter ending June 30, 2011

 Revenues are expected to be in the range of `7,311 crore and `7,382 crore; YoY growth of 18.0% to 19.1%
 Earnings per share (EPS) is expected to be in the range of `27.59 and `28.02; YoY growth of 5.9% to 7.5%

Fiscal year ending March 31, 2012

 Revenues are expected to be in the range of `31,727 crore and `32,270 crore; YoY growth of 15.4% to 17.3%
 Earnings per share (EPS) is expected to be in the range of `126.05 and `128.21; YoY growth of 5.5% to 7.3%

** Conversion 1 US$ = `44.50
Outlook under IFRS - consolidated***
Quarter ending June 30, 2011

 Revenues are expected to be in the range of $1,643 million and $1,659 million; YoY growth of 21.0% to 22.2%
 Earnings per American Depositary Share (EPADS) is expected to be in the range of $0.62 and $0.63; YoY growth of 8.8% to 10.5%

Fiscal year ending March 31, 2012

 Revenues are expected to be in the range of $7.13 billion and $7.25 billion; YoY growth of 18.0% to 20.0%
 Earnings per American Depositary Share (EPADS) is expected to be in the range of $2.83 to $2.88;YoY growth of 8.0% to 10.0%

*** Exchange rates considered for major global currencies: AUD / USD – 1.03; GBP / USD – 1.61; Euro / USD – 1.42

Process innovation

During the fourth quarter, Infosys applied for 91 patent applications in India and the US. With this, Infosys has an aggregate of 357 patent applications (pending) in India and the US and has been granted 22 patents by the United States Patent and Trademark Office.

As on March 31, 2011, cash and cash equivalents, including investments in available-for-sale financial assets and certificates of deposits was `16,810 crore (`15,819 crore as on March 31, 2010).

“We are seeing growth opportunities emerging in the market place” said V. Balakrishnan, Chief Financial Officer. “Our focus on high quality growth enables us to make the right investments to capture those opportunities.”

Human resources

During the quarter, Infosys and its subsidiaries added 8,930 employees (gross). The net addition during the quarter was 3,041.

“We have had a great year at Infosys. We recruited 43,000 people, had 1.6 million person days of training and have made 26,000 offers at campus for FY12” said T.V. Mohandas Pai, Member of the Board and Head – HRD and Education & Research. “Spark reached out to 1,87,000 students during the year and Campus-Connect touched 33,047 students. We have brought attrition down to normal levels and substantially improved our investments on people.”

Board of Directors

Appointment of Mr. Ravi Venkatesan

The Board of Directors today appointed Mr. Ravi Venkatesan as an Additional Director of the company, with immediate effect. He will hold office up to the date of the Annual General Meeting, when his appointment as a director will be placed for the approval of the shareholders.

Mr. Ravi Venkatesan was the Chairman of Microsoft India; under his leadership from 2004-2011, India became Microsofts second largest and one of its fastest growing geographies. Prior to joining Microsoft, Venkatesan worked for over 17 years with Cummins Inc, overseeing its transformation into the leading provider of power solutions and the largest manufacturer of automotive engines in the country.

Welcoming Ravi Venkatesan to the Board, N.R. Narayana Murthy, Chairman & Chief Mentor said, “Ravi Venkatesan is one of the best known leaders of corporate India. He brings enormous value with his vast experience in the software industry.”

Retirement of Mr. K. Dinesh

Mr. K. Dinesh, Member of the Board and Co-Founder of the Company, will retire by rotation at the Annual General Meeting of the Company to be held on June 11, 2011. Mr. K. Dinesh has expressed his intention not to seek re-appointment.

The Members of the Board placed on record their deep sense of appreciation for the services rendered by Mr. K. Dinesh during his tenure as the Member of the Board and Head of Quality, Information Systems and the Communication Design Group.

Mr. N R Narayana Murthy, Chairman and Chief Mentor said, “Mr. K. Dinesh has been one of the co-founders of the company. The company has turned to him whenever there were any complex projects to be undertaken. He has handled each of his responsibilities with extraordinary diligence, quality and professionalism. We wish him best of luck in his future endeavors”.

Resignation of Mr. T. V. Mohandas Pai

Mr. T. V. Mohandas Pai, has decided to relinquish the position of Member of the Board and has requested the Board to relieve him of the responsibilities after the companys annual general meeting on June 11, 2011.

The Board of Directors considered and accepted the resignation of Mr. T. V. Mohandas Pai. The resignation is effective June 11, 2011, post the companys annual general meeting.

The Members of the Board placed on record their deep sense of appreciation for the services rendered by Mr. T. V. Mohandas Pai during his tenure as the Member of the Board, Chief Financial Officer of the Company and then as the Director in-charge of the Human Resources Department.

Mr. N R Narayana Murthy, Chairman and Chief Mentor said “Mohan has been an early adopter and a keen anchor builder of Infosys. It is difficult to imagine Infosys without Mohan’s passion, commitment, joie-de-vivre and intellect. We all know that he is taking this painful decision, since he has much bigger projects in the horizon - nation building. The Board and every Infoscion thank Mr. Mohandas Pai for his wonderful contribution and wish him great success in his future endeavors.”

Board Meeting

The Board of Directors will meet on April 30, 2011 to finalize plans for the companys leadership succession, post Mr. N. R. Narayana Murthys retirement as Chairman of the Board in August 2011.

Products and Platforms


FinacleTM, our flagship offering for the banking industry, continued to grow its business with 18 client wins this quarter. FinacleTM delivered a strong growth of over 45% and continued to make rapid progress across regions with developed countries now making up more than 40% of its revenue. FinacleTM continued its commitment to innovation in FY11 - FinacleTM mobile banking - our next generation mobile solution and FinacleTM Analyz for analytics driven insights are enjoying good traction with global banks.

Supply Chain Visibility and Collaboration Product Suite

We recently launched an enhanced Supply Chain Visibility and Collaboration Product Suite. It provides ecosystem-wide visibility, contextual intelligence and facilitates a collaborative environment. The suite empowers managers with insights into key performance metrics and enables superior decision making across procurement, after sales services, inventory, logistics and the finance process of the supply chain.


In the past quarter, Flypp™, the Mobile Application Marketplace developed by us, entered a strategic relationship for reciprocal licensing and distribution of applications with Mobile Stream. This partnership enables Flypp™ to provide over 1,00,000 applications to telecom providers ensuring a fresh range of content for Flypp™ operator partners from Mobile Streams vast library, which includes content from some of the worlds leading brands and media companies.


Infosys iEngage™ digital consumer platform continued its strong momentum through the year. It is currently powering social media marketing, e-commerce and employee engagement programs for five global 500 companies.

New Engagement Models

Our New Engagement Model (NEM) strategy continues to drive key client engagements. A key component for our NEM strategy is to lead the market with products and business platforms that are focused on delivering measurable business impact. To drive our success, we are making targeted investments in Intellectual Property (IP) development, data centers, and managed services to ensure that we provide clients a one-stop solution through software as a service (SaaS) model.


Infosys has achieved the EPS which it has indicated in its guidance for  the year FY 2011.

Therefore, market anticipating a huge upside beyond the Forecast during the 4th Qtr did not materialize. If there was no revision of guidance after 3rd Qtr, a huge upside beyond guidance of the company is unlikely.

The guidance, specially after Q3 IS OVER, takes into account  all margin pressures and dollar values both.

In respect of FY 2012, the forecast is Rs.126-128. This forecast can however be expected to be exceeded handsomely.

INFY’s standardized products like FINNACLE are going great guns world over. Steady inflow of clients for products like Finnacle is likely to happen in FY 2012 giving that much edge for INFOSYS.

In fact, Other IT companies are also  implementing Finnacle, which gives rise to revenue for INFY.

Acquisition of clients in other verticals  is also happening steadily – even if not on par with TCS.

Induction of Ravi Venkatesan on the Board will augur well for Infosys.

All eyes will now be on the next Chairman appointment to drive the growth of Infosys.

Infosys losing Nandan, and 2 more founders, almost along with NRN Murthy, with no great replacements planned for them – is a spanner in the succession plan. Market will need to watch the replacements  on the Board – to drive the growth on par with or faster than TCS.


Salary expenditure per head appears to be higher in INFOSYS  compared to TCS /CTS. But, attrition does not seem to be less so far. INFY has said now that, attrition has returned to normal levels. If this happens, growth can be achieved more easily.

Revenue and Profit Growth in future for the larger IT companies seems to depend on –
(i)                  getting more standardized products (like Finnacle) for different Industries and
(ii)                 projects from large  and medium scale Industries across all regions on regular basis.

Industries world over will find the need to switch over to standardized products, which can be customized, and maintained rather than going in for fresh development, which can put them at a disadvantage, vis a vis the companies adopting stand Products.  FINNACLE is a good example of this phenomenon.

INFOSYS  has filed a number of Patent Applications. The progress in getting the same approved needs to be watched.

If a few among such innovative, standardized, Patented Products can get popularized like Finnacle, the business model will be that much more robust.

One Finnacle is doing a lot of good for Infy. One or two more such products can place it ahead of others again.

So, overall, FY2011 was good, though, not up to market expectations. But, FY 2012, though INFY has not made any great promises, does promise to be great.

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