Monday, October 24, 2011





Results at a Glance

 Net Profit during Q2FY12 rose to Rs.920 crores from Rs.735 crores in Q2FY11, registering a growth of 25% YOY.

 Net Profit for H1FY12 stood at Rs.1,863 crores, up by 26% from Rs.1,477 crores for H1FY11.

 Demand Deposits grew by 26% YOY to Rs.82,140 crores during Q2FY12 from Rs.65,186 crores during Q2FY11 - with Savings Bank deposits growing by 24% YOY and Current Account deposits by 29%.

 CASA ratio as a result moved up to account for 42% of aggregate deposits.

 The YOY growth in Net Interest Income and Fee Income during Q2FY12 was 24% and 32% respectively.

 Net Interest Margin during Q2FY12 was 3.78% compared to 3.68% in Q2FY11.

 Capital Adequacy Ratio is 11.35% (without reckoning H1FY12 profit, as stipulated by RBI) as at the end of H1FY12 compared to 13.68% as at the end of H1FY11 and 12.53% at the end of Q1FY12.

 Tier-I capital was 8.48% as at the end of H1FY12, as against 9.77% at the end of H1FY11 and 9.36% at the end of Q1FY12.

 Capital Adequacy including H1FY12 profits would have been 12.20% with Tier-I capital ratio of 9.33%.

Financial Highlights

NETWORK : At the end of Q2FY12, Axis Bank had a network of 1,446 domestic branches and extension counters, and 7,594 ATMs situated in 953 cities and towns. During the quarter, the Bank added 35 branches and 723 ATMs.

The daily average balances of Savings Bank deposits during the quarter grew 19.90% YOY and those of Current Account deposits grew 18.86% YOY.

Demand deposits constituted 38.28% of the aggregate daily average deposits during Q2FY12, as against 39.06% in Q2FY11.

CASA : At the end of the quarter, Current Account and Savings Bank deposits together accounted for 42.24% of the total deposits of the Bank.

NIM :The Bank posted a NIM of 3.78% during Q2FY12, compared to 3.68% during Q2FY11 and 3.28% during Q1FY12.

The sequential uptick in NIM during Q2FY12 was driven by stronger build-up in CASA deposits, stable funding rates and a pick-up in loan yields.

Advances grew 26.68% YOY, from Rs.1,10,588 crores as on 30th September 2010 to Rs.1,40,089 crores as on 30th September 2011 while investments rose to Rs.85,016 crores from Rs.61,942 crores over the same period, registering a growth of 37.25% YOY.

NII rose 24.28% YOY to Rs.2007 crores during Q2FY12 from Rs.1,615 crores during Q2FY11.

Fee income registered a growth of 32.08% YOY, rising to Rs.1,121 crores during Q2FY12 compared to Rs.849 crores in Q2FY11, with contributions from all the major businesses in the Bank. Fee income from Large and Mid Corporate Credit (including Infrastructure) grew 27.47% YOY, Retail banking fees grew 38.55% YOY, Treasury and Debt Capital Markets fees grew 48.36% YOY and Agri & SME Banking fees grew 33.05% YOY. Fees in Business Banking grew 5.07% YOY. Fee income from Equity Capital Markets (including Trusteeship Services) contracted 2.11% YOY. Compared to `1,592 crores during H1FY11, fee income during H1FY12 stood at `2,178 crores, up by 36.82% YOY.

Trading Profits : The Bank generated Rs.28 crores of trading profits during Q2FY12, as compared to Rs.108 crores during Q2FY11, a decline of 74.49% YOY. The share of trading profits to operating revenue was 0.85% in Q2FY12, compared to 4.09% in Q2FY11.

NPAs and Restructured Assets : Net NPAs, as a proportion of net customer assets, was 0.34% as on 30th September 2011 - at the same level as on 30th September 2010 and marginally higher than 0.31% as on 30th June 2011. Gross NPAs as a proportion of gross customer assets stood at 1.08% as on 30th September 2011, compared to 1.12% as on 30th September 2010 and 1.06% as on 30th June 2011. Provision coverage is 77.69% as on 30th September 2011 (as a proportion of Gross NPAs including prudential write-offs). The provision coverage (as a proportion of Gross NPAs) before accumulated write-offs was 89.29%.

During the quarter, the Bank added Rs.496 crores to Gross NPAs. Recoveries and upgradations of Rs.163 crores and write-offs of Rs.162 crores during the quarter resulted in a closing position of Rs.1,744 crores of Gross NPAs on 30th September 2011, as against Rs.1,362 crores at the end of September 2010.

The Bank restructured loans aggregating Rs.311 crores during Q2FY12. The cumulative value of assets restructured till 30th September 2011, rose to Rs.2,410 crores (1.49% of gross customer assets). 72.37% of these loans were restructured upto Q2FY11 and were more than a year old.

Placement / Syndication : The Bank arranged debt aggregating `31,666 crores during Q2FY12 rising 18.32% over Q2FY11. The Bank was assessed by Prime Database as the No.1 Debt Arranger for FY11 and also by Bloomberg for the quarter ended June 2011. The Bank was also recognised as the “Best Domestic Debt House – India; 2011” by Asia Money, “Best Debt House - India; 2011” by Euromoney and “Best Bond House - India; 2011” by Finance Asia.
Retail Business : The number of Savings Bank accounts grew from 86.92 lacs as on 30th September 2010 to 106.43 lacs as on 30th September 2011. Retail advances grew from Rs.20,997 crores as on 30th September 2010 to Rs.29,328 crores as on 30th September 2011, a growth of 39.68% YOY. Retail Advances accounted for 20.94% of the total advances of the Bank as on 30th September 2011. The Bank's International Debit Card issuance has risen to 110 lac debit cards as on 30th September 2011, as compared to 90.57 lac debit cards in force as on 30th September 2010. The Bank had over 6.82 lac credit cards in force as on 30th September 2011. The Bank offers personal investment products including life insurance products, general insurance products, online trading accounts and mutual funds of leading manufacturers as also wealth advisory services and Mohur - gold coins and bars - through select branches.
International Business : The Bank has six international offices - branches at Singapore, Hong Kong, Dubai (at the DIFC) and representative offices at Shanghai, Dubai and Abu Dhabi which focus on corporate lending, trade finance, syndication, investment banking, risk management and liability businesses. Total assets under overseas operations were USD 5.24 billion as on 30th September 2011, as compared to USD 3.79 billion as on 30th September 2010, a growth of 38.26%. The Bank has opened a branch at Colombo now to carry out domestic banking business in Sri Lankan Rupees as well as off-shore banking business in foreign currency.

Capital and Shareholders’ Funds : The Shareholders’ Funds of the Bank were Rs.20,989 crores as on 30th September 2011, compared to Rs.17,682 crores as on 30th September 2010, a growth of 18.70% YOY.

FINANCIALS (Rs. in crore)

     :: Q2FY12:: Q2FY11 :: %Growth:: 

Net Profit :: 920.32 :: 735.14 :: 25.19%:: 

EPS Diluted (Rs.) 22.13 :: 17.72 :: 24.89% ::

Net Interest Income :: 2,007.26 :: 1,615.10 :: 24.28% ::

Other Income :: 1,234.92 :: 1,033.24 :: 19.52% ::

Operating Revenue :: 3,242.18 :: 2,648.34 :: 22.42% ::

Core Operating Revenue*:: 3,214.53 :: 2,539.94 :: 26.56% ::

Operating Exps (incl. dep):: 1,466.54 :: 1,161.99 :: 26.21%

Operating Profit :: 1,775.64 :: 1,486.35 :: 19.46%

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Wednesday, October 12, 2011

INFOSYS LIMITED = RESULTS FOR = Q2 FY 2012 (SEP 2011) = Q2 FY 12 EPS GOOD AT RS.33.36 (LY:30.41)


Infosys Limited announced Results for the Quarter Ended September 30, 2011


Consolidated results under IFRS

Ø  Revenues were Rs.8,099 crore for Q2 FY2012; QoQ growth was 8.2%; YoY growth was 16.6%
Ø  Net profit after tax was Rs.1,906 crore for Q2 FY2012; QoQ growth was 10.7%; YoY growth was 9.7%
Ø  Earnings per share (EPS) was Rs.33.36 for Q2 FY2012; QoQ growth was 10.7%; YoY growth was 9.7%


Ø  45 clients were added during the quarter by Infosys and its subsidiaries
Ø  Gross addition of 15,352 employees (net addition of 8,262) for the quarter by Infosys and its subsidiaries
Ø  1,41,822 employees as on September 30, 2011 for Infosys and its subsidiaries
Ø  Declared an interim dividend of Rs.15 per share (previous year interim dividend of Rs.40 per share including 30th Year special dividend of Rs.30 per share). The record date for the payment of dividend is October 21, 2011.

“The global macroeconomic environment is still uncertain. It is and should be a concern for the IT industry.” said S. D. Shibulal, CEO and Managing Director. “In this scenario, clients are looking for new opportunities for growth, accelerated innovation and increased returns on investments. Our strategic initiatives and organization structure will enable Infosys to build long term partnerships with our clients and help them drive their business objectives.”

Business outlook

The company’s outlook (consolidated) for Q2 FY2012 and for the fiscal year ending March 31, 2012, under IFRS is as follows:

Outlook under IFRS – consolidated
Quarter ending December 31, 2011

Ø  Revenues are expected to be in the range of Rs.8,826 crore and `9,012 crore; YoY growth of 24.2% to 26.8%
Ø  Earnings per share (EPS) is expected to be in the range of Rs.38.51 and Rs.39.20; YoY growth of 23.6% to 25.8%

Fiscal year ending March 31, 2012

Ø  Revenues are expected to be in the range of Rs.33,501 crore and Rs.34,088 crore; YoY growth of 21.8% to 24.0%
Ø  Earnings per share (EPS) is expected to be in the range of Rs.143.02 and Rs.145.26; YoY growth of 19.7% to 21.6%

* Conversion 1 INFOSYS$ = ` 48.98

Expansion of services and significant projects

Infosys is sharply focused on spurring growth, innovation and driving efficiency for its clients’ enterprises.

Consulting & System Integration

Infosys is helping a luxury lifestyle retail major transform and harmonize its product lifecycle business processes across various divisions and brands. Through this program it will create a next-generation design, product development and raw material management platform, increasing collaboration and reducing costs.

A major international bank selected Infosys as its end-to-end partner for the development and deployment of a global customer platform across 140 countries, to identify and profile its customer relationships across business units and geographies. The bank has also engaged Infosys  as a partner in the development of an enterprise-wide data warehouse to ensure consistent disclosures and reporting.

A global wireless device major partnered with Infosys for the design and development of its next generation automotive range wireless chipsets and support for its go-to-market initiatives in emerging regions.
For a global semiconductor major, Infosys is developing a next generation Graphic Processor Unit (GPU) targeted at the smartphone, tablet and netbook markets, involving highly complex Very Large Scale Integration (VLSI) chip design.

BInfosysiness IT Services

Infosys is committed to delivering measurable additional business value by effectively optimizing our clients’ operations.

A global food and beverage major has partnered with Infosys to provide application support and maintenance for 400 legacy applications spanning across all business functions, over a period of three years to drive enterprise optimization.

A group of investment management companies chose to partner with Infosys to establish enterprise-wide Consistent Quality Management (CQM) practices. This program will focus on improving predictability and efficiency of delivering large business transformation initiatives.

A large European energy company chose Infosys as the partner for its B2C retail applications portfolio. Through a three year engagement, we will transform the client’s portfolio across consulting, innovation, corporate learning and quality services.

We helped standardize, streamline and improve business processes for a leading producer and distributor of system components for electronics, by establishing standards for global design to be used for roll-outs across the client’s future facilities.

Infosys BPO

Infosys BPO has seen traction in the insurance sector this quarter. An international general insurance major engaged Infosys to build an Insurance Centre of Excellence (CoE) to increase agility, increase cost savings, access to skills and create sustainable service.

A leading life insurance and annuity company selected Infosys to migrate policies from its existing platform to Infosys VPAS® (Variable Product Administration Systems). This was the first win for this platform outside the U.S. Another life insurance and annuity company selected Infosys for migration of certain legacy insurance platforms to a single VPAS® platform to bring efficiencies of operation and infrastructure.

Infosys was selected by a leading retailer in the United Kingdom to outsource its customer service functions to our operations in the Philippines.

Products, Platforms & Solutions


Finacle™ from Infosys has been positioned as a leader in the Gartner Magic Quadrant for International Retail Core Banking (IRCB) 2011. Gartner Inc. positioned vendors based on two broad parameters - ability to execute and completeness of vision. Finacle™ was positioned as a leader in the market among the 20 vendors evaluated.

Finacle™ continued its business momentum, adding 17 wins this quarter. Of these, two were from Europe, Middle East and Africa (EMEA) and 15 were from the Asia-Pacific (APAC) region. 12 client projects went live on Finacle™ in the quarter. Of these, seven went live in APAC, four in EMEA and one in the Americas.

Bank Administration Institute (BAI) and Finacle™ launched the first ever 2011 BAI – Finacle™ Global Banking Innovation Awards, which will recognize and support innovation in the retail banking industry. The awards will highlight best-in-class organizations from around the world that have demonstrated breakthrough innovations which have positively impacted customer and organizational profitability
Infosys also joined leading global banks and industry players in the Banking Industry Architecture Network (BIAN) this quarter. With its significant expertise in banking, addressing universal banking product requirements as well as interoperability and Service-Oriented Architecture (SOA) based integration aspects, Infosys will help accelerate development and adoption of the BIAN standards.

Infosys Edge™- Business Platforms in the Cloud

Infosys unveiled Infosys Edge™ suite of business platforms in the Cloud this quarter. Infosys Edge™ platforms are focus on accelerating business innovation for clients across functions. These platforms are powered by best-in-class domain expertise, intellectual property and delivered over the Cloud.

This quarter Infosys Edge™ signed ten strategic deals. Of these, four were from EMEA, four were from Americas and two were from the APAC region.

A large U.S. high-tech manufacturing company has selected Infosys to build a next generation employee collaboration platform to increase workforce productivity, enable co-creation and drive innovation across different departments. Infosys is driving the digital transformation initiative for a global pharmaceutical company. This initiative will allow employees across businesses and geographies to create, share, and re-use digital content. The platform will also enable the client to drive customer demand and engagement.


Infosys continues to see strong momentum with its Cloud practice having delivered over 125 engagements till date. We continue to strengthen our Cloud ecosystem, with over 30 partners delivering a trusted system for our clients.

A large hi-tech client has selected Infosys to develop a Cloud-based monitoring solution, using technologies such as Hadoop and Exadata, to manage and meter its enterprise infrastructure. Infosys is working with a large railroad client in North America on its strategy to move mainframe-based legacy applications to the Cloud. A leading healthcare provider has selected Infosys as a partner to migrate its existing workload to Microsoft Office 365 as its primary messaging and collaboration platform. This provides the client productivity improvement and high asset optimization. For a large financial services major, we defined a technology modernization roadmap to migrate its mainframe-based loyalty platform to the Cloud.


Infosys’ Mobility practice has been seeing strong growth. The practice is helping clients leverage the potential of mobility, and has completed over 100 enterprise implementations for more than 50 clients.

Infosys has developed an innovative tablet based solution for a leading North American retailer, for store associates to enhance the shopping experience of its customers. A large U.S. retailer partnered Infosys to optimize mobile quality assurance to bring in substantial scalability and cost-reduction. A leading European mobile network operator has engaged Infosys to transform and automate its sales process with an accelerated real-time mobile-based solution. Infosys is developing an innovative tablet-based credit card management solution for a leading financial services company. Infosys is defining and executing a mobility roadmap for a major management consulting firm by establishing a dedicated mobility
India Business Unit

Infosys continues to see success with the Income Tax Department’s Centralized Processing Center (CPC) which has processed over 1.2 crore Income Tax Returns (ITRs) since its launch.

Infosys has won a project to develop and implement a comprehensive Information and Communications Technology (ICT) system to increase the efficiency and effectiveness of the Income Tax Department in processing, accounting and reconciliation of the Tax Deducted at Source (TDS) statements filed by deductors.

Process Innovation

During the quarter, Infosys applied for 48 patent applications in India and the U.S. With this, Infosys has an aggregate of 424 patent applications (pending) in India and the U.S., and has been granted 30 patents by the United States Patent and Trademark Office.


As on September 30, 2011, cash and cash equivalents, including investments in available-for-sale financial assets and certificates of deposits was Rs.18,601 crore (Rs.17,388 crore as on September 30, 2010).

“The global currency market continues to remain highly volatile on the back of weak economic recovery in most of the developed markets,said V. Balakrishnan, Member of the Board and Chief Financial Officer. “Our continued focus on adding measurable value to clients, coupled with our flexible financial model will enable Infosys to make the right investments without compromising on high-quality growth.”

Q2 FY12
HY1 FY12
Cost of sales
Gross profit
Operating profit
Other income
Profit before income taxes
Income tax expense
Net profit
Earnings per equity share
Basic (`)
Diluted (`)
Weighted average equity shares used in computing earnings per equity share

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Saturday, October 8, 2011



What Sectors need FDI? Which FDI?

There is justifiable anxiety in Government and Industrial circles that India is not getting the desired level of Foreign Direct Investment. It is of course necessary that India must make all-out efforts to attract DESIRABLE FORMS of Foreign Direct Investment, from Desirable Sources (or investors) , into desirable avenues.

But, blind rush for FDI is definitely NOT DESIRABLE. But, I am afraid, this is what is happening. Some days ago – sections of press and media in India carried reports that a huge chunk of manufacturing sector in India has come under Chinese investment. It is not clear whether Government is aware of this, and if so, what is its response to this phenomenon.

At least from my view point – this is not a desirable phenomenon. If China were a steadfast friend of India – my views would probably be slightly different. But, unfortunately, China and Pakistan have chosen to adopt consistently belligerent stand against Indian Interests in many areas of our genuine, justified  interests. How we wish that these two neighbours become our great , reliable friends!

Secondly, China is artificially keeping its currency values at levels not justified by its trade balances. Not only the USA, but all countries like India are bound to be hit adversely by such artificial currency values of Chinese Yuan. Thirdly, any country, including India, must make conscious efforts to promote trade and ties with consistent friends. This is in the long term interest of India and its friends both. Fourthly, No country, including India, must ever make any trade Policies which can affect its future economic interests adversely – in case its belligerent trade Partners want to use the trade for stifling India’s interests at some time .

These factors must always be kept in mind when any Government is formulating its economic and other policies. We can’t shy away from such global realities – which can affect Indian Interests adversely some time in Future.

We must view FDI from all these angles. It is not US – but it is China, which is reported (by sections of press and media) to have acquired a large chuck of Indian interests in Manufacturing sector. The press and media need to tell us more on this phenomenon. Government also must tell us –if it is concerned about this, and if so, how it is going to address this concern.

Now – assuming that India opens up its retail sector, single brand or multi-brand – to FDI, can the Government and Indian Industry which is seeking the opening of this FDI, guarantee that it will be the US, European and other friendly countries  which will be Investing in India and not the Pakistanis and Chinese? Certainly, FDI in retail even from friendly countries is not desirable in the retail sector. Retail sector is the one – which is providing the maximum number of opportunities to Indian middle class and even lower class – to invest. FDI will be significantly curtailing these avenues to the middle class and lower classes to come up as entrepreneurs and businessmen.

In fact, we need much more Indian Direct Investment in these sectors than at present. Thanks to the way, politicians, Police and bureaucracy functions at present – it is now very difficult for Indian middle class and lower classes to function as businessmen. Unlawful collections - mamools, vasools and obnoxious practices like that - are the order of the day at many places in India in this sector. The agitation of Anna Hazare and his team is not only directed against big time corruption but this too.

And, we want FDI in this area! We must clean up our act and ensure that Indians come up through this route.
But, FDI from Friendly countries – must be opened up in many areas where it is beneficial for them and for us both.

One such area is Defence preparedness. We must invite Defence Industries in friendly countries to establish advanced Defence Manufacturing Industries in India – exclusively for  Indian requirements (and, if needed,  for their own country’s requirements too).

Looking at what India is doing in this sector, while we do congratulate these efforts, we do begin to feel many times -  are we re-inventing the wheel? Is this what is necessary right now? Is there a better thing that we can do – to meet our defence needs more effectively? I think, instead of importing defence equipment, it is far better in our interests to seek FDI into India in this area – from friendly countries.

Prestigious foreign Universities – can also be directly invited to set up campuses in India for Scientific, medical, technical and Management education. I don’t think our IITs and IIMs will be the worse for it. They will also gain by the competition.

Advanced research in space, seas, geographical, geological and other such scientific studies – require FDI. India will gain immensely from such FDI. Those who talk of FDI in Retail – can invite FDI in Hotel, aerospace and airline Industries specially. India has very little FDI even here.

India must aim to secure at least one Nobel prize in the areas of sciences and Medicine, every alternate year. We must have such ambitious goals.

India must examine why friendly countries are not coming in these areas to India – and make it sufficiently attractive for them to come in.  There may be many such areas where their FDI is mutually beneficial.

But, we must always understand that FDI in Retail – is not in the best long term interests of India - until, India has assured reasonable levels of employment and entrepreneurial avenues for its own citizens. But, that mile Post is still far away to reach.

Dr.Manmohan Singh has always been very pragmatic in his finance policies, and – I do hope, he will address these long term concerns of India.

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