Monday, October 22, 2012

INFOSYS Ltd - RESULTS FOR - Q2 FY 2013 (SEP,2012) - REVENUES UP BY 22%YoY; NPT UP BY 24% YoY - COULD PERFORM MUCH BETTER IN FUTURE


INFOSYS LIMITED

Q2FY 2013 (SEP,2012)

INFOSYS LTD has declared good results for Q2 FY 2012 ending Sep, 2013.


HIGH LIGHTS


Consolidated results under International Financial Reporting Standards (IFRS) for Q/E Sep 30, 2012 :-

Ø  Revenues were Rs.9,858 Cr for Q/e Sept 30, 2012; YoY growth was 21.7%
Ø  Net profit after tax was Rs.2,369 Cr for the quarter ended Sep 30, 2012; YoY growth was 24.3%
Ø  Earnings per share (EPS) was Rs.41.46 for the quarter ended Sep 30, 2012; YoY growth was 24.3%

OTHER HIGH LIGHTS

Ø  39 clients were added during the quarter by Infosys and its subsidiaries
Ø  Gross addition of 10,420 employees (net addition of 2,610) for the quarter by Infosys and its subsidiaries
Ø  1,53,761 employees as on Sep 30, 2012 for Infosys and its subsidiaries
Ø  Declared an interim dividend of Rs.15 per share.  

“Global economic uncertainties continue to face the industry,” said S. D. Shibulal, CEO and Managing Director. “We have increased employee wages, used some of our cash in a transformational acquisition of a consulting business and enhanced our investment in R&D and solutions. These initiatives will position us well in the industry and provide a strong platform for future growth.”

While the performance certainly is lesser than that of TCS, yet, it is certainly very good. The client acquisition is going apace. From recent Statements of Infy Management personnel, we find, they are likely to be more aggressive in bagging clients in future, competing with their rivals.

As International and Indian economic environment improves, INFOSYS will certainly be in a much better position than at present to bag more contracts in number and value both.

Business outlook*

The company’s outlook (consolidated) for the fiscal year ending March 31, 2013, under IFRS is as follows:

Ø  Revenues are expected to be at least Rs.39,582 Cr; YoY growth of 17.3%
Ø  Earnings per share (EPS) is expected to be at least Rs.160.61; YoY growth of 10.3%

Ø  * Conversion 1 US$ = Rs.53.00 for rest of fiscal 2013

CURRENT MP : Rs.2388

52 week high/low price : 2994.00/2060.55


OPERATING RESULTS TABLE (Rs.Cr)


INFOSYS
Sep,2012
Sep,2011
Growth%
Jun,2012
%ofQ2FY13 on Q1FY13
Revenues
9,858
8,099
21.7
9,616
2.5
Cost Of Sales
6,102
4,744
28.6
5,810
5
Gross Profit
3,756
3,355
12
3,806
-1.3
Operating Expenses
Sell.&Mktg Exp
506
456
11
469
7.9
Admn.Exp.
653
618
5.7
644
1.4
TotalOptgExp
1,159
1,074
7.9
1,113
4.1
Optg Pft
2,597
2,281
13.9
2,693
-3.6
OtherIncome
706
387
82.4
476
48.3
Profit Bef.I.tax
3,303
2,668
23.8
3,169
4.2
IncomeTax
934
762
22.6
880
6.1
Net Proft
2,369
1,906
24.3
2,289
3.5
E.P.S.
Basic
41.46
33.36
24.3
40.06
3.5
Diluted
41.46
33.36
24.3
40.06
3.5


REVENUE PERCENTAGE (%)
BY SERVICE OFFERING 


SERVICES
Q2FY13
Q1FY13
Q2FY12
LTM0912
LTM0911
BusinessIT Services
64.5
64
63.6
63.7
62.5
ApplicationDevlop.
17
17.1
17.2
17
16.3
ApplicationMtcs
21.4
20.9
21.6
21.3
22.1
Infra.MngmntServ.
6.8
6.6
5.7
6.4
5.9
TestingServices
8.6
8.3
8.2
8.2
7.7
ProductEngg.Serv.
3.4
3.5
3.4
3.5
2.9
BusinessProc.Mngt
4.7
4.9
4.7
4.7
4.8
Others
2.6
2.7
2.8
2.6
2.8
Consul,PkgImpl.Etc
30
29.9
31.2
30.4
31.6
Products,P/Fs etc
5.5
6.1
5.2
5.9
5.9
Products
3.8
4.5
4.2
4.4
4.9
BPMPlatform
1.3
1.3
0.7
1.2
0.7
Others
0.4
0.3
0.3
0.3
0.3
Total
100
100
100
100
100


REVENUE % 
BY INDUSTRY

INDUSTRY
Q2FY13
Q1FY13
Q2FY12
LTM0912
LTM0911
BFSI
33.7
34.3
35.3
34.4
35.7
Bnkg&F/Ssanking
27
27.7
28.2
27.5
28.2
Insurance
6.7
6.6
7.1
6.9
7.5
Manufacturing
22.1
22
20.2
21.4
20.1
Retail/Life Scns
24
23.7
22.9
23.5
22
Retail&CPG
17
16.9
15.6
16.2
15.2
Trans &Logistics
1.7
1.7
1.7
1.8
1.9
LifeScncs
3.9
3.7
3.8
3.9
3.7
Healthcare
1.4
1.4
1.8
1.6
1.2
Energy,comn Utility
20.2
20
21.6
20.7
22.2
Energy,Utility
5.3
4.6
5.7
5.5
5.8
Telecom
9.9
10.1
10.4
10
11.3
Others
5
5.3
5.5
5.2
5.1
Total
100
100
100
100
100

Geographical segment – growth

Ø  North America grew by 2.2% both sequentially and in constant currency.
Ø  Europe grew by 4.7% sequentially; and 5.1% in constant currency.
Ø  India declined by 15.4% sequentially
Ø  Rest of the world grew by 3.6% sequentially; and 1.8% in constant currency.

Industry segment – growth

Ø  FSI grew by 0.6% sequentially; and 0.3% in constant currency.
Ø  MFG grew by 2.8% sequentially; and 2.9% in constant currency.
Ø  RCL grew by 3.9% both sequentially and in constant currency.
Ø  ECS grew by 4.1% sequentially; and 3.7% in constant currency.

CLIENT DATA

Number Of clients
Q2FY13
Q1FY13
Q2FY12
FY12
FY11
Active
715
711
647
694
620
Added During the Period (Gross)
39
51
45
172
139
Number Of Mln $ Clients
1 Mln $ +
413
403
388
399
366
5 Mln $ +
205
199
188
190
187
10 Mln $ +
134
132
128
132
126
20 Mln $ +
82
83
80
79
73
30 Mln $ +
61
64
59
64
53
40 Mln $ +
52
53
47
50
41
50 Mln $ +
40
41
35
40
28
60 Mln $ +
32
31
25
28
24
70 Mln $ +
22
24
21
23
19
80 Mln $ +
19
18
17
17
15
90 Mln $ +
14
16
14
16
11
100 Mln $ +
11
12
11
13
11
200 Mln $ +
3
3
2
2
2
300 Mln $ +
1
1
1
Client Contr.to Rev.
TopClient
4.00%
4.10%
4.60%
4.30%
4.70%
Top 5 Clnts
16.00%
16.20%
15.90%
15.50%
15.40%
Top10 Clnts
25.40%
25.30%
25.20%
24.60%
25.70%
RepeatBusiness
98.20%
99.10%
98.50%
97.80%
98.00%
ActsReceivable-LTM days
65
64
61
60
63

Patents

During the second quarter, Infosys applied for 33 patent applications in India and the U.S. With this, Infosys has an aggregate of 533 unique patent applications (at various prosecution stages) in India, U.S. and other jurisdictions and has been granted 56 patents by the United States Patent and Trademark Office and two patent by Luxembourg patent office.

Liquidity

As on Sep 30, 2012, cash and cash equivalents, including investments in available-for-sale financial assets, certificates of deposits and government bonds was `22,570 Cr( `18,601 Cr as on Sep 30, 2011).

“Our operating cash flows continue to be strong while our cash and cash equivalents crossed US $4bn,” said V. Balakrishnan, Member of the Board and Chief Financial Officer. “We are focused on high quality growth despite global currency and economic volatility.”

Senior Management Changes

After six years at the helm of the Company’s finances, Mr. V. Balakrishnan, Member of the Board and CFO, will be giving up his position as CFO from October 31, 2012. Mr. Rajiv Bansal, currently Vice President –Finance, will take over as CFO from November 1, 2012.

Mr. V. Balakrishnan will continue as a member of the Board and will be responsible for three key businesses -Business Process Management (or Infosys BPO), Finacle™ and the India Business Unit.

 “Rajiv Bansal has been a very bright star in the Finance Department. He has been with Infosys for 13 years and has been heading the finance function under Bala for the past four years. We wish this outstanding professional the best in his new role,” said Kris Gopalakrishnan.

Interestingly, similar change in the Finance segment is taking place in TCS too in Feb’2013.
As earlier said, it is likely that INFOSYS will compete much better (for Clients) in future with its competitors and reward its investors much better.


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