FINANCIAL ANALYSIS OF

INFOSYS TECHNOLOGIES LTD.

PRESENTED BY:
GROUP 1
MEMBERS:-
ANUJ SHARMA
ARPITA JANA
ASHISH JAJODIA
ASHISH MAHESHWARI
AGENDA
 Company Overview
 Share Holding Pattern
 Accounting Policies
 Composition of Investments and Current Assets
 Cash Flow Statement Analysis
 Inter Company Ratio Analysis
 Liquidity Ratios
 Efficiency Ratios
 Solvency Ratios
 Profitability Ratios
 Market Performance
COMPANY OVERVIEW
INCORPORATED 2ND July, 1981

PROMOTERS N.R.NarayanMurthy, Nandan Nilekani, N.S.Raghavan, Kris

Gopalkrishnan, S.D.Shibulal, K.Dinesh and Ashok Arora
INDUSTRY Software Services

REVENUE US$ 4.16 Billion (2009)

NET INCOME US$ 1.16 Billion (2009)

TOTAL ASSETS US$ 4.45 Billion(2009)

EMPLOYEES 103,905
 CONTD.
Subsidiaries Infosys BPO
Infosys Consulting
Infosys Australia
Infosys Brazil
Infosys China
Infosys Mexico
Infosys Sweden
SHARE HOLDING PATTERN
Basic Data

Number of shares (Jun 30,

57,30,59,177
2009)

Market capitalization (Jun 30,

101,870
2009) (Rs. Crore)

Equity share of par value Rs.

Type of share
5
 CONTD.
SHAREHOLDING STRUCTURE
CATEGORY NO. OF VOTING RIGHT(%) NO. OF SHARES
SHAREHOLDERS HELD
Promoter holding
19 16.49 9,44,84,978

 Mutual fund 266 4.16 2,38,26,059

Banks, financial
institutions and 55 4.13 2,36,71,621
insurance companies
    Foreign institutional
785 35.66 20,43,37,813
investors

   Private corporate bodies 3,467 3.94 2,25,79,774

    Indian public 4,55,446 15.98 9,16,23,205

   Non resident Indians/

7,359 0.86 49,56,706
overseas corporate bodies
CONTD.
   Trusts 49 0.50 28,46,134
 Equity shares
underlying American 1 18.28 10,47,32,887
Depository Shares*
 Total 4,67,447 100.00 57,30,59,177
ACCOUNTING POLICIES
 Basis of preparation of financial statements
 Revenue recognition
 Provisions and contingent liabilities
 Fixed assets, intangible assets and capital work-in-progress
 Depreciation and amortization
 Income taxes
 Retirement benefits to employees
 Provident Fund
 Gratuity
 Superannuation
 Compensated absences
 Composition of Investments
Mar Mar Mar
Infosys Technologies Ltd. 2007   2008   2009  
Rs. Crore (Non-Annualised) 12 mths   12 mths   12 mths  
-            
Investments 839   964   1005  
In equity shares 839   973   1016  
Group companies 839 100% 964 100% 1005 100%
Other than group companies 0  9  11  
In preference shares 11   2  0 
Group companies 0  0  0 
Other than group companies 11   2  0 
In debt instruments 0  0  0 
Other than government
debentures/bonds 0  0  0 
Group companies 0  0  0 
Other than group companies 0  0  0 
In bonds/debentures of
government/local bodies 0  0  0 
In mutual funds 0  0  0 
Group companies 0  0  0 
Other than group companies 0  0  0 
In others 0  0  0 
Less: Provision for diminution in value
of investments 11   11   11  
 Composition of Current Assets
Mar 2008 Mar 2009
Infosys Technologies Ltd. Mar 2007      
Rs. Crore (Non-Annualised) 12 mths   12 mths   12 mths  
Inventories 0  0  0 
Receivables 2688 30% 3970 32.47% 4587 29.42%
Sundry debtors (outstanding less than six months) 2292 25.58 3093 25.29 3390 21.74
Considered doubtful 7  20   66  
Sundry debtors (outstanding over six months) 0  0  0 
Considered doubtful 15   20   39  
Sundry debtors (outstanding from group cos) 2  8  5 
More than six months 0  0  0 
Less than six months 2  8  5 
Bills receivable 0  0  0 
Accrued income, lease rent & other receivables 366 4.08 668 5.46 745 4.78
Deposits 30 0.34 196 1.61 303 1.94
Sale of investments & other receivables 0  13 0.11 149 0.96
             
Expenses paid in advance 380 4.24% 254 2.08% 295 1.89%
             
Loans & advances 291 3.25% 1574 12.87% 1672 10.72%
Loans & advances to employees & directors 105 1.17 106 0.86 105 0.67
Loans provided to companies/ departmental undertakings/business
enterprises 151 1.68 1292 10.57 1301 8.34
Loans provided to group companies 22   32   51  
Securitised assets & other loans, advances 35 0.4 176 1.44 266 1.71
Loans & advances considered good & secured 0  0  0 
Loans & advances considered good but not secured 1199   2705   3164  
Loans & advances considered bad & doubtful 1  1  2 
             
Cash & bank balance 5602 62.51% 6429 52.58% 9039 57.97%
Cash balance 0  0  0 
Bank balance 5470   6429   9039  
  8961   12227   15593  
 CASH FLOW STATEMENT

COMPARATIVE STUDY OF CASH FLOW STATEMENT

2008 2009 CHANGE

FINDINGS Crores Crores  

NET CASH GENERATED FROM OPERATING ACTIVITIES 3816 5152 35%

NET CASH FlOW FROM INVESTING ACTIVITIES -978 -195 81%

NET CASH FLOW FROM FINANCING ACTIVITIES -777 -2430 -213%

EFFECT OF EXCHANGE DIFFERENCES ON TRANSLATION

OF FOREIGN CURRENCY CASH AND CASH EQUIVALENTS 18 73 306%
NET INCREASE OR DECREASE IN CASH/CASH
EQUIVALENTS 2079 2600 25%
ANALYSIS OF CASH FLOW STATEMENT

 Issue of equity shares under ESOP.

 Payment of Interim and Final dividend along with
dividend tax.
 Capital Expenditure comprising addition to the gross
block.
 Investment in the Subsidiary group Companies.
 Deposited with the life Insurance Corporation of India
to settle leave obligations.
 COMPARATIVE STUDY OF RATIO
ANALYSIS
LIQUIDITY RATIOS INFOSYS TCS
2008 2009 2009
Current Ratio = Current 12227/3731 = 3.28 15593/3305 = 4.72 1.56
Assets/Current Liabilities

Quick Ratio = CA-Stock- 12227/3731 = 3.28 15593/3305 = 4.72 1.49

Prepaid Expenses/
Current Liabilities
Cash Cover for Daily Exp. 6015/30.76=195 days 7734/38.5=200 days 23 days
=Avg. Cash Balance/ 1
Day Operating Exp.
Quick Asset Cover for 9345/30.76=303 days 12012/38.5=312 days 160 days
Daily Exp. =Avg. Quick
Asset / 1 Day Operating
Exp.
Current Asset cover for 9662/30.76=314 days 13910/38.5=361 days 168 days
Daily Exp. = Avg. Current
Asset / 1 Day Operating
Exp.
 CONTD.
EFFICIENCY RATIO INFOSYS TCS
2008 2009 2009
Fixed Asset Turnover 3.98 4.59 6.68
Ratio= Net Sales/
Total Fixed Assets

Current Assets 1.28 1.3 2.9

Turnover Ratio= Net
Sales/ Total Current
Assets

Debtor Turnover Ratio 5.81 6.25 4.03

= Sales/Avg. Debtors

Avg. Collection Period 63 days 58 days 91 days

= 365days/Debtors
Turnover Ratio
 CONTD.
SOLVENCY RATIOS INFOSYS TCS
2008 2009 2009
DE Ratio= Debt/ Equity 3731/13490= 0.27:1 3342/17809= 0.19:1 0.37
Total Liability/ Total 1.28 1.19 1.37
Equity

PROFITABILITY RATIOS INFOSYS TCS

2008 2009 2009
GP Ratio= Gross Profit/ 6772/15648=43.28% 9919/20264=48.95% 40.23%
Sales
NP Ratio= Net Profit/ 4470/15648=28.57% 5819/20264=28.72% 20.97%
Sales
ROI=PAT/Total Assets 4470/17221=25.96% 5819/21151=27.51% 25.24%
 STOCK PERFORMANCE
25,000.00 2,500.00

20,000.00 2,000.00

15,000.00 1,500.00

sensex
10,000.00 1,000.00
infosys

5,000.00 500.00

0.00 0.00
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A A D A A D
THANK YOU