Infosys
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INFOSYS- A REPORT 13/04/2010 www.capitalheight.com
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report by CapitalHEIGHT Financial Services
Transcript of Infosys
INFOSYS- A REPORT 13/04/2010
www.capitalheight.com
www.capitalheight.com
Phone- (0731)4295950
INFOSYS TECHNOLOGIES
SCRIP ID – INFOSYSTECH 52 WEEKS HIGH – 2,870.00
BSE CODE – 500209 52 WEEKS LOW – 1,300.15
INDUSTRY – COMPUTER SOFTWARE FACE VALUE - 5
Infosys Technologies, India's second largest IT exporter, has announced its fourth
quarter results of FY10 on 13th of April. Infosys is one of the first major companies to
declare it’s result in this quarter and kick off the USD 60 billion sector's results. A
concise overview of the result is as follows:-
Key highlights
1.14% jump in its fourth quarter results for the financial year 2010 which came in
at Rs 1,600 crore as against Rs 1,582 crore(QoQ).
Revenues from North America grew by 4.4% (QoQ) & 4.5% in constant currency
and from Europe grew by 7.9% (QoQ) & 11.8% in constant currency.
Revenues for the same quarter increased 3.54% to Rs 5,944 crore versus Rs
5,741 crore (QoQ).
Company’s operating margins for the quarter declined to 34.02% versus 35.5%
(QoQ).
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FY10 earnings per share (EPS) stood at Rs 109.72 per
share.
EPS to rise 4.3-8.6% for the full year at Rs 106.82-111.28 per share.
Dollar revenue to rise 16-18% in the year that started on April 1.
Guidance in rupee terms was lowered to 9-11% for FY11 due to rupee
appreciation
FY11 profit margins to drop 150 basis points mainly due to a firmer rupee.
Challenges & Uncertainties
� In the short term credit policy review by RBI, where a rate hike is almost certain.
� Market awaits the monsoon forecast for the year 2010.
� Strengthening rupee, which rose 3.6% against the dollar in Jan-March after
gaining 4.7% in 2009.
� Competition from global firms such as IBM and Accenture are key risks.
� Higher wages.
� Top 5 client's contribution was down from 17.6% to 15.8% in Q4 versus Q3.
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Company's dividend payouts over the last 2 years
Announcement Date Effective Date Dividend Type Dividend (%) Dividend Rs
22-09-09 15-10-09 Interim 200 10
15-04-09 04-06-09 Final 270 13.5
25-09-08 16-10-08 Interim 200 10
15-04-08 29-05-08 Final 545 27.25
26-09-07 18-10-07 Interim 120 6
Key financial Ratios
YEARS Mar 2010 Mar 2010 Mar2008 Mar 2007 Mar 2006
Debt-Equity Ratio 0.00 0.00 0.00 0.00 0.00
Long Term Debt-
Equity Ratio
0.00 0.00 0.00 0.00 0.00
Current Ratio 4.47 3.97 3.85 3.75 2.77
Fixed Assets 3.43 3.86 3.73 3.91 3.60
Inventory 0.00 0.00 0.00 0.00 0.00
Debtors 6.37 6.25 5.81 6.90 6.52
Interest Cover Ratio 3761.00 3358.00 5118.00 4153.00 2737.00
PBIDTM (%) 39.40 36.57 36.20 35.15 34.85
PBITM (%) 35.58 33.14 32.71 31.58 30.32
PBDTM (%) 39.39 36.56 36.19 35.14 34.84
CPM (%) 31.27 32.14 32.06 32.34 31.35
APATM (%) 27.45 28.72 28.57 28.77 26.82
ROCE (%) 37.76 42.92 41.52 45.99 45.09
RONW (%) 29.13 37.18 36.26 41.90 39.89
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Profit & Loss Statement
PARTICULARS MAR 2010 Mar 2009 Mar 2008 Mar 2007 Mar 2006 Mar 2005
INCOME :
Sales Turnover / Operating Income
21140.00 20264.00 15648.00 13149.00 9028.00 6860.00
Excise Duty 0.00 0.00 0.00 0.00 0.00 0.00
Net Sales 21140.00 20264.00 15648.00 13149.00 9028.00 6860.00
Other Income 970.00 876.00 683.00 381.00 227.00 172.00
Stock Adjustments 0.00 0.00 0.00 0.00 0.00 0.00
Total Income 22110.00 21140.00 16331.00 13530.00 9255.00 7032.00
EXPENDITURE :
Raw Materials 0.00 0.00 0.00 0.00 0.00 0.00
Power & Fuel Cost 122.00 125.00 106.00 88.00 62.00 40.00
Other Manufacturing Expenses
1913.00 1576.00 1295.37 1163.40 717.46 527.00
Employee Cost 10340.00 9960.00 7791.00 6293.00 4257.00 3177.00
Selling and Administration Exp.
1363.00 1556.00 1363.09 1298.60 967.03 721.48
MISC. Expenses 43.00 513.00 111.54 65.00 105.51 68.52
Less: Pre-operative Expenses
Capitalised
0.00 0.00 0.00
0.00 0.00 0.00
Total Expenditure 13781.00 13730.00 10667.00 8908.00 6109.00 4534.00
Operating Profit 8329.00 7410.00 5664.00 4622.00 3146.00 2498.00
Interest 2.00 2.00 1.00 1.00 1.00 1.00
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Gross Profit 8327.00 7408.00 5663.00 4621.00 3145.00 2497.00
Depreciation 807.00 694.00 546.00 469.00 409.00 268.00
Profit Before Tax 7520.00 6714.00 5117.00 4152.00 2736.00 2229.00
Tax 1696.00 898.00 650.00 375.00 325.00 327.00
Fringe Benefit tax 0.00 0.00 17.00 17.00 12.00 0.00
Deferred Tax 21.00 -3.00 -20.00 -23.00 -22.00 -2.00
Reported Net Profit 5803.00 5819.00 4470.00 3783.00 2421.00 1904.00
Extraordinary Items 48.00 0.14 0.14 6.11 0.00 45.00
Adjusted Net Profit 5755.00 5818.86 4469.86 3776.89 2421.00 1859.00
Adjustment below Net Profit
0.00 -1.00 0.00 -1.00 0.00 -4.51
P & L Balance brought forward
10305.00 6642.00 4844.00 2195.00 1428.00 70.51
Statutory Appropriations
0.00 0.00 0.00 0.00 0.00 0.00
Appropriations 2302.00 2155.00 2672.00 1133.00 1654.00 542.00
P & L Balance carried down
13806.00 10305.00 6642.00 4844.00 2195.00 1428.00
Equity Dividend 1434.00 1345.00 1902.00 649.00 1238.00 310.00
Preference Dividend 0.00 0.00 0.00 0.00 0.00 0.00
Equity Dividend % 500.00 470.00 665.00 230.00 900.00 230.00
Earnings Per Share-Unit Curr
96.92 97.74 72.50 64.35 81.41 68.96
Earnings Per Share(Adj)-Unit Curr
96.92 97.74 72.50 64.35 40.71 34.48
Book Value-Unit Curr
383.90 311.35 235.84 195.14 249.89 194.15
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Technical View
Fibonacci Extension
% (Retracement) 180 191.8 198.2 261.8 425 685.8
Level 3515 3677 3765 4640 6884 10459
Moving Average Levels
Level Daily Weekly 20 day’s 2713.93 2587.56
50 day’s 2612.36 2247.27
100 day’s 2562.58 1842.86
200 day’s 2713.93 1856.34
Key Levels
Resistance – 2830, 2870
Support – 2716, 2610
Infosys technologies have good fundamentals. This quarter it has good results. It has a
crucial resistance 2830 if it breaks this level it can touch 2950. And 2716 is a crucial
support for this script. If it breaks this level it can touch 2610. One can buy Infosys tech
with the stop loss of 2716 and our short term target will be 2950.
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Phone- (0731)4295950
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