Highlights of Jan-Mar, FY08 earnings of Infosys Technologies

[K.Karthik Raja]

Highlights of Jan-Mar, FY08 earnings of Infosys Technologies
Tuesday, Apr 15

MUMBAI - Highlights of Infosys Technologies Ltd's 2008-09 (Apr-Mar)
and Jan-Mar quarter earnings announced today:
.
FY08 EARNINGS
* Net profit 46.59 bln rupees.
* Net sales 166.92 bln rupees.
* Standalone net 44.70 bln rupees.
* Standalone net sales 156.48 bln rupees.
* Diluted EPS 81.26 rupees.
* Selling, marketing expenses 2.23 bln rupees vs 2.68 bln.
* Infosys Consulting net loss $13 mln.
* Tax provision reversal 1.21 bln rupees.
* Attrition rate 13.4%.
.
JAN-MAR EARNINGS
* Net profit 12.49 bln rupees.
* Income 45.42 bln rupees.
* Net sales 42.35 bln rupees.
* Standalone net 11.82 bln rupees.
* Standalone net sales 42.35 bln rupees.
* Standalone cash EPS 23.15 rupees.
* Standalone net profit margin 27.91%.
* Standalone diluted EPS post extra 20.60 rupees.
* To pay 7.25 rupees/share final dividend.
* To pay 20 rupees/shr special dividend.
* North America contributed 60.7% of revenues.
* Revenue from Europe 29.3% of total.
* BFSI contributed 33.9% of revenue vs 36.8% in Q3.
* Top clients contribution to revenue 10.3%.
* Added one $300 mln plus client Jan-Mar
* Offshore revenue utilisation 52.5% vs 52.2% Oct-Dec.
* Employee utilisation, including trainees, 69.8%.
* Net includes tax provision reversal of 200 mln rupees.
* Other income 1.39 bln rupees.
* Average rupee rate 39.76 rupees per $1.
* Jan-Mar general, administrative cost 3.59 bln rupees.
* Foreign exchange forward cover $760 mln as on Mar 31.
* Tax provision 2.11 bln rupees vs 0.27 bln.
* Analysts estimated net 12.64 bln rupees.
* Onsite volumes grew 4.8% on quarter.
* Offshore volumes grew 5% on quarter.
* Closing rupee rate 40.02 rupees per $1.
* Application maintenance revenue 23.4% of total.
* Application development revenue 21.8% of total.
* BPO revenues Jan-Mar $69 mln, FY08 $235 mln.
* Infosys Consulting revenue $16 mln, FY08 $62 mln.
* Aide says onsite bill rates flat on quarter.
* Aide says offshore bill rates up 0.5% on quarter.
* 2,586 net employee addition includes 2,340 laterals.
.
FY09 GUIDANCE
* Revenue 198.94-202.14 bln rupees.
* EPS 92.32-93.92 rupees.
* Apr-Jun EPS 20.73 rupees, up 15.2% on year.
* Apr-Jun revenue 45.70-45.82 bln rupees.
* To add 25,000 employees on gross level.
* Raised FY09 dividend payout ratio up to 30% vs 20% FY08
* CFO Balakrishnan says to maintain FY09 oper margin in narrow band of
50 bps.
* CFO Balakrishnan sees pricing stable in FY09.
.
BUSINESS GROWTH
* Net added 40 clients in Jan-Mar.
* Net added 2,586 employees in Jan-Mar
* Added 33,177 employees FY08
.
MANAGEMENT SPEAK
* CEO Gopalakrishnan sees major growth opportunities medium to long
term.
* COO Shibulal says Pricing environment stable in Jan-Mar.
* COO Shibulal sees greater growth opportunities in Europe.
* CEO Gopalakrishnan sees short-term challenges on global
uncertainties.
.
MARKET REACTION
* CNX IT index down 0.5%; TCS down 2%, Satyam, Wipro fall 0.3%.
* Infosys shares up 1%; co sees FY09 EPS 92.32-93.92 rupees.
* Tech shares could see fresh buying on Infosys results.
* Mid-cap tech shares likely to outperform larger peers.
* Infosys rev guidance on lower end of 'street expectations'.
* Infosys Technologies' EPS guidance better.
* Infosys delivers on margins, not to same extent on revenue.
* Infosys shares extend gains, up over 3% on Jan-Mar earnings.

K.Karthik Raja