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Infosys Ltd.

BSE: 500209 | NSE: INFY |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE009A01021 | SECTOR: Computers - Software

BSE Live

Jul 26, 16:00
1604.05 13.70 (0.86%)
Volume
AVERAGE VOLUME
5-Day
669,883
10-Day
633,008
30-Day
527,324
154,057
  • Prev. Close

    1590.35

  • Open Price

    1590.45

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Jul 26, 16:02
1603.90 13.45 (0.85%)
Volume
AVERAGE VOLUME
5-Day
5,807,798
10-Day
5,719,980
30-Day
6,199,015
4,586,710
  • Prev. Close

    1590.45

  • Open Price

    1594.10

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    1603.90 (328)

Annual Report

For Year :
2019 2018 2017 2016 2015 2014 2013 2012 2011

Chairman's Speech

Dear Shareholder, It is a great honor for me to lead Infosys since becoming CEO in August 2011. The last year has been hectic for us, with key management changes, re-organization of the company, and implementation of the new Infosys 3.0 strategy while facing an uncertain global economic environment. At the beginning of the fiscal, we had projected a revenue growth of 15.4% to 17.3% in rupee terms and 18% to 20% in U.S. dollar terms. However, at the end of the fiscal, we achieved a growth of 22.7% in rupee terms and 15.8% in U.S. dollar terms. While the macro-economic challenges have been overwhelming, we were also impacted by company-specific issues such as the re-organization. Yet, we have done well under the circumstances. In rupee terms, our consolidated revenues grew by 22.7% year-on-year, our net profit after tax grew by 21.9% year-on-year, our revenue productivity went up by 4.7% year-on- year, our operating cash flows were 24.3% of our revenues, our operating cash flows as a percentage of net income was 98.7%, our Return On Capital Employed (ROCE) was 38.5%, we added 172 new clients, and ended the year with US $350 million of booked business for our Product, Platforms and Solutions (PPS) business, excluding Finacle. The IT services industry is facing the twin challenges of commoditization and scalability. Clients today are increasingly turning to service providers who understand their businesses and their challenges, since much of the outsourcing benefits have already been realized. Demand is shifting from traditional horizontal offerings to industry-specific high-value offerings. Our clients are also looking for transformation partners to help them reduce their capex by converting them into opex, thereby increasing their return on investment. We had two choices for the road ahead. We could continue to play the traditional outsourcing game by commoditizing more of the existing business and concentrating on short- term growth; or we could re-define the industry with a new strategy that addresses the current challenges and enables us to achieve superior growth in the medium to long term. We chose the latter path and announced our new growth strategy - Infosys 3.0 - which will enable us to balance high-quality, industry-leading growth, with high revenue productivity and relatively superior margins. As always, we will balance the short-term market opportunities with medium to long term strategic intent. Our Building Tomorrow''s Enterprise strategy continues to see good traction with our clients, and we are executing strongly on this through our Infosys 3.0 structure. We continue to make focused investments in our organizational capabilities. At the same time, we must realign our offerings more closely to the business priorities of our clients. With that broad objective in mind, we have re-grouped our service offerings under four heads Financial Services and Insurance; Manufacturing; Energy, Utilities, Communications and Services; and Retail, Consumer Packaged Goods, Logistics and Life Sciences. We are building a Consulting & Systems Integration business that combines world- class business consulting with high-quality offshore systems integration. We were chosen by an American public electric and water utility to help transform its legacy IT applications. We were engaged by a Middle Eastern gas distributor as a strategic partner for its customer relationship management implementation. A U.S. cable multi-system operator selected us to create a center of excellence for data integration that would optimize costs and ensure a faster time-to- market for new offerings. The new Business IT Services (BITS) structure has given us the opportunity to integrate our mature lines of business across Application Development and Maintenance (ADM), Independent Validation Services (IVS) and Infrastructure Management Services (IMS) to drive greater efficiency in our clients'' businesses. Within BITS, we are innovating to create new service lines cutting across existing offerings. We have been selected by a natural gas and electric utility company to modernize its data center, and implement a robust disaster recovery process. We are working on a multi-year open source adoption program for a machinery and engine manufacturer, to reduce its licensing and infrastructure costs. We are witnessing greater momentum with our PPS offerings. This fiscal, PPS contributed to 5.8% of our revenues. Our flagship offering for the banking industry, Finacle, continued to grow, with 52 client wins this fiscal. We added 44 clients across our products and platforms, 28 on our Infosys Edge platforms and 16 for our new industry-specific products. We recently announced the doubling of size of our Product Research and Development Center in India to enhance the design and development of our offerings. Our Cloud unit is one of our new growth engines. We have over 3,000 cloud experts and 140 engagements. We have over 30 best-in-class cloud partners and are investing in focused solutions and intellectual property to offer greater value to clients. Over the last quarter, we won 15 programs across cloud services, big data and security. While these are early gains, they clearly point to the increasing adoption of solutions that accelerate innovation-led growth for our clients. Over the last six months, we have started mobility-related engagements with over 30 clients. Our mobility business helps clients improve field force productivity, quicken decision-making and improve customer engagement. For a large European telecom company, we are building a mobile-based work-order management solution for field-technicians. For a Canadian financial services major, we created an innovative tablet-based sales lead management solution for senior executives. We innovated across streams to create a first- of-its-kind mobile wallet for India''s leading telephony company, to help its subscribers make cashless transactions and in the process, drive financial inclusion. We are proud to be part of the Government of India''s initiative to revamp the income tax system. After helping the Income Tax department establish the Centralized Processing Centre for handling tax returns, we have now been engaged to implement a comprehensive IT system to introduce greater efficiencies in processing the Tax Deducted at Source (TDS) statements that are filed. As a company, our focus has always been high-quality growth. We strongly believe that margins and growth are equally important for an organization. We look on high margins as an output of what we do and not as a starting point for our revenue growth. We need to hire the best resources to significantly add value to our clients. To be future ready, we need to make all the necessary investments. This is possible only with superior revenue productivity and margins. We have always delivered on our promise to our stakeholders - customers, employees, investors and others. I am as disappointed as you are with our performance in the January-March quarter of fiscal 2012. Our model was built on Predictability. Sustainability, Profitable and De-risking (PSPD). However, our predictability in the recent quarters has been impacted by challenges in the global economy coupled with internal organizational changes. I assure you that the Management is working harder than before to get back to delivering predictable performance. Employees are our biggest assets. We have a long tradition of richly rewarding our employees - from distributing close to Rs 50,000 crore as stock options, to distributing free shares on our 30th anniversary, or offering cash bonuses on special occasions. At Infosys, we believe in collective sacrifices and in the collective sharing of benefits. As we go through a challenging growth environment, we have decided to postpone the yearly salary increment for our employees. However, we will re-visit this decision the moment we get back on the growth path. We ended the year with Rs20,968 crore in cash and cash equivalents including investments in available-for-sale financial assets and certificates of deposits. We have clearly articulated our financial policy of paying upto 30% of the net profits of the group as dividends to shareholders every year, generating a minimum Return On Capital Employed (ROCE) of twice our cost of capital and a minimum Return On Invested Capital (ROIC) of three times our cost of capital, with sufficient cash to run our business comfortably. We also require cash to fulfill our growth objectives through selective acquisitions. We have always balanced all of these and returned excess cash to shareholders whenever we determined so. Our Infosys 3.0 strategy requires us to focus on our acquisition strategy to enhance our capabilities in the PPS space as well as to build a strong platform for growth in identified geographies, services and industry verticals. We are pleased to announce a final dividend of Rs 22 per share for fiscal 2012 and a special dividend of Rs 10 per share on the 10th anniversary of Infosys BPO. Earlier in the fiscal, we paid an interim dividend of Rs 15 per share. A number of awards and recognitions were bestowed on us this fiscal. We were ranked among the world''s most innovative companies by Forbes and HOLT. We were named Asia''s Most Preferred Brand in the Information Technology category at the Asian Leadership Awards. We were ranked among the greenest Indian brands for the third consecutive year in a consumer survey conducted by Cohn & Wolfe, Esty Environmental Partners and Penn Schoen and Berland Associates. Newsweek also featured us in its list of the world''s top 10 green companies. Our sustainability initiatives in India won us the certificate of commendation for significant achievement among organizations with annual turnover of more than Rs 500 crore at the CII-IT C Sustainability Awards, 2011. Even as we plan to add 7.9 million sq. ft. of built- up area to our existing infrastructure, we continue to adhere to the highest environmental standards-building Leadership in Energy & Environmental Design (LEED) certified structures, creating water harvesting facilities, and adopting innovative technology such as the radiant cooling system at our Pocharam campus in Hyderabad. I am pained by the recent reports on alleged visa misuse by Infosys. As a company, we always comply with the letter and spirit of the law in every part of the world that we operate. Let me reiterate that there is not, nor was there ever a policy to use the B-1 visa program to circumvent the H-1B visa program. Any allegation or assertion that there is or was a corporate policy of evading the law in conjunction with the B-1 visa program is simply inaccurate. Like in the past, I am sure we will overcome this challenge too. Over the past three decades, you, our shareholders, our clients, the governments of various countries, our partners, our employees and our well-wishers have supported our strategies and decisions and have stood by us through thick and thin. At the end of this eventful year and at the beginning of another challenging year, we thank each one of you and look forward to your continued support, belief and trust. I am aware of the responses received from investors, the analyst community, the media and others on our recent performance. We take these responses in the right spirit and pledge to work hard to meet the elevated expectations of our stakeholders. But as all of you know, there is no shortcut to success. It comes with lots of hard work, determination and personal sacrifice. We have had a long history of industry-leading performance and sustained value creation for our stakeholders. We believe in our strategy and are confident of its success. Today, we have the right structure and leadership in place to achieve our strategic goals, and I could not be more excited about the journey ahead. S. D. Shibulal Bangalore chief Executive Officer and April 13, 2012 Managing Director