1. Financial Analysis
2010-2012
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2. Company’s Backdrop
• Started in 1981 by 7 people with Revenue (in million $)
Rs 12,000
8000
• 1987 - First international office 7000
setup in Boston 6000
5000
• 1993 - Goes public 4000
• 1999 - Became the first Indian 3000
company to get listed in NASDAQ 2000
1000
• 2004 - Revenue crosses $ 1 billion 0
• 2008 - Annual net profit crosses
1999
2000
2001
2004
2006
2008
2010
2011
$ 1 billion
• 2012 - Forbes ranks Infosys among the world's most innovative
companies

3. INFY from investors POV
Share Price History
4,000.00
• Current share Price
3,500.00 3,449.00
3,000.00 3,000.00 2,606.00
2,763.90
BSE: Rs 2495.90
2,500.00
2,099.00
2,242.00 NSE: Rs 2495.30
• Market Cap – Rs 1,43,322 crores
2,000.00
1,758.00
• No. of shares – 57, 42, 29, 742
1,500.00
1,125.00
• Income 2012 – Rs 33,567 crores
1,000.00
500.00
0.00
2005 2006 2007 2008 2009 2010 2011 2012

4. Ratios
Category Ratios 2012 2011
Measures Performance
Price / Earning 28.34x 19.24x
Measure
Overall
Return on Assets 27.09 % 19.01 %
Return on Invested Capital
Net Income has increased by 31% rendering%
32.59 % 29.45 the
Return on Shareholders’ Equitygreater thanpay 19.24 money. safe. It
People were willing towith more times as %
A ratio of
shareholders 1 is considered26.29
28.48 % the
actualdropped because accounts payable has
has
The earnings per share in 2011, which %
Gross Margin Percentage ROA ratio has increased in 2012 35.36 ratio
as
For bothdecreased. But it’s still%which is
34.58
Profitability
of Infosys is highthe fixedis thatturnover
the years 28.34 timeshealthy.
asset invested
ROI compared2012 to indicating a positive a
increased in to 2011 which
Profit Margin capital has been efficiently 25.60a% atincrease%
has remained the same. It’s The a 24.28
used. healthy value.
ROE is a increased assign.
very good compared healthy
TheThe ratiominimal increase in the to 2011 It
indication, ithas been maintained earning
There has also indicates higher turnover.
Earning Per Share from 2011 to 2012 by 3.14 %147.50 is Rs 112.22
power & low interest costs. on to
Rs only goes
which indicateslevel.Infosys
that is profitable & the
indicates that the companyused ably to
A drop of 1%capital hasmargin is not a major
show the the gross been
Cash Realization profitable, thereby benefiting1.03x because of
the shareholders.
Despite of generaterevenues benefitting. 1.09x
concern as the intensity is increasing margin,
Capital sales highergross profit
marginal fall in income.
shareholders are have increased by
Asset Turnover the net profit margin hasthan0.87x more than 1
This value is higher grown by
the industry
23%increase in sales revenue. 0.87x
over the previous year.
Investment
Utilization
% point. The companyInfosys’1.04xmore of1.03x
standards, indicating is retaining use amount
good debt
Test of
Invested Capital Turnover
to increase of itreturns for equity holders.
the sales revenue.
Equity Turnover 1.05x 1.03x
Capital Intensity 7.72x 6.25x

5. Ratios continued..
Category Ratios 2012 2011
Days’ Cash 337 Days 326 Days
Investment
Utilization
Days Receivables 63 Days
The ratio has decreased when compared to 61 Days
Test of
Despite a decrease in dividend payout and
Working Capital Turnover2011, day’s cash has 1.39x it may face
The which indicates that 1.45x
yield percentage as increased when
compared to the
Current Ratio The value isin2011. has increased by 31%.
compared to future if4.72the actual4.94
difficulties zero because ratio further
this
previouscompared EPSThis does hold much value
year, the to local competitor Tech
When valueInfosys is covering the interest
dropsinfinitely small. This means that of
is down. ascapital turnoverbenefitted.
Hence workingit the company instead4.94
of a the
Acid-test Ratio The shareholders have beentheof safety.
Mahindra, should that 4.72 declined
charges by acash,was seenfunded by equity days
company due to increasemargin of sales.
relatively low
retaining is completelyhave invested in
This has receivables wasinin cost
marginally been reflected lesser.
the price per
Financial Leverage Ratio Thus if it attempts tobetter returns.1.18x
which get 1.20x additional
borrow
securities to is a good sign.
Condition
earnings ratio which has substantially
Financial
This value is it may face difficulties. times.
funds, very healthy as
Test of
Debt / Equity Ratio increased from 19.24 20.36 %compared to
times to 28.34 17.77 %
Infosys has a lower financial leverage ratio
industry standard. This means company
Debt / Capitalization Ratio 0% 0%
indicating that it has acurrent liabilities.
can easily meet the as compared base
This value is healthy long financial to
Times Interest Earned andThe value is pretty healthy, either
7.45x
. hencestandard.easily be able to of
it would The percentage pay 9.12x
industry
Test of Dividend Yield equity &liabilityits debts. currentuses to
current debt thatless or %
1.08
is the company assets 2.08%
Dividend are high. It has enough short-term48.98 % assets
Policy Dividend Payout finance its assets has increased.
23.76 %
to cover its immediate liabilities.

6. DuPont Equation
Profit Margin * Asset Turnover * Equity Multiplier
2012 2011
25.60 * 0.87 * 1.20 = 26.72 24.28 * 0.87 * 1.18 = 24.92
• Infosys made 25.60% on each rupee of sales for 2012 while in 2011 it was 24.28%.
The profit margin has increased by 1.32 % as a result of a whooping increase in
sales.
• While the asset turnover remains unchanged, the common equity marginal
increased by 0.02
• The change in profit margin has lead to a positive change and indicates the assets
& shareholders equity is being used effectively and profitability.

7. SWOT Analysis
STRENGTHS WEAKNESSES
• High skill level in IT • Struggles to grab high profit US
• Strong financial position Federal govt. projects
• Positioned as high-end differentiated • Much smaller(revenue) than its global
player competitors(HP, IBM, Accenture)
• Large work force of 1,51,151 • Weak in high-end management
consultancy, Accenture rules this space
OPPORTUNITIES THREATS
• New emerging market in China, • Global economic slowdown
Korea • Management transition from
• Greater scope for product innovation founders to professionals
• Domestic demand for IT products • Increased competition from low-
growing at 20 % wage countries like China, Indonesia

8. Infosys Financial Position
• Despite the dividend yield & dividend payout
has decreased the earnings per share has
increased by 31 % as compared to 2011. Thus
overall the shareholders’ have benefited &
hence the price per earning ratio has
increased significantly in 2012.

9. Conclusion
• In the year 2012, the ROA ,ROIC ,ROE, and
Profit margin has increased. Hence the net
income of Infosys has increased by 21% as
compared to 2011. Thus Infosys has been
profitable.
• Infosys has also retained maximum form of its
profit in the form of cash, thus increasing days
cash. Considering the global slowdown, its
decision of not investing is wise.