Infosys Limited (INFY) 6-K Current report (foreign)

Exhibit 99.7

Profit and Loss Account summary for the Quarter ended

(non-consolidated as per Indian GAAP)

		in Rs. crore, except per share data
											Growth % in
		December 31,							Quarter ended		Q3 FY 2004
						Growth			September 30,		over Q2 FY
Particulars		2003		2002		(%)			2003		2004
INCOME
Software services and products
	Overseas		1227.30		945.18		29.85			1,115.98		9.98
	Domestic		7.96		13.46		(40.86	)		18.77		(57.59	)
TOTAL INCOME			1235.26		958.64		28.86			1,134.75		8.86
Software Development Expenses			645.48		481.62		34.02			587.16		9.93
GROSS PROFIT			589.78		477.02		23.64			547.59		7.70
Selling and marketing expenses			92.35		73.60		25.48			80.44		14.81
General and administration expenses			87.25		69.93		24.77			88.72		(1.66	)
			179.60		143.53		25.13			169.16		6.17
OPERATING PROFIT (EBIDTA)			410.18		333.49		23.00			378.43		8.39
Interest			—		—		—			—		—
Depreciation and amortization			62.23		49.48		25.77			62.33		(0.16	)
OPERATING PROFIT AFTER INTEREST, DEPRECIATION AND AMORTIZATION			347.95		284.01		22.51			316.10		10.08
Other income			47.78		29.80		60.34			44.28		7.90
Provision for investments			2.29		—		—			0.22		—
PROFIT BEFORE TAX			393.14		313.81		25.28			360.16		9.16
Provision for taxation			65.00		57.50		13.04			60.00		8.33
NET PROFIT AFTER TAX			328.14		256.31		28.02			300.16		9.32
EARNINGS PER SHARE (Equity shares, par value Rs.5/- each)
Basic			49.43		38.70		27.73			45.30		9.12
Diluted			48.54		38.22		27.00			44.92		8.06

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Profit and Loss Account summary for the Nine months ended

(non-consolidated as per Indian GAAP)

		in Rs. crore, except per share data
		December 31,							Year ended
						Growth			March 31,
Particulars		2003		2002		(%)			2003
INCOME
Software services and products
	Overseas		3,401.93		2,552.93		33.26			3,543.51
	Domestic		50.06		49.90		0.32			79.18
TOTAL INCOME			3,451.99		2,602.83		32.62			3,622.69
Software Development Expenses			1,805.42		1,283.50		40.66			1,813.30
GROSS PROFIT			1,646.57		1,319.33		24.80			1,809.39
Selling and marketing expenses			252.51		198.02		27.52			266.98
General and administration expenses			257.15		189.65		35.59			270.37
			509.66		387.67		31.47			537.35
OPERATING PROFIT (EBIDTA)			1,136.91		931.66		22.03			1,272.04
Interest			—		—		—			—
Depreciation and amortization			168.82		136.19		23.96			188.95
OPERATING PROFIT AFTER INTEREST, DEPRECIATION AND AMORTIZATION			968.09		795.47		21.70			1,083.09
Other income			124.21		72.22		71.99			99.61
Provision for investments			8.88		23.76		(62.63	)		23.77
PROFIT BEFORE TAX			1083.42		843.93		28.38			1,158.93
Provision for taxation			177.00		145.00		22.07			201.00
NET PROFIT AFTER TAX			906.42		698.93		29.69			957.93
EARNINGS PER SHARE (Equity shares, par value Rs.5/- each)
Basic			136.73		105.57		29.52			144.68
Diluted			135.43		104.70		29.35			143.37

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REVENUE BY GEOGRAPHICAL SEGMENT

							LTM		LTM
	Dec 31, 2003		Sept 30, 2003		Dec 31, 2002		Dec 31, 2003		Dec 31, 2002
	%		%		%		%		%
North America		72.2		73.9		74.2		73.1		72.9
Europe		20.7		18.0		16.4		18.8		17.8
India		0.6		1.6		1.2		1.7		1.8
Rest of the world		6.5		6.5		8.2		6.4		7.5
Total		100.0		100.0		100.0		100.0		100.0

REVENUE BY SERVICE OFFERING

							LTM		LTM
	Dec 31, 2003		Sept 30, 2003		Dec 31, 2002		Dec 31, 2003		Dec 31, 2002
	%		%		%		%		%
Development		24.2		25.2		32.8		26.9		32.2
Maintenance		31.5		31.6		27.9		29.3		29.1
Re-engineering		5.9		5.9		5.0		6.0		6.0
Package implementation		14.8		12.6		11.0		13.8		10.0
Consulting		3.6		3.4		4.5		3.8		4.3
Testing		5.9		6.0		3.5		5.1		3.2
Engineering services		2.1		2.1		2.4		2.3		2.7
Other services		9.4		10.4		8.6		9.4		7.9
Total services		97.4		97.2		95.7		96.6		95.4
Products		2.6		2.8		4.3		3.4		4.6
Total revenues		100.0		100.0		100.0		100.0		100.0

REVENUE BY PROJECT TYPE

							LTM		LTM
	Dec 31, 2003		Sept 30, 2003		Dec 31, 2002		Dec 31, 2003		Dec 31, 2002
	%		%		%		%		%
Fixed Price		34.7		35.4		37.6		35.7		36.0
Time & Materials		65.3		64.6		62.4		64.3		64.0
Total		100.0		100.0		100.0		100.0		100.0

“LTM” - Last Twelve Months

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REVENUE BY INDUSTRY

								LTM		LTM
		Dec 31, 2003		Sept 30, 2003		Dec 31, 2002		Dec 31, 2003		Dec 31, 2002
		%		%		%		%		%
Insurance, banking & financial services			37.7		38.9		37.7		37.8		37.7
	Insurance		12.8		15.2		14.1		13.5		15.2
	Banking & financial services		24.9		23.7		23.6		24.3		22.5
Manufacturing			14.2		15.0		17.2		14.9		17.0
Retail			12.1		11.7		11.7		11.6		11.8
Telecom			15.0		15.4		14.5		15.3		14.9
Energy & Utilities			3.3		3.0		2.6		3.3		2.5
Transportation & logistics			6.9		7.1		6.6		7.1		6.0
Others			10.8		8.9		9.7		10.0		10.1
Total			100.0		100.0		100.0		100.0		100.0

CLIENT DATA

	Dec 31, 2003			Sept 30, 2003			Dec 31, 2002
Active Clients		357			347			315
Added during the quarter		30			29			23
Number of million dollar clients		130			119			99
Number of 5-million dollar clients		48			40			30
Number of 10-million dollar clients		22			22			14
Number of 20-million dollar clients		10			10			7
Number of 30-million dollar clients		6			5			3
Number of 40-million dollar clients		4			3			—
Number of 50-million dollar clients		2			—			—
Clients accounting for >5% of revenue		2			2			2
Revenue – top client		5.5	%		6.6	%		6.3	%
Revenue – top 5 clients		22.8	%		24.6	%		23.8	%
Revenue – top 10 clients		36.1	%		37.9	%		37.9	%
Repeat business		92.1	%		95.7	%		89.7	%
Account receivables – LTM (in days)		56			50			54

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EFFORT AND UTILIZATION

		Dec 31, 2003			Sept 30, 2003			Dec 31, 2002
Effort – Services
	Onsite		32.2	%		32.6	%		36.1	%
	Offshore		67.8	%		67.4	%		63.9	%
Revenue – Services
	Onsite		53.4	%		54.1	%		58.0	%
	Offshore		46.6	%		45.9	%		42.0	%
Utilization
	Including trainees		73.1	%		74.3	%		76.1	%
	Excluding trainees		82.5	%		83.8	%		82.2	%

“LTM” - Last Twelve Months

PERSON MONTHS DATA

	Dec 31, 2003		Sept 30, 2003		Dec 31, 2002
Onsite – Billed		12,978		11,873		9,634
Offshore – Billed		29,244		26,355		18,672
TOTAL - Billed		42,222		38,228		28,306
Non Billable		8,967		7,373		6,139
Trainee		6,607		5,836		2,756
Sales & Support		3,838		3,740		3,499
TOTAL		61,634		55,177		40,700

EMPLOYEE METRICS

		Dec 31, 2003		Sept 30, 2003		Dec 31, 2002
Total Employees			21,809		19,120		14,058
S/W professionals			20,253		17,625		12,801
	Billable		17,270		15,152		11,538
	Banking Product Group		544		501		538
	Trainees		2,439		1,972		725
Sales & Support			1,556		1,495		1,257
Gross Addition			3,179		2,595		1,133
Net Addition			2,689		2,025		948
Lateral Employees			545		328		272
Attrition % (LTM)			10.0		9.1		6.5

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INFRASTRUCTURE (as on Dec 31, 2003)

	Completed				Work in Progress
									Land
	Built-Up Area				Built-Up Area				acquired during
	(Sq Ft)		No. of Seats		(Sq Ft)		No. of Seats		the Qtr (acres)
Bangalore		16,24,836		9,152		4,00,000		3,500		—
Pune		5,89,647		3,626		—		—		—
Chennai		4,21,317		2,906		75,000		—		—
Hyderabad		3,17,000		1,645		2,45,000		2,170		19.70
Bhubaneshwar		1,89,000		1,200		95,000		800		20.89
Mangalore		1,98,000		1,077		—		—		—
Mysore (including ILI)*		4,18,450		634		4,50,000		850		—
Mohali		21,000		200		—		—		—
Trivandrum		22,000		220		—		—		—
Total		38,01,250		20,660		12,65,000		7,320		40.59

* Infosys Leadership Institute

Consolidated (Including Progeon)

	Dec 31, 2003		Sept 30, 2003		Dec 31, 2002
Total Employees		23,209		20,158		14.484
Gross Additions		3,667		2,845		1,290
Net Additions		3,051		2,181		1,087
Revenue (Rs. crore)		1,257.0		1,151.8		965.0
Net Profit After Tax (Rs. crore)		328.5		301.0		254.9

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Reconciliation of accounts as per Indian GAAP and US GAAP

	in Rs. Crore
	Three months ended			Year ended
	December 31, 2003			March 31, 2003
Consolidated Net Profit as per Indian GAAP		328.5			954.8
Amortization of deferred stock compensation		(3.1	)		(23.2	)
Deferred taxes		1.3			(0.9	)
Gain on forward foreign exchange contracts		(3.8	)		2.4
Net provision for investments		—			9.1
Others		(1.5	)		—
Consolidated Net income as per US GAAP		321.4			942.2

Reasons for differences in net income as per Indian GAAP and US GAAP

Amortization of deferred stock compensation

The Accounting Principles Board Opinion No. 25 of US GAAP requires the accounting of deferred stock compensation on issue of stock options to employees, being the difference between the exercise price and the fair value as determined by the quoted market prices of the common stock on the grant date. In complying with this requirement, Infosys has charged to revenue under US GAAP an amount of Rs. 3.1 crore and Rs. 23.2 crore for the quarter ended December 31, 2003 and year ended March 31, 2003, respectively, as amortization of deferred stock compensation.

Gain on forward exchange contracts

Under Indian GAAP, premium on forward contract is recognized as income or expenditure over the life of the related contract. Whereas, under US GAAP, the same is marked-to-market as on the reporting date. The resultant gain / loss is recognized immediately in the income statement.

Net provision for investments

Under US GAAP recognition of unrealized gains on transfer of intellectual property rights is not permitted. Under Indian GAAP an amount of Rs. 9.1 crore was recognized during the year ended March 31, 2001. Provision has been made for this investment under Indian GAAP during the quarter ended September 30, 2002.

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