Exhibit 99.6
| Performance of Infosys for the Second Quarter ended September 30, 2004 |
| © Infosys Technologies Limited 2004-2005 Nandan M. Nilekani S. GopalakrishnanChief Executive Officer, President and Managing Director Chief Operating Officer and Deputy Managing Director |
Safe Harbour
Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2004 and Quarterly Report on Form 6-K for the quarter ended June 30, 2004. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward looking statements, including statements contained in the company’s filings with the Securities and Exchange Commission and our reports to shareholders. The company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company.
| © Infosys Technologies Limited 2004-2005 | Slide 2 |
Agenda
| Ø | Financial Performance | |||
| Ø | Operational Performance | |||
| Ø | Client Acquisition & Expansion of Services | |||
| Ø | Human Resources | |||
| Ø | Capex and Infrastructure | |||
| Ø | Outlook for the Future | |||
| Ø | Summary | |||
| © Infosys Technologies Limited 2004-2005 | Slide 3 |
| Financial Performance |
| © Infosys Technologies Limited 2004-2005 |
Highlights
| Q2 FY 05 | Q1 FY 05 | H1 FY 05 | ||||||||||
Indian GAAP | ||||||||||||
| Y-O-Y Growth | ||||||||||||
| Income | 51.9 | % | 38.6 | % | 45.4 | % | ||||||
| PAT from ord. Activities | 48.6 | % | 39.2 | % | 44.1 | % | ||||||
US GAAP | ||||||||||||
| Y-O-Y Growth | ||||||||||||
| Revenues | 51.0 | % | 43.4 | % | 47.3 | % | ||||||
| Net income | 49.3 | % | 42.4 | % | 46.0 | % | ||||||
| New clients | 32 | 29 | 61 | |||||||||
| Repeat business | 96.3 | % | 98.5 | % | 97.3 | % | ||||||
| Headcount Gross addition | 6,078 | 3,233 | 9,311 | |||||||||
| Net addition | 5,010 | 2,305 | 7,315 | |||||||||
| Period end headcount | 32,949 | 27,939 | 32,949 | |||||||||
| © Infosys Technologies Limited 2004-2005 | Slide 5 |
Highlights (Indian GAAP - Quarterly)
(Rs. crore)
| FY2005 | FY2005 | FY2004 | % growth over | |||||||||||||||||
| Q2 | Q1 | Q2 | Q1 05 | Q2 04 | ||||||||||||||||
Income | 1,749.33 | 1,517.38 | 1,151.80 | 15.29 | 51.88 | |||||||||||||||
| S/w development expenses | 926.66 | 805.22 | 595.28 | 15.08 | 55.67 | |||||||||||||||
Gross profit | 822.67 | 712.16 | 556.52 | 15.52 | 47.82 | |||||||||||||||
| S,G&A expenses | 261.64 | 222.89 | 175.06 | 17.39 | 49.46 | |||||||||||||||
Operating profit | 561.03 | 489.27 | 381.46 | 14.67 | 47.07 | |||||||||||||||
| Depreciation | 60.63 | 52.53 | 63.42 | 15.42 | (4.40 | ) | ||||||||||||||
| Operating profit after depreciation | 500.40 | 436.74 | 318.04 | 14.58 | 57.34 | |||||||||||||||
| Other income | 29.60 | 15.70 | 43.16 | 88.54 | (31.42 | ) | ||||||||||||||
| Provision for investment | 0.07 | (0.01 | ) | 0.22 | — | — | ||||||||||||||
PBT | 529.93 | 452.45 | 360.98 | 17.12 | 46.80 | |||||||||||||||
| Provision for tax | 82.56 | 64.11 | 60.00 | 28.78 | 37.60 | |||||||||||||||
PAT from ordinary activities | 447.37 | 388.34 | 300.98 | 15.20 | 48.64 | |||||||||||||||
| © Infosys Technologies Limited 2004-2005 | Slide 6 |
Highlights (Indian GAAP - Half yearly)
(Rs. crore)
| FY2005 | FY2004 | |||||||||||||||||||
| H1 | % | H1 | % | growth | ||||||||||||||||
Income | 3,266.71 | 100.0 | 2,246.50 | 100.0 | 45.4 | |||||||||||||||
| S/w development expenses | 1,731.88 | 53.0 | 1,174.87 | 52.3 | 47.4 | |||||||||||||||
Gross profit | 1,534.83 | 47.0 | 1,071.63 | 47.7 | 43.2 | |||||||||||||||
| S,G&A expenses | 484.51 | 14.8 | 339.69 | 15.1 | 42.6 | |||||||||||||||
Operating profit | 1,050.32 | 32.2 | 731.94 | 32.6 | 43.5 | |||||||||||||||
| Depreciation | 113.20 | 3.5 | 108.56 | 4.8 | 4.3 | |||||||||||||||
| Operating profit after depreciation | 937.12 | 28.7 | 623.38 | 27.8 | 50.3 | |||||||||||||||
| Other income | 45.31 | 1.4 | 75.10 | 3.3 | (39.7 | ) | ||||||||||||||
| Provision for investment | 0.06 | — | 6.59 | 0.3 | — | |||||||||||||||
PBT | 982.37 | 30.1 | 691.89 | 30.8 | 42.0 | |||||||||||||||
| Provision for tax | 146.67 | 4.5 | 112.00 | 5.0 | 31.0 | |||||||||||||||
PAT from ordinary activities | 835.70 | 25.6 | 579.89 | 25.8 | 44.1 | |||||||||||||||
| © Infosys Technologies Limited 2004-2005 | Slide 7 |
Balance Sheet Summary
(Rs. crore)
| Sept 30, 2004 | % | Sept 30, 2003 | % | |||||||||||||
LIABILITIES | ||||||||||||||||
| Shareholders’ funds | 4,148.90 | 100 | 3,383.06 | 100 | ||||||||||||
Total liabilities | 4,148.90 | 100 | 3,383.06 | 100 | ||||||||||||
ASSETS | ||||||||||||||||
| Fixed assets | 1,249.10 | 30 | 802.85 | 24 | ||||||||||||
| Investments | 2.04 | — | 14.93 | — | ||||||||||||
| Deferred tax assets | 44.50 | 1 | 33.87 | 1 | ||||||||||||
| Current assets | ||||||||||||||||
| Cash & equivalents | 2,502.07 | 60 | 2,185.91 | 65 | ||||||||||||
| Accounts receivables | 926.32 | 22 | 592.59 | 17 | ||||||||||||
| Other current assets | 639.32 | 16 | 488.83 | 14 | ||||||||||||
| Less: Current liabilities | (1,214.45 | ) | (29 | ) | (720.99 | ) | (21 | ) | ||||||||
| Net current assets | 2,853.26 | 69 | 2,546.34 | 75 | ||||||||||||
Total assets | 4,148.90 | 100 | 3,383.06 | 100 | ||||||||||||
| © Infosys Technologies Limited 2004-2005 | Slide 8 |
| Operational Performance © Infosys Technologies Limited 2004-2005 |
Region-wise Revenue
%
| FY2005 | FY2005 | FY2004 | ||||||||||
| Q2 | Q1 | Q2 | ||||||||||
| North America | 65.2 | 65.2 | 73.9 | |||||||||
| Europe | 21.4 | 22.2 | 18.0 | |||||||||
| India | 1.7 | 1.6 | 1.6 | |||||||||
| Rest of the world | 11.7 | 11.0 | 6.5 | |||||||||
Total | 100.0 | 100.0 | 100.0 | |||||||||
| © Infosys Technologies Limited 2004-2005 | Slide 10 |
| © Infosys Technologies Limited 2004-2005 | Slide 11 |
Revenues by Project type
%
| FY2005 | FY2005 | FY2004 | ||||||||||
| Q2 | Q1 | Q2 | ||||||||||
| Fixed Price | 29.7 | 29.7 | 35.2 | |||||||||
| Time & Materials | 70.3 | 70.3 | 64.8 | |||||||||
Total | 100.0 | 100.0 | 100.0 | |||||||||
| © Infosys Technologies Limited 2004-2005 | Slide 12 |
Onsite-Offshore Revenue split
%
| FY2005 | FY2005 | FY2004 | ||||||||||
| Q2 | Q1 | Q2 | ||||||||||
| Onsite | 49.8 | 51.9 | 51.7 | |||||||||
| Offshore | 50.2 | 48.1 | 48.3 | |||||||||
Total | 100.0 | 100.0 | 100.0 | |||||||||
| © Infosys Technologies Limited 2004-2005 | Slide 13 |
Customer Concentration
| FY2005 | FY2005 | FY 2004 | ||||||||||
| Q2 | Q1 | Q2 | ||||||||||
| Top client contribution to revenues | 5.5 | % | 5.3 | % | 6.6 | % | ||||||
| Top 5 client contribution to revenues | 21.6 | % | 21.6 | % | 24.6 | % | ||||||
| Top 10 client contribution to revenues | 34.7 | % | 34.3 | % | 37.9 | % | ||||||
| Million dollar clients* | 146 | 141 | 119 | |||||||||
| Five-million+ dollar clients* | 60 | 53 | 40 | |||||||||
| Ten-million+ dollar clients* | 31 | 27 | 22 | |||||||||
| Twenty-million+ dollar clients* | 16 | 15 | 10 | |||||||||
| Thirty-million+ dollar clients* | 10 | 8 | 5 | |||||||||
| Forty-million+ dollar clients* | 7 | 5 | 3 | |||||||||
| Fifty-million+ dollar clients* | 3 | 3 | — | |||||||||
*Last Twelve Months
| © Infosys Technologies Limited 2004-2005 | Slide 14 |
| Client Acquisition & Expansion of Services © Infosys Technologies Limited 2004-2005 |
Client Acquisition & Expansion of Services
| Ø | Client acquisitions during the quarter were 32 | |||
| Ø | Retail industry | |||
| • | Aleading discount retailer in the UShas selected Infosys as a preferred provider of IT consulting for a strategic sourcing initiative | |||
| • | Amajor European Retailerchose Infosys to implement an RFID solution. This solution enables the retailer to achieve faster throughput and high visibility in Retail Supply Chain processes | |||
| Ø | Financial Sector |
| • | Infosys strengthened its presence in the financial and insurance industries with the addition of aGerman multi-billion euro insurance organization.Infosys was selected to help in replacing an existing hierarchical database, and thereby achieve organization-wide uniformity and reduced licensing costs | |||
| • | ACompany providing proxy voting and corporate governance solutionsto its global client base selected Infosys to provide business consulting services | |||
| © Infosys Technologies Limited 2004-2005 | Slide 16 |
Client Acquisition & Expansion of Services
| Ø | Telecom sector |
| • | Infosys’ relationship with large telecom players continued, with the addition ofone of the largest wholesale telecom carriers in Europeto its client portfolio | |||
| • | Infosys is engaged in a critical assignment to re-architect the account management portal ofa large US-based carrier providing voice and data services | |||
| • | We also started providing Oracle application support toanother premier communications service provider in the US | |||
| Ø | Automotive and Aerospace sector |
| • | Apremier UK-based Aerospace services companychose Infosys’ services for a design and analysis project of an aircraft sub-system | |||
| • | Awell-known player in the European auto industryalso started working with Infosys for a design and analysis project | |||
| © Infosys Technologies Limited 2004-2005 | Slide 17 |
Client Acquisition & Expansion of Services
| Ø | Energy and Utilities Sector |
| • | AFortune 500 company in the USchose Infosys to provide application development and maintenance services in the area of customer relationship management | |||
| • | Alarge utility companyis using Infosys’ expertise in rewriting its customer information systems | |||
| Ø | Others |
| • | One of the top 10 technology companies in the world, and one of the largest companies in the IT storage spaceis partnering with Infosys for the development of a storage management product | |||
| • | Infosys started working witha pan-European government organizationin the deployment of payroll and financial solutions | |||
| © Infosys Technologies Limited 2004-2005 | Slide 18 |
Banking Products
| Ø | The sale of the Finacle® suite of products made significant headway during the quarter |
| • | Union Bank of the Philippines(UBP), one of the top 10 banks in Philippines, has licensed Finacle® core banking and e-Banking solutions. This win marks a key breakthrough for Finacle® in the core banking space in South East Asia | |||
| • | IDBI Ltd. has chosen to deploy Finacle® as the bank’s core banking platform across 101 locations, by March 2005 | |||
| • | UTI Bank,an existing customer, chose Finacle® treasury solution making it Finacle’s first win in the treasury solution space in India | |||
| • | Aleading private sector bank in Indialicensed Finacle® wealth management solution and Finacle® CRM solutions during the quarter | |||
| © Infosys Technologies Limited 2004-2005 | Slide 19 |
| Human Resources |
| © Infosys Technologies Limited 2004-2005 |
Human Resources
| • | Total employee strength at 32,949 as on September 30, 2004, up from 27,939 as on June 30, 2004 | |||
| • | 30,922 software professionals as on September, 2004, up from 26,028 as on June 30, 2004 | |||
| • | Of these software professionals, 838 belong to the Banking Business Unit | |||
| • | Gross addition of employees during the quarter was 6,078 out of which 1,052 were laterals | |||
| • | Net addition of 5,010 employees during the quarter as compared to 2,305 during the quarter ended June 30, 2004 | |||
| © Infosys Technologies Limited 2004-2005 | Slide 21 |
| Capex and Infrastructure |
| © Infosys Technologies Limited 2004-2005 |
Capex and Infrastructure
| • | Capital expenditure of Rs.176.06 crores was incurred during the quarter | |||
| • | As on September 30, 2004, the company had 50,41,250* sq. ft of space capable of accommodating 25,803 professionals and 34,86,900* sq. ft under completion capable of accommodating 14,365 professionals | |||
* Excluding subsidiaries
| © Infosys Technologies Limited 2004-2005 | Slide 23 |
| Outlook for the Future © Infosys Technologies Limited 2004-2005 |
Indian GAAP - Consolidated
| Ø | Quarter ending December 31, 2004 |
| • | Income is expected to be between Rs. 1,869 crore and Rs. 1,882 crore; YOY growth of 49% to 50% | |||
| • | Earnings per share is expected to be Rs. 17.10; YOY growth of 38% | |||
| Ø | Fiscal year ending March 31, 2005 |
| • | Income is expected to be between Rs. 7,132 crore and Rs. 7,160 crore; growth of 47% to 48% | |||
| • | Earnings per share is expected to be Rs. 67.00; growth of 43% | |||
| © Infosys Technologies Limited 2004-2005 | Slide 25 |
| Summary © Infosys Technologies Limited 2004-2005 |
Summary
| Ø | Guidance for FY 2005 revised upwards | |||
| Ø | Interim dividend of Rs. 5.00 per share (100% on an equity share of par value of Rs. 5 each) | |||
| Ø | Growth momentum continues in Q2. Total volume growth during the quarter was 12.60%, with offshore volume growing more rapidly, at 15.30% | |||
| Ø | Sourcing strategically from service providers has become the outsourcing approach for many companies across all industries | |||
| Ø | Pricing has been stable | |||
| Ø | We continue to focus on scalability, which is the key to rapid growth, and on differentiation, which is the key to higher client value | |||
| Ø | Hired 5,010 net employees for the group during the quarter | |||
| Ø | Our expense management model has demonstrated the flexibility in absorbing the cost of recruiting 5,010 net employees while maintaining margins | |||
| © Infosys Technologies Limited 2004-2005 | Slide 27 |
| Thank You |
| © Infosys Technologies Limited 2004-2005 |