Exhibit 99.7
Fact Sheet – Consolidated Financial Data, Second Quarter, 2004-05 Profit and Loss Account summary for the Quarter ended |  |
(Consolidated as per Indian GAAP)
in Rs. crore, except per share data
| Growth % in | ||||||||||||||||||||
| Q2 FY 2005 | ||||||||||||||||||||
| September 30, | Growth | Quarter ended | over Q1 FY | |||||||||||||||||
| Particulars | 2004 | 2003 | (%) | June 30, 2004 | 2005 | |||||||||||||||
INCOME | ||||||||||||||||||||
| Software services, products and business process management | ||||||||||||||||||||
| Overseas | 1,719.26 | 1,133.06 | 51.74 | 1,493.45 | 15.12 | |||||||||||||||
| Domestic | 30.07 | 18.74 | 60.46 | 23.93 | 25.66 | |||||||||||||||
TOTAL INCOME | 1,749.33 | 1,151.80 | 51.88 | 1,517.38 | 15.29 | |||||||||||||||
| Software development and business process management expenses | 926.66 | 595.28 | 55.67 | 805.22 | 15.08 | |||||||||||||||
GROSS PROFIT | 822.67 | 556.52 | 47.82 | 712.16 | 15.52 | |||||||||||||||
| Selling and marketing expenses | 122.27 | 82.69 | 47.87 | 105.21 | 16.22 | |||||||||||||||
| General and administration expenses | 139.37 | 92.37 | 50.88 | 117.68 | 18.43 | |||||||||||||||
| 261.64 | 175.06 | 49.46 | 222.89 | 17.39 | ||||||||||||||||
OPERATING PROFIT BEFORE INTEREST, DEPRECIATION & AMORTIZATION AND BEFORE MINORITY INTERESTS | 561.03 | 381.46 | 47.07 | 489.27 | 14.67 | |||||||||||||||
| Interest | — | — | — | — | — | |||||||||||||||
| Depreciation and amortization | 60.63 | 63.42 | (4.40 | ) | 52.53 | 15.42 | ||||||||||||||
OPERATING PROFIT AFTER INTEREST, DEPRECIATION & AMORTIZATION AND MINORITY INTERESTS | 500.40 | 318.04 | 57.34 | 436.74 | 14.58 | |||||||||||||||
| Other income | 29.60 | 43.16 | (31.42 | ) | 15.70 | 88.54 | ||||||||||||||
| Provision for investments | 0.07 | 0.22 | (68.18 | ) | (0.01 | ) | — | |||||||||||||
NET PROFIT BEFORE TAX AND MINORITY INTERESTS | 529.93 | 360.98 | 46.80 | 452.45 | 17.12 | |||||||||||||||
| Provision for taxation | 82.56 | 60.00 | 37.60 | 64.11 | 28.78 | |||||||||||||||
NET PROFIT BEFORE MINORITY INTERESTS | 447.37 | 300.98 | 48.64 | 388.34 | 15.20 | |||||||||||||||
| Minority interests | — | — | — | — | — | |||||||||||||||
NET PROFIT AFTER TAX AND MINORITY INTERESTS | 447.37 | 300.98 | 48.64 | 388.34 | 15.20 | |||||||||||||||
EARNINGS PER SHARE* (Equity shares, par value Rs. 5/- each) | ||||||||||||||||||||
| Basic | 16.71 | 11.36 | 47.10 | 14.54 | 14.92 | |||||||||||||||
| Diluted | 16.34 | 11.26 | 45.12 | 14.29 | 14.35 | |||||||||||||||
| * | adjusted for the 3:1 bonus issue of shares distributed on July 6, 2004 |
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Fact Sheet – Consolidated Financial Data, Second Quarter, 2004-05 Profit and Loss Account summary for the Half-year ended | |
(Consolidated as per Indian GAAP)
in Rs. crore, except per share data
| Year ended | ||||||||||||||||
| September 30, | Growth | March 31, | ||||||||||||||
| Particulars | 2004 | 2003 | (%) | 2004 | ||||||||||||
| INCOME | ||||||||||||||||
| Software services, products and business process management | ||||||||||||||||
| Overseas | 3,212.71 | 2,204.43 | 45.74 | 4,786.72 | ||||||||||||
| Domestic | 54.00 | 42.07 | 28.36 | 66.23 | ||||||||||||
TOTAL INCOME | 3,266.71 | 2,246.50 | 45.41 | 4,852.95 | ||||||||||||
| Software development and business process management expenses | 1,731.88 | 1,174.87 | 47.41 | 2,538.67 | ||||||||||||
GROSS PROFIT | 1,534.83 | 1,071.63 | 43.22 | 2,314.28 | ||||||||||||
| Selling and marketing expenses | 227.47 | 164.34 | 38.41 | 350.90 | ||||||||||||
| General and administration expenses | 257.04 | 175.35 | 46.59 | 369.19 | ||||||||||||
| 484.51 | 339.69 | 42.63 | 720.09 | |||||||||||||
OPERATING PROFIT BEFORE INTEREST, DEPRECIATION & AMORTIZATION AND MINORITY INTERESTS | 1,050.32 | 731.94 | 43.50 | 1,594.19 | ||||||||||||
| Interest | — | — | — | — | ||||||||||||
| Depreciation and amortization | 113.20 | 108.56 | 4.27 | 236.73 | ||||||||||||
OPERATING PROFIT AFTER INTEREST, DEPRECIATION & AMORTIZATION AND MINORITY INTERESTS | 937.12 | 623.38 | 50.33 | 1,357.46 | ||||||||||||
| Other income | 45.31 | 75.10 | (39.67 | ) | 123.38 | |||||||||||
| Provision for investments | 0.06 | 6.59 | (99.09 | ) | 9.67 | |||||||||||
NET PROFIT BEFORE TAX AND MINORITY INTERESTS | 982.37 | 691.89 | 41.98 | 1,471.17 | ||||||||||||
| Provision for taxation | 146.67 | 112.00 | 30.96 | 227.54 | ||||||||||||
NET PROFIT BEFORE MINORITY INTERESTS | 835.70 | 579.89 | 44.11 | 1,243.63 | ||||||||||||
| Minority interests | — | — | — | — | ||||||||||||
NET PROFIT AFTER TAX AND MINORITY INTERESTS | 835.70 | 579.89 | 44.11 | 1,243.63 | ||||||||||||
EARNINGS PER SHARE* (Equity shares, par value Rs. 5/- each) | ||||||||||||||||
| Basic | 31.25 | 21.88 | 42.82 | 46.85 | ||||||||||||
| Diluted | 30.64 | 21.75 | 40.87 | 46.27 | ||||||||||||
| * | adjusted for the 3:1 bonus issue of shares distributed on July 6, 2004 |
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| Fact Sheet – Consolidated Financial Data, Second Quarter, 2004-05 | |
REVENUE BY GEOGRAPHICAL SEGMENT
| Quarter ended | LTM | |||||||||||||||||||
| Sept 30, 2004 | June 30, 2004 | Sept 30, 2003 | Sept 30, 2004 | Sept 30, 2003 | ||||||||||||||||
| % | % | % | % | % | ||||||||||||||||
| North America | 65.2 | 65.2 | 73.9 | 66.8 | 73.6 | |||||||||||||||
| Europe | 21.4 | 22.2 | 18.0 | 21.2 | 17.7 | |||||||||||||||
| India | 1.7 | 1.6 | 1.6 | 1.3 | 1.9 | |||||||||||||||
| Rest of the world | 11.7 | 11.0 | 6.5 | 10.7 | 6.8 | |||||||||||||||
Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | |||||||||||||||
REVENUE BY SERVICE OFFERING
| Quarter ended | LTM | |||||||||||||||||||
| Sept 30, 2004 | June 30, 2004 | Sept 30, 2003 | Sept 30, 2004 | Sept 30, 2003 | ||||||||||||||||
| % | % | % | % | % | ||||||||||||||||
| Development | 25.1 | 26.1 | 25.2 | 25.3 | 29.0 | |||||||||||||||
| Maintenance | 29.2 | 28.8 | 31.6 | 29.7 | 28.3 | |||||||||||||||
| Re-engineering | 6.5 | 5.8 | 5.9 | 6.1 | 5.8 | |||||||||||||||
| Package implementation | 15.1 | 15.0 | 12.6 | 15.3 | 12.8 | |||||||||||||||
| Consulting | 3.0 | 3.4 | 3.4 | 3.3 | 4.0 | |||||||||||||||
| Testing | 5.7 | 5.3 | 6.0 | 5.4 | 4.5 | |||||||||||||||
| Engineering services | 2.0 | 1.9 | 2.1 | 2.0 | 2.4 | |||||||||||||||
| Business process management | 2.4 | 2.1 | 1.5 | 2.1 | 1.1 | |||||||||||||||
| Other services | 8.1 | 9.2 | 8.9 | 8.2 | 8.3 | |||||||||||||||
Total services | 97.1 | 97.6 | 97.2 | 97.4 | 96.2 | |||||||||||||||
| Products | 2.9 | 2.4 | 2.8 | 2.6 | 3.8 | |||||||||||||||
Total revenues | 100.00 | 100.0 | 100.0 | 100.0 | 100.0 | |||||||||||||||
REVENUE BY PROJECT TYPE *
| Quarter ended | LTM | |||||||||||||||||||
| Sept 30, 2004 | June 30, 2004 | Sept 30, 2003 | Sept 30, 2004 | Sept 30, 2003 | ||||||||||||||||
| % | % | % | % | % | ||||||||||||||||
| Fixed Price | 29.7 | 29.7 | 35.2 | 30.9 | 36.4 | |||||||||||||||
| Time & Materials | 70.3 | 70.3 | 64.8 | 69.1 | 63.6 | |||||||||||||||
Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | |||||||||||||||
“LTM” - Last Twelve Months
* Excluding products
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| Fact Sheet – Consolidated Financial Data, Second Quarter, 2004-05 | |
REVENUE BY INDUSTRY
| Quarter ended | LTM | |||||||||||||||||||
| Sept 30, 2004 | June 30, 2004 | Sept 30, 2003 | Sept 30, 2004 | Sept 30, 2003 | ||||||||||||||||
| % | % | % | % | |||||||||||||||||
| Insurance, banking & financial services | 35.1 | 34.0 | 38.9 | 35.0 | 37.8 | |||||||||||||||
Insurance | 9.8 | 9.6 | 15.2 | 10.5 | 13.9 | |||||||||||||||
Banking & financial services | 25.3 | 24.4 | 23.7 | 24.5 | 23.9 | |||||||||||||||
| Manufacturing | 14.7 | 15.0 | 15.0 | 14.6 | 15.7 | |||||||||||||||
| Retail | 9.5 | 11.4 | 11.7 | 11.0 | 11.5 | |||||||||||||||
| Telecom | 18.5 | 17.9 | 15.4 | 18.0 | 15.2 | |||||||||||||||
| Energy & Utilities | 2.9 | 2.9 | 3.0 | 2.8 | 3.2 | |||||||||||||||
| Transportation & logistics | 7.5 | 7.6 | 7.1 | 7.3 | 7.0 | |||||||||||||||
| Services | 8.1 | 6.1 | 5.0 | 6.5 | 5.4 | |||||||||||||||
| Others | 3.7 | 5.1 | 3.9 | 4.8 | 4.2 | |||||||||||||||
Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | |||||||||||||||
CLIENT DATA
| Quarter ended | ||||||||||||
| Sept 30, 2004 | June 30, 2004 | Sept 30, 2003 | ||||||||||
| Active Clients | 431 | 419 | 347 | |||||||||
| Added during the quarter | 32 | 29 | 29 | |||||||||
| Number of million dollar clients* | 146 | 141 | 119 | |||||||||
| Number of 5 million+ dollar clients* | 60 | 53 | 40 | |||||||||
| Number of 10 million+ dollar clients* | 31 | 27 | 22 | |||||||||
| Number of 20 million+ dollar clients* | 16 | 15 | 10 | |||||||||
| Number of 30 million+ dollar clients* | 10 | 8 | 5 | |||||||||
| Number of 40 million+ dollar clients* | 7 | 5 | 3 | |||||||||
| Number of 50 million+ dollar clients* | 3 | 3 | — | |||||||||
| Clients accounting for >5% of revenue | 1 | 1 | 1 | |||||||||
| Revenue – top client | 5.5 | % | 5.3 | % | 6.6 | % | ||||||
| Revenue – top 5 clients | 21.6 | % | 21.6 | % | 24.6 | % | ||||||
| Revenue – top 10 clients | 34.7 | % | 34.3 | % | 37.9 | % | ||||||
| Repeat business | 96.3 | % | 98.5 | % | 95.7 | % | ||||||
| Account receivables – LTM (in days) | 58 | 58 | 51 | |||||||||
“LTM” - Last Twelve Months
* LTM Revenues
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| Fact Sheet – Consolidated Financial Data, Second Quarter, 2004-05 | |
EFFORT AND UTILIZATION
| Quarter ended | ||||||||||||
| Sept 30, 2004 | June 30, 2004 | Sept 30, 2003 | ||||||||||
Effort | ||||||||||||
| Onsite | 27.7 | % | 29.4 | % | 29.9 | % | ||||||
| Offshore | 72.3 | % | 70.6 | % | 70.1 | % | ||||||
Revenue | ||||||||||||
| Onsite | 49.8 | % | 51.9 | % | 51.7 | % | ||||||
| Offshore | 50.2 | % | 48.1 | % | 48.3 | % | ||||||
Utilization | ||||||||||||
| Including trainees | 71.4 | % | 73.4 | % | 73.6 | % | ||||||
| Excluding trainees | 81.0 | % | 79.7 | % | 84.0 | % | ||||||
PERSON MONTHS DATA
| Quarter ended | ||||||||||||
| Sept 30, 2004 | June 30, 2004 | Sept 30, 2003 | ||||||||||
| Billed – Onsite | 17,358 | 16,211 | 11,875 | |||||||||
| – Offshore | 45,375 | 38,894 | 27,778 | |||||||||
TOTAL | 62,733 | 55,105 | 39,653 | |||||||||
| Non Billable | 14,755 | 14,061 | 7,558 | |||||||||
| Trainees | 10,389 | 5,901 | 6,676 | |||||||||
| Sales & Support | 4,964 | 4,652 | 4,283 | |||||||||
TOTAL | 92,841 | 79,719 | 58,170 | |||||||||
EMPLOYEE METRICS
| Quarter ended | ||||||||||||
| Sept 30, 2004 | June 30, 2004 | Sept 30, 2003 | ||||||||||
| Total Employees | 32,949 | 27,939 | 20,158 | |||||||||
| S/W professionals | 30,922 | 26,028 | 18,580 | |||||||||
Billable | 24,977 | 23,761 | 15,988 | |||||||||
Banking Product Group | 838 | 685 | 501 | |||||||||
Trainees | 5,107 | 1,582 | 2,091 | |||||||||
| Sales & Support | 2,027 | 1,911 | 1,578 | |||||||||
| Gross Addition | 6,078 | 3,233 | 2,851 | |||||||||
| Net Addition | 5,010 | 2,305 | 2,181 | |||||||||
| Lateral Employees | 1,052 | 746 | 338 | |||||||||
| Attrition % (LTM) * | 10.8 | % | 10.9 | % | 9.1 | % | ||||||
“LTM” - Last Twelve Months
* Excluding subsidiaries
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| Fact Sheet – Consolidated Financial Data, Second Quarter, 2004-05 | |
INFRASTRUCTURE (as on Sept 30, 2004)**
| 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 | 1,863,836 | 11,262 | 471,000 | 2,000 | 0.90 | |||||||||||||||
| Pune | 589,647 | 3,626 | 309,000 | 2,500 | ||||||||||||||||
| Chennai | 496,317 | 2,906 | 308,000 | 2,470 | ||||||||||||||||
| Hyderabad | 462,000 | 2,865 | 454,000 | 1,215 | ||||||||||||||||
| Bhubaneshwar | 284,000 | 2,000 | 230,000 | 1,250 | ||||||||||||||||
| Mangalore | 198,000 | 1,240 | — | 160 | ||||||||||||||||
| Mysore (including ILI)* | 1,104,450 | 1,484 | 1,362,900 | 1,450 | ||||||||||||||||
| Mohali | 21,000 | 200 | 3,30,000 | 3,100 | 20.00 | |||||||||||||||
| Trivandrum | 22,000 | 220 | 22,000 | 220 | ||||||||||||||||
Total | 5,041,250 | 25,803 | 3,486,900 | 14,365 | 20.90 | |||||||||||||||
| * | Infosys Leadership Institute | |||
| ** | Excluding subsidiaries | |||
CONSOLIDATED IT SERVICES
| Sept 30, 2004 | June 30, 2004 | Sept 30, 2003 | ||||||||||
Effort – Services (Person months) | ||||||||||||
| Onsite | 17,267 | 16,118 | 11,873 | |||||||||
| Offshore | 37,574 | 32,592 | 24,499 | |||||||||
Revenue – Services ($ million) | ||||||||||||
| Onsite | 188.03 | 172.69 | 129.72 | |||||||||
| Offshore | 170.29 | 146.65 | 110.20 | |||||||||
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Fact Sheet – Consolidated Financial Data, Second Quarter, 2004-05 Reconciliation of accounts as per Indian GAAP and US GAAP | |
in Rs. Crore
| Quarter ended | Year ended | |||||||||||
| Sept 30, 2004 | Sept 30, 2003 | March 31, 2004 | ||||||||||
Consolidated Net Profit as per Indian GAAP | 447.37 | 300.98 | 1,243.63 | |||||||||
| Amortization of deferred stock compensation | — | (4.90 | ) | (12.87 | ) | |||||||
| Deferred taxes | 0.35 | (1.30 | ) | (5.05 | ) | |||||||
| Gain on forward foreign exchange contracts | — | 3.50 | 16.01 | |||||||||
| Amortization of Intangibles | (1.17 | ) | — | (1.19 | ) | |||||||
| Others | — | (1.50 | ) | (6.05 | ) | |||||||
Consolidated Net income as per US GAAP | 446.55 | 296.78 | 1,234.48 | |||||||||
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 market value as determined by the quoted market prices of the common stock on the grant date.
Gain on forward exchange contracts
Until April 1, 2004, Indian GAAP required the premium/discount on forward contract to be recognized as income or expenditure over the life of the related contract. 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. Effective April 1, 2004, the company changed its accounting policy in India in line with the revised Accounting Standard 11 on forward contracts and hence the company has decided to account for the forward exchange contracts based on their designation as ‘effective hedges’ or ‘not effective’.
Amortization of Intangibles
US GAAP requires the purchase price in business combination transactions to be allocated to identifiable assets and liabilities, including intangible assets. Intangible assets are to be amortized over the estimated useful life. The amortization relates to that of an intangible asset identified in allocation of the purchase price of Expert Information Services Pty Limited, Australia.
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