Report for the third quarter ended December 31, 2005
Infosys Technologies Limited Regd. Office : Electronics City Hosur Road , Bangalore 560 100, India Tel : 91 80 2852 0261 Fax : 91 80 2852 0362 |
Letter to the shareholder
Dear Shareholder,
Nandan M. Nilekani | S. Gopalakrishnan | ||
Bangalore | Chief Executive Officer,President and Managing Director | Chief Operating Officer and Deputy Managing Director |
Select Financial Data (Consolidated) - as per Indian GAAP
Profit and Loss Account for the Quarter ended
| Dec 31, 2005 | Dec 31, 2004 | Year-on-year Growth (%) | Sep 30, 2005 | Sequential Growth (%) |
Income from software services, products and |
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business process management | 2,532 | 1,876 | 35.0 | 2,294 | 10.4 |
Software development and business process management expenses | 1,327 | 992 | 33.8 | 1,212 | 9.5 |
Gross profit | 1,205 | 884 | 36.3 | 1,082 | 11.4 |
Selling, general and administrative expenses |
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Selling and marketing expenses | 158 | 117 | 35.0 | 149 | 6.0 |
General and administration expenses | 186 | 149 | 24.8 | 199 | (6.5) |
| 344 | 266 | 29.3 | 348 | (1.1) |
Operating profit before interest, depreciation, amortization and minority interest | 861 | 618 | 39.3 | 734 | 17.3 |
Interest | - | - | - | - | - |
Depreciation and amortization | 117 | 74 | 58.1 | 96 | 21.9 |
Operating profit after interest, depreciation, amortization and before minority interest | 744 | 544 | 36.8 | 638 | 16.6 |
Other income | (5) | 46 | (110.9) | 44 | (111.4) |
Provision for investments | - | - | - | 1 | - |
Net profit before tax and minority interest | 739 | 590 | 25.3 | 681 | 8.5 |
Provision for taxation* | 83 | 93 | (10.8) | 69 | 20.3 |
Net profit after tax and before minority interest | 656 | 497 | 32.0 | 612 | 7.2 |
Minority interest | 7 | - | - | 6 | 16.7 |
Net profit after tax and minority interest | 649 | 497 | 30.6 | 606 | 7.1 |
Earnings per share |
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(Equity shares, par value Rs. 5/- each) |
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Basic | 23.68 | 18.50 | 28.0 | 22.26 | 6.4 |
Diluted | 23.02 | 17.95 | 28.2 | 21.63 | 6.4 |
* The tax provision for the quarter ended Sep 30, 2005 includes Rs. 20 crore written back upon completion of assessment in an overseas tax jurisdiction.
| Dec 31, 2005 | Mar 31, 2005 |
Shareholders' funds | 7,312 | 5,225 |
Minority interest | 60 | - |
Preference shares issued by subsidiary | - | 94 |
| 7,372 | 5,319 |
Fixed assets and capital work-in-progress | 2,096 | 1,574 |
Investments | 2,205 | 1,211 |
Sundry debtors | 1,394 | 1,322 |
Cash and bank balances | 1,694 | 1,576 |
Deferred tax assets | 57 | 45 |
Other current assets net of current liabilities and provisions | (74) | (409) |
| 7,372 | 5,319 |
| Dec 31 2005 | Dec 31, 2004 | Year-on-Year | Sept 30, 2005 | Sequential |
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| Growth (%) |
| Growth(%) |
Revenues | 559 | 423 | 32.2 | 524 | 6.7 |
Cost of revenues | 319 | 241 | 32.4 | 297 | 7.4 |
Gross profit | 240 | 182 | 31.9 | 227 | 5.7 |
Operating expenses |
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Selling and marketing expenses | 35 | 26 | 34.6 | 35 | - |
General and administrative expenses | 41 | 34 | 20.6 | 46 | (10.9) |
Total operating expenses | 76 | 60 | 26.7 | 81 | (6.2) |
Operating income | 164 | 122 | 34.4 | 146 | 12.3 |
Other income, net | (1) | 11 | (109.1) | 9 | (111.1) |
Income before income taxes and minority interest | 163 | 133 | 22.6 | 155 | 5.2 |
Provision for income taxes* | 18 | 21 | (14.3) | 16 | 12.5 |
Income before minority interest | 145 | 112 | 29.5 | 139 | 4.3 |
Minority interest | 2 | - | - | 1 | 100.0 |
Net income | 143 | 112 | 27.7 | 138 | 3.6 |
Earnings per equity share ($) |
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Basic | 0.53 | 0.42 | 26.2 | 0.51 | 3.9 |
Diluted | 0.51 | 0.40 | 27.5 | 0.49 | 4.1 |
| Dec 31, 2005 | Mar 31, 2005 |
Cash and cash equivalents | 477 | 410 |
Investments in liquid mutual fund units | 492 | 278 |
Trade accounts receivable, net of allowances | 310 | 303 |
Property plant and equipment - net | 457 | 352 |
Total assets | 1,862 | 1,454 |
Preferred stock of subsidiary | - | 21 |
Minority interests | 13 | - |
Total stockholders' equity | 1,639 | 1,253 |
| Quarter ended | ||
| Dec 31, 2005 | Dec 31, 2004 | Sep 30, 2005 |
Software development expenses / total income (%) | 52.41 | 52.88 | 52.83 |
Gross profit / total income (%) | 47.59 | 47.12 | 47.17 |
Selling, general and administrative expenses / total income (%) | 13.59 | 14.18 | 15.17 |
Operating profit / total income (%) | 34.00 | 32.94 | 32.00 |
Tax / Profit before tax (%) | 11.23 | 15.76 | 10.13 |
Days Sales Outstanding (DSO) | 57 | 58 | 59 |
Cash and cash equivalents / total assets (%)* | 52.86 | 49.46 | 58.26 |
ROCE (PBIT / average capital employed) (%) (LTM) | 43.16 | 45.61 | 46.99 |
Return on average invested capital (%)* (LTM) | 87.43 | 97.56 | 98.42 |
LTM - Last Twelve Months
- Indian GAAP - Standalone :
1. Audited Balance Sheet, Profit & Loss Account, Cash Flow Statement, Schedules and Notes on Accounts for the quarter and nine months ended
December 31, 2005, and the related Auditors' Report2. At a glance and
3. Ratio Analysis
- Indian GAAP - Consolidated :
Audited Balance Sheet, Profit & Loss Account, Cash Flow Statement, Schedules and Notes on Accounts for the quarter and nine months ended December 31, 2005 and the related Auditors' Report
- US GAAP :
1. Quarterly Report on Form 6-K for the quarter ended December 31, 2005 filed with the United States Securities and Exchange Commission, including the US GAAP Financial Statements, Management's Discussion and Analysis of Financial Condition and Results of Operations, and Risk Factors and
2. At a glance
- Shareholder Information
- Addresses of offices and subsidiaries