Infosys Limited (INFY) 6-K Letter to the shareholder

At a glance - Indian GAAP (Non-consolidated financials)

in Rs. crore, except per share data

	Quarter ended		Year ended
	June 30, 2006	June 30, 2005	March 31, 2006
For the period
Income	2,867	1,967	9,028
Operating profit (PBIDTA)	874	647	2,989
Operating profit/ total income (%)	30.48%	32.89%	33.11%
Profit after tax (PAT) and before exceptional item	799	523	2,421
PAT and before exceptional item/ total income (%)	27.87%	26.59%	26.82%
Profit after tax (PAT) and exceptional item	805	523	2,421
PAT and exceptional item/ total income (%)	28.08%	26.59%	26.82%
Earnings per share ( par value Rs. 5/- each, fully paid)*
Before exceptional items
Basic	28.89	19.33	88.67
Diluted	28.22	18.79	86.20
After exceptional items
Basic	29.13	19.33	88.67
Diluted	28.45	18.79	86.20
Capital Expenditure	178	248	1,048
Dividend per share	NA	NA	45
Dividend amount	NA	NA	1,238
At the end of the period
Total assets	7,828	5,865	6,897
Fixed assets - net	2,214	1,667	2,133
Cash and cash equivalents (including liquid mutual funds)	3,160	3,108	4,463
Net current assets	3,283	2,734	3,832
Debt	-	-	-
Net worth	7,828	5,865	6,897
Equity	138	136	138
Market capitalization	85,239	64,008	82,154

Note:
The figures above are based on unconsolidated Indian GAAP financial statements.
* Not adjusted for issue of 1:1 bonus shares, as the record date for issue of bonus is July 14, 2006.
Market capitalization is calculated by considering the share price at National Stock Exchange of India Limited on the shares outstanding at the period / year end.

Ratio analysis as per Indian GAAP (Non-consolidated)

	Quarter ended		Year ended
	June 30, 2006	June 30, 2005	March 31, 2006
Ratios- Financial Performance
Software development expenses / total revenue (%)	56.33	54.10	54.13
Gross profit / total revenue (%)	43.67	45.90	45.87
Selling and marketing expenses / total revenue (%)	5.82	6.04	5.53
General and administration expenses / total revenue (%)	7.36	6.96	7.23
SG&A expenses / total revenue (%)	13.18	13.00	12.76
Aggregate employee costs / total revenue (%)	48.94	46.44	47.29
Operating profit / total revenue (%)	30.48	32.91	33.12
Depreciation and amortization / total revenue (%)	3.38	3.80	4.53
Operating profit after depreciation and Interest / total revenue (%)	27.10	29.11	28.58
Other income / total revenue (%)	4.50	1.54	1.59
Profit before tax and exceptional items / total revenue (%)	31.50	30.65	30.17
Tax / total revenue (%)	3.63	4.02	3.36
Tax / PBT (%)	11.52	13.10	11.12
PAT before exceptional items / total revenue (%)	27.87	26.63	26.82
Ratios- Growth (%)
Overseas revenue	47	32	32
Total revenue	46	34	32
Operating profit	35	32	29
Net Profit ( before exceptional items)	53	33	30
Basic EPS ( before exceptional items)	49	31	28
Data - Per-share (period end)
Basic EPS (before exceptional items) (Rs.)	28.89	19.33	88.67
Basic EPS (after exceptional items) (Rs.)	29.13	19.33	88.67
Basic cash EPS ( before exceptional items) (Rs.)	32.42	22.09	103.67
Basic cash EPS (after exceptional items) (Rs.)	32.63	22.09	103.67
Book value (Rs.)	283.20	216.43	250.29
Price / earning ( LTM) **	31.56	32.14	33.62
Price / cash earnings ( LTM) **	27.21	28.00	28.76
Price / book value **	10.87	10.90	11.91
PE / EPS growth **	0.64	1.04	1.20
Dividend per share (Rs.)	-	-	15
Ratios - Return
PAT before exceptional items / average net worth (%) (LTM)	39.38	41.45	39.89
ROCE (PBIT/Average capital employed) (%) (LTM)	44.17	48.53	44.89
Return on average invested capital (%)(LTM)*	69.85	86.75	93.96
Capital output ratio (LTM)	1.45	1.53	1.49
Invested capital output ratio (LTM)*	2.67	3.31	3.74
Ratios - Balance sheet
Debt-equity ratio	-	-	-
Day's sales outstanding ( Days) (LTM)	65	58	61
Current ratio	4.26	3.40	2.73
Cash and cash equivalents / total assets (%)*	40.37	52.99	64.71
Cash and cash equivalents / total revenue (%) (LTM)*	31.83	42.25	49.44
Capital expenditure / total revenue (%) (LTM)	9.86	12.18	11.61
Depreciation and amortization / average gross block (%) (LTM)	15.78	14.59	16.30
Technology investment / total revenue (%) (LTM)	3.45	4.20	3.69

* Investments in Liquid funds have been considered as Cash & Cash equivalents for the purpose of above ratio analysis
** Before exceptional items
Ratios above are not adjusted for issue of 1:1 bonus shares, as the record date for issue of bonus shares is July 14, 2006
LTM: Last Twelve Months

At a glance - US GAAP

(Dollars in millions except per share data)

	Three months ended June 30,		Year ended March 31,
	2005	2006	2006
For the period
Revenues	$476	$660	$2,152
Operating income	$133	$170	$599
Operating income/revenues (%)	27.9%	25.8%	27.8%
Net income	$122	$174	$555
Net income/ revenues (%)	25.6%	26.4%	25.8%
Basic earnings per equity share ($) (1)	$0.45	$0.63	$2.04
Cash dividend per equity share ($) (1), (2)	$0.15	$0.84	$0.29
Capital expenditure	$58	$42	$246
At the end of the period
Total assets	$1,557	$1,938	$2,066
Property, plant and equipment- net	$392	$496	$491
Cash and cash equivalents	$444	$392	$889
Investment in liquid mutual fund units	$307	$358	$170
Working capital	$940	$1,062	$1,300
Stockholders' equity	$1,369	$1,725	$1,837
Common stock (1)	$31	$31	$31
Market capitalization (3)	$14,711	$18,583	$18,470

Note:
(1) Basic earnings per equity share, cash dividend per equity share and common stock for June 2006 are not adjusted for stock split.
(2) Cash dividend for the three months ended June 30, 2006 includes a silver jubilee special dividend of $0.65 per equity share paid in June 2006.
(3) Market capitalization is calculated by considering the share price at National Stock Exchange of India Limited on the shares outstanding at the period / year end.

Shareholder information

1. Registered office	Electronics City, Hosur Road, Bangalore 560 100, India Tel.: +91-80-2852-0261, Fax: +91-80-2852-0362 Homepage: www.infosys.com
2. Listing on stock exchanges	In India  : The Bombay Stock Exchange Limited (BSE), and National Stock Exchange of India Ltd. (NSE) Outside India: NASDAQ National Market in the US.
3. Par value of equity shares	Rs. 5/- each fully paid-up
4. Registrar and share transfer agent	Share transfers in physical form and other communication regarding share certificate, dividends, change of address, etc. may be addressed to : Karvy Computershare Private Limited, Registrars and Share Transfer Agents; 46, Avenue-4, Street No. 1, Banjara Hills, Hyderabad-500 034 Tel.: +91-40-23431595, Fax: +91-40-23420814

5. Stock market data relating to shares listed in India

a. The company's market capitalization is included in the computation of the BSE-30 Sensitive Index (Sensex), the BSE Dollex and S&P CNX NIFTY Index.
b. Monthly high and low quotations as well as the volume of shares traded at BSE and NSE for the quarter ended June 30, 2006 are:

	BSE			NSE			Total
	High*	Low*	Volume	High*	Low*	Volume	Volume
	Rs.	Rs.	Nos	Rs.	Rs.	Nos	Nos
April, 2006	3,335.30	3,020.80	63,64,377	3,336.00	3,018.85	2,59,46,145	3,23,10,522
May	3,255.20	2,826.55	43,60,424	3,256.25	2,823.70	1,86,78,224	2,30,38,648
June	3,077.55	2,483.50	55,38,709	3,078.95	2,485.20	2,24,72,567	2,80,11,276
For the period	3,335.30	2,483.50	1,62,63,510	3,336.00	2,485.20	6,70,96,936	8,33,60,446
Volume traded to average shares outstanding (%) *
Quarter ended June 30, 2006			6.82%			28.15%	34.97%
Quarter ended June 30, 2005			7.90%			28.65%	36.55%

* High / Low price not adjusted for bonus.
The number of shares outstanding is 23,83,20,179. American Depositary Shares (ADSs) have been excluded for the purpose of this calculation.

6. Share transfer system

Shares sent for physical transfer are effected after giving a notice of 15 days to the seller for sale confirmation. The share transfer committee of the company meets as often as required.
The total number of shares transferred in physical form during the quarter ended June 30, 2006 was Nil (quarter ended June 30, 2005 - 1,200).

7. Investor services - Complaints Received

	Quarter ended
Nature of complaints	June 30, 2006		June 30, 2005
	Received	Attended to	Received	Attended to
Dividend Related	151	151	31	31

The company has attended to most of the investors' grievances/correspondences within a period of 10 days from the date of receipt of the same, during the quarter ended June 30, 2006 except in cases that are constrained by disputes or legal impediments.

8. Legal Proceedings

There are some pending cases relating to disputes over title to shares, in which the company has been made a party. However, these cases are not material in nature.

9. Categories of shareholders as on June 30, 2006

Category	No. of shareholders	Voting strength (%)	No. of shares held
PROMOTER HOLDING
Indian promoters	79	19.40	5,37,20,717
NON PROMOTER HOLDING
Institutional investors
Mutual funds	207	3.92	1,08,17,013
Banks, financial institutions and insurance companies	60	3.27	90,29,321
Foreign institutional investors	562	35.50	9,82,80,123
Others
Private corporate bodies	3,916	1.70	47,09,975
Indian public	3,58,111	17.25	4,77,62,532
Non resident Indians/ overseas corporate bodies	4,764	4.47	1,23,91,493
Trusts	47	0.52	14,48,423
Foreign Nationals	5	0.00	19,762
Clearing Members	539	0.05	1,40,820
Equity shares underlying American Depository Shares*	2	13.92	3,85,22,997
Total of non promoter holding	3,68,213	80.60	22,31,22,459
Total	3,68,292	100.00	27,68,43,176

* Held by beneficial owners outside India.

10. Financial calendar (tentative and subject to change)

Financial results

Quarter ending September 30, 2006	Oct 11, 2006
Interim dividend, if any	Nov 2007
Quarter ending December 31, 2006	Jan 11, 2007
Quarter and Year ending March 31, 2007	Apr 13, 2007
Annual General Meeting for year ending March 31, 2007	Jun 2007

11. Investors' correspondence

For queries relating to financial statements:	For investor correspondence:	For queries relating to shares/dividends:
Mr. V. Balakrishnan,	Mr. Sandeep Mahindroo,	Mr. Parvatheesam K,
Chief Financial Officer;	Manager-Investor Relations ;	Company Secretary;
Infosys Technologies Limited	Infosys Technologies Limited,	Infosys Technologies Limited,
Electronics City , Hosur Road,	66-7, Kaiser Drive	Electronics City , Hosur Road,
Bangalore-560 100, India,	Fremont , CA 94555	Bangalore 561 100, India.
Tel.: +91-80-2852-0440.	Tel.: 001-510-739-3407,	Tel.: +91-80-2852-0261,
Fax: +91-80-2852-0754	Fax: 001-510-742 3090	Fax: +91-80-2852-0754
E-mail: balakv@infosys.com	E-mail: sandeep_mahindroo@infosys.com	E-mail: parvatheesam_k@infosys.com.

Stock exchange codes

Reuters Code	Telerate/Moneyline code	Bloomberg code
INFY.BO (BSE)	IN;INF (BSE)	INFO IN (BSE)
INFY.NS (NSE)	IN;INFN (NSE)	NINFO IN (NSE)
INFY.O (NASDAQ)	US;INFY (NASDAQ)

13. Stock market data relating to American Depositary Shares (ADSs)

a. ADS listed at :	NASDAQ National Market in the US
b. Ratio of ADS to equity shares:	One ADS for one equity share
c. ADS symbol :	INFY

d. The American Depositary Shares issued under the ADS program of the company were listed on the NASDAQ National Market in the US on March 11, 1999. The monthly high and low quotations as well as the volume of ADSs traded at the NASDAQ National Market for the quarter ended June 30, 2006 are:

	High*		Low*		Volume
	$	Rs.	$	Rs.
April 2006	84.78	3,803.23	74.98	3,363.60	2,24,53,510
May	82.42	3,809.45	68.69	3,174.85	1,85,93,553
June	76.41	3,504.92	65.71	3,014.11	2,15,99,868
For the period	84.78	3,803.23	65.71	3,014.11	6,26,46,931

Note: 1 ADS = 1 equity share. US$ has been converted into Indian rupees at the monthly closing rates. The number of ADSs outstanding as on June 30, 2006 was 3,85,22,997. The percentage of volume traded to the total float was 162.62% (Quarter ended June 2005 - 141.22%).

14. ECS mandate

The company has received complaints regarding non-receipt of dividend warrants. All shareholders are requested to update their bank account details with their respective depositories. This would enable the company to service its investors better.

15. Change of address

The company has received complaints regarding non-receipt of dividend warrants and other corporate communications. All shareholders are requested to update their current address with their respective depositories immediately. This would enable the company to service its investors better.

Infosys Technologies Limited United States Atlanta 400 Galleria Parkway Suite 1490 , Atlanta, GA 30339 Tel. : 1 770 980 7955 Fax : 1 770 980 7956 Bellevue 205 108th Avenue NE Suite 550, Bellevue, WA 98004 Tel. : 1 425 452 5300 Fax : 1 425 452 8440 Bridge Water 400 Crossing Boulevard Suite 101 , Bridge Water, NJ 08807 Tel. : 1 908 450 8200 Fax : 1 908 450 8201 Charlotte 900 West Trade Street Suite 750 Charlotte, NC 28202 Tel. : 1 704 264 1535 Fax : 1 704 264 1600 Detroit Suite 2850, 3000 Town Center, Southfield , MI 48075 Tel. : 1 248 208 3317 Fax : 1 248 208 3315 Fremont 6607 Kaiser Drive Fremont , CA 94555 Tel. : 1 510 742 3000 Fax : 1 510 742 3090 Lake Forest One Spectrum Pointe Suite 350 , Lake Forest , CA 92630 Tel. : 1 949 206 8400 Fax : 1 949 206 8499 Lisle 2300 Cabot Drive Suite 250, Lisle, IL 60532 Tel. : 1 630 482 5000 Fax : 1 630 505 9144 Phoenix 10851 N Black Canyon Fwy Suite 830 Phoenix, AZ 85029 Tel. : 1 602 944 4855 Fax : 1 602 944 4879 Plano 6100, Tennyson Parkway Suite 200, Plano, TX 75024 Tel. : 1 469 229 9400 Fax : 1 469 229 9598 Quincy Two Adams Place Quincy , MA 02169 Tel. : 1 781 356 3100 Fax : 1 781 356 3150 Reston 12021 Sunset Hills Road Suite 340, Reston, VA 20190 Tel. : 1 703 481 3880 Fax : 1 703 481 3889 Belgium Airport Boulevard Office Park Bessenveldstraat 25 1831-Diegem, Belgium Tel. : 32 2 716 4888 Fax : 32 2 716 4880 Canada 5140 Yonge Street Suite 1400 Toronto, Ontario M2N 6L7 Tel. : 1 416 224 7400 Fax : 1 416 224 7449	France 12 Avenue de I'Arche Faubourg de l'Arche 92419 Courbevoie Cedex Tel. : 33 1 46 91 84 56 Fax : 33 1 46 91 88 45 Germany Topas 1,Mergenthalerallee 77 65760 Eschborn / Frankfurt Tel. : 49 6196 9694 0 Fax : 49 6196 9694 200 Liebknechtstrasse 33 D-70565 Stuttgart Tel. : 49 711 7811 570 Fax : 49 711 7811 571 SAP Partner Port Office Altrottstr. 3, 69190 Walldorf Tel. : 49 6227 73 4350 49 6227 73 4351 Fax : 49 6227 73 4359 Hong Kong 16F Cheung Kong Centre 2 Queen's Road Central Central, Hong Kong Tel. : 852 2297 2231 Fax : 852 2297 0066 Italy Via Torino 2, 20123 Milano, Italy Tel. : 39 02 7254 6456 Fax : 39 02 7254 6400 Japan Izumi Garden Wing 2F 1-6-3, Roppongi, Minato-ku Tokyo 106 0032 Tel. : 81 3 5545 3251 Fax : 81 3 5545 3252 Mauritius 4th Floor, B Wing Ebène Cyber Towers Reduit, Mauritius Tel. : 230 401 9200 Fax : 230 464 1318 Sweden Stureplan 4C, 4tr 114 35, Stockholm, Sweden Tel. : 46 8 463 1112 Fax : 46 8 463 1114 Switzerland 1st Floor, Badenerstrasse 530 8048, Zurich Tel. : 41 43 817 4170 Fax : 41 43 817 4150 Geneva 1st Floor, Block G ICC, Route de Pré-Bois 20 Geneva 1215, Switzerland Tel. : 41 22 710 7980 Fax : 41 22 710 7989 The Netherlands Newtonlaan 115 3584 BH Utrecht Tel. : 31 30 210 6462 Fax : 31 30 210 6860 United Arab Emirates Y-45, P.O. Box 8230 Sharjah Airport International Free Zone (SAIF Zone) Sharjah Tel. : 971 6 5571 068 Fax : 971 6 5571 056 Czech Republic Zitna Street 1578/52 120 00 Prague 2 Czech Republic Tel. : 420 222 874 100 Fax : 420 222 874 110 United Kingdom Emerald House 15 Lansdowne Road Croydon, Surrey CR0 2BX Tel. : 44 208 774 3300 Fax : 44 208 686 6631 3rd Floor, 288 Bishops Gate London , EC2M 4QP Tel. : 44 207 959 3029 Fax : 44 207 959 3089	India Bangalore Electronics City , Hosur Road Bangalore 560 100 Tel. : 91 80 2852 0261 Fax : 91 80 2852 0362 Reddy Building K-310, 1st Main, 5th Block Koramangala Bangalore 560 095 Tel. : 91 80 2553 2591 91 80 2553 2592 Fax : 91 80 2553 0391 Bhubaneswar Plot No. E / 4, Info City Bhubaneswar 751 024 Tel. : 91 674 232 0032 Fax : 91 674 232 0100 Chennai No.138 Old Mahabalipuram Road, Sholinganallur Chennai 600 119 Tel. : 91 44 2450 9530 / 40 Fax : 91 44 2450 0390 Hyderabad Survey No. 210 Manikonda Village Lingampally, Rangareddy (Dist) Hyderabad 500 019 Tel. : 91 40 2300 5222 Fax : 91 40 2300 5223 Mahindra Industrial Park Special Economic Zone Mahindra City, Paranur Village, Chengalpet Dist. Chennai 603002 Tel. : 91 44 474 11111 91 44 474 10000 Fax : 91 41 14 5 15151 Mangalore  Kuloor Ferry Road , Kottara Mangalore 575 006 Tel. : 91 824 245 1485 / 88 Fax : 91 824 245 1504 Mohali B 100, Industrial Area Phase VIII, SAS Nagar Mohali 160 059 Tel. : 91 172 509 0510 91 172 223 7191 Fax : 91 172 223 7193 Chandigarh Ground Floor, Block A & B DLF Building , Plot 22-23, Rajiv Gandhi Chandigarh Technology Park Kishangarh, Mani Majra Chandigarh , PIN - 160101 Tel. : 0172 5021100 Fax : 0172 5046222 Mumbai 85, 'C', Mittal Towers 8th Floor, Nariman Point Mumbai 400 021 Tel. : 91 22 2284 6490 Fax : 91 22 2284 6489 Mysore No. 350, Hebbal Electronics City Hootagalli, Mysore 571 186 Tel. : 91 821 240 4101 Fax : 91 821 240 4200 New Delhi K30, Green Park Main Behind Green Park Market New Delhi 110 016 Tel. : 91 11 2651 4829 Fax : 91 11 2685 3366	Pune Plot No. 1 Rajiv Gandhi Infotech Park Hinjawadi, Taluka Mulshi Pune 411 057 Tel. : 91 20 2293 2800 Fax : 91 20 2293 2832 Plot No. 24, Rajiv Gandhi Infotech Park Phase-II, Village Man Taluka Mulshi Pune 411 057 Tel. : 91 20 3982 7000 Fax : 91 20 3982 8000 Thiruvananthapuram 3rd Floor, Bhavani, Technopark Thiruvananthapuram 695 581 Tel. : 91 471 270 0888 Fax : 91 471 270 0889 Subsidiaries Infosys Consulting, Inc. 6100, Tennyson Parkway Suite 200, Plano, TX 75024 Tel. : 1 972 770 0450 Fax : 1 972 770 0490 Infosys Technologies ( Australia) Pty. Limited Melbourne Level 2 & 3, 484, St. Kilda Road, Melbourne VIC 3004 Tel. : 61 3 9860 2000 Fax : 61 3 9860 2999 Level 18 & 25 150 Lonsdale Street Melbourne VIC 3000 Tel. : 61 3 8664 6100 Fax : 61 3 8650 6199 Sydney Level 4, 77 Pacific Highway North Sydney NSW 2060 Tel. : 61 2 8912 1500 Fax : 61 2 8912 1555 Infosys Technologies ( Shanghai) Co. Ltd. Bldg No. 24 & 25 Shanghai Pudong Software Park No. 498, Guoshoujing Road Pudong New Area Shanghai 201203 People's Republic of China Tel. : 86 21 5027 1588 Fax : 86 21 5080 2927 Bldg 18, Capital of Leaders, No.1387 Zhang Dong Road, Zhang Jiang Hi-Technology Park , Pudong New Area Shanghai 201203, People's Republic of China Tel. : 86 21 6105 5500 Fax : 86 21 6105 5501 Beijing 14th Floor, IBM Tower Pacific Century Place 2A Workers Stadium Road North Chaoyang District Beijing 100027 Tel. : 86 10 6539 1095 86 10 6539 1063 Fax : 86 10 6539 1060 Hangzhou 18F, Huarong Times Mansion, 3880 Jiangnan Avenue, Binjiang District Tel. : 0571 28992690 Fax : 0571 28992690	Progeon Limited Bangalore Plot No.26/ 3, 26/ 4 and 26/ 6 Electronics City, Hosur Road Bangalore 560 100 Tel. : 91 80 2852 2405 Fax : 91 80 2852 2411 27, SJR Towers Bannerghatta Road J. P. Nagar III Phase Bangalore 560 078 Tel. : 91 80 5103 2000 Fax : 91 80 2658 8676 Pune Plot No. 1, Building No. 4 Pune Infotech Park Hinjawadi, Taluka Mulshi Pune 411 057 Tel. : 91 20 2293 2900 / 22 Fax : 91 20 2293 4540 Bridgewater 400 Crossing Boulevard 1st Floor, Bridgewater NJ 08807, USA . Tel. : 1 908 450 8209 Fax : 1 908 842 0284 United Kingdom 14th Floor, 10 Upper Bank Street, Canary Wharf, London E14 5NP United Kingdom . Tel. : 44 20 7715 3388 Fax : 44 20 7715 3301 Toronto C/O Infosys Technologies Ltd 5140, Yonge Street Suite 1400 , Toronto ON M2N 6L7 Tel. : 416 224 7400 Fax : 416 224 7449 Melbourne Level 2&3, 484 St. Kilda Road Melbourne , VIC 3004 Tel. : 61 3 9860 2000 Fax : 61 3 9860 2999 Progeon S.R.O. Czech Republic 4th Floor, 26, 28 & 30 Masarykova Street Brno 60200, Czech Republic Tel. : 420 731 146 275 Fax : 420 543 236 349
			Bankers ICICI Bank Ltd. Bank of America Company Secretary K. Parvatheesam Auditors BSR & Co. Chartered Accountants Independent Auditors ( U.S. GAAP) KPMG	Visit Infosys at www.infosys.com Call us at within the U.S. 1 800 ITL INFO outside the U.S 91 80 2852 0261
			© 2006 Infosys Technologies Limited, Bangalore, India. Infosys acknowledges the proprietary rights in the trademarks and product names of other companies mentioned in the document.