Net sales for the september quarter stands at Rs. 3862 crores against Rs. 3273 last year september quarter. That is up 18% on YoY basis.
It is up 8% on QoQ bais.
Net profit for the period stands at Rs. 1074 crores which is 20% up on YoY basis and 4.5% on QoQ basis.
Definetely the rupee hurting a lot.
Stock now trading at Rs. 1995 down 6% from yesterday.
TTM EPS stands at Rs. 73 which is discounted 27 times at CMP.
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Notes on the results
Expenditure Includes
Software Development expenses Rs 21730.00 million
Selling and marketing expenses Rs 1980.00 million
General and administration expenses Rs 2490.00 million
Other Information
For the Quarter ended September 30, 2007
a. Staff Cost Rs 19460.00 million
Items exceeding 10% of aggregate expenditure --
b. Details of Other Income
- Interest on deposits with banks and others Rs 1360.00 million
- Dividends on Investment in liquid mutual funds Rs 40.00 million
- Miscellaneous Income Rs 60.00 million
- Exchange differences Rs (30.00)million
Total (b) Rs 143.00 million
EPS is Basic
Status of Investor Complaints for the quarter ended September 30, 2007
Complaints Pending at the beginning of the quarter Nil
Complaints Received during the quarter 282
Complaints disposed off during the quarter 282
Complaints unresolved at the end of the quarter Nil
Total public shareholding as defined under Clause 40A of the listing agreement (excludes shares held by founders and American Depositary Receipt holders)
1. The audited financial statements have been taken on record by the Board of Directors at its meeting held on October 11, 2007. There are no qualifications in the auditors’ reports for these periods. The information presented above is extracted from the audited financial statements as stated.
2. An interim dividend of Rs. 6.00 per share (120% on an equity share of par value of Rs. 5/-) has been declared at the above board meeting. The record date for the payment of the dividend will be October 19, 2007. The interim dividend declared in the previous year was Rs. 5.00 per share (100% on an equity share of par value of Rs. 5/-).
3. The tax provision for the half-year ended September 30, 2007 and for fiscal 2007 included a reversal of Rs. 510 million and Rs 1250 million respectively relating to the liabilities no longer required for taxes payable in various overseas jurisdictions on the expiry of the limitation period and the completion of the assessment by taxation authorities.
4. ASB Guidance on Implementing AS 15, Employee Benefits (revised 2005) states that benefits involving employer established provident funds, which require interest shortfalls to be recompensed, are to be considered as defined benefit plans. Pending the issuance of the guidance note from the Actuarial Society of India, the Company’s actuary has expressed an inability to reliably measure provident fund liabilities. Accordingly the Company is unable to exhibit the related information.
5. Effective July 01, 2007 the Company revised the employee death benefits provided under the gratuity plan, and included all eligible employees under a consolidated term insurance cover. Accordingly, the obligations under the gratuity plan reduced by Rs 370 million, which has been amortized on a straight line basis to the profit and loss account over 10 years representing the average future service period of employees.
6. Pursuant to the changes in the Indian Income Tax Act, the Company has calculated its tax liability after considering Minimum Alternate Tax (“MAT”). This has not resulted in an additional tax expense as MAT can be set off against the future tax liability. Accordingly, Rs. 370 million is carried as “Loans and Advances” in the balance sheet as of September 30, 2007.
7. The Finance Act 2007 included Fringe Benefit Tax (“FBT”) on Employees’ Stock Option Plan. FBT liability crystallizes on the date of exercise of stock options. During the half-year ended September 30, 2007, no stock options have been exercised.
8. The final dividend of Rs. 6.50 per share (130% on an equity share of par value of Rs. 5/-) for fiscal 2007 was approved by the shareholders at the Annual General Meeting held on June 22, 2007 and paid on June 23, 2007.
9. During the half-year ended September 30, 2007 there were no exercise of options. During the half-year ended September 30, 2006 the Company issued 46,75,041 equity shares, pursuant to the exercise of stock options by certain employees under the 1998 and 1999 stock option plans.
Matters relating to subsidiaries:
Infosys BPO:
10. As at September 30, 2007 the Company’s holding in Infosys BPO is 98.92%. The Company has committed to a deferred share purchase with the shareholders of Infosys BPO. As per the agreement, Infosys will purchase 3,60,417 Infosys BPO shares for Rs. 220 million by February 2008, which is to be accounted as an investment on conclusion of the agreement along with the transfer of title in the shares. Upon conclusion, Infosys’ holding in Infosys BPO would be 99.98%.
Other subsidiaries:
11. During the half-year ended September 30, 2007, the Company invested US$ 20 million (Rs 810 million) in its wholly owned subsidiary Infosys Consulting, Inc. As of September 30, 2007, the Company has invested an aggregate of US$ 40 million (Rs. 1700 million) in the subsidiary.
12. On June 20, 2007 the Company incorporated a wholly owned subsidiary, Infosys Technologies S. DE R.L. de C.V. in Mexico (“Infosys Mexico”). Additionally on August 1, 2007 the company invested Mexican Peso 10 million (Rs 40 million) in Infosys Mexico, which is the aggregate invested amount as at September 30, 2007.
13. During the half-year ended September 30, 2007, the Company disbursed a loan of US$ 3 million (Rs. 110 million) to its wholly owned subsidiary, Infosys Technologies (China) Co. Ltd. The loan is repayable within five years from the date of disbursement at the discretion of the subsidiary. As of September 30, 2007 the Company has invested US$ 10 million (Rs. 460 million) as equity capital and US$ 8 million (Rs 330 million) as loan in the subsidiary.
Board of Directors:
14. Effective June 22, 2007 the following changes were made to the senior management of the Company:
Mr. Nandan M Nilekani assumed the role of the Co-Chairman of the Board
Mr. S Gopalakrishnan assumed the role of the Chief Executive Officer and Managing Director
Mr. S D Shibulal assumed the role of the Chief Operating Officer
S D Shibulal
Chief Operating Officer
S Gopalakrishnan
Chief Executive Officer and Managing Director