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Infinite investor presentation March 2013 Presentation Transcript

  • 1. March 2013Copyright Infinite; 2013 1 Infinite Computer Solutions (India) Limited
  • 2. Company Profile: • Overview • Leadership Team • Major Customers • Recognitions • Management Profiles • Service Offerings • Journey • Global Presence • DifferentiatorsMarket Positioning:• Application Management Services • Product Engineering Solutions• Infrastructure Management Services • Mobility & Messaging Financial Overview Our Future – Infinite 2.0 2 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 3. Our Revenue Award & RecognitionsFY 2012 : US$ 221M | EBITDA: 17.4%4 Year Revenue CAGR at 27% EBITA CAGR at 47% Our Presence 16 Offices | 7 Delivery Centers Bangalore, Boston, Chennai, Hyderabad, New Delhi, Rockville, ChicagoOur Customers64 Active Customers,Long Standing Relationships with Fortune 1000Companies Our People 4655 Employees worldwide, 3200 in India 3 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 4. 2012-13 NASSCOM Ranks Infinite amongst top 20 players in IT Services. Launched Messaging product suite for the US public safety market, RCS & EMS Named Finalists in Network Products Guide’s 2012 Hot Companies and Best Products Awards | Finalist in the CTIA Emerging Technology Awards 2012.2009-10 | $141 MillionListed on BSE & NSESigned a strategic agreement for Messaging Platform with a Large Telecom OEM |Signed a strategic partnership deal with Global Tech-Support Provider | Won bidfor Uttrakhand R-APDRP | Acquired yet another Indian Textile Company as client2007-08 | $85 MillionAcquired Comnet International, a US-based Telecom Product Solutions co.Acquired Multiple Global Telecom OEMs, US Healthcare Company, GlobalFinancial Giant, Multiple Global Technology Giants, EMEA Division of a GlobalSI and Indian Textile Manufacturer as clients.2006-07• Recognized as one of the ‘Top 100 Global Outsourcing Professionals’ & ‘Top 10 Global Telecom Outsourcing Providers’ by International Association of Outsourcing Professionals (IAOP).2004-05• Inaugurated Whitefield campus in Bangalore. 2011-12 | $221 Million• Began operations in Malaysia and China. • Listed in ‘Forbes Asia 200 Best Under a Billion’.2002-03 2010-11 | $193 Million• Acquired Large US Information Services Provider & • Acquired Multiple Global 500 clients Global Industrial Conglomerate clients 2008-09 | $105 Million2001-02 • Setup development center in Gurgaon.• Inaugurated Bangalore Development Centre. • Set up India Global Delivery Center for a large• Began operations in USA. European SI 2005-061999-2000 • Commenced development center in Hyderabad.• Began operations in New Delhi• Acquired Large US Telecom SP & 2003-04 Global SI clients • Received funding of US$ 6 million from White Rock Investments (Mauritius) Limited. • Acquired Large US ISP client & Partnered with Indian Retail ERP co • Began operations in UK. 4 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 5. 5 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 6. Sanjay Govil: is the Founder and Chairman of Infinite. Sanjay worked for IBM and Verizon prior to founding Infinite in 99’. Sanjay has done BSEE from Auburn University and is a fellow of Wharton School of Business & a member of the Global CEO Advisory Council for the Wharton Fellows program. He is on the Board of Directors for Future of Advertising Project at the Wharton School of Business & was recently nominated to be a member of the Graduate Board for the Wharton School of Business. Sanjay remains involved in the community through his philanthropic activities. Upinder Zutshi: is the Managing Director and CEO of Infinite. Upinder has over 28 years of experience in initiating and establishing startups and building an efficient management team under his guidance. In his formative years, he has worked extensively in US, Europe, Middle East and India, with reputed companies holding key leadership positions. He has been instrumental in setting the vision for Infinite to be positioned as a Full Service Provider, vertically well integrated, thus, moving the Company up the value chain . He holds a Mechanical Engineering degree from BITS – Pilani. Sanjeev Gulati: heads our Finance function for India, Europe and the APAC regions as an SVP. With over two decades of experience, in accounting and finance, Sanjeev has expertise in internal audits, accounting and taxation. . He is also the Compliance officer at Infinite and is responsible for addressing all shareholder grievances. Sanjeev is a member of the Institute of Chartered Accountants of India and holds a Post Graduate Diploma in Business Management. Anurag Lal: As the CEO of Infinite Convergence, he leads the Mobility Solutions Practice. With over 20 years of leadership and operational experience in technology, IT and telecom services, he was SVP, Global Service Provider at Meru Network and Chief Business Development and Sales Officer at iPass Inc. prior to taking up his role at Infinite. He was appointed and served as a Director of the United States National Broadband Taskforce by the Obama administration. He holds a Bachelors of Arts degree in Economics from Delhi University and has attended the Senior Leadership Program at Harvard University’s John F. Kennedy School.6 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 7. USA - Maryland, Illinois, Tennessee & Chicago India- Bangalore, Chennai, Delhi, Gurgaon & Hyderabad; United Kingdom, Malaysia, China, Singapore & Hong Kong7 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 8. Customer Relationship Age What We Do For ThemGlobal SI 12 Years Application Management | Asset Management | Infrastructure ManagementLarge Telecom SP 12 Years Application Management Services | Infrastructure Management ServicesGlobal Telecom OEM 12 Years Product Engineering ServicesGlobal Telecom OEM 6 Years Product Engineering Services | Offshore Development Center, Platform, ProductHealthcare Provider 5 Years Application (Product) Development | Testing & Management; Product Rollout & ImplementationGlobal Telecom OEM 4 Years Next-Gen Messaging PlatformFinancial Services Provider 3 Years Product Development, Testing & Implementation | SOA Migration | Product Re –Architect | Business Intelligence & GatewayTech Support Provider 3 Years Tech SupportInformation Management 2 Years Security Services | Applications Management | Analytics Security ServicesServices CompanyMedia & Content Company 2 Years Application Lifecycle Management 8 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 9. • QA & Performance Engineering • Remote Infra. Management • SoA • Data Center Services • Agile • Network Management • Enterprise Analytics • Tech. Support Services • Cloud Enablement • Cloud Consulting • Enterprise Mobility • Managed Services • SMS & MMS Platform • Product Design • Rich Communication Suite • Development & Support of • Personal Messaging Cloud High Capacity; High Reliability • Enterprise Messaging Service Products – Five Nine Availability • Converged Messaging Platform • ATCA System Engineering for Scalable Platforms Infinite Service Offering Application Management | Infrastructure Management | Product Engineering | Mobility & Messaging Telecom | Healthcare | Energy & Utilities | Media & Content | Banking & Finance T & M | Managed T & M | Fixed Price | Revenue Sharing9 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 10. • Not the typical Indian IT Service Provider - US Based and Local Partner to US Client • Differentiated Income Model – Non-Conventional Business • Flexible Business Engagement Models – Revenue Share, Risk-Reward • Large Multinational Customers - Multi-year Multi-million Dollar Contracts • Strong Domain Knowledge - Intellectual Property Leveraged Solutions • Mission Critical Services – Partnership Model • Strong Profitability • Best-in-our-Class – Mid • Low gearing Sized player with Large • Positive Cash Complex Project Generator Experience for Fortune • No Bad Debts 100 and 500 clients • High Return Ratios • Retention rate of 85% • High Dividend Yield higher than industry policy average • High Promoter Holding • Rated 5th Best Employer • Revenue Visibility in India IDC-DQ10 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 11. Market PositioningCopyright Infinite; 2013 11 Infinite Computer Solutions (India) Limited
  • 12. • Infinite’s AMS business provides solutions for AMS Revenue growth in INR Cr. management, development & maintenance of CAGR 20% IT Applications for Fortune 500 and 1000 719 800 600 clients 498 600 400• The company’s areas of core expertise 200 include Enterprise Analytics, Service- 0 Oriented Architecture (SoA), Quality FY 10 FY 11 FY 12 Assurance (QA), & Performance Engineering along with Enterprise-Class Solutions • Infinite’s AMS revenue recorded a growth of 20% from Rs. 5.99 Billion 2010-11 to INR• AMS is focused on advanced technological 7.19 Billion in 2011-12 coupled with competencies, providing solutions across five Margin Growth derived from increased efficiency. growing industries – Telecom, Healthcare, Energy & Utilities, Media & Content, and • Proportion of Application Management Banking & Finance Services as a percentage of Total Revenue: 68% 12 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 13. 13 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 14. 14 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 15. Integrated Solutions Driven • Selected Industry Verticals • Growth – Healthcare, Media and Content, Telecom and Financial Services • High Value - Technology Solutions focusedStrengths Customer Engagement• High-end capabilities – SOA, MDM, Analytics, BI/DW, OSS/BSS • At the Customer…For the• Core to Customer – MMIS, RC 2.0, Payment Engine Customer…With the Customer• OSS/BSS Solution Architecture Design & Implementation • Delivery Engagement + Account• Legacy Migration/Transformation and Consolidation services Management – Two-in-a-box• Independent Verification & Validation • Assessment led…Solution based• OSS/BSS Products/Frameworks Development & Support 15 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 16. • Infinite’s IMS business helps Fortune 500 and IMS Revenue growth in INR Cr. 1000 clients manage their IT Assets to efficiently and effectively meet business CAGR 72% 165 200 objectives 150 110• Over the years, the company has not only developed world-class infrastructure across 100 56 delivery locations, but also gained strong 50 reference-backed experience in delivering 0 large-scale complex IMS projects for Fortune FY 10 FY 11 FY 12 100, 500 and 1000 clients worldwide.• Infinite’s Domain expertise spans a diverse set of systems and technologies that • Our IMS Business registered a revenue comprise enterprise IT infrastructure of growth of 49.5% from INR 114 Crore in organizations 2010-11 to INR 165 Crore in 2011-12• Infinite helps clients craft an IT Infrastructure • Infinite’s new offering iTaaS provides Management Strategy that can become a Remote Infrastructure Management sustainable competitive advantage by Services through a world class delivery allowing for faster time to market, enhanced platform providing tailor-made solutions customer and employee satisfaction enabling effective utilization of IT. 16 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 17. • Infinite offerings include Managed Services, Integrated Solutions and Flexible, Cloud-based offerings enabled by iTaaS• Our capabilities include on-site as well as Remote IT Infrastructure Management and Technical Support for enterprise, with specialized offerings to design, build, integrate, manage and evolve in the technology lifecycle• End-to-End Service portfolio with pro-active monitoring both onsite and remotely• Managing, Optimizing and Supporting diverse networks, devices, databases and applications across a global footprint 17 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 18. • Offering Shared Service Desk to cater to requirements from • Shared/Aggregated• Global Delivery the SMB/SME Services• Managed Services segment • Cloud Based Services• Enterprise Mobility • Technical Support /• Datacentre Services Shared Service Desk • Consulting • Managed Services & • Hosting Services Global Delivery for Large SI and Enterprises • Network Management, NoC • Network Management and Joint GTM for Services Infrastructure • NOC Management with • Mobility Services Large Network companies 18 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 19. • Infinite’s PES business leverages on our IP-Based Product Engineering Services Revenue-Share Model to help global customers rationalize product costs and move us from an IT 200 CAGR 27% 170 180 Vendor to an IT Partner. 150 112• The company focuses on providing IP Led 100 Solutions to Telecom OEMs/ISV, Telecom Service Providers, Content Distribution enterprises, 50 Healthcare Providers and Technology Companies 0 through the Revenue Share model FY 10 FY 11 FY 12• PES business is an evolution of our IP led business and contributed about 17% of our overall revenue in 2011-12• In FY 2011-12, we added 3 Tier 1 clients; tested and delivered end-to-end product development and services.• We created dedicated labs for customers to conduct detailed testing multi-vendor interoperability, automation and remote product testing. 19 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 20. Datacom: NGN/IMS: • Development & Testing • SIP, SIGTRAN, SS7, SCTP • L2/L3/L4/ Transport Networks • Service Provider, Enterprise • Service Provider & Enterprise Networks • Datacenter Products • Presence, Conferencing, • Application Engineering & Webportals Security • X CSCF, HSS, PCRF • Core, Provider & Access Wireless: NMS / EMS / OSS / BSS: • CDMA, GSM, Small Cell, • FCAPS Femto, LTE • Service Provider & Enterprise • Packet Voice Architecture • Development, Porting • MSC/HLR/HSS/OTAF • Testing & Migration • Enode B, SGW, PCRF, SGSN, • Cartriges, Adapters, Frameworks GGSN • Service Assurance, Revenue Assurance, Billing Optical: Messaging Infra: • Access, Transport, Core • SMSC, MMSC • SDH, SONET, DWDM • RCS, CMS • Merto, Aggregation • Highly Scalable, ACTA Compliant • IP, MPLS, PWE • Service Provider & Enterprise • Worldwide ImplementationDesign Development Testing Automation Porting Migration System Support Sustenance Support20 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 21. System Engineering Delivery Execution Infinite’s Advantage• Team Composed of highly • Architects driven teams • Skin in the Game experienced Telecom Industry professionals of product • Designed, Developed & Support • Business Models: background 99.999% reliable products. Revenue share | Cost plus | Risk• Developed UL/FCC compliant • Develop and support high reward adjunct products ground-up. capacity systems – 56K mobile handsets programming per • Reverse BoT• Built highly scalable SCP hour. • Strong expertise in product platform development • Support more than 10K• OATF for handset provisioning installations across NAR region. • IP Leveraged Solutions• VAS for IN / NG IN Platform • Sustenance support for more • Right sized company than 30+ Tier1 Service providers• ATCA System engineering for • Rebadging Expertise highly scalable platforms. • Capacity to add derivative streams to base product. • Full System Design Capabilities• End to End PDLC for Messaging product. • Anchor Customer based Growth• Product design and support for MSR21 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 22. • Infinite Convergence – was formed as a result of our strategic Mobility & Messaging alliance with Motorola (now Nokia Siemens Networks) with Infinite’s acquisition of Motorola’s messaging product solutions. Revenue Our messaging business is a natural evolution of our Product Growth 50% 150 Engineering expertise. 160 140 100• We have since modernized the platform to be compatible with 120 the Next-Gen Mobile platforms such as 4G and LTE. 100 80 60• We have launched multiple products based on our messaging 40 capability and technology that promise to take messaging into its 20 next phase of evolution. 0 –Infinite Rich Communications Suite (RCS) FY 10 FY 11 FY 12 –Infinite Enterprise Messaging Service (EMS) Infinite is a GSMA member, enabling our –Infinite Public Safety Messaging Center participation in a professional –Infinite Converged Messaging Server (CMS) association covering more than 220 countries and including 800 of the –Infinite Short Messaging Service Center (SMSC) world’s leading mobile operators –Infinite Multimedia Messaging Service Center (MMSC) –Infinite Personal Messaging Cloud* (PMC) – To be Launched 22 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 23. Source: Various industry reports and company estimates• 75% of global users use text • Over 5 billion subscribers messaging• Apps have been • Only 25% of mobile downloaded 10.9 billion phones are smart phones times • Aggressive carrier• 150 million mobile commitment to RCS to Facebook users, 1 out of 4 defend against OTT traffic users migration• 1 in 8 mobile subscribers • “G5” committed to RCS will use m-ticketing in 2015 launch in 2012/2013 for travel etc. • Strong growth in the enterprise messaging services business as more businesses develop a mobile strategy to improve loyalty and reduce costs. • The ubiquity of SMS and MMS makes messaging a key part of enterprise mobile strategy. • Enterprise Revenue Growth: -SMS revenue growth from $1,242M to $2,031M with CAGR of 37% -MMS revenue growth from $88M to $309M with CAGR of 13%23 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 24. 24 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 25. Utilizing a Channel Partner approach is the most cost effective and efficient way to build Revenueand Market presence for the Infinite Convergence business.Competition Acision (US Based) provides mobile messaging, powering messaging services for the mobile communications experience and caters to Carriers and Enterprises alike across 2G, 3G and LTE networks. Mavenir Systems (US Based) provides mobile infrastructure solutions for mobile operators covering LTE communications services through a portfolio of convergence solutions 25 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 26. Financial OverviewCopyright Infinite; 2013 26 Infinite Computer Solutions (India) Limited
  • 27. Return Efficiency (%)• Declared Dividend policy - 30% of PAT RoE – Declared dividend of Rs 8.5 per share in 45% 41% RoCE FY 12; Total amount – Rs. 36 Cr. 40% 35% 31% 31% – Paid Rs 3 in FY 11. 36% 30%• Completed buy back of 1.4 Million shares at average 25% 29% 20% 26% price of Rs 116.44 within 7 months of announcing the 15% buy back. Total amount Rs 16.3 Cr 10%• Free cash flow positive in 6 of the last 8 quarters. 5% 0% – Free cash flow of Rs 74 Crores in FY 12 – Cash & cash equivalent of Rs. 157 Cr FY 10 FY 11 FY 12 Revenue (USD Mn) Operating Margin (USD Mn) PAT (USD Mn) 50 CAGR 21% 40 CAGR 24% CAGR 25% 300 45 38 35 221 40 32 26 250 194 30 24 35 26 200 141 30 25 17 25 20 150 20 15 100 15 10 10 50 5 5 0 0 0 FY10 FY11 FY12 FY10 FY11 FY12 FY10 FY11 FY12 27 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 28. Share Price Movement (until Nov, 2012) Infinite Shareholding StructurePrice Data (As on Feb 18th, 2013)Face Value (INR) 10Market Price (INR) 109.9552 week H/L (INR) 167.00/ 66.00Market Cap (INR Mn) 4679.5Equity Shares Outstanding (Mn) 42,559,995Dividend Payout (%) 30% 28 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 29. Rs in Crore FY 10 FY 11 FY 12 YTD FY 13Revenue 664.3 883.28 1,055.80 1030.52Direct Expenses * 542.96 565.3 651.17 675.48GM 121.34 317.98 404.63 355.04SG & A 170.1 221.14 183.85EBITDA 121.34 147.88 183.49 171.19Forex gain / (loss) -8.33 1.89 6.18 -12.84Depreciation -6.56 -16.74 -32.85 -31.75Other income (excluding interest) 1.22 3.2 2 0.51Gain / (Loss) on sale of FA -0.49 -EBIT 107.66 136.24 158.33 127.11Interest income / (expense) -0.53 -0.61 2.36 3.36PBT 107.14 135.63 160.69 130.47Tax 23.13 28.45 39.99 29.53PAT 84 107.18 120.7 100.94 29 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 30. Rs in Crore st st th 31 Mar 31 Mar 30 Sep 31st Dec 2011 2012 2012 2012Sources of fundsEquity share capital 43.96 42.56 42.56 42.56Reserves 372.32 466.38 506.63 552.74Borrowings 51.56 59.13 83.21 64.81Deferred Tax liabilities 16.12 22.95 28.13 29.92Long Term Liabilities and Provisions 4.62 3.56 4.03 4.14Current Liabilities and Provisions 337.61 421.95 506.42 505.72Total Sources of Funds 826.19 1016.53 1170.98 1,199.88Application of fundsFixed Assets - Net (including goodwill) 228.17 279.94 302.53 320.06Deferred Tax Assets 13.52 20.04 23.1 21.85Non Current Investments 1 1.15 1.19 1.23Current Investments (Short Term Mutual Funds) 15.84 10.08 7.6 5.62Long Term Loans and Advances 12.6 21.39 18.34 22.53Current Assets 471.61 543.4 635.17 702.41Cash and Cash Equivalents 83.44 150.6 183.05 126.19Total Uses of Funds 826.19 1016.53 1170.98 1,199.88 - - - -Cash, Mutual Funds less Book Overdraft 156.54 187.42 127.4930 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 31. Rs in Crore FY 11 FY 12 FY 13 - Q1 FY 13 – Q2 FY 13 – Q3 Pre-Tax Profit 135.63 160.69 47.03 40.52 42.95 Depreciation 16.74 32.85 10.26 10.6 10.89 Other Adjustments -0.36 -6.88 -4.37 1.19 -0.85 Change in Working capital -28.77 -41 -9.21 -12.86 -36.86 Taxes Paid -23.29 -24.12 -18.48 -0.76 -12.78 Operating Cash Inflow 99.96 121.54 25.23 38.69 3.35 Capital Expenditure -102.9 -48.04 -20.15 -21.79 -17.99 Free Cash Flow -2.94 73.5 5.08 16.9 -14.64 Changes in Investments 59.68 5.67 2.11 0.38 1.98 Interest Received / Paid 1.5 5.46 1.45 1.62 2.93 Debt Raised/(Repaid) -12.75 13 10.79 13.11 -21.68 Capital Raised/(Repaid) - -16.3 - - - Dividend and Dividend Tax paid -15.38 -19.82 - -22.26 -29.68 Net change in cash 30.1 61.51 19.43 9.75 -61.09 Effect of Exchange Difference on -1.5 5.64 11.77 -8.5 4.24 translation of foreign currency Opening Cash 54.84 83.45 150.6 181.8 183.05 Closing Cash 83.44 150.6 181.8 183.05 126.231 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 32. Key Financial Ratios Key Financial Ratio Q1 FY 12 Q2 FY 12 Q3 FY 12 Q4 FY 12 Q1 FY 13 Q2 FY 13 Q3 FY 13 Gross Margin 39% 39% 40% 36% 36% 34% 34% SG & A to Revenue 21% 22% 20% 20% 19% 17% 17% EBITDA Margin 17% 17% 20% 16% 17% 17% 16% EBIT Margin 15% 16% 19% 10% 14% 11% 12% PBT to Revenue 15% 16% 20% 10% 15% 12% 12% PAT to Revenue 11% 12% 15% 8% 11% 9% 9% EPS - Basic in INR * 6.93 7.21 9.1 4.81 8.32 7.34 8.06Key Institutional Investors (8th February 2013) Key Indicators Category Holding Return on Equity 26% T Rowe Price International Inc. 5.17% Return on Capital Employed (%) 31% DNB/ Carlson Fund 4.49% Principal Trustee Co. 0.72% Debt to Equity (x) 0.007 Manulife Global Fund 0.58% Book Value Per Share (INR) 140 UTI (including sub accounts) 0.39% Goldman Sachs Investments 0.15% Return on Net Worth 22% 32 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 33. Revenue - Client FY10 FY11 FY12 Q1 FY 13 Q2 FY 13 Q3 FY 13 Top Client 38.5% 30.7% 32.8% 34.6% 31.5% 42.40% Top 5 Clients 83.7% 81.2% 72.9% 74.8% 71.0% 75.70% Top 10 Clients 92.4% 91.8% 89.0% 87.8% 89.2% 91.50% No. of active clients 50 51 60 58 62 67 No. of clients added 14 18 3 6 10 FY10 FY11 FY12 Q1 FY 13 Q2 FY 13 Q3 FY 13 US$ 1 mn Clients 13 15 17 17 18 17 US$ 5 mn Clients 5 6 10 11 11 11 US$ 10 mn Clients 3 5 5 5 5 6 US$ 20 mn Clients 3 3 4 4 4 4 Revenue from Repeat Business 99% 98% 99% 99% 98% 99% Average Bill Rate (in USD) Q4 FY 10 FY 11 FY12 Q1 FY 13 Q2 FY 13 Q3 FY 13 Offshore $21 $20 $20 $21 $20 $20 On-site $55 $63 $65 $68 $65 $66 Revenue - Engagement Model FY 10 FY 11 FY12 Q1 FY 13 Q2 FY 13 Q3 FY 13 Fixed Price / SOW / Managed T&M 41.9% 35.0% 27.1% 22.5% 24.4% 22.60% Revenue Sharing 7.0% 14.5% 16.5% 17.1% 17.9% 16.80% T&M 51.0% 50.6% 56.4% 60.4% 57.7% 60.60%33 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 34. Revenue - Vertical FY10 FY 11 FY 12 Q1 FY 13 Q2 FY 13 Q3 FY 13Telecom & Media 57.3% 56.6% 40.8% 42.5% 41.0% 38.50%Manufacturing 7.9% 5.8% 7.0% 5.9% 6.0% 5.90%Healthcare 18.8% 18.7% 18.6% 18.4% 15.4% 18.20%Energy & Utilities 2.4% 4.3% 7.8% 1.2% 8.9% 0.90%Retail 3.9% 4.8% 5.4% 2.5% 2.2% 2.00%Other 9.8% 9.8% 20.4% 29.5% 26.6% 34.50%Revenue - Offering FY10 FY11 FY 12 Q1 FY 13 Q2 FY 13 Q3 FY 13AMS 62.7% 57.4% 56.1% 63.1% 59.3% 66.70%Mobility 16.5% 15.6% 14.20%PES / IP leveraged / IVV 17.5% 16.6% 16.60%IMS 8.4% 12.5% 15.6% 2.9% 8.5% 2.50%Testing 11.3% 10.0% 9.9%IP leveraged / Prod Dev. 16.8% 19.6% 16.3%Enterprise Software Solutions 0.9% 0.5% 2.1%Revenue Region FY10 FY11 FY 12 Q1 FY 13 Q2 FY 13 Q3 FY 13Offshore Revenue 33.8% 32.2% 35.2% 25.5% 32.3% 25.50%Onsite Revenue 66.2% 67.8% 64.8% 74.5% 67.7% 74.50%Revenue - Location FY10 FY11 FY 12 Q1 FY 13 Q2 FY 13 Q3 FY 13USA 87.9% 82.8% 76.6% 85.4% 78.6% 87.40%Europe 6.0% 6.2% 4.2% 0.5% 0.0% 0.00%India 4.1% 7.5% 12.6% 7.2% 15.5% 7.70%APAC 2.1% 3.5% 6.6% 6.9% 5.9% 4.90% 34 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 35. FX - Hedge $ Million Forward Contracts as on 31st Dec 2012 48.35 Forward Contracts as on 10th Feb 2013 44.10 Contracts for Rs 44 to Rs 50.20 Rs 51.50 to Rs 56.20 Total FY 2012 – 13 8.9 1.95 10.85 FY 2013 – 14 26.3 7.2 33.50 FY 2014 - 15 4.0 4.00 Total 35.2 13.15 48.35 Less: Utilised from 1st Jan 2013 to 10th Feb 2013 4.25 Forward Contract as on 10th Feb 2013 44.10 Cash Position FY10 FY11 FY 12 Q1 FY 13 Q2 FY 13 Q3 FY 13Net worth (in Rs. Crores) 326.95 416.28 508.84 567.1 549.19 595.30Return on net worth (after extraordinary and prior 24.20% 25.80% 23.70% 6.20% 5.70% 5.8%period items)Total cash (in Rs. Crores) * 118.04 94.62 156.54 182.78 187.42 127.49Cash per share 26.85 21.52 36.78 42.95 44.04 29.95 Note : * The Total Cash is the Amount of Cash & Cash Equivalents, Investment in Liquid Mutual Funds and reduced by the Book Overdraft from Bank Rs - US$ Rate (Rs) FY10 FY11 FY 12 Q1 FY 13 Q2 FY 13 Q3 FY 13Period Closing rate 45.14 44.65 51.16 56.31 52.70 54.78Period Average rate 47.28 45.63 47.95 54.22 55.24 54.14 35 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 36. The Pass-through business is a part of our relationships with one of our key clients. Through several rounds of vendor consolidation, Infinite has emerged one of the limited Key vendors for the client. Infinite as a Core Vendor to the client, agrees to pass through revenue accruable for services provided by sub- tier vendors and does not recognize this as part of our turnover. The company does not expend any marketing effort nor does it exercise any direct control or supervision of the sub-tier vendor resources. The company charges and retains a certain margin in the nature of a fee from such client to route the business through Infinite. Considering the nature of this business, Infinite recognizes only the margins from these transactions as turnover. USD Million Particulars Q3 FY 13 Q2 FY 13 Q1 FY 13 FY 2012 Q4 FY 12 Q3 FY 12 Q2 FY 12 Q1 FY 12 FY 2011Pass Thru Revenue 19.1 26.9 28.1 110.5 23.8 29.5 29.6 27.6 101.8Margin (Recognized as turnover) 0.6 0.9 1.1 4.7 1.2 1.3 1.1 1.1 3.8Margin as a % of Overall Pass-Through Revenue 3.1% 3.2% 3.9% 4.2% 4.9% 4.4% 3.6% 4.0% 3.8%Margin as a % of Infinite Revenue 0.9% 1.4% 1.9% 2.1% 2.2% 2.5% 1.9% 1.9% 2.0% 36 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 37. Future Direction – Infinite 2.0Copyright Infinite; 2013 37 Infinite Computer Solutions (India) Limited
  • 38. 38 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 39. Double in 4 Years AMS, PES Large Corporates – Infinite as the Alternate Service Provider IMS SMB segment – Platform Led; Outcome Based Approach Mobility Telecom Service Providers & Enterprises Organic InorganicEnd Customers Strengthen & harmonize our• Farm existing customers People Core Capabilities through• Cross-leverage across Infinite Acquisitions• New logos leveraging Infinite “STARS”. Process • Mobility & MessagingPartner Strategy• Large & SMB System Integrators Services • Switching & Routing• Telecom OEMs • IMS Platform for SMB• Platform & Technology Alliances InfrastructureMarketing Strategy• Strategic; Branding; Conferences• Industry Thought Leadership – Infinite “STARS”Build or acquire capabilities in disruptive technologies like cloud computing, mobility, messaging, optics, analytics Leverage partnerships with technology providers; Invest 10% of EBITDA in building capabilities, IP & People 39 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited
  • 40. Infinite IR Agency: VALOREM ADVISORS Anuj Sonpal Tel: +91-22-2202-6090 Email: anuj@valoremadvisors.com Infinite Internal IR Contact: INFINITE COMPUTER SOLUTIONS (INDIA) LTD. Anshul Pandey Tel: +91-80-4193-0000 Email: Anshul.Pandey@infinite.comCertain statements in this presentation concerning our future growth prospects are forward-looking statements, whichinvolve a number of risks and uncertainties that could cause actual results to differ materially from those in suchforward-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 ITservices including those factors which may affect our cost advantage, wage increases in India, our ability to attract andretain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, clientconcentration, restrictions on immigration, industry segment concentration, our ability to manage our internationaloperations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks orsystem failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on ourservice contracts, the success of the companies in which the company has made strategic investments, withdrawal ofgovernmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital oracquiring companies outside India, and unauthorized use of our intellectual property and general economic conditionsaffecting our industry. The Company does not undertake to update any forward-looking statements that may be madefrom time to time by or on behalf of the Company. 40 Copyright Infinite; 2013 Infinite Computer Solutions (India) Limited