Analysis of Infosys Revenue, geography, vertical,services, segments.

1. Infosys Technologies
Financial Analysis, Revenue Analysis
( Vertical, Geography, Services, Contract,
Onshore/Offshore Mix )
2006-2011
Rajesh Prabhakar Analyst Bio @ http://itbizcharts.blogspot.com/

2. Infosys Technologies – Financial Performance – 2006-2011
Financial Performance US$Mn
6041
4663 4804
4176
3497
3090
2699 2749
2453 2544
2152
1777 1723 1964 2055 1779
1244 1313 1374 1460 1313 1499
1159 1281
908 850 1163
555 461
309
2006 2007 2008 2009 2010 2011
Revenue Operating Expenses Gross profit Operating Profit Net profit
Financial Performance:
Global recession due to the 2008 Global financial crisis have slowed down the revenue growth in 2009
(12% YoY) and 2010 (3% YoY). Growth recovered in 2011 with revenues growing by 26% YoY.
Infosys was able to control its operating costs as is evident in the operating expenses growth in 2009
(10% YoY) and 2010 (2% YoY). Stringent cost cutting measures were adopted and the company kept
up its operating margins and profitability during this time.
Infosys saw good growth in 2011 as the company saw revenue and profitability both growing and also
had improved its spending for growth.
Rajesh Prabhakar Analyst Bio @ http://itbizcharts.blogspot.com/

3. Infosys Technologies – Geography Mix – 2006-2011
Geography Revenues(%)
65 66 65
63 62 63
26 28 26
25 23 22
9 9 10 11
9 9
2 2 1 1 1 2
2006 2007 2008 2009 2010 2011
North America Europe Rest of the World India
Geography Analysis:
Infosys is most dependant on North America with more than 65% revenues as American companies
are at forefront of the outsourcing industry.
Europe is the second largest market but the revenues in the region had been falling due to the
European sovereign debt crisis and UK companies are also reducing outsourcing to India.
Slightly improving business from Rest of the World.
Indian presence is very low not a focus area.
Rajesh Prabhakar Analyst Bio @ http://itbizcharts.blogspot.com/

4. Infosys Technologies – Vertical Revenue Mix – 2006-2011
Vertical Revenues (%)
30
29 29 28
27 26
22
19 20 20 20
18
17 16
14 15 14
14 13
12 13 13
10 10
10 8 8
8 7 7 7
7 6 8 6 6
5 5 5 5 5
4 4 5 5 4
4
2 3 2 2
2 3 2
2006 2007 2008 2009 2010 2011
Insurance Banking & Financial Services Manufacturing Retail Telecom Energy & Utilities Transportation & logistics Services Others
Vertical Analysis:
BFSI is the dominant vertical for Infosys (36%) and one of the major player in the industry.
Manufacturing is second largest vertical which has seen good growth in 2009 and the growth is
constant at 20%.
Telecom was good vertical for Infosys but revenues started falling form FY 2009 and saw significant
fall previous year too. Services vertical also saw revenues falling.
Retail has been constantly growing over years. Rest of the verticals are maintaining constant growth
over the years.
Rajesh Prabhakar Analyst Bio @ http://itbizcharts.blogspot.com/

5. Infosys Technologies – Services Revenue Mix – 2006-2011
Services Wise Revenue(%)
30
25 25 26
24
24 24 23
21 23 22 23
20 20 22
21
18
16
10
7 7 7 8
6 7 8
5 6 5 6 6 6 6 6
5 4 5 4 4
4 4 4 4 4 4 4 4 6 5 5
2 2 3 2 3
0 2 2 2 2
2006 2007 2008 2009 2010 2011
Consulting Services Package Implementation Application Maintenance Application Development Testing Services
Infrastructure mgmt Business Process Mgmt System Integration Products
Others Product Engineering Srvcs
Services Segment Analysis:
Since 2006 Application Development and Maintenance revenues have been constantly falling from 50%
in 2006 to 39% in 2011.
Consulting Services & Package Implementation has seen good growth from 20% in 2006 to 26% in
2011 .
Rest of the verticals have seen constant growth. Infrastructure management services saw up and down
growth.
Rajesh Prabhakar Analyst Bio @ http://itbizcharts.blogspot.com/

6. Infosys Technologies – Contract Type & Onsite/Offshore Mix 2006-2011
Contract Type
80 71.9 73.3
69
64.6 61.5 59.7
60
38.5 40.3
35.4
40 31
%
28.1 26.7
20
0
2006 2007 2008 2009 2010 2011
Time & Materials Fixed Price
Time & Material contracts are the most preferred. But the Fixed price contracts are also seeing
growth since 2009.
Offshore-Onsite Mix
60 51.6 53.3 53.9
50.7 49.3 50.1 49.9 48.4 50.8 49.2
46.7 46.1
40
%
20
0
2006 2007 2008 2009 2010 2011
Offshore Onsite
It has always been a balanced mix of onsite and offshore for Infosys except during recession
years 2008 till 2010 when Offshore is preferred. 2011 saw rise in onsite revenue mix.
Rajesh Prabhakar Analyst Bio @ http://itbizcharts.blogspot.com/