Infosys 4Q FY 2013, 12.04.13

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Please refer to important disclosures at the end of this report 1

(` cr) 4QFY13 3QFY13 % chg (qoq) 4QFY12 % chg (yoy)Net revenue 10,454 10,424 0.3 8,852 18.1EBITDA 2,770 2,970 (6.7) 2,887 (4.0)

EBITDA margin (%) 26.5 28.5 (199)bp 32.6 (612)bp

PAT 2,394 2,369 1.1 2,316 3.4Source:Company, Angel Research

4QFY2013 was yet another disappointing quarter for Infosys. The most

disappointing thing in the quarters results is USD revenue growth being guided

at 6-10% for FY2014, which is way below the streets expectation of 12-13%. The

range of the guidance is wide which indicates the volatility foreseen by the

Management. Also, the company has not put out any EPS guidance for FY2014,which could signify that there is risk towards the operating margin profile going

ahead. Owing to the recent steep correction in the companys stock price, wemaintain our Accumulate rating.Quarterly highlights: For 4QFY2013, Infosys reported a revenue ofUS$1,938mn, up just 1.4% qoq. Excluding Lodestone, the USD revenue grew by

just 0.8% qoq. The overall volume growth came in at 1.8% qoq while overall

pricing declined by 0.7% qoq. The companys EBITDA and EBIT margin declined

by 199bp and 213bp qoq to 26.5% and 23.6%, respectively, due to impact of

onsite wage hikes and Lodestone integration charges. The PAT was held up at

`2,394cr, aided by other income of `674cr (vs `503cr in 3QFY2013).

Outlook and valuation: The Management commentary indicates that theenvironment remains challenging and the company continues to see delays in

decision making at clients ends. It indicated at the company witnessing pricing

pressure even for typical IT operations kind of services, which are mostly

non-discretionary in nature. Over FY2012-14E, we expect USD and INR revenue

CAGR of 8.7% and 8.2%, respectively. The company is now highly focused on

growth and this may lead to sacrifice in margins in the near term. Infosys stock

price has corrected by ~22% today, which is its highest ever fall in a single

trading session in the last decade. At the CMP of `2,297, the stock is trading at

13.6x and 12.6x its FY2014E and F2015E EPS, respectively, which appears to be

attractive compared to its historical valuation. However, huge volatility in

quarterly performance is unlikely to fetch Infosys a higher multiple in the near

term. We value the company at 13.5x FY2015E EPS of `183 and maintain ourAccumulate rating on the stock with a target price of `2,465.Key financials (Consolidated, IFRS)Y/E March (` cr) FY2011 FY2012 FY2013E FY2014E FY2015ENet sales 27,501 33,733 40,352 43,338 47,244% chg 20.9 22.7 19.6 7.4 9.0

Net profit 6,823 8,315 9,421 9,675 10,431% chg 9.7 21.9 13.3 2.7 7.8

EBITDA margin (%) 32.6 31.7 28.6 27.5 27.7

EPS (`) 119.5 145.5 164.9 169.4 182.6P/E (x) 19.2 15.8 13.9 13.6 12.6

P/BV (x) 4.8 3.9 3.3 2.8 2.4

RoE (%) 25.0 24.9 23.7 20.8 19.3

RoCE (%) 25.9 25.5 22.5 19.9 19.1

EV/Sales (x) 4.2 3.3 2.7 2.4 2.1

EV/EBITDA (x) 12.8 10.3 9.3 8.6 7.4

Source: Company, Angel Research

ACCUMULATECMP `2,297

Target Price `2,465

Investment Period 12 Months

Stock Info

Sector

Net debt (`cr) (21,832)

Bloomberg Code

Shareholding Pattern (%)

Promoters 16.0

MF / Banks / Indian Fls 17.5

FII / NRIs / OCBs 40.5Indian Public / Others 25.9

Abs. (%) 3m 1yr 3yr

Sensex (7.2) 5.2 2.2

Infosys (15.4) (16.5) (14.5)

Face Value (`)

IT

Avg. Daily Volume

Market Cap (`cr)

Beta

52 Week High / Low

131,805

0.9

5

3010/2,102

125,399

BSE Sensex

Nifty

Reuters Code INFY.BO

5,529

18,243

INFY@IN

Ankita Somani+91 22-39357800 Ext: 6819

[email protected]

InfosysPerformance highlights

4QFY2013 Result Update | IT

April 12, 2013

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Infosys | 4QFY2013 Result Update

April 12, 2013 2

Exhibit 1:4QFY2013 performance (IFRS, consolidated)(` cr) 4QFY13 3QFY13 % chg (qoq) 4QFY12 % chg (yoy) FY2013 FY2012 % chg (yoy)Net revenue 10,454 10,424 0.3 8,852 18.1 40,352 33,733 19.6Cost of revenue 6,494 6,273 3.5 4,959 31.0 24,158 18,877 28.0

Gross profit 3,960 4,151 (4.6) 3,893 1.7 16,194 14,856 9.0

SG&A expenses 1,190 1,181 0.8 1,006 18.3 4,643 4,147 12.0

EBITDA 2,770 2,970 (6.7) 2,887 (4.0) 11,551 10,709 7.9Depreciation 308 293 5.1 240 28.3 1,122 931 20.5

EBIT 2,462 2,677 (8.0) 2,647 (7.0) 10,429 9,778 6.6

Other income 674 503 652 2,359 1,904

PBT 3,136 3,180 (1.4) 3,299 (4.9) 12,788 11,683 9.5

Income tax 742 811 (8.5) 984 (24.6) 3,367 3,368 (0.0)

PAT 2,394 2,369 1.1 2,316 3.4 9,421 8,315 13.3EPS 41.9 41.5 1.0 40.5 3.3 164.9 145.5 13.3

Gross margin (%) 37.9 39.8 (194)bp 44.0 (610)bp 40.1 44.0 (391)bp

EBITDA margin (%) 26.5 28.5 (199)bp 32.6 (612)bp 28.6 31.7 (312)bp

EBIT margin (%) 23.6 25.7 (213)bp 29.9 (635)bp 25.8 29.0 (314)bp

PAT margin (%) 21.5 21.7 (17)bp 24.4 (285)bp 22.1 23.3 (128)bp


Exhibit 2:4QFY2013 Actual vs Angel estimates(` cr) Actual Estimate % Var.Net revenue 10,454 10,788 (3.1)

EBITDA margin (%) 26.5 27.6 (109)bp

PAT 2,394 2,283 4.9


Poor streak continues

4QFY2013 was yet another disappointing quarter for Infosys. Its dollar revenues

grew by just 1.4% qoq (against an estimated ~4% qoq) to US$1,938mn, much

lower than our as well as street expectations. Excluding Lodestone, the USD

revenue grew by just 0.8% qoq. Cross currency movement also impacted thecompanys USD revenue negatively by 0.4% qoq. Revenue in constant currency

(CC) terms came in at US$1,944mn, up 1.7% qoq. The overall volume growth

came in at 1.8% qoq (4.8% onsite volume growth and 0.5% offshore volume

growth). The overall pricing declined by 0.7% qoq, impacted by lower billing days

qoq and revenue mix shift towards lower bill rate services. The Management

indicated at the company witnessing pricing pressure even for typical IT operations

related services, which are almost non-discretionary in nature. In INR terms,

revenue came in at `10,454cr, up merely 0.3% qoq.

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Exhibit 3:Trend in volume growth (Effort wise)

(1.2)

2.93.6

1.30.5

(2.1)

2.3

4.43.7

4.8

(1.5)

2.7

3.8

2.0 1.8

(4)

(2)

0

2

4

6

4QFY12 1QFY13 2QFY13 3QFY13 4QFY13

(%)

Offshore Onsite Total volume growth


Exhibit 4:Trend in volume and revenue growth (qoq)

(2.1)

(0.4)

2.4

5.8

1.7

(1.5)

2.7

3.8

2.0 1.8

(4)

(2)

0

2

4

6

8


(%)

Revenue growth (cons tant currency) Volume growth


Service wise, revenue growth was led by products, platforms and solutions, the

revenue from which grew by 5.1% qoq. Finacle, Infosys banking platform,

reported a 6.5% revenue growth during the quarter. The TCV of products andplatforms currently stands at ~US$645mn from US$603mn in 3QFY2013. IMS,

which has been showing robust traction in the past couple of quarters, posted a

revenue growth of 5.8% qoq in 4QFY2013. Revenues from BPO and PES services

grew by 1.4% qoq, each. Infosys BPO has been performing considerably well since

the past few quarters and the Management has indicated at trying to draw

~US$1bn of revenue from it in the next two years from ~US$470mn currently.

Revenue from the companys anchor service verticals, application development

and application maintenance, declined by 0.5% and grew by 0.9% qoq,

respectively.

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Exhibit 5:Growth trend in service verticals (Reported basis)Particulars % to revenue % growth qoq % growth yoyBusiness operations 61.6 0.9 7.5

Application development 15.5 (0.5) 0.4Application maintenance 19.9 0.9 4.2

Infrastructure management services (IMS) 7.2 5.8 27.1

Testing services 8.3 0.2 16.4

Business process management (BPO) 5.2 1.4 18.5

Product engineering services (PES) 3.2 1.4 3.0

Others 2.3 (2.8) (6.8)

Consulting and systems integration 32.7 1.7 15.1Products, platforms and solutions 5.7 5.1 0.6

Products 4.0 4.0 (0.5)

Others 0.4 35.2 9.4


Industry-wise, the revenue from financial services and insurance (FSI), the

companys anchor industry vertical contributing 33.9% to revenue, grew by 2.0%

qoq, led by a 2.9% qoq growth in revenue from banking and financial services

vertical. Revenue from the insurance vertical declined by 1.5% qoq. In CC terms,

revenue from FSI grew by 2.7% qoq. The Management indicated that business

prospects will remain muted for the next couple of years for discretionary spend in

the FSI vertical. The spending from banks and financial institutions is coming from

work related to risk compliance, cost cutting, customer centric applications, fraud

prevention and risk management.

Manufacturing (contributed 22.2% to revenue) posted a 3.8% qoq revenue growth

and emerged as the primary growth driver for the company. In CC terms, revenue

from this vertical grew by 3.9% qoq. The company is seeing IT spending coming in

the manufacturing industry segment from clients in terms of work related to

harmonizing processes and transformation to gain cost efficiency and simplicity.

The Management indicated that budgets in manufacturing sub-segments such as

aerospace, auto and hi-tech are flat to marginally down. The company expects

revenues from manufacturing to pick up in H2FY2014, as the large inventory pile

up finishes off at the clients ends and production picks up.

The retail, CPG and logistics (RCL) segment (contributed 23.9% to revenue), which

has been the primary growth driver for the company since last few quarters,

reported a subdued 0.6% qoq revenue growth during 3QFY2013, led by 2.4%

qoq decline in revenues from retail and CPG segment. Revenues from transport &

logistics and lifesciences grew by 1.4% qoq each. In CC terms, the revenue from

RCL grew by 0.8% qoq. In this industry segment, retail is gaining traction on

account of spends related to digital commerce, digital marketing and clients

targeting to go global. But the Management expects discretionary spend in retail to

pick up in H2FY2014. Modest growth from products and platforms is being seen

from this industry.

The energy utilities, communications & services (ECS) segment (contributed 20.0%

to revenue) reported a 1.0% qoq decline in its revenues due to 2.3% and 1.7% qoq

decline in revenues from energy & utilities and communication & services industries

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respectively. In energy and utilities, the Management indicated that barring oil and

few utility companies, growth will remain subdued in the near-term. In CC terms,

revenue from this segment grew by 1.0% qoq.

Exhibit 6:Growth trend in industry segments (Reported basis)Particulars % to revenue % growth qoq % growth yoyFSI 33.9 2.0 8.2

Banking and financial services 27.2 2.9 8.6

Insurance 6.7 (1.5) 6.3

Manufacturing 22.2 3.8 14.1RCL 23.9 0.6 14.2

Retail and CPG 15.4 (2.4) 6.7

Transport and logistics 1.8 1.4 23.1

Life Sciences 4.81.4 34.7

Healthcare 1.9 28.5 29.9

ECS 20.0 (1.0) 1.8Energy and utilities 5.2 (2.3) (6.7)

Communication and services 9.3 (1.7) 0.8

Others 5.5 1.4 13.6


In terms of geographies, revenue growth was primarily led by Europe, which

posted a 6.5% qoq increase in revenues in CC terms, majorly led by revenue from

Lodestone. Revenue from North America remained almost flat qoq despite signs of

stability emerging out of the US economy. Revenue from rest of the world declined

by 1.5% qoq in CC terms while that from India grew by 10% qoq.

Exhibit 7:Growth trend in geographies (CC basis)

(4.1)

1.7 2.2 1.60.10.8

(7.2)

5.1

14.4

6.5

2.5 2.2 1.8

7.4

(1.5)

(10)

(5)

0

5

10

15

20


(%)

North America Europe Rest of the world


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Hiring momentum slowing down

Infosys added 8,990 gross employees in 4QFY2013, of which 3,545 were lateral

additions. The net addition number for the quarter stood at 1,059. Attrition, on last

twelve month (LTM) basis, grew considerably to 16.3% in 4QFY2013 from 15.1%

in 3QFY2013. The Management indicated that of the total hiring done last year,

the company is yet to give offers to ~10,000 people. They are expected to join the

company in the next quarter. From here on the companys hiring will be demand

based as the current utilization level is very low. The company is trying to inch up

its utilization level going forward, which could act as one of the margin levers.

Exhibit 8:Employee metrics4QFY12 1QFY13 2QFY13 3QFY13 4QFY13

Gross addition 10,676 9,236 10,420 8,390 8,990

Net addition 4,906 1,157 2,610 1,868 1,059

Lateral employees 4,727 5,233 3,656 4,351 3,545

Attrition LTM basis (%) 14.7 14.9 15.0 15.1 16.3


Utilization rate, including as well as excluding trainees, grew by 80bp and 70bp

qoq to 70.9% and 73.9%, respectively.

Exhibit 9:Trend in utilization

67.2 67.2

69.670.1

70.9

73.0

71.6

73.3 73.273.9

65

66

67

68

69

70

71

72

73

74

75


(%)

Including trainees Excluding trainees


Margin pressure continued

The companys EBITDA and EBIT margin declined by 199bp and 213bp qoq to

26.5% and 23.6%, respectively, due to negative impact of onsite wage hikes given

during the quarter. Pricing pressure witnessed by the company also weighed on

margins during the quarter by ~2%. The Management indicated that pressure on

the operating margin might continue further in the near term as the companys

current focus is on growth and is investing significantly to achieve it.

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being seen even for typical IT operations kind of services which are mostly non-

discretionary in nature. Early comments from the Management indicate that IT

budgets are flat to marginally negative for CY2013. Over FY2012-14E, we expect

USD and INR revenue CAGR of 8.7% and 8.2%, respectively.

Operating margins to be under pressure: The company is now highly focused ongrowth and this may lead to sacrifice margins in the near term. The operating

margin of the company currently faces headwinds because of the following

reasons 1) onsite wage hike given in February 2013 will impact 1QFY2014

margins to an extent, 2) single digit margin profile of Lodestone, 3) pick up in

onsite hiring, 4) subcontracting cost going up due to less number of visas and 5)

pricing pressure seen for traditional IT services. The Management expects EBIT

margin to remain flat on a yoy basis in FY2014 in the best case scenario (ie if INR

remains range bound). Infosys has been posting a qoq margin decline since the

past four quarters. Going ahead also we expect its operating margins to declineon account of the factors mentioned above. We expect EBIT margin to decline by

~110bp yoy to 24.7% for FY2014. Over FY201214E, we expect a CAGR of 6.2%

and 5.3% in EBIT and PAT, respectively.

Outlook and valuation

The companys Management continues to remain cautiously optimistic on the

business environment. The company continues to see a challenging macro

environment and delays in decision making from clients ends. We remain

cautious on the company. In our view, the problems faced by the company

currently are not industry specific, but are ones that are to do with the companyitself.

Considering Infosys current quarter results and a tepid guidance of 6-10%

revenue growth, including Lodestone, we expect the stock to remain an

underperformer within the sector. The companys stock price has corrected by

~22% today, which is its highest ever fall in a single trading session in the last

decade. At the CMP of `2,297, the stock is trading at 13.6x and 12.6x its FY2014E

and F2015E EPS, respectively, which appears to be attractive compared to its

historical valuation. However, huge volatility in quarterly performance is unlikely to

fetch Infosys a higher multiple in the near term. We value the company at 13.5xFY2015E EPS of `183 and maintain our Accumulate rating on the stock with atarget price of `2,465.

Exhibit 12:Key assumptionsParameters FY2014 FY2015Revenue growth USD terms (%) 8.5 9.0

USDINR rate 54.0 54.0

Revenue growth INR terms (%) 7.4 9.0

EBITDA margin (%) 27.5 27.7

Tax rate (%) 28.0 28.0

EPS growth (%) 2.8 7.9


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Exhibit 13:Change in estimatesFY2014 FY2015

Parameter Earlier Revised Variation Earlier Revised Variation(` cr) estimates estimates (%) estimates estimates (%)Net revenue 45,463 43,338 (4.7) 49,792 47,244 (5.1)

EBITDA 12,998 11,916 (8.3) 14,148 13,080 (7.5)

PBT 2,294 2,734 19.2 2,410 2,749 14.0

Tax 14,019 13,437 (4.1) 15,164 14,506 (4.3)

PAT 3,995 3,762 (5.8) 4,322 4,062 (6.0)


Exhibit 14:One-year forward PE (x)

500

1,100

1,700

2,300

2,900

3,500

4,100

4,700

Apr-07

Oct-07

Apr-08

Oct-08

Apr-09

Oct-09

Apr-10

Oct-10

Apr-11

Oct-11

Apr-12

Oct-12

Apr-13

(`)

Price 26x 22x 18x 14x 10x


Exhibit 16: Recommendation summary

Company Reco CMP Tgt. price Upside FY2015E FY2015E FY2012-15E FY2015E FY2015E(`) (`) (%) EBITDA (%) P/E (x) EPS CAGR (%) EV/Sales (x) RoE (%)

HCL Tech Accumulate 776 876 12.9 19.5 13.3 17.4 1.5 21.1

Hexaware Buy 91 105 15.4 19.2 7.8 9.5 0.9 22.1

Infosys Accumulate 2,297 2,465 7.3 27.7 12.6 7.9 2.1 19.3Infotech Enterprises Buy 170 196 15.4 18.5 7.8 14.5 0.4 13.1KPIT Cummins Buy 96 130 36.1 15.2 6.6 21.8 0.4 18.8

Mahindra Satyam Buy 113 143 26.3 19.1 9.5 2.3 0.9 20.1

Mindtree Accumulate 842 926 10.0 19.4 9.1 19.9 0.8 18.8

Mphasis Accumulate 362 395 9.1 17.4 8.7 3.3 0.6 13.6

NIIT Buy 23 30 30.2 9.1 4.3 (7.1) 0.1 11.9

Persistent Accumulate 533 602 13.0 24.6 8.8 19.3 0.9 16.8

TCS Accumulate 1,511 1,624 7.5 28.1 17.2 17.3 3.4 27.4

Tech Mahindra Buy 980 1,230 25.6 18.1 8.5 10.7 1.4 19.1

Wipro Buy 383 450 17.4 19.5 12.2 11.6 1.3 17.6


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Company Background

Infosys is the second largest IT company in India, employing over 1,50,000

professionals. The company services more than 750 clients across various verticals,

such as financial services, manufacturing, telecom, retail and healthcare. Infosys

has the widest portfolio of service offerings amongst Indian IT companies,

spanning across the entire IT service value chain - from traditional application

development and maintenance to consulting and package implementation to

products and platforms.

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Profit and loss statement (IFRS, consolidated)

Y/E March (` cr) FY2011 FY2012 FY2013 FY2014E FY2015ENet sales 27,501 33,733 40,352 43,338 47,244Cost of revenue 15,054 18,877 24,158 26,481 28,872

Gross profit 12,447 14,856 16,194 16,857 18,372

% of net sales 45.3 44.0 40.1 38.9 38.9

Selling and mktg exp 1,512 1,757 2,034 2,167 2,362

% of net sales 5.5 5.2 5.0 5.0 5.0

General and admin exp. 1,971 2,390 2,609 2,774 2,929

% of net sales 7.2 7.1 6.5 6.4 6.2

EBITDA 8,964 10,709 11,551 11,916 13,080% of net sales 32.6 31.7 28.6 27.5 27.7

Dep. and amortization 862 931 1,122 1,213 1,323

% of net sales 3.1 2.8 2.8 2.8 2.8

EBIT 8,102 9,778 10,429 10,703 11,758% of net sales 29.5 29.0 25.8 24.7 24.9

Other income 1,211 1,904 2,359 2,734 2,749

Profit before tax 9,313 11,683 12,788 13,437 14,506

Provision for tax 2,490 3,368 3,367 3,762 4,062

% of PBT 26.7 28.8 26.3 28.0 28.0

PAT 6,823 8,315 9,421 9,675 10,445Minority interest - - - - -

Adj. PAT 6,823 8,315 9,421 9,675 10,445EPS (`) 119.5 145.5 164.9 169.4 182.9

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Balance sheet (IFRS, consolidated)

Y/E March (` cr) FY2011 FY2012 FY2013 FY2014E FY2015ECurrent assetsCash and cash equivalents 16,666 20,591 21,832 26,715 32,597

Available for sale financial assets 21 32 1,739 1,739 1,739

Investment in certificates of deposit 123 345 - - -

Trade receivables 4,653 5,882 7,083 7,124 7,766

Unbilled revenue 1,243 1,873 2,435 2,375 2,589

Derivative financial instruments 66 - 101 101 101

Other current assets 917 1,523 2,123 2,297 2,504

Total current assets 23,689 30,246 35,313 40,351 47,296Non-current assetsProperty, plant and equipment 4,844 5,409 6,468 6,755 6,932

Goodwill 825 993 1,976 1,976 1,976

Intangible assets 48 173 368 368 368

Available for sale financial assets 23 12 394 394 394

Deferred income tax assets 378 316 503 503 503

Income tax assets 993 1,037 1,092 1,450 1,450

Other non-current assets 463 162 237 1,857 2,738

Total non-current assets 7,574 8,102 11,038 13,303 14,361Total assets 31,263 38,348 46,351 53,654 61,657Current liabilitiesTrade payables 44 23 189 189 189

Derivative financial instruments - 42 - - -Current income tax liabilities 817 1,054 1,329 1,329 1,329

Client deposits 22 15 36 36 36

Unearned revenue 518 545 823 823 823

Employee benefit obligations 140 498 614 614 614

Provisions 88 133 213 213 213

Other liabilities 2,012 2,456 3,082 3,582 4,026

Total current liabilities 3,641 4,766 6,286 6,786 7,230Non-current liabilities

Deferred income tax liabilities - 12 119 119 119

Employee benefit obligations 259 109 149 149 149Other liabilities 60 - - - -

Total non-current liabilities 319 121 268 268 268Total liabilities 3,960 4,887 6,554 7,054 7,498EquityShare capital 286 286 286 286 286

Share premium 3,082 3,089 3,090 3,090 3,090

Retained earnings 23,826 29,816 36,114 42,917 50,476

Other components of equity 109 270 307 307 307

Total equity 27,303 33,461 39,797 46,600 54,159Total liabilities and equity 31,263 38,348 46,351 53,654 61,657

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Cash flow statement (IFRS, consolidated)

Y/E March (` cr) FY2011 FY2012 FY2013E FY2014E FY2015EPre-tax profit from operations 8,102 9,778 10,429 10,703 11,758Depreciation 862 931 1,122 1,213 1,323

Pre tax cash from ops. 8,964 10,709 11,551 11,916 13,080

Other income/prior period ad 1,211 1,904 2,359 2,734 2,730

Net cash from operations 10,175 12,614 13,910 14,651 15,810

Tax 2,490 3,368 3,367 3,762 4,057

Cash profits 7,685 9,246 10,543 10,888 11,754(Inc)/dec in current assets (1,808) (2,399) (2,464) (155) (1,063)

Inc/(dec) in current liab. 448 1,125 1,520 500 444

(Inc)/dec in net trade WC (1,360) (1,274) (944) 345 (619)

Cashflow from operating activities 6,325 7,972 9,599 11,234 11,135(Inc)/dec in fixed assets (1,267) (1,496) (2,181) (1,500) (1,500)

(Inc)/dec in investments 3,602 (233) (1,362) - -

(inc)/dec in sale of financial assets (23) 11 (382) - -

(Inc)/dec in deferred tax assets (348) 18 (242) (358) -

Inc/(dec) in other non-current liab. (37) (198) 147 - -

(Inc)/dec in other non-current ass. (104) 8 (1,253) (1,620) (881)

Cashflow from investing activities 1,823 (1,890) (5,273) (3,478) (2,381)Inc/(dec) in debt - - - - -

Inc/(dec) in eq./premium (1,256) (1,155) (280) (200) (200)

Dividends 2,337 1,002 2,805 2,672 2,672

Cashflow from financing activities (3,593) (2,157) (3,085) (2,872) (2,872)Cash generated/(utilized) 4,555 3,925 1,241 4,883 5,882Cash at start of the year 12,111 16,666 20,591 21,832 26,715

Cash at end of the year 16,666 20,591 21,832 26,715 32,597

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April 12, 2013 14

Key ratios

Y/E March FY2011 FY2012 FY2013E FY2014E FY2015EValuation ratio (x)P/E 19.2 15.8 13.9 13.6 12.6

P/CEPS 17.1 14.2 12.5 12.1 11.2

P/BVPS 4.8 3.9 3.3 2.8 2.4

Dividend yield (%) 1.5 0.7 1.8 1.7 1.7

EV/Sales 4.2 3.3 2.7 2.4 2.1

EV/EBITDA 12.8 10.3 9.3 8.6 7.4

EV/Total assets 3.7 2.9 2.3 1.9 1.6

Per share data (`)EPS 119 146 165 169 183

Cash EPS 134 162 184 190 205

Dividend 35 15 42 40 40

Book value 477 585 696 815 947

DuPont analysisTax retention ratio (PAT/PBT) 0.7 0.7 0.7 0.7 0.7

Cost of debt (PBT/EBIT) 1.1 1.2 1.2 1.3 1.2

EBIT margin (EBIT/sales) 0.3 0.3 0.3 0.2 0.2

Asset turnover ratio (sales/assets) 0.9 0.9 0.9 0.8 0.8

Leverage ratio (assets/equity) 1.1 1.1 1.2 1.2 1.1

Operating ROE 25.0 24.9 23.7 20.8 19.3

Return ratios (%)RoCE (pre-tax) 25.9 25.5 22.5 19.9 19.1

Angel RoIC 56.1 56.3 45.8 42.5 43.0

RoE 25.0 24.9 23.7 20.8 19.3

Turnover ratios (x)Asset turnover (fixed assets) 3.6 4.2 3.7 3.5 3.5

Receivables days 78 84 86 84 84

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Infosys 4Q FY 2013, 12.04.13