4QFY2012 Result Update | IT

April 13, 2012

Infosys
Performance highlights
(` cr) Net revenue EBITDA EBITDA margin (%) PAT 4QFY12 8,852 2,887 32.6 2,316 3QFY12 9,298 3,133 33.7 2,372 % chg (qoq) (4.8) (7.9) (108)bp (2.4) 4QFY11 7,250 2,324 32.1 1,818 % chg (yoy) 22.1 24.2 56bp 27.4

BUY
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code IT 137,469 0.9 3,317/2,169 147,474 5 17,095 5,207 INFY.BO INFY@IN

`2,403 `2,792
12 Months

Source: Company, Angel Research

For 4QFY2012, Infosys results came in lower than our as well as streets expectations on revenue as well as operating front; however, the companys profit came in line with the expectations because of higher other income. The major disappointment came from the FY2013 USD revenue growth guidance which came in at 8-10%, much below Nasscoms estimated growth of 11-14% which is highly negative. In addition, the company gave tepid USD revenue guidance for 1QFY2013 of 0-1% qoq. We maintain our Buy rating on the stock. Quarterly highlights: For 4QFY2012, Infosys reported revenue of US$1,771mn, down 1.9% qoq, due to ramp down in certain projects in financial services industry especially in the North America geography. The companys EBITDA and EBIT declined by 108bp and 128bp to 32.6% and 29.9%, respectively, largely because of gaining from INR depreciation. PAT came in at `2,316cr, aided by other income of `652cr as against `422cr in 3QFY2012. Outlook and valuation: Management commentary has turned extremely cautious for the next years budget flush pattern. Also, the company is witnessing delays in ramp-ups of the deals being signed. This is clearly reflected in managements disappointing FY2013 guidance of merely 8-10%. In addition, for 1QFY2013, management has given USD revenue growth guidance of 0-1% qoq which indicates that management is banking on back ended growth which makes us cautious as the second half of every fiscal year is typically slow. If Infosys meets its 1QFY2013 guidance, then to achieve its full year FY2013 guidance, the company requires above 4.2% qoq USD revenue growth each quarter from 2QFY2012. Hence, we have assumed moderation in demand going forward in FY2013 and have built in a USD revenue growth of 9.8% for FY2013. Over FY2012-14E, we expect USD and INR revenue CAGR of 11.4% and 12.2%, respectively. Over FY201214E, we expect a CAGR of 10.1% and 9.5% in EBIT and PAT, respectively. We value the company at 16x FY2014E of `174.5 and recommend a Buy rating on the stock with a target price of `2,792. Key financials (Consolidated)
Y/E March (` cr) Net sales % chg Net profit % chg EBITDA margin (%) EPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 16.0 16.6 39.0 28.4

Abs. (%) Sensex Infosys

3m 5.8 (7.0)

1yr (13.2) (27.3)

3yr 55.9 70.6

FY2010 22,742 4.8 6,219 3.8 34.5 108.7 22.1 5.7 25.8 25.0 5.3 15.5

FY2011 27,501 20.9 6,823 9.7 32.6 119.5 20.1 5.0 25.0 25.9 4.4 13.5

FY2012 33,733 22.7 8,315 21.9 31.7 145.5 16.5 4.1 24.9 25.5 3.5 10.9

FY2013E 37,615 11.5 9,051 8.8 31.1 158.5 15.2 3.4 22.5 24.1 3.0 9.6

FY2014E 42,491 13.0 9,969 10.1 30.6 174.5 13.8 2.9 20.8 22.8 2.5 8.2

Ankita Somani
+91 22-39357800 Ext: 6819 ankita.somani@angelbrkoing.com

Please refer to important disclosures at the end of this report

Infosys | 4QFY2012 Result Update

Exhibit 1: 4QFY2012 performance (IFRS, consolidated)

(` cr) Net revenue Cost of revenue Gross profit SG&A expenses EBITDA Depreciation EBIT Other income PBT Income tax PAT EPS Gross margin (%) EBITDA margin (%) EBIT margin (%) PAT margin (%)
Source: Company, Angel Research

4QFY12 8,852 4,959 3,893 1,006 2,887 240 2,647 652 3,299 984 2,316 40.5 44.0 32.6 29.9 24.4

3QFY12 9,298 5,054 4,244 1,111 3,133 234 2,899 422 3,321 949 2,372 41.5 45.6 33.7 31.2 24.4

% chg (qoq) (4.8) (1.9) (8.3) (9.5) (7.9) 2.6 (8.7) (0.7) 3.6 (2.4) (2.3) (167)bp (108)bp (128)bp (4)bp

4QFY11 7,250 4,012 3,238 914 2,324 222 2,102 415 2,517 699 1,818 31.8 44.7 32.1 29.0 23.7

% chg (yoy) 22.1 23.6 20.2 10.1 24.2 8.1 25.9 31.1 40.7 27.4 27.3 (68)bp 56bp 91bp 65bp

FY2012 33,733 18,877 14,856 4,147 10,709 931 9,778 1,904 11,683 3,368 8,315 145.5 44.0 31.7 29.0 23.3

FY2011 27,501 15,054 12,447 3,483 8,964 862 8,102 1,211 9,313 2,490 6,823 119.5 45.3 32.6 29.5 23.8

% chg (yoy) 22.7 25.4 19.4 19.1 19.5 8.0 20.7 25.4 35.2 21.9 21.8 (122)bp (85)bp (47)bp (43)bp

Exhibit 2: 4QFY2012 Actual vs. Angel estimates

(` cr) Net revenue EBITDA margin (%) PAT
Source: Company, Angel Research

Actual 8,852 32.6 2,316

Estimate 9,100 33.1 2,310

% Var. (2.7) (49)bp 0.3

Muted results, Guidance disappointing

For 4QFY2012, Infosys reported revenue of US$1,771mn, down 1.9% qoq, due to 1.5% qoq volume de-growth. This was majorly because of ramp down in certain projects in financial services industry especially in the North America geography. The cross-currency movement also negatively affected the companys revenue by 0.2% qoq. Revenue in constant currency (CC) terms came in at US$1,767mn, down 2.1% qoq. Volume decline of 1.5% qoq was because of volume de-growth of 2.1% onsite and 1.2% offshore. In INR terms, revenue came in at `8,852cr, registering 4.8% qoq decline, impacted by qoq INR appreciation against the USD in 4QFY2012.

April 13, 2012

Infosys | 4QFY2012 Result Update

Exhibit 3: Trend in volume growth (Effort wise)

8 6 4
(%)

6.8 4.0 2.7 1.4 (0.2) (2.0) (1.4) 4.5 4.7 4.5 3.8

3.1

2 0 (2) (4) 4QFY11 1QFY12 Offshore 2QFY12 Onsite

(1.2)

(1.5)

(2.1) 3QFY12 Total volume growth 4QFY12

Source: Company, Angel Research

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

6 4.0 4 2
(%)

5.0 4.4 4.5 0.8 3.1 3.1

0 (1.5) (2) (4) 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 Revenue growth (constant currency)
Source: Company, Angel Research

(1.4)

(2.1)

Volume growth

Revenue decline witnessed across industries and services

Service wise, revenues from all the service lines, except products, platforms and solutions, declined. Revenue from the companys major revenue contributor service consulting and package implementation declined by 0.3% qoq. Revenues from application development and application maintenance service lines also declined by 3.1% and 6.0% qoq, respectively. BPO and PES, amongst all the service lines, posted the highest qoq decline in revenues at 9.5% and 7.4%, respectively. Revenues from products, platforms and solutions service line increased by 19.2% qoq. This is one of the major focus areas of the company, and the total TCV of this service area currently stands greater than US$350mn.

April 13, 2012

Infosys | 4QFY2012 Result Update

Exhibit 5: Growth trend in service verticals (Reported basis)

Particulars Business operations Application development Application maintenance Infrastructure management services (IMS) Testing services Business process management (BPO) Product engineering services (PES) Others Consulting and systems integration Products, platforms and solutions Products Others
Source: Company, Angel Research

% to revenue % growth qoq % growth yoy 62.7 16.9 20.9 6.2 7.8 4.8 3.4 2.7 31.1 6.2 4.4 0.4 (4.4) (3.1) (6.0) (0.3) (3.2) (9.5) (7.4) 1.8 (0.3) 19.2 (10.1) 30.7 11.1 16.8 0.9 8.8 15.0 (5.2) 56.6 6.6 10.2 29.3 (0.7) 10.6

Industry wise, revenue from FSI, the companys anchor industry vertical contributing 34.3% to revenue, declined by 4.7% qoq, led by 8.6% qoq de-growth in revenue from insurance. Revenues from banking and financial services industry declined by 3.7% qoq. In CC terms, revenue from FSI declined by 5.0% qoq. This was because of significant ramp down in certain projects in the North America geography. The management indicated that insurance industry vertical has not picked up as expected in terms of IT spending. The spending from banks and financial institutions is coming from work related to risk compliance, fraud prevention and regulatory kind of work, but at a slower pace. Manufacturing (contributed 21.3% to revenue) emerged as the major growth driver for the company, recording 2.4% qoq revenue growth. In CC terms, revenue from this vertical grew by 2.3% 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 RCL segment (contributed 22.9% to revenue) posted 2.8% qoq decline in revenues, led by substantial 21.6%, 12.8% and 6.7% qoq decline in revenues from transport and logistics, healthcare and life sciences, respectively. In CC terms, revenue from RCL declined by 2.9% qoq. In this industry segment, retail is gaining traction on account of spend related to digital commerce, digital marketing and clients targeting to go global. The ECS segment (contributed 21.5% to revenue) reported 0.6% qoq decline in its revenue. In CC terms, revenue from this segment declined by 0.9% qoq. Going ahead, the company expects its deal pipeline to pick up for the telecom industry segment, with more spend coming in from the wireless space during the quarter. The company closed five large deals in this quarter three of them were above US$100mn deals.

April 13, 2012

Infosys | 4QFY2012 Result Update

Exhibit 6: Growth trend in industry segments (Reported basis)

Particulars FSI Banking and financial services Insurance Manufacturing RCL Retail and CPG Transport and logistics Life Sciences Healthcare ECS Energy and utilities Communication and services Others
Source: Company, Angel Research

% to revenue 34.3 27.4 6.9 21.3 22.9 15.8 1.6 3.9 1.6 21.5 6.1 10.1 5.3

% growth qoq (4.7) (3.7) (8.6) 2.4 (2.8) 1.9 (21.6) (6.7) (12.8) (0.6) (0.3) 1.1 (3.8)

% growth yoy 6.2 6.3 6.0 15.4 18.3 20.5 (15.8) 16.5 60.8 5.6 16.3 (6.2) 22.1

In terms of geographies, revenue decline was primarily led by North America, which posted 4.1% qoq decline in revenues in CC terms. Revenue from Europe and Rest of the World grew by 0.8% and 2.5% qoq in CC terms, respectively. Management indicated that client situation in Europe is more stable than in North America. The company added five new clients in Europe in 4QFY2012.

Exhibit 7: Growth trend in geographies (CC basis)

20 15 10
(%)

16.8

5 1.6 0 (0.5) (5)

5.1 2.1 2.4

6.3 2.1

7.3 2.5 1.1 2.5

0.8

(2.6) 1QFY12 North America 2QFY12 Europe 3QFY12

4QFY11

(4.1) 4QFY12

Rest of the world

Source: Company, Angel Research

Hiring intact
Infosys added 10,676 gross employees in 4QFY2012, of which only 4,727 were lateral additions. The net addition number for the quarter stood at 4,906. Attrition, on LTM basis, declined to 14.7% in 4QFY2012 from 15.4% in 3QFY2012. The company has given gross hiring target of 35,000 employees in FY2012. In addition, the company made 23,000 campus offers for FY2013 (27,000 for FY2012).

April 13, 2012

Infosys | 4QFY2012 Result Update

Exhibit 8: Employee metrics

4QFY11 Gross addition Net addition Lateral employees Attrition LTM basis (%)
Source: Company, Angel Research

1QFY12 9,922 2,740 4,044 15.8

2QFY12 15,352 8,262 2,318 15.6

3QFY12 9,655 3,266 3,863 15.4

4QFY12 10,676 4,906 4,727 14.7

8,930 3,041 3,591 17.0

Utilization rate, including trainees, declined by 270bp qoq to 67.2%, while utilization rate, excluding trainees, increased by merely 440bp qoq to 73.0% during the quarter.

Exhibit 9: Trend in utilization

80 75.2 75
(%)

77.3 74.9

77.4 73.0

70 68.4 65 69.6 70.2 69.9 67.2

60 4QFY11 1QFY12 Including trainees

Source: Company, Angel Research

2QFY12

3QFY12 Excluding trainees

4QFY12

Margins decline
The companys EBITDA and EBIT margin declined by 108bp and 128bp to 32.6% and 29.9%, respectively, largely because of qoq INR appreciation against USD. Management indicated that they expect EBIT margin to go down by 50-100bp in FY2013.

April 13, 2012

Infosys | 4QFY2012 Result Update

Exhibit 10: Trend in EBITDA margin

300 200 100
(BP)

35 265 32.1 197 31.0 (120) 29.1 (298) (108) 33.7 32.6 34 33 32 30 29 28 27 26 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
(%)

0 (100) (200) (300) (400)

31

Margin movement (qoq)

Source: Company, Angel Research

EBITDA margin (%)

Client pyramid
Infosys added 52 new clients during the quarter, of which six are Fortune 500 clients. One client got added to the US$50mn-100mn while one client got deducted each from US$5mn-10mn and US$10mn-20mn revenue bracket. The active client base of the company increased to 694 in 4QFY2012 from 665 in 3QFY2012.

Exhibit 11: Client metrics

Particulars Top client (% of revenue) Client addition Active client US$1mn5mn US$5mn10mn US$10mn20mn US$20mn50mn US$50mn100mn US$100mn200mn US$200mn-300mn 4QFY11 4.7 34 620 179 61 53 45 17 9 2 1QFY12 4.5 26 628 191 58 45 48 21 9 2 2QFY12 4.6 45 647 200 60 48 45 24 9 1 1 3QFY12 4.1 49 665 198 59 54 41 26 11 1 1 4QFY12 4.1 52 694 209 58 53 39 27 11 1 1

US$300mn plus
Source: Company, Angel Research

Guidance disappoints
The most disappointing thing in Infosys result was FY2013 USD revenue growth guidance at 8-10% against expectations of 12-15%. The guidance for the full year is even below IT industry body - Nasscom's forecast of 11-14%. Management indicated that it is because of uncertain global economy and currency volatility. Client budgets are flat to marginally down. Management expects FY2013 USD revenue to be in the range of US$7,553mn-7,692mn. The FY2013 EPS guidance is `158.76-161.41 (at assumed currency rate of INR/USD rate of `50.88). In addition, management has given tepid revenue guidance of almost flat qoq at US$1,771mn-1,789mn for 1QFY2013. We believe this clearly indicates
April 13, 2012

Infosys | 4QFY2012 Result Update

challenging visibility in business volumes and managements future expectation. Guidance numbers also indicate that management is banking on back ended growth which makes us cautious as the second half of every fiscal year is typically slow.

Exhibit 12: 1QFY2013 and FY2013 guidance

Guidance (IFRS) Revenue (` cr) EPS (`) Revenue (US$bn) Basic EPADS (US$)
Source: Company, Angel Research

1QFY2013 9,011-9,100 36.89 1.771-1.789 0.73

FY2013 guidance 38,431-39,136 158.76-161.41 7.55-7.69 3.12-3.17

Outlook and valuation

Management commentary has turned extremely cautious for the next years budget flush pattern. Also, the company is witnessing delays in ramp-ups of the deals being signed. This is clearly reflected in managements disappointing FY2013 guidance of merely 8-10%. In addition, for 1QFY2013, management has given USD revenue growth guidance of 0-1% qoq which indicates that management is banking on back ended growth which makes us cautious as the second half of every fiscal year is typically slow. If Infosys meets its 1QFY2013 guidance, then to achieve its full year FY2013 guidance, the company requires above 4.2% qoq USD revenue growth each quarter from 2QFY2012. Hence, we have assumed moderation in demand going forward in FY2013 and have built in a USD revenue growth of 9.8% for FY2013. Over FY2012-14E, we expect USD and INR revenue CAGR of 11.4% and 12.2%, respectively. On the EBIT margin front, for FY2013, the management expects it to go down by 50-100bps yoy in FY2013. We expect EBIT margin to decline by 60bp yoy to 28.4% for FY2013. Over FY201214E, we expect a CAGR of 10.1% and 9.5% in EBIT and PAT, respectively. At the CMP of `2,403, the stock is trading at 15.2x FY2013E and 13.8x FY2014E EPS. We value the company at 16x FY2014E of `174.5 and recommend a Buy rating on the stock with a target price of `2,792.

Exhibit 13: Key assumptions

Parameters Revenue growth USD terms (%) USDINR rate Revenue growth INR terms (%) EBITDA margin (%) Tax rate (%) EPS growth (%)
Source: Company, Angel Research

FY2013 9.8 49.0 11.5 31.1 28.5 8.9

FY2014 13.0 49.0 13.0 30.6 28.2 10.1

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Infosys | 4QFY2012 Result Update

Exhibit 14: Change in estimates

FY2013 Parameter (` cr) Net revenue EBITDA Other income PBT Tax PAT Earlier estimates 38,931 12,175 2,083 13,177 3,756 9,421 Revised estimates 37,615 11,694 1,980 12,658 3,608 9,051 Variation (%) (3.4) (3.9) (5.0) (3.9) (3.9) (3.9) Earlier estimates 44,986 13,761 2,258 14,755 4,132 10,623 FY2014 Revised estimates 42,491 13,007 2,024 13,884 3,915 9,969 Variation (%) (5.5) (5.5) (10.4) (5.9) (5.2) (6.2)

Source: Company, Angel Research

Exhibit 15: One-year forward PE (x)

5,300 4,700 4,100 3,500

(`)

2,900 2,300 1,700 1,100 500

Apr-07

Apr-08

Apr-09

Apr-10

Apr-11

Oct-07

Oct-08

Oct-09

Oct-10

Price
Source: Company, Angel Research

26x

22x

18x

14x

Exhibit 16: Recommendation summary

Company HCL Tech Hexaware Infosys Infotech Enterprises KPIT Cummins Mahindra Satyam MindTree Mphasis NIIT Persistent TCS Tech Mahindra Wipro Reco Buy Reduce Buy Neutral Buy Accumulate Buy Accumulate Buy Accumulate Buy Accumulate Accumulate CMP (`) 478 120 2,403 167 74 78 494 381 49 327 1,070 702 421 Tgt. price (`) 562 114 2,792 172 98 89 569 433 61 352 1,360 750 463 Upside (%) 17.5 (5.2) 16.2 3.0 31.9 13.4 15.2 13.8 25.6 7.7 27.2 6.8 10.0 FY2014E EBITDA (%) 16.5 18.3 30.6 16.8 14.9 15.0 13.9 17.9 16.9 20.8 28.9 15.7 19.3 FY2014E P/E (x) 11.5 11.6 13.8 9.2 6.8 9.5 9.1 9.2 5.3 8.4 15.3 8.1 13.9 FY2012-14E EPS CAGR (%) 15.8 53.4 13.4 12.9 (1.4) 25.3 29.5 1.7 18.0 3.8 16.1 20.8 11.8 FY2014E RoCE (%) 19.8 24.1 22.8 16.6 20.0 11.4 17.9 14.1 11.5 16.1 30.6 12.9 14.1 FY2014E RoE (%) 20.8 21.6 20.8 13.2 18.0 13.0 16.0 13.7 19.0 13.8 29.9 18.0 19.3

Source: Company, Angel Research

April 13, 2012

Oct-11
10x

Apr-12

Infosys | 4QFY2012 Result Update

Profit and loss statement (IFRS, consolidated)

Y/E March (` cr) Net sales Cost of revenue Gross profit % of net sales Selling and marketing expenses % of net sales General and admin expenses % of net sales EBITDA % of net sales Dep. and amortization % of net sales EBIT % of net sales Other income Profit before tax Provision for tax % of PBT PAT Minority interest Adj. PAT EPS (`) FY2010 22,742 12,078 10,664 46.9 1,184 5.2 1,628 7.2 7,852 34.5 942 4.1 6,910 30.4 990 7,900 1,681 21.3 6,219 6,219 109.5 FY2011 27,501 15,054 12,447 45.3 1,512 5.5 1,971 7.2 8,964 32.6 862 3.1 8,102 29.5 1,211 9,313 2,490 26.7 6,823 6,823 119.5 FY2012 33,733 18,877 14,856 44.0 1,757 5.2 2,390 7.1 10,709 31.7 931 2.8 9,778 29.0 1,904 11,683 3,368 28.8 8,315 8,315 145.5 FY2013E 37,615 21,303 16,312 43.4 1,917 5.1 2,702 7.2 11,694 31.1 1,016 2.7 10,679 28.4 1,980 12,658 3,608 28.5 9,051 9,051 158.5 FY2014E 42,491 24,370 18,121 42.6 2,108 5.0 3,006 7.1 13,007 30.6 1,147 2.7 11,860 27.9 2,024 13,884 3,915 28.2 9,969 9,969 174.5

April 13, 2012

10

Infosys | 4QFY2012 Result Update

Balance sheet (IFRS, consolidated)

Y/E March (` cr) Current assets Cash and cash equivalents Available for sale financial assets Investment in certificates of deposit Trade receivables Unbilled revenue Derivative financial instruments Prepayments and other current assets Total current assets Non-current assets Property, plant and equipment Goodwill Intangible assets Available for sale financial assets Deferred income tax assets Income tax assets Other non-current assets Total non-current assets Total assets Current liabilities Trade payables Derivative financial instruments Current income tax liabilities Client deposits Unearned revenue Employee benefit obligations Provisions Other liabilities Total current liabilities Non-current liabilities Deferred income tax liabilities Employee benefit obligations Other liabilities Total non-current liabilities Total liabilities Equity Share capital Share premium Retained earnings Other components of equity Total equity Total liabilities and equity 286 3,047 20,668 72 24,073 27,622 286 3,082 23,826 109 27,303 31,263 286 3,089 29,816 270 33,461 38,348 286 3,120 36,529 270 40,205 44,318 286 3,120 44,161 270 47,837 51,996 124 171 61 356 3,549 259 60 319 3,960 12 109 121 4,887 100 100 4,113 100 100 4,159 10 724 8 531 131 82 1,707 3,193 44 817 22 518 140 88 2,012 3,641 23 42 1,054 15 545 498 133 2,456 4,766 20 850 10 557 450 100 2,026 4,013 20 850 10 569 450 80 2,080 4,059 4,439 829 56 356 667 347 6,694 27,622 4,844 825 48 23 378 993 463 7,574 31,263 5,409 993 173 12 316 1,037 162 8,102 38,348 5,993 993 173 20 400 1,200 789 9,568 44,318 6,046 993 173 20 400 1,450 1,123 10,205 51,996 12,111 2,556 1,190 3,494 841 95 641 20,928 16,666 21 123 4,653 1,243 66 917 23,689 20,591 32 345 5,882 1,873 1,523 30,246 24,489 30 500 6,080 1,958 1,693 34,750 30,068 30 700 6,868 2,212 1,912 41,790 FY2010 FY2011 FY2012 FY2013E FY2014E

April 13, 2012

11

Infosys | 4QFY2012 Result Update

Cash flow statement (IFRS, consolidated)

Y/E March (` cr) Pre-tax profit from operations Depreciation Pre tax cash from operations Other income/prior period ad Net cash from operations Tax Cash profits (Inc)/dec in current assets Inc/(dec) in current liabilities (Inc)/dec in net trade WC Cashflow from operating activities (Inc)/dec in fixed assets (Inc)/dec in investments (inc)/dec in sale of financial assets (Inc)/dec in deferred tax assets Inc/(dec) in other non-current liab. (Inc)/dec in other non-current ass. Cashflow from investing activities Inc/(dec) in debt Inc/(dec) in equity/premium Dividends Cashflow from financing activities Cash generated/(utilized) Cash at start of the year Cash at end of the year FY2010 6,910 942 7,852 990 8,842 1,681 7,161 (238) 468 230 7,391 (716) (3,746) (302) 74 (243) (4,933) 333 1,673 (1,340) 1,118 10,993 12,111 FY2011 8,102 862 8,964 1,211 10,175 2,490 7,685 (1,808) 448 (1,360) 6,325 (1,267) 3,602 (23) (348) (37) (104) 1,823 (1,256) 2,337 (3,593) 4,555 12,111 16,666 FY2012 9,778 931 10,709 1,904 12,614 3,368 9,246 (2,399) 1,125 (1,274) 7,972 (1,496) (233) 11 18 (198) 8 (1,890) 982 3,139 (2,157) 3,925 16,666 20,591 FY2013E 10,679 1,016 11,694 1,980 13,674 3,608 10,066 (453) (753) (1,206) 8,860 (1,600) (153) (8) (247) (21) (627) (2,656) 31 2,337 (2,306) 3,898 20,591 24,489 FY2014E 11,860 1,147 13,007 2,024 15,031 3,915 11,116 (1,261) 46 (1,216) 9,900 (1,200) (200) (250) (334) (1,984) 2,337 (2,337) 5,579 24,489 30,068

April 13, 2012

12

Infosys | 4QFY2012 Result Update

Key ratios
Y/E March Valuation ratio (x) P/E P/CEPS P/BVPS Dividend yield (%) EV/Sales EV/EBITDA EV/Total assets Per share data (`) EPS Cash EPS Dividend Book value DuPont analysis Tax retention ratio (PAT/PBT) Cost of debt (PBT/EBIT) EBIT margin (EBIT/sales) Asset turnover ratio (sales/assets) Leverage ratio (assets/equity) Operating ROE Return ratios (%) RoCE (pre-tax) Angel RoIC RoE Turnover ratios (x) Asset turnover (fixed assets) Receivables days 3.4 70 3.6 78 4.2 78 3.9 78 4.2 78 25.0 58.7 25.8 25.9 56.1 25.0 25.5 56.3 24.9 24.1 55.3 22.5 22.8 55.9 20.8 0.8 1.1 0.3 0.8 1.1 25.8 0.7 1.1 0.3 0.9 1.1 25.0 0.7 1.2 0.3 0.9 1.1 24.9 0.7 1.2 0.3 0.8 1.1 22.5 0.7 1.2 0.3 0.8 1.1 20.8 109 125 25 421 119 134 35 477 146 162 47 585 158 176 35 703 175 194 35 836 22.1 19.2 5.7 1.0 5.3 15.5 4.4 20.1 17.9 5.0 1.5 4.4 13.5 3.9 16.5 14.9 4.1 2.0 3.5 10.9 3.0 15.2 13.7 3.4 1.5 3.0 9.6 2.5 13.8 12.4 2.9 1.5 2.5 8.2 2.1 FY2010 FY2011 FY2012 FY2013E FY2014E

April 13, 2012

13

Infosys | 4QFY2012 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavors to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

Infosys No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

Ratings (Returns):

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

April 13, 2012

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