* To hire 25,000 employees in FY09; factors 19-21% revenue growth
* Sitting on $2bn cash; 15 big deals in the pipeline
* 11-13% hike in offshore salaries; 4-5% hike in onsite salaries - 2.3% impact in Q1
* Lost Rs 2,000cr revenue and Rs 1,000 crore profit due to rupee appreciation in FY08
* Hedging: $760mn; $7mn mark-to-market loss due to hedging
* Reducing onsite exposure by 1%
* Assumes flat margins for Q1FY09 ending June 30, 2008
* Pricing assumed to be stable given current conditions; increased by 6% YoY
* Closed four deals in Q4; one large deal around $200-300mn
* Clients: 40; Net hiring: 2,586; Total hiring in FY08: 33,177; Total employees: 91,187
* Dividend: Rs 7.25 per share + a special dividend of Rs 20 per share for FY08
As it guided the markets to a $5 billion revenue in financial year 2008-09, the markets reacted positively to Indian IT services provider Infosys Technologies, which posted a "market expected" result for the quarter ended March 31, 2008.
The results were no surprise since the rupee had depreciated against the dollar by around 1%. Over 60% of Infosys' revenues still come from the US. The management, however, admitted that the slowdown in the US was a concern.
The slowdown in its revenue growth, it said, was a bigger concern that the rupee appreciation against the dollar. It also sees a "delay in decision-making" when it comes to deals, but "clients are looking to increase their offshore budgets". It added, though, that while it was looking at medium- to long-term growth, the next two quarters would bring in more clarity.
Guidance for financial year 2008-09
* Income expected between Rs 19,894-20,214 crore; YoY growth of 19.2%-21.1%
* EPS to be around Rs 92.32- 93.92; YoY growth of 16.3%-18.3%
Infosys became the 10th Indian company (excluding banks and financial institutions) to become $1 billion net profit company. The other companies are ONGC, Reliance Industries, Indian Oil, NTPC, Sail, Hindustan Zinc, Tata Steel, Bharti Airtel and TCS (based on nine-months annualised).
Infosys is sitting on a pile of cash. Its cash, bank balance and deposits with financial institutions and corporate bodies increased from Rs 6,129 crore to Rs 8,396 crore. It has bank balance of Rs 6,950 crore (Rs 5,834 crore) while deposits with FIs and corporate body is at Rs 1,446 crore (Rs 295 crore).
The share of salaries and wages to total expenditure has gone up from 66.59% in Q3FY08 to 67.55% in Q4FY08. The share of S&G in total expenditure declined from 19.24% to 18.99%.
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