EXHIBIT 99.7

EX-99.7 9 f93658exv99w7.htm EXHIBIT 99.7 EXHIBIT 99.7

EXHIBIT 99.7


Fact Sheet – Second Quarter, 2003-04

Profit and Loss Account summary for the Quarter ended
		(as per Indian GAAP)

in Rs. crore, except per share data


										Growth % in
		September 30,				Growth		Quarter ended		Q2 FY 2004
Particulars						(%)		June 30, 2003		over Q1 FY
		2003		2002						2004

INCOME
Software services and products
	Overseas		1,115.98		857.23		30.2		1,058.65		5.4
	Domestic		18.77		22.34		-16.0		23.33		-19.5
TOTAL INCOME			1,134.75		879.57		29.0		1,081.98		4.9
Software Development Expenses			587.16		424.49		38.3		572.78		2.5
GROSS PROFIT			547.59		455.08		20.3		509.20		7.5
Selling and marketing expenses			80.44		69.33		16.0		79.72		0.9
General and administration expenses			88.72		62.51		41.9		81.18		9.3
			169.16		131.84		28.3		160.90		5.1
OPERATING PROFIT (EBIDTA)			378.43		323.24		17.1		348.30		8.7
Interest			—		—		—		—		—
Depreciation and amortization			62.33		46.24		34.8		44.26		40.8
OPERATING PROFIT AFTER INTEREST, DEPRECIATION AND AMORTIZATION			316.10		277.00		14.1		304.04		4.0
Other income			44.28		17.53		152.7		32.44		36.5
Provision for investments			0.22		23.76		-99.0		6.36		-96.4
PROFIT BEFORE TAX			360.16		270.77		33.0		330.12		9.1
Provision for taxation			60.00		45.00		33.3		52.00		15.4
NET PROFIT AFTER TAX			300.16		225.77		32.9		278.12		7.9
EARNINGS PER SHARE
(Equity shares, par value Rs.5/- each)
Basic			45.30		34.10		32.8		41.98		7.9
Diluted			44.92		33.90		32.5		41.83		7.4

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Fact Sheet – Second Quarter, 2003-04

Profit and Loss Account summary for the Half-year ended
		(as per Indian GAAP)

in Rs. crore, except per share data


		September 30,				Growth		Year ended
Particulars						(%)		March 31,
		2003		2002				2003

INCOME
Software services and products
	Overseas		2,174.63		1,607.75		35.3		3,543.51
	Domestic		42.10		36.44		15.5		79.18
TOTAL INCOME			2,216.73		1,644.19		34.8		3,622.69
Software Development Expenses			1,159.94		801.88		44.7		1,813.30
GROSS PROFIT			1,056.79		842.31		25.5		1,809.39
Selling and marketing expenses			160.16		124.42		28.7		266.98
General and administration expenses			169.90		119.72		41.9		270.37
			330.06		244.14		35.2		537.35
OPERATING PROFIT (EBIDTA)			726.73		598.17		21.5		1,272.04
Interest			—		—		—		—
Depreciation and amortization			106.59		86.71		22.9		188.95
OPERATING PROFIT AFTER INTEREST, DEPRECIATION AND AMORTIZATION			620.14		511.46		21.2		1,083.09
Other income			76.73		42.42		80.9		99.61
Provision for investments			6.59		23.76		-72.3		23.77
PROFIT BEFORE TAX			690.28		530.12		30.2		1,158.93
Provision for taxation			112.00		87.50		28.0		201.00
NET PROFIT AFTER TAX			578.28		442.62		30.6		957.93
EARNINGS PER SHARE
(Equity shares, par value Rs.5/- each)
Basic			87.29		66.87		30.5		144.68
Diluted			86.76		66.41		30.5		143.37

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Fact Sheet — Second Quarter, 2003-04

REVENUE BY GEOGRAPHICAL SEGMENT


							LTM Sept 30,		LTM Sept 30,
	Sept 30, 2003		June 30, 2003		Sept 30, 2002		2003		2002
	%		%		%		%		%

North America		73.9		74.7		73.8		73.6		72.1
Europe		18.0		17.4		16.5		17.7		18.6
India		1.6		2.1		2.5		1.9		2.0
Rest of the world		6.5		5.8		7.2		6.8		7.3
Total		100.0		100.0		100.0		100.0		100.0

REVENUE BY SERVICE OFFERING


							LTM Sept 30,		LTM Sept 30,
	Sept 30, 2003		June 30, 2003		Sept 30, 2002		2003		2002
	%		%		%		%		%

Development		25.2		27.8		31.2		29.0		31.9
Maintenance		31.6		26.9		28.8		28.3		29.3
Re-engineering		5.9		6.7		6.0		5.8		7.3
Package implementation		12.6		13.5		9.7		12.8		9.8
Consulting		3.4		4.4		4.7		4.0		4.1
Testing		6.0		4.4		3.0		4.5		3.0
Engineering services		2.1		2.6		2.7		2.4		2.8
Other services		10.4		10.1		8.4		9.4		7.2
Total services		97.2		96.4		94.5		96.2		95.4
Products		2.8		3.6		5.5		3.8		4.6
Total revenues		100.0		100.0		100.0		100.0		100.0

REVENUE BY PROJECT TYPE


							LTM Sept 30,		LTM Sept 30,
	Sept 30, 2003		June 30, 2003		Sept 30, 2002		2003		2002
	%		%		%		%		%

Fixed Price		35.4		35.9		36.1		36.4		35.3
Time & Materials		64.6		64.1		63.9		63.6		64.7
Total		100.0		100.0		100.0		100.0		100.0

“LTM” — Last Twelve Months

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Fact Sheet — Second Quarter, 2003-04

REVENUE BY INDUSTRY CLASS


								LTM Sept 30,		LTM Sept 30,
		Sept 30, 2003		June 30, 2003		Sept 30, 2002		2003		2002
		%		%		%		%		%

Insurance, banking & financial services			38.9		37.4		38.8		37.8		37.0
	Insurance		15.2		13.9		15.7		13.9		15.7
	Banking & financial services		23.7		23.5		23.1		23.9		21.3
Manufacturing			15.0		15.6		17.1		15.7		16.7
Retail			11.7		11.6		11.3		11.5		12.2
Telecom			15.4		14.6		14.6		15.2		15.1
Energy & Utilities			3.0		3.5		3.1		3.2		2.5
Transportation & logistics			7.1		7.1		6.6		7.0		5.0
Others			8.9		10.2		8.5		9.6		11.5
Total			100.0		100.0		100.0		100.0		100.0

CLIENT DATA


	Sept 30, 2003			June 30, 2003			Sept 30, 2002

Active Clients		347			346			308
Added during quarter		29			22			18
Revenue – top client		6.6	%		5.7	%		5.9	%
Revenue – top 5 clients		24.6	%		23.7	%		24.0	%
Revenue – top 10 clients		37.9	%		36.7	%		37.9	%
Clients accounting for >5% of revenue		2			2			3
Repeat business		95.7	%		97.8	%		94.9	%
Account receivables – LTM (in days)		50			52			56

EFFORT AND UTILIZATION


		Sept 30, 2003			June 30, 2003			Sept 30, 2002

Effort — Services
	Onsite		32.6	%		34.4	%		35.7	%
	Offshore		67.4	%		65.6	%		64.3	%
Revenue — Services
	Onsite		54.1	%		56.2	%		57.8	%
	Offshore		45.9	%		43.8	%		42.2	%
Utilization
	Including trainees		74.3	%		77.3	%		78.1	%
	Excluding trainees		83.8	%		83.9	%		84.2	%

“LTM” — Last Twelve Months

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Fact Sheet — Second Quarter, 2003-04

PERSONMONTHS DATA


	Sept 30, 2003		June 30, 2003		Sept 30, 2002

Onsite – Billed		11,873		11,590		8,634
Offshore – Billed		26,355		23,857		17,102
TOTAL — Billed		38,228		35,447		25,736
Non Billable		7,373		6,807		4,828
Trainee		5,836		3,594		2,374
Sales & Support		3,740		3,743		3,351
TOTAL		55,177		49,591		36,289

EMPLOYEE METRICS


		Sept 30, 2003		June 30, 2003		Sept 30, 2002

Total Employees			19,120		17,095		13,110
S/W professionals			17,625		15,623		11,892
	Billable		15,152		13,373		10,466
	Banking Product Group		501		516		514
	Trainees		1,972		1,734		912
Sales & Support			1,495		1,472		1,218
Gross Addition			2,595		2,175		2,065
Net Addition			2,025		1,739		1,806
Lateral Employees			328		303		328
Attrition % (LTM)			9.1		7.9		6.1

INFRASTRUCTURE (as on Sept 30, 2003)


	Completed				Work in Progress
									Land
	Built-Up Area		No. of Seats		Built-Up Area		No. of Seats		acquired during
	(Sq Ft)				(Sq Ft)				the Qtr (acres)

Bangalore		16,24,836		9,152		4,00,000		3,500		9.55
Pune		5,89,647		3,176		—		—		113.00
Chennai		4,21,317		2,816		—		—		129.00
Hyderabad		3,17,000		1,645		2,45,000		2,170		—
Bhubaneshwar		1,89,000		1,200		95,000		800		—
Mangalore		1,98,000		1,077		—		—		—
Mysore (including ILI)*		4,18,450		634		2,25,000		850		—
Mohali		21,000		200		—		—		—
Trivandrum		—		—		22,000		220		—
Total		37,79,250		19,900		9,87,000		7,540		251.55

* Infosys Leadership Institute

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Fact Sheet — Second Quarter, 2003-04

in Rs. crore, except employee data

Consolidated (Including Progeon)


	Sept 30, 2003		June 30, 2003		Sept 30, 2002

Total Employees		20,158		17,977		13,397
Gross Additions		2,845		2,591		2,263
Net Additions		2,181		2,082		1,991
Revenue		1,151.8		1,094.7		880.6
Net Profit After Tax		301.0		278.9		224.5

Reconciliation of accounts as per Indian GAAP and US GAAP

in Rs. Crore


	Three months ended			Year ended
	September 30, 2003			March 31, 2003

Net Profit as per Indian GAAP		300.2			957.9
Amortization of deferred stock compensation		(4.9	)		(23.2	)
Deferred taxes		(1.3	)		(0.9	)
Gain on forward foreign exchange contracts		3.5			2.4
Net provision for investments		—			9.1
Others		(1.5	)		—
Profit / (loss) from Progeon Limited		1.4			(3.1	)
Consolidated Net income as per US GAAP		297.4			942.2

Reasons for differences in net income as per Indian GAAP and US GAAP

Amortization of deferred stock compensation

The Accounting Principles Board Opinion No. 25 of US GAAP requires the accounting of deferred stock compensation on issue of stock options to employees, being the difference between the exercise price and the fair value as determined by the quoted market prices of the common stock on the grant date. In complying with this requirement, Infosys has charged to revenue under US GAAP an amount of Rs. 4.9 crore and Rs. 23.2 crore for the quarter ended September 30, 2003 and year ended March 31, 2003, respectively, as amortization of deferred stock compensation.

Gain on forward exchange contracts

Under Indian GAAP, premium on forward contract is recognized as income or expenditure over the life of the related contract. Whereas, under US GAAP, the same is marked-to-market as on the reporting date. The resultant gain / loss is recognized immediately in the income statement.

Net provision for investments

Under Indian GAAP, recognition of unrealized gains on intellectual property rights is permitted. Consequently, an amount of Rs. 9.1 crore was recognized during the year ended March 31, 2001. Provision has been made for this investment under Indian GAAP during the quarter ended September 30, 2002.

Profit / (Loss) in subsidiary

Under US GAAP, consolidation of all majority owned subsidiaries is mandatory. Consequently, the profits in Progeon, the company’s subsidiary, amounting to Rs. 1.4 crore and losses of Rs. 3.1 crore were recorded in the US GAAP financial statements for the quarter ended September 30, 2003 and year ended March 31, 2003 respectively.