For Infosys Technologies, one year’s revenue is another year’s net profit. If this sounds like a puzzle, take a look at some of the numbers.Net profit of Rs 2,421 crore (Rs 24.21 billion) that the company earned in the financial year 2005-06 was close to its sales of Rs 2,603 crore (Rs 26.03 billion) in the financial year 2001-02.Similarly, its 2004-05 net profit of Rs 1,904.38 crore (Rs 19.04 billion) almost matched its 2000-01 revenue of Rs 1,900.57 crore (Rs 19 billion). In fact, these figures are a testimony to Infosys’ rapid progress in quick time. These are not isolated instances. .To elaborate, its sales revenue of Rs 139.21 crore (Rs 1.39 billion) in 1996-97 was almost equal to its net profit in 1998-99, which was Rs 135.26 crore (Rs 1.35 billion). Similarly, net sales of Rs 257.66 crore (Rs 2.57 billion) recorded in 1997-98 was close to its net profit in 1999-00 at Rs 293.52 crore (Rs 2.93 billion). The company’s sales worth Rs 508.89 crore (Rs 5.08 billion) in 1999-00 were even lower than its net profit at Rs 628.81 crore (Rs 6.28 billion) in 2000-01. Again, in 2002-03, Infosys’ net profit of Rs 957.93 crore (Rs 9.57 billion) was more than its sales of Rs 882.33 crore (Rs 8.82 billion) earned four years ago.A Rs 88-crore (Rs 880 million) software company a decade ago is now a $2 billion major. It took Infosys 23 years to reach the first billion dollars in revenues, but the next billion dollars came in 23 months.For the fiscal year 2005-06, the company achieved standalone sales of Rs 9,028 crore ($2 billion) and its net profit was over half a billion dollar at Rs 2,421 crore (rs 24.21 billion). The company’s financial performance in the last 10 years was backed by its ability to achieve strong growth every quarter in those years.
Read more here about Infosys, Infy Q4 net & Infosys bonus. Murthy’s view
Read more here about Infosys, Infy Q4 net & Infosys bonus. Murthy’s view
What do you guys say? Can Infosys take India to newer heights? use comments section.
Source: Rediff
Everything is said and done.
It’s undoubtedly one of the best Indian Software Comapnies. No one will get in to two minds to answer “Your Dream Comapany to Work for?”
So far so good. Numbers, Revenues, Profit margins… everything is real cool….
But, is this the same Infosys who used to have same ethics and values when it was say 5 or 10 yrs back? Does all Employees (50K + - per this quarters report) are ethical and with values with whatever they do???
Ask this Question to the EVERY PERSON you meet - an insider or outsider of Infosys.
If you ask me - my answer is ‘NO’.
Been there and seen that.
-Anonymous (Not the right time to disclose the name)
Infosys is one of the biggest hyped companies. If you look at the revenue, it is a mere $2.01 Billion which is 20 times less than its competer IBM Global Services. As per the Indian market standards, it may be doing pretty good but there is a long way to go for any Indian company if it really wants to make a big impact. There is always a major dependancy on the US market and how the US government amend the rules.
hey nishant, y r u comparing IBM and Infosys,it is a ridiculous statement as IBM was there from b4 1980 and infosys took birth in 1982, and IBM is not an Indian firm, mind u, do not slip your tongue regarding Infosys………..
its good to see companies in India making huge profits in the ranges of their sales revenue.
if they improve their efficiency it would be good and better for the development.
HIP HIP HURRAY
India is the best.
@image
FYI, IBM is not same as IBM Global Services. IBM is into hardware manufacturing and IBM GS is into services. IBM GS is a privately held company. IBM’s revenue is $91.13B and IBM GS is $46.21B (Which is 23 times greater than Infy). So its your mere ignorance if you think both are same.
AND Mind your language .. If you have an opinion, say it out. Dont just try to mess with people. You are in a global economy, so learn to compare the companies at that level.
Hello image, You are in a global economy as nishant said, and Infosys is also doing business globally, so dont be saying like INDIAN company. One more thing, Google is started in 1998 and now it is competing with Microsoft. So it doesnt matter if u started the company before or after 1980.
Anyway, thanks for posting such topics.
Guys…
Nishant - Well said - Discuss issues and not personal.
This is OVER HYPED company. Only TOP of the line managers are BEST in job. Others suck.
Sourabh - Spot on. Google Rocks, so as Gates’s M$.
Swapna - India is Best..? No doubt. So far so good with corporate (not talking abt corporate culture in India. It sucks. Indians are not professional - talking abt middle managers and not CEOs, CFOs, COOs of big companies.)
Besides Corporate India, what’s that thing you think is BEST in India.??
– Anonymous again (Same as Comments # 1)
Guys there is a lot Infosys can do now. As nishant told, the global market share is around 30 Billion+. So Infosys will/must continue to grow. I don’t know if Infosys can take to new heights but certainly, it ignites the hope that Indian companies can compete in Global market.
anonymous u rock dude
I would like to add something from the New York Times. You guys will get the clear picture as to why u should think otherwise.Besides how long a company is suppose to make profit when the only thing they do is make some banking software and buy more call centers’ from rival companies and do next to nothing about real core programming or has nothing to do with some killer applications. In other words what product do you associate Infosys with, thats’ worth mentioning. And ofcourse cheap labour helps too.
NYT report on infosys “Yet, despite 15 percent wage increases this spring, Infosys said that it expected its profit margins for fiscal 2007 to be about 28 percent, unchanged from last year.
Infosys, according to Mr. Bourgeois of Bernstein, may well be too optimistic, and he noted that the profit margin for fiscal 2006 was 80 basis points — or hundredths of a percent — lower than the company had projected earlier.
The profit margins for Infosys did fall in the quarter ended in March, the fourth quarter of its fiscal year, to 26.3 percent from 29.4 percent in the previous quarter. The company blamed a stronger rupee, higher depreciation on buildings and equipment, and accelerated hiring for the falloff.
Julio Quinteros, an analyst at Goldman Sachs, said the Infosys results and outlook were “impressive on the surface, even though the fourth quarter was kind of a mess in terms of margins.”
Mr. Quinteros has a hold recommendation on Infosys because of its high stock price, but said he was “very positive” on the Indian outsourcing sector.
“Could margins come down? Absolutely,” he said. “You’d be ignoring basic economics if you thought otherwise. But I think there is still a lot of runway here.”
http://www.nytimes.com/pages/world/asia/index.html
Not only Infosys, but other Indian S/W Major Service companies can/will do that too….
The point - Infosys is yet another company NOW… and not like the one it was 5/10/15 yrs ago, as far as ethics and values go…
Take out Ethics and Values from Infosys, then it’s same as what Patni, Wipro, TCD, Cognizant, Kanbay offers… (Comparing the sercice offerings only)
–Anonymous Again (Same as Comment # 1)
biggest hyped company is exactly right. About what “image” said, why are you patronizing a company that expects you to develop “certain” skills and train u just enough to get a visitors visa. this company is a joke in terms of software skills. you wont learn nothing working for such companies except get $50.00 a day when u work for them overseas which is yet another big joke. they dont even hold a patent for the work they do which means they work for some third company which tell them how to implement a algorithm or how the GUI should work. so much for a $ 30 Billion company. besides largest gym or the coolest music system dosent’ make a company global.
how many people with PhD. in maths are working for infosys? ur answer is right NONE.
Google has 50% work force as PhD’s either in maths or Comp.Sc.
These guys get free hand on the projects they do and thats why so many of the products from google are kicking microsoft’s ass right now.
infosys is what they say “One Eyed king” in the land of “you know what”
Rightly said.
So, lets put +ves and -ves. Junta - Please help me consolidating the same -
Positives -
1. Good Predictability
2. Best Relations in Industry
3. Good Skills to convey all “Fundas”
4.
Negatives -
1. “Yet Another” Company and by no means ‘The Ethical and Values’ Company
2. Less number of PH.Ds.
3. Less # of Patents
4. Downgrading the Employess Satisfaction (Check out the # of Infoscions left this year)
5.
FYI -
http://www.ibnlive.com/news/infy_turns_25_q4_results_disappoint/8227-7.html
– Anonymous Again (Same as Comment # 1)
hey anonymous u have a good idea abt infy. r u still there in the company or left
just curious
there are no positives or negatives but a corporate urge to sell Indian blue coller jobs out to whoever needs it.there is no such thing as ethics in corporate world dude. dont know what what i am talking about? ask anyone who has ever been on a J-1 visa or who has worked on so called “on site”. thats where you make real money and not ur cubical writing some lousy code. besides its always good to be curious.
i never worked for infosys and never tried also. i know what people from infosys get when they come here to work on J-1 or H-1B. they work on saturday and sunday also. they work all night long as the company expects them to work more than 12 hrs. that itself is crazy. u tell a guy here to work more than 8 hrs a day and on weekend too and the first thing s/he will do is ask for a overtime and then leave the company and if thats not all they will sue the company. who wants to work on some banking solutions dude when you can work on something you like.
forget what i said about PhD’s and $50 a day just think yourself what all these so called big companies have done with open source. again ur answer is right NOTHING. NOTHING AT ALL. even SUN is giving out its Solaris series to open source community. open source is where the real talent lies and not within some big campus where they serve you freshly brewed coffee and talk about the political situation and bad roads.
hey guys apart from job there is another side of the coin that is life.When we die we wont take anything with us neither infosys nor IBM nor Oracle. Only thing which comes with us are our deeds. So have good ethics and help yourself and others. Till now I have not seen any company with ethics and I worked for ….. too.
Every one wants money and power.
Good luck guys
I totally agree with you,
All these companies are just use us, day and night for their growth.
and though us out, when they dont need.
Try to help poor people, not like IBM or Infosys etc.
hi all,
i saw the critics view on infosys…as i worked for this company i have experienced the ethics and the values part of it……….also i have seen the non-ethical people in company….which eventually opted out of infosys…..why….many reasons….some were interested in more money……they considered themselves more talented than their current positions in infosys……others may be wanted to continue with their unethical form of working…so felt suffocated in infosys environment……
regarding comparison companies growth…….people shouldnt neglect the base country of company and counry’s infrastructure capability to support the business of the company……..in the 90’s the technological infrastructure and rest all were not at all developed in india…..moreover the economy was not open in many fields…….this put restrictions on the growth of a company who was in technology business…….unlike other companies whcih are based in developed nations such as US.
regarding talent pool …..in the startup state infosys had hard time to find talent meetings their requirements….as many IITians flown to US for dollar jobs…..people felt a job with 30,000USD per annum in US was better than RS120,000 perannum job in india…….
when we talk about the ethics of a company or country we should think that we are talking about ourselves……because on a macroscopic level we are the ones who represent either a country or company…may it be infosys or any other firm……..
we should first try to be ourselves ethical and value driven before pointing to others….once we become such a personality then only we can improve others…….
i tried to touch some subjective aspects….and i am open for a debate on this ideas…..