Annual Report of INFOSYS Limited

Annual Report of
INFOSYS Limited
INTRODUCTION
 Infosys Limited is an Indian multinational information technology company that provides business
consulting, information technology and outsourcing services. The company was founded in Pune and is
headquartered in Bangalore. Infosys is the second-largest Indian IT company after Tata Consultancy
Services. Infosys is a global leader in next-generation digital services and consulting.
 They enable clients in more than 50 countries to navigate their digital transformation. With over three
decades of experience in managing the systems and workings of global enterprises, Infosys expertly steer
their clients through their digital journey. They do it by enabling the enterprise with an AI-powered core that
helps prioritize the execution of change. Infosys also empowers the business with agile digital at scale to
deliver unprecedented levels of performance and customer delight.
 As on 2021, its market capitalization is $93.68 billion. The credit rating of the company is CRISIL Stable.
The current share price per share of Infosys is ₹1641.55.
Letter to Share holders
Board Of Directors
Insights
Vision and Objective
 Infosys is a leading provider of consulting, technology, outsourcing and next-generation

digital services, enabling clients in more than 50 countries to create and execute
strategies for their digital transformation.
 The vision is to build a globally-respected organization delivering the best-of-breed
business solutions, leveraging technology, delivered by the best-in-class people. We are
guided by our value system which motivates our attitudes and actions. Our core values
are Client Value, Leadership by Example, Integrity and Transparency, Fairness, and
Excellence (C-LIFE).
 The strategic objective is to build a sustainable organization that remains relevant to
the agenda of our clients, while creating growth opportunities for our employees,
generating profitable growth for our investors and contributing to the communities that
we operate in. There are numerous risks and challenges affecting our business.
Products and Services
Infosys provides software development, maintenance and independent validation services to companies in finance,
insurance, manufacturing and other domains
Its key products and services are:
• NIA – Next Generation Integrated AI Platform (formerly known as Mana)

• Infosys Consulting – a global management consulting service
• Cloud-based enterprise transformation services
• Infosys Information Platform (IIP) – Analytics platform
• EdgeVerve Systems which includes Finacle, a global banking platform
• Panaya Cloud Suite
• Skava
• Engineering Services
• Digital Marketing
Yearly Balance Sheet
March 31,2021(In Rupees crores) March 31,2020(In Rupees crores)
BALANCE SHEET
ASSETS
Non -Current Assets:
Property, Plant and Equipment 10,930 11,092
Right - Of -Use Assets 3435 2,805
Capital work- in -progress 906 945
Goodwill 167 29
Other Tanigble Assets 67 48
Financial Assets:
Investments 22,118 13,916
Loans 30 298
Other Financial Assets 613 613
Deferred Tax Assets ( Net) 955 1,429
Income Tax Assets(Net) 5287 4,773
Other Non - Current Assets 1149 1,273
Total Non - Current Assets 45,657 37,221

Current Assets :
Financial Assets:
Investments 2037 4,006
Trade Receivable 16,394 15,459
Cash and cash equivalents 17,612 13,562
Loans 229 307
Other Financial Assets 5,226 4,398
Other Current Assets 6,784 6,088
Total Current Assets 48,282 43,820
Total Assets 93,939 81,041
EQUITY AND LIABILITIES

Equity:
Equity Share Capital 2,130 2,129
Other Equity 69,401 60,105
Total Equity 71,531 62,234
Liabilities:
Non - Current Liabilities:
Financial Liabilities
Lease Liabilities 3,367 2,775
Other Financial Liabilities 259 49
Deferred Tax Liabilities(Net) 511 556
Other Non - Current Liabilities 649 207
Total Non - Current Liabilities 4,786 3,587
Current Liabilities:
Financial Liabilities:
Trade Payables
Total O/S dues of creditors other than micro enterprises and small enterprises 1562 1529
Lease Liabilities 487 390
Other Financial Liabilities 8,359 7,936
Other Current Liabilities 4,816 3,557
Provisions 661 506
Income Tax Liabilities(Net) 1,737 1,302
Total Current Liabilities 17,622 15,220
Total Equity and Liabilities 93,939 81,041
Profit and Loss Account
PARTICULARS 2020 2021 % change
Revenue from operations 79,047 85,912 8.68
Other income 2,700 2,467 8.62
Total income 81,747 88,379 8.11
Expenses
Employee benefit expenses 42,434 45,179 6.46
Travel expenses 2,241 484 78.4
Cost of software packages 1,656 2,058 2.42
Total expenses 46,331 47,721 3
Profit 35,416 40,658 14.8

Financial Ratios
 Debt equity ratio: outsider funds / shareholders funds

Not applicable as Infosys doesn’t have any outsider funds.
 Current ratio: current assets / current liabilities
48282 / 17622 = 2.7
Rule of thumb is 2:1, therefore they have a good ratio of 2.7:1. This means that they are not too
liquid.
 Gross profit ratio: gross profit / net sales * 100
24477 / 85912 * 100 = 28.49%
This mean that they have good profits to sustain the company.
All values in crores

 ROI: net profit / shareholders funds
18048 / 2130 = 8.47
Anything over 1 is considered good returns, higher the ROI better return for the investors.
 EPS: (Net profit after tax – preference dividend) / Number of equity shares
18048 / 426 = Rs 42.36
This means that for every one share of Infosys, the investors made a profit of Rs 10.
 Book value per share: Shareholders funds / number of shares
2130 / 426 = 5
Since the Book value per share is higher than 1, it suggest that the stock price is trading at a premium.
 Net profit ratio: Net profit / net sales * 100
18048 / 85912 * 100 = 21%
Total profitability of the company after paying tax is at 21%.
All values in crores
Financial Highlights
Trends
Conclusion
 Infosys had a YoY of 44% in this financial year which shows their strong hold on the
market and their strength in making effective long term strategies has been fruitful to
them. This can quantitively be seen in their milestone achievement of reaching Rs.100000
crore in revenue from sales and also the market price of their shares increased from 759.3
to 1648.55 in one year. For the year of 2020-21 their cash flows has increased by
Rs.22020 which means that they have sufficient cash to carry out their operations
effectively. As the company doesn’t have any debt obligations the risk has considerably
reduced. Thus, as shown by the points above the company has created a string foothold in
the market.
Suggestions
 Infosys can start issuing long term secured loans or debentures which will help them
raise cost effective capital without diluting any powers. This will also be helpful as
only fixed interest payment has to be made and the payment is not dependent on the
profits made yearly. Using automation for various processes like handling grievances or
answering FAQs would make the operations of the company more efficient. In order to
make a growth in the revenue, Infosys can opt of outsourcing opportunities. Riding the
digital wave with the pandemic at hand will help in bringing more clients and increase
revenue.

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Annual Report of

 Infosys is a leading provider of consulting, technology, outsourcing and next-generation

• NIA – Next Generation Integrated AI Platform (formerly known as Mana)

Non -Current Assets:

Property, Plant and Equipment 10,930 11,092

Right - Of -Use Assets 3435 2,805

Capital work- in -progress 906 945

Other Tanigble Assets 67 48

Investments 22,118 13,916

Other Financial Assets 613 613

Deferred Tax Assets ( Net) 955 1,429

Income Tax Assets(Net) 5287 4,773

Other Non - Current Assets 1149 1,273

Total Non - Current Assets 45,657 37,221

Total Assets 93,939 81,041

EQUITY AND LIABILITIES

PARTICULARS 2020 2021 % change

Revenue from operations 79,047 85,912 8.68

Other income 2,700 2,467 8.62

Total income 81,747 88,379 8.11

Employee benefit expenses 42,434 45,179 6.46

Travel expenses 2,241 484 78.4

Cost of software packages 1,656 2,058 2.42

Total expenses 46,331 47,721 3

Profit 35,416 40,658 14.8

 Debt equity ratio: outsider funds / shareholders funds

All values in crores

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