Infosys Technologies Ltd. (INFY)
Q3 2010 Earnings Call Transcript
January 12, 2010 8:30 a.m. ET

Executives

Sandeep Mahindroo - Investor Relations Manager
Kris Gopalakrishnan - Chief Executive Officer and Managing Director
S. D. Shibulal - Chief Operating Officer
Vibin Balakrishnan - Chief Financial Officer
T. V. Mohandas Pai - Head, Administration, Education and Research, Finance, HR Division
Subhash Dhar - Senior Vice President, Head, Communication, Media and Entertainment and Corporate Marketing

Analysts

Moshe Katri - Cowen & Company
Joseph Foresi - Janney Montgomery Scott
Trip Chowdhry - Global Equities Research
Bhavan Suri - William Blair & Company, LLC
George Price - Stifel Nicolaus
Rod Bourgeois - Sanford C. Bernstein & Company
David Grossman - Thomas Weisel Partners
Mark Marostica - Piper Jaffray
Edward Caso - Wells Fargo Securities
Moshe Katri - Cowen & Company
Bhavan Suri - William Blair & Company, LLC

Presentation

Sandeep Mahindroo

… and welcome to this call to discuss Infosys’ financial results for the quarter ended December 31, 2009. I’m Sandeep from the Investor Relations team in New York.

Joining us today on this earnings call from Mysore is CEO and MD, Mr. Kris Gopalakrishnan; COO, Mr. S. D. Shibulal; and CFO, Mr. V. Balakrishnan along with other members of the senior management.

We’ll start the proceedings with a brief statement on the performance of the company for the recently concluded quarter, followed by the outlook for the quarter and year ending March 31, 2010, after which we will open up the call for Q&A.

Before I pass it on to Infosys management, I would like to remind you that anything that we say which refers to our outlook for the future is a forward-looking statement and must be read in conjunction with the risks that the company faces. A full statement and explanation of these risks is available in our filings with the SEC, which can be found on www.sec.gov.

I would now like to pass it on Mr. S. Gopalakrishnan.

Kris Gopalakrishnan

Thanks, Sandeep. And good morning, good afternoon, good evening to every one of you. Thanks for participating on this call. This was an excellent quarter. We had all around good performance. The strategies we adopted in focusing on clients, meeting their requirements in terms of cost control solutions, increasing offshore, clearly helped us in this quarter to increase our revenue from our top -- our largest clients.

This has helped us to grow this quarter by 6.7% sequentially, in constant currency terms this is about 5.8%. Volumes increased, we were able to hold on to pricing, our pricing went up on blended terms by 1.1%, utilization improved. We added employees. We gave a compensation increase this quarter and so every one of the parameters we have done extremely well.

If you just look at the top 10 clients, top 10 clients grew 12.2% this quarter, compared with the overall growth for the company of 6.7% almost double. So our focus on relationship building, our focus on engagement level investment, our focus on solutions, differentiation all these things actually came together and helped us.

So as the recovery happened in U.S. in financial services sector, we were able to take advantage of that during this quarter.

Going forward, we believe that given that the budgets have not yet been finalized. We don’t have sufficient data to forecast other than what we’ve done right now. We’ve guided for a very small increase in Q4 about 1% and we expect the margins to be hit slightly because of increased hiring, as well as, the impact of rupee. Other than that the numbers are all with you.

I will hand it over to Mr. Shibulal to give you more details on the numbers and then followed by V. Balakrishnan, the CFO on further discussion on the financials.

S. D. Shibulal