Infosys Technologies Limited. (INFY)
Q2 2010 Earnings Call Transcript
October 9, 2009 8:30 a.m. ET

Executives

Sandeep Mahindroo - Investor Relations
Kris Gopalakrishnan - Chief Executive Officer and Managing Director
S. D. Shibulal - Chief Operating Officer
Vibin Balakrishnan - Chief Financial Officer
Ashok Vemuri - Senior Vice President, Head, Banking and Capital Markets

Analysts

Avishai Kantor - Cowen and Company
Mark Zgutowicz - Piper Jaffray
Joseph Foresi - Janney Montgomery Scott
Bhavan Suri - William Blair & Company
Edward Caso - Wells Fargo Securities, Llc
Glenn Greene - Oppenheimer & Co.
Karl Keirstead - Kaufman Brothers
David Grossman - Thomas Weisel Partners
Trip Chowdhry - Global Equities Research, LLC
Rod Bourgeois - Sanford C. Bernstein & Co.
George Price - Stifel Nicolaus

Presentation

Operator

Ladies and gentlemen, good morning, good afternoon, good evening. And welcome to the Infosys second quarter earnings conference call. As a reminder, all participants'' lines will be in the listen-only mode and this conference is being recorded. There will be an opportunity for you to ask questions at the end of today''s opening remarks. Should you need assistance during this conference call, please signal an operator by pressing star and then zero on your touchtone telephone.

I would now like to hand the conference over to Mr. Sandeep Mahindroo of Infosys Technologies Limited. Thank you. And over to you, Mr. Mahindroo.

Sandeep Mahindroo

Thanks, [Asha]. Good morning, everyone. And welcome to this call to discuss Infosys financial results for the quarter ended September 30, 2009. I am Sandeep from the Investor Relations team in New York. Joining us today on this call 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 team.

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 ending December 31, 2009, and year ending March 31, 2010, after when we will open up the call for Q&A.

Before I pass it on to the management team, 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''ll now pass it on to Mr. Gopalakrishnan.

Kris Gopalakrishnan

Thanks, Sandeep. And good morning, good afternoon, good evening to everyone. We had another quarter of good performance, all round good performance, across all aspects of business supporting our customers on the employee side, as well as, how do we -- how we manage the business. We have seen good performance this quarter, we added 35 clients. The top 10 clients grew 5.9%, our customer satisfaction has increased even in these tough times and we do a customer satisfaction survey and satisfaction has increased. We have exceeded our guidance at the upper end.

Revenue increased sequentially, volumes increased sequentially, pricing stable, utilizations improved. We have been able to transition some work offshore so offshore has increased. We were able to sustain our operating margin slightly improve and we have continue to add employees, compared to last quarter, there''s a net increase in employees this quarter. On the EPS side, we''ve exceeded again our guidance, against the guidance of $0.51 we had $0.56.

Overall, when we discuss with clients, they feel that the worst is behind us, this is the second quarter where we are getting that signal from our clients. And of course, we''ll have to wait for the next budget cycle to see, how this is going to be sustained over the next fiscal year. But definitely we feel more confident about the current situation, we have increased our guidance for the rest of the year, we''ve given a compensation increase for our employees and overall, all in all had good all round performance.

Let me now pass it on to my colleague Shibulal to give you more data on the segmentation and things like that.

S. D. Shibulal