Infosys Technologies Ltd. (
INFY)
Q4 2010 Earnings Call Transcript
April 13, 2010 8:30 a.m. ET
Executives
Sandeep Mahindroo - Investor Relations Manager
S. D. Shibulal - Chief Operating Officer
Kris Gopalakrishnan - Chief Executive Officer and Managing Director
Vibin Balakrishnan - Chief Financial Officer
B. G. Srinivas - Senior Vice President, Head, Manufacturing, Product Engineering and Product Lifecycle and Engineering Solutions
Subhash Dhar - Senior Vice President, Head, Communication, Media and Entertainment and Corporate Marketing
Ashok Vemuri - Senior Vice President, Head, Banking and Capital Markets
T. V. Mohandas Pai - Head, Administration, Education and Research, Finance, HR Division
Chandrasekhar Kakal - Senior Vice President, Head, Enterprise Solutions
Analysts
Moshe Katri - Cowen & Company
George Price - Stifel Nicolaus
Joseph Foresi - Janney Montgomery Scott
Rod Bourgeois - Sanford C. Bernstein & Company
Edward Caso - Wells Fargo Securities
David Grossman - Thomas Weisel Partners
Bhavan Suri - William Blair & Company, LLC
Presentation
Operator
Ladies and gentlemen, good morning, good afternoon, good evening, and welcome to the Infosys Fourth Quarter Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode for the duration of this presentation. 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. Please note that this conference is being recorded.
I would now like to hand over to Mr. Sandeep Mahindroo of Infosys Technologies Limited. Thank you, and over to you, Mr. Mahindroo.
Sandeep Mahindroo
Thanks, Rochelle. Good morning, everyone, and welcome to this call to discuss Infosys’ financial results for the quarter and year ended March 31, 2010. I’m Sandeep from the Investor Relations team in New York. Joining us today on this earnings call from Bangalore is our 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 June 2010 and year ending March 2011. Subsequently, we’ll open up the call for Q&A.
Before I pass it on to the management team I would like to remind you that anything which we say which refers to our outlook for the future is a forward-looking statement which must be read in conjunction with the risks that the company faces. A full statement and explanation of these risks is available with our filings with the SEC which can be found on www.sec.gov.
I would now like to pass it on to Mr. S.D. Shibulal.
S. D. Shibulal
Good morning, everyone. This is Shibulal. I’m waiting for Kris and Bala who will be joining us shortly. In the meanwhile I’ll give you an overview and I’m hoping that before the Q&A starts both Kris and Bala will be here to give their remarks.
This has been an excellent quarter for us. We have exceeded the higher end of our guidance. Our guidance for the quarter was $1.24 billion to $1.25 billion. In constant currency terms it is $1.231 to $1.241 billion. Revenue for the quarter is $1.296 billion. So we have exceeded the upper end of the guidance.
Revenue increased sequentially by 5.2% in constant currency terms -- and in constant currency terms it increased by 6.1%. The volume increase also is 5.2% sequentially. The offshore volume increased by 5.3%.
Pricing has declined during this quarter 1.5% blended. Utilization has gone up of course because the demand has picked up. So what we are seeing in the market is that most of our clients have closed their budgets. Their budgets are flat or marginally up. At the same time, the majority of our clients are clear that they spend in offshore will go up through the year. We are seeing increased velocity in decision making. We are seeing the start of discretionary spend.
Our clients, their business priorities continue to be in two areas. One is fulfilling the demands for their clients. Second is to manage cost. To align with that the IT departments are also focused on investments which are relevant for the future of our clients at the same time managing costs.
