Infosys Finance Report

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Rohan Pradeep Pandit
Financial Management – Project Report
12/2/2012

1 Infosys

Table of Contents
INTRODUCTION ............................................................................................................................ 2 Company Profile ....................................................................................................................... 2 Industry Overview..................................................................................................................... 2 Credit Rating............................................................................................................................. 2 Stock Price Movement .............................................................................................................. 2 STOCK PRICE VALUATION .............................................................................................................. 3 Discounted Cash Flow Method (DCF) Method............................................................................. 3 Risk-free Rate (India) ............................................................................................................. 3 Beta...................................................................................................................................... 3 Market Risk Premium ............................................................................................................ 3 Target Capital Structure ......................................................................................................... 3 Forecasted Cash flows ........................................................................................................... 4 Sensitivity Analysis.................................................................................................................... 5 Conclusion................................................................................................................................ 5 ANNEXURES ................................................................................................................................. 6 Annexure 1 - COMPANY PROFILE ............................................................................................... 6 Annexure 2 – INDUSTRY OVERVIEW........................................................................................... 6 Annexure 3 – GROWTH ASSUMPTIONS ...................................................................................... 7 Annexure 4 – FREE CASH FLOW FORECAST ................................................................................. 8 Annexure 5 – SENSITIVITY ANALYSIS .......................................................................................... 8 REFERENCES................................................................................................................................. 9

2 Infosys

INTRODUCTION
Company Profile
Infosys Limited is a leading global Consulting and IT s ervices firm. The company provides s olutions that span c onsulting, design, development, softwa re re-engineering, maintenance and systems integration. The company also c aters the banking industry and business process m anagement s ervices.

Infosys was incorporated in 1981 as a private limited company. It became public limited in June 1992. Infosys s tarted offering s hares on stock exchanges in India (BSE and NSE) in 1993. (See A nnexure 1 COMPANY PROFILE)

Industry Overview
In FY2012, the Indian IT industry weathered uncertainties in the business environment. A ggregate revenue for FY2012 c ross ed USD 100 billion. Aggregate IT software and servic es revenue is USD 88 billion. Embracing emerging technologies, increased customer-centricity, deepening focus on new markets, adopting new business models are some successful growth strategies followed by the industry . The country's IT industry grew by 16-17 per cent despite global IT industry went up by 5.4 per cent....
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