Infosys annual report 2011-12: 10 things to note
Vinod Dasari, managing director, Ashok Leyland, told NDTV Profit that the company is planning to make about 36,000 vehicles in FY13-14. “We are happy about the exports market that we have developed. Southern markets are seeing revival,” he added.
The Infosys annual report has traditionally been a wealth of information for shareholders. The company has always set new standards for disclosure.
Also Read: Shibulal blames economy, internal re-organisation for disappointing Q4
Here are 10 things to note in the 2011-12 annual report of Infosys:
1. The annual report has a letter to shareholders from S D Shibulal and a ‘Thank you’ note from Kris Gopalakrishnan for N R Narayana Murthy, former chairman and mentor of the company for his contribution. The company will hold its annual general meeting June 9, 2012.
2. The cash compensation paid to directors of the company in 2011-12 was Rs 25.28 crore, a sharp jump over the compensation paid in 2010-11 of Rs 13.5 crore.
3. Krish Gopalakrishnan, executive co-chairman of the board and S D Shibulal, CEO and MD of the company have received 20 per cent less cash compensation in 2011-12 against 2010-11.
4. The net cash generated from operations was Rs 5,955 crore in 2011-12. This was Rs 4,270 crore in 2010-11.
5. The company ended the year with Rs 20,968 crore as cash and cash equivalent. According to S D Shibulal, MD and CEO, the company’s Infosys 3.0 strategy requires the company to go for acquisitions to enhance capabilities.
6. As of March 2012, Infosys has Rs 989 crore in current accounts spread across Citibank, Deutsche Bank, Bank of America. The company has Rs 17,951 crore in bank deposits against Rs 14,226 crore in the year ago period. Bank of Baroda has Rs 1,733 crore while Canara Bank, ICICI Bank and Bank of India have Rs 1,500 crore each. ICICI Bank has 1,504 crore of Infosys money in bank deposits.
7. LIC is the single largest shareholder of Infosys with 2.82 crore shares or 4.92 per cent stake in the company. The company has 4,60,139 shareholders.
8. The company’s Indian founders’ control 16.01 per cent of voting rights shares of the company. Foreign institutional investors own 39.01 per cent while Indian banks, financial institutions and insurance companies control 11.88 per cent. (The holding pattern could assume significance if foreign institutional investors press for buyback of shares or a higher dividend in the annual general meeting. A section of FIIs also called for a leadership change.)
9. The company said that any restrictions on immigration could affect the company’s ability to provide services to clients in US, Europe and other jurisdictions. The company details issues raised in US over visas.
10. Every 1 per cent change in the Indian rupee has an impact of approximately 0.5 per cent on the operating profit margin. This is the operating profit as a percentage of net sales. So the company’s profitability could look up as the Indian rupee touches new lows. Over the past one month, the Indian rupee fell 4 per cent. Infosys shares rose 1 per cent while BSE Sensex fell 4.5 per cent.