PEER GROUPS CMP MARKET CAP EPS P/E (X) P/BV(X) DIVIDEND Company Name (Rs.) Rs. in mn. (Rs.) Ratio Ratio (%)

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1 BUY CMP Target Price INFOSYS LIMITED CONSOLIDATED Result Update: Q3 FY14 JANUARY 10 th 2014 ISIN: INE009A01021 Index Details Stock Data Sector IT BSE Code Face Value wk. High / Low (Rs.) / Volume (2wk. Avg.) Market Cap (Rs. in mn.) Annual Estimated Results (A*: Actual / E*: Estimated) YEARS FY13A FY14E FY15E Net Sales EBITDA Net Profit EPS P/E Shareholding Pattern (%) 1 Year Comparative Graph INFOSYS LTD. S&P BSE SENSEX SYNOPSIS Infosys Ltd. is a global leader company in the "next generation" of IT and consulting Services & is recognized for its world-class management practices and work ethics. During the quarter, the robust growth of Net Sales is increased by 24.96% to Rs million. Total Income has increased from Rs million for the quarter ended December 31, 2012 to Rs million for the quarter ended December 31, During the quarter, 54 new clients were added by Infosys and its subsidiaries. During the third quarter, Infosys applied for 22 unique patent applications in India and the U.S. Infosys has been selected by FESCO to develop a Human Resources (HR) services platform, 'isynergy'. Infosys announced a major four-year strategic partnership with Netherlands COMMIT to help create healthier societies across the world. Infosys BPO and Arrow Electronics Inc. announced an agreement to jointly market comprehensive services for information technology asset lifecycle management to their US clients. Tetrad Investment Bank, Zimbabwe has chosen Infosys Finacle as their technology partner. Infosys BPO announced the opening of a new delivery center in Eindhoven, the Netherlands. Infosys Finacle sustained its business momentum in Q3 FY14 with eight new wins across India, Africa, USA, Europe, Middle East and South East Asia. Net Sales and PAT of the company are expected to grow at a CAGR of 21% and 13% over 2012 to 2015E respectively. PEER GROUPS CMP MARKET CAP EPS P/E (X) P/BV(X) DIVIDEND Company Name (Rs.) Rs. in mn. (Rs.) Ratio Ratio (%) Infosys Ltd TCS Ltd HCL Technologies Ltd Wipro Ltd

2 QUARTERLY HIGHLIGHTS (CONSOLIDATED) Results Updates- Q3 FY14 (31 st DECEMBER 2013) MONTHS DEC-13 DEC-12 % Change Net Sales % PAT % EPS % EBITDA % Infosys Ltd. achieved a turnover of Rs million for the 3 rd quarter of the current year as against Rs millions in the corresponding quarter of the previous year. The company has reported an EBITDA of Rs millions and a net profit of Rs million against Rs million reported respectively in the corresponding quarter of the previous year. The company has reported an EPS of Rs for the 3 rd quarter as against an EPS of Rs in the corresponding quarter of the previous year. Segment Revenue Particulars (Value in Rs. Millions) Q3 FY14 Q3 FY13 Financial Services & Insurance (FSI) Retail, Logistics, Consumer Product Group, Life Sciences & Health Care Enterprises (RCL) Energy, Utilities & Telecommunication Services (ECS) Manufacturing enterprises (MFG)

3 Latest Updates Infosys has been selected by FESCO to develop a Human Resources (HR) services platform, 'isynergy'. Users of FESCO s services can now access the company s HR offerings through a single window on isynergy, using self-service options. The CEB TowerGroup Mobile Banking Solutions Technology Analysis report has recognized Infosys Finacle as a Best-in-Class provider. Infosys McCamish Systems LLC announced the release of a transformational customer service platform, VPAS Customer Service Work Desk (CSWD). VPAS CSWD blends the flexibility and configurability of the leading Business Process Management (BPM) software from Pegasystems, with the comprehensive VPAS Policy Administration System from Infosys McCamish to create a powerful and unique web-based customer service platform to enhance operational excellence and customer experience. Infosys announced that its BPO building in Pune, has been awarded the Leadership in Energy and Environmental Design (LEED) India Platinum rating by the Indian Green Building Council. Infosys has been placed in the 'Winner's Circle' in the HfS Enterprise Analytics Services Blueprint The National Outsourcing Association (NOA) has presented Infosys and BT with the 2013 award for excellence in telecommunication, utilities and hi-tech outsourcing. Infosys BPO has been positioned in the Leaders category in Everest Group s Procurement Outsourcing (PO) Service Provider Landscape with PEAK Matrix Assessment 2013 report. Infosys announced a major four-year strategic partnership with COMMIT, a public-private research community in the Netherlands, to help create healthier societies across the world. Infosys will bring its widely acknowledged technology leadership and financial investments to COMMIT s Sensor-based Engagement for Improved Health (SENSEI) project as part of a wider consortium of partners. Arrow Electronics Inc. and Infosys BPO announced an agreement to jointly market comprehensive services for information technology asset lifecycle management to their US clients. Arrow and Infosys will provide end-to-end IT asset management services, including procurement, deployment and configuration, support, and decommissioning and disposition of assets. Infosys BPO announced the opening of a new delivery center in Eindhoven, the Netherlands. Infosys BPO will leverage the new center to deliver critical business processes such as finance and accounting and other high value services for its global clients, and provide end-to-end outsourcing services in Dutch, English, French and German.

4 Tetrad Investment Bank, Zimbabwe has chosen Infosys Finacle as their technology partner. Finacle will power Tetrad Bank's Core Banking, Wealth Management, Customer Relationship Management (CRM), Online banking, Mobile Banking and Alerts capabilities in its evolution from a merchant bank to a top-tier commercial bank in the region. Infosys was positioned as a Leader in Gartner s Magic Quadrant for SAP Application Management Services, Worldwide, Graphical Representation Revenue by Service Offering (Q3 FY14) Revenue Mix

5 Geography Revenue Concentration (Q3 FY14) Client Contribution to Revenue Utilisation

6 Revenue by Industry (Q3 FY14) COMPANY PROFILE Infosys Limited, formerly known as Infosys Technologies Limited is a global technology Services Company headquartered in Bangalore, India. It is the second largest IT exporter in India. Today, Infosys is a global leader in the "next generation" of IT and consulting with revenues of US$ 7.4 billion. Infosys takes pride in building strategic long-term client relationships. 98% of revenues come from existing customers (FY13). Infosys defines designs and delivers technology-enabled business solutions for Global 2000 companies. Infosys provides a complete range of services by leveraging its domain and business expertise and strategic alliances with leading technology providers. Infosys pioneered the Global Delivery Model (GDM), which emerged as a disruptive force in the industry leading to the rise of offshore outsourcing. The GDM is based on the principle of taking work to the location where the best talent is available, where it makes the best economic sense, with the least amount of acceptable risk. Global presence Infosys has a global footprint with 73 offices and 94 development centers in US, India, China, Australia, Japan, Middle East, UK, Germany, France, Switzerland, Poland, Netherlands, Canada and many other countries. Infosys and its subsidiaries have 1,58,404 employees as on December 31, Products and Services offered by the company: The Company s offerings span business & technology consulting, services, systems, product engineering, custom software development, maintenance, re-engineering, independent testing & validation services, IT infrastructure services & BPO.

7 IT Services Engineering Services Engineering Segments BPO Services Alliances Global Alliance Partners The partnership focuses on developing solutions that incorporate Infosys IP and the alliance partners' technology and services. The company jointly deliver and market Infosys' solutions to clients across multiple industries and geographies. Microsoft Oracle SAP Alliance Partners CA Technologies Hewlett-Packard (HP) IBM Infor Informatica Salesforce.com Siemens TIBCO Software Inc. Autonomy Corporation Sterling Commerce Pegasystems Xerox OSIsoft NetApp Global System Hitachi Data Systems (HDS) Cloud Cloud adoption is a complex process and the multiplicity of available options has led to confusion over how to embark on a viable Cloud Journey. IT and business teams follow different approaches to Cloud adoption. It continues to strengthen Cloud ecosystem, with over 30 partners delivering a trusted system for its clients. A large hi-tech client has selected Infosys to develop a Cloud-based monitoring solution, using technologies such as Hadoop and Exadata, to manage and meter its enterprise infrastructure. The company is working with a large railroad client in North America on its strategy to move mainframe-based legacy applications to the Cloud. A leading healthcare provider has selected Infosys as a partner to migrate its existing workload to Microsoft Office 365 as its primary messaging and collaboration platform. This provides the client productivity improvement and high asset optimization. The company is building momentum in the market with its Cloud and Big Data offerings. This was validated by IDC s recognition of Infosys as a Major Player in its IDC MarketScape for Cloud Professional Services.

8 Finacle Finacle from Infosys partners with banks to power-up their innovation agenda, enabling them to differentiate their products & service, enhance customer experience and achieve greater operational efficiency. Finacle solutions address the core banking, wealth management, CRM, Islamic banking & treasury requirements of retail, corporate and universal banks worldwide. Finacle solutions also empower banks with multiple sales, service & marketing channels including e-banking, mobile banking and call centers. Finacle is the chosen solution in over 179 banks across 84 countries and serves 14 percent of the world s banked population. Finacle 11E is designed to simplify banking transformation with enterprise-class components. During the Q3 FY14, Finacle had 8 new wins and 11 banks went live on the platform across India, Africa, Middle East and South East Asia.

9 FINANCIAL HIGHLIGHTS (CONSOLIDATED) (A*- Actual, E* -Estimations & Rs. In Millions) Balance Sheet as at March31, E INFOSYS LIMITED FY12A FY13A FY14E FY15E EQUITY AND LIABILITIES: Shareholders Funds: Share Capital Reserves and Surplus a) Net worth Non-Current Liabilities: Deferred Tax Liabilities [Net] Other Long Term Liabilities b) Long term liabilities Current Liabilities: Trade Payables Other Current Liabilities Short Term Provisions c) Current Liabilities Total (a+b+c) ASSETS: Non-Current Assets: Tangible Assets Intangible Assets Capital work-in-progress Deferred tax assets Other non-current assets Non Current Investments Long Term Loans and Advances d) Non-Current Assets Current Assets: Current Investments Trade Receivables Cash and Bank Balances Short Term Loans and Advances e) Current Assets Total (d+e)

10 Annual Profit & Loss Statement for the period of 2012 to 2015E Value(Rs. mn) FY12A FY13A FY14E FY15E Description 12m 12m 12m 12m Net Sales Other Income Total Income Expenditure Operating Profit Interest Gross profit Depreciation Profit Before Tax Tax Profit After Tax Minority Interest Share of Profit & Loss of Asso Net Profit Equity capital Reserves & Surplus Face value EPS

11 Quarterly Profit & Loss Statement for the period of 30 JUNE, 2013 to 31 MARCH, 2014E Value(Rs. mn) 30-June Sep Dec March-14E Description 3m 3m 3m 3m Net Sales Other income Total Income Expenditure Operating profit Interest Gross profit Depreciation Profit Before Tax Tax Profit After Tax Minority Interest Share of Profit & Loss of Asso Net Profit Equity capital Face value EPS

12 Ratio Analysis Particulars FY12 FY13 FY14E FY15E EPS (Rs.) EBITDA Margin (%) 34.63% 31.69% 29.16% 28.02% PBT Margin (%) 34.63% 31.69% 29.16% 28.02% PAT Margin (%) 24.65% 23.35% 21.15% 20.17% P/E Ratio (x) ROE (%) 26.54% 24.80% 21.96% 19.81% ROCE (%) 37.29% 33.66% 30.27% 27.52% EV/EBITDA (x) Book Value (Rs.) P/BV Charts

13 OUTLOOK AND CONCLUSION At the current market price of Rs , the stock P/E ratio is at x FY14E and x FY15E respectively. Earning per share (EPS) of the company for the earnings for FY14E and FY15E is seen at Rs and Rs respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 21% and 13% over 2012 to 2015E respectively. On the basis of EV/EBITDA, the stock trades at x for FY14E and x for FY15E. Price to Book Value of the stock is expected to be at 4.18 x and 3.36 x respectively for FY14E and FY15E. We recommend BUY in this particular scrip with a target price of Rs for Medium to Long term investment. INDUSTRY OVERVIEW The Indian Information Technology (IT) and Information Technology enabled Services (ITeS) sectors go hand-inhand in every aspect. The industry has not only transformed India s image on the global platform, but also fuelled economic growth by energising higher education sector (especially in engineering and computer science). The industry has employed almost 10 million Indians and hence, has contributed a lot to social transformation in the country. Furthermore, Indian firms, across all other sectors, largely depend on the IT & ITeS service providers to make their business processes efficient and streamlined. Indian manufacturing sector has the highest IT spending followed by automotive, chemicals and consumer products industries. Indian organisations are turning to IT to help them grow business in the current economic environment. IT is seen as a change enabler and a source of business value for organisations by 85 per cent of the respondents, according to a study by VMware. Market Size India's IT-business process outsourcing (BPO) industry revenue is expected to cross US$ 225 billion mark by 2020, according to a Confederation of Indian Industry (CII) report, titled 'The SMAC Code-Embracing New Technologies for Future Business'.

14 India is expected to become world's second-largest online community after China with 213 million internet users by December 2013 and 243 million by June 2014, according to a report by Internet and Mobile Association of India (IAMAI) and IMRB International. Technology firms in India are expected to reap the benefits of Internet of Things (IoT) data, considered to be a US$ 18 billion opportunity, to help clients improve productivity and asset utilisation as well as to enhance endcustomer experience, as per networking firm Cisco. India s total IT industry s (including hardware) share in the global market stands at 7 per cent; in the IT segment the share is 4 per cent while in the ITeS space the share is 2 per cent. India's IT and BPO sector exports are expected to grow by per cent in FY14 to touch US$ 84 billion - US$ 87 billion, according to Nasscom. Moreover, India plans to spend around US$ 3.9 billion on cloud services during , of which US$ 1.7 billion will be spent on software-as-a-service (SaaS), according the latest outlook of IT research and advisory company, Gartner Inc. The enterprise software market in India is expected to reach US$ 3.92 billion in 2013, registering a growth of 13.9 per cent over 2012 revenue of US$ 3.45 billion, according to Gartner. Mumbai with 12 million internet users has emerged as the top most city in the country with highest penetration of internet users, followed by Delhi (8.1 million) and Hyderabad (4.7 million), according to the data released by Internet & Mobile Association of India (IAMAI). Investments Indian IT's core competencies and strengths have placed it on the international canvas, attracting investments from major countries. According to data released by the Department of Industrial Policy and Promotion (DIPP), the computer software and hardware sector has attracted foreign direct investment (FDI) worth Rs 54, crore (US$ 8.77 billion) between April 2000 and September Some of the major investments in Indian IT and ITeS sector: Wipro plans to acquire US-based mortgage due diligence and risk management service provider Opus Capital Markets Consultants (Opus CMC) for Rs 465 crore (US$ million). Opus CMC provides comprehensive risk management solutions to the mortgage industry in the US. Infosys has opened a new centre in Sydney, Australia. This is its fourth development centre in Australia and has a capacity to seat 140 employees. Further, the company plans to hire 85 people in the region.

15 Hitachi has acquired a foothold in India's payment space with the acquisition of Prizm Payment Services. The firm has entered into share transfer agreements with Prizm shareholders, including Winvest Holdings (India), Sequoia Capital and Axis Bank. Dell has opened its India design centre for its storage technologies and has realigned its domestic research and development (R&D) unit. The facility will focus on developing software, integrating aspects involving back-up of s and related storage. Tata Consultancy Services (TCS) has launched a software development facility in Ahmedabad, Gujarat. The facility will serve global customers across industry segments. Cognizant Technology Solutions has acquired ValueSource, a subsidiary of KBC Group, a Belgium-based multi-channel bank insurance group. Schneider Electric has commissioned a services bureau in Bengaluru as a nerve centre and a support facility for data centres in India and the Asia-Pacific region. Government Initiatives IT spending by the Government of India is projected to reach US$ 6.4 billion in 2013, a growth of 7 per cent yearon-year, according to a report by Gartner. Some of the major initiatives taken by the Government to promote IT and ITeS sector in India are: After a successful first-ever international delegation to Dubai, Gujarat-based small and medium enterprises (SMEs) in the IT sector plan to send similar business delegations to European and South East Asian countries. The Government of Karnataka plans to announce a new information technology (IT) policy to boost investments in state s tier-ii and tier-iii cities. The policy would enable the sector to employ about two million people in the state directly by The Government of India has fast tracked the process of setting up of centres of National Institute of Electronics and Information Technology (NIELIT) in Northeast India. The Government of Brazil has liberalised the issue of short term work visas, a move which will make it easier for Indian IT professionals to take up assignments in Brazil. India and Vietnam have signed two memorandums of understanding (MoU) for partnership in the field of information, communications and technology (ICT). Road Ahead Globalisation has a profound impact in shaping the Indian IT industry over the years with India capturing a sizeable chunk of the global market for technology sourcing and business services. Over the years the growth drivers for this sector have been the verticals of manufacturing, telecommunication, insurance, banking, finance and of late the fledgling retail revolution. As the new scenario unfolds it is getting clear that the future growth of IT and ITeS will be fuelled by the verticals of climate change, mobile applications, healthcare, energy efficiency

16 and sustainable energy. Traditional business strongholds would make way for new geographies, there would be new customers and more and more of SMEs will go for IT application and services. Demand from emerging countries is expected to show strong growth going forward. Tax holidays are also extended to IT sector for software technology parks of India (STPI) and special economic zones (SEZs). Further, the country is providing procedural ease and single window clearance for setting up facilities. The country s cost competitiveness in providing IT services, which is approximately 3-4 times cheaper than the US continues to be its USP in the global sourcing market. Disclaimer: This document prepared by our research analysts does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. The information contained herein is from publicly available data or other sources believed to be reliable but do not represent that it is accurate or complete and it should not be relied on as such. Firstcall India Equity Advisors Pvt. Ltd. or any of it s affiliates shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. This document is provide for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision.

17 Firstcall India Equity Research: C.V.S.L.Kameswari Pharma U. Janaki Rao Capital Goods Ashish Kushwaha IT, Consumer Durable & Banking B. Anil Kumar Diversified Suhani Adilabadkar Diversified M. Vinayak Rao Diversified Firstcall India also provides Firstcall India Equity Advisors Pvt.Ltd focuses on, IPO s, QIP s, F.P.O s,takeover Offers, Offer for Sale and Buy Back Offerings. Corporate Finance Offerings include Foreign Currency Loan Syndications, Placement of Equity / Debt with multilateral organizations, Short Term Funds Management Debt & Equity, Working Capital Limits, Equity & Debt Syndications and Structured Deals. Corporate Advisory Offerings include Mergers & Acquisitions(domestic and cross-border), divestitures, spin-offs, valuation of business, corporate restructuring-capital and Debt, Turnkey Corporate Revival Planning & Execution, Project Financing, Venture capital, Private Equity and Financial Joint Ventures Firstcall India also provides Financial Advisory services with respect to raising of capital through FCCBs, GDRs, ADRs and listing of the same on International Stock Exchanges namely AIMs, Luxembourg, Singapore Stock Exchanges and other international stock exchanges. For Further Details Contact: 3rd Floor,Sankalp,The Bureau,Dr.R.C.Marg,Chembur,Mumbai Tel. : / / Telefax : info@firstcallindiaequity.com