Infosys (INFY.BO; –Takeaways from Citi India Investor Conference – Day 1

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Infosys (INFY.BO; Rs2,872.20; 2L)
 Takeaways from Mumbai – Infosys presented at our India Investor Conference
in Mumbai. Below are the key takeaways.
 What’s new - (a) IT budgets for CY11 are up ~2-3% yoy; (b) discretionary spend
is normal; (c) pricing - there is some uptick – cost-of-living adjustments-related
increases happening in some clients; (d) company does not see a challenge due
to visa related issues.
 BPO outlook - (a) BPO is 6-7% of overall company revenue; (b) growth rate for
BPO in FY12 expected to be in line with company average; (c) clients focusing
on transformation, beyond cost arbitrage, which has been key driver in the past –

for example, clients giving out work related to business outcomes; (d) around two
thirds of clients are common with IT business - making cross-sell and up-sell
possible.
 Visa-related issues - Management reiterated that it was following all
regulations/conditions (with respect to recent B1 visa issue). Infosys said that it
had not seen any meaningful increase in rejection rates; management believes
that it has enough work permits/visas/local employees to take care of growth.