Software_G by factica

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									                                    SOFTWARE
                                           GLOBAL COMPARISON
  FY09 / CY08                       Unit       Infosys       Wipro       TCS        *IBM        ^HP     ~Microsoft
  Revenues                          US$ m        4,663        5,004     6,016    103,630    118,364          58,437
  EBDITA                            US$ m        1,374          814     1,425     17,091     10,473          20,363
  EBDITA margin                     %             29.5          16.3     23.7       16.5         8.8           34.8
  Net profit                        US$ m        1,281          677     1,124     12,036       8,329         14,579
  Net profit margin                 %             27.5          13.5     18.7        11.6        7.0           24.9
  Return on capital employed        %             33.4          25.0     34.7       19.5        15.0           30.9
  Return on equity                  %             33.9          31.0     36.5       30.8        21.4           36.9
  Price to earnings (TTM)           x             20.6          24.3     20.1       13.4        13.5           15.3
  Price to sales (TTM)              x              5.7           3.4      3.8         1.6        0.9             3.8
* Year ended December 2008. ^ Year ended October 2008. ~ Year ended June 2009.
For others, year ended March 2009

                                                         IBM (US)

IBM, founded in 1910, is headquartered in the US and is the world's largest computer company. It was formerly
known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines
Corporation in 1924. The company's Global Services segment provides consulting services for application and
systems integration, client relationship management, financial management and supply chain management. This
is the major arm of the company and contributes to nearly 50% of its revenues. IBM also provides system and
component design services, outsourcing of clients' design teams, and technology and manufacturing consulting
services, apart from data storage products, including disk, tape, and storage area networks. The company has
started concentrating on services as a key engine of growth. The company has also been concentrating on offshoring
in a big way, which is a relatively new business model in the global software industry. The company earned net
sales and profits of US$ 103 bn and US$ 12 bn in 2008. The services segment accounted for about 56% of the
topline and 39% of the operating profits for the company.

                                                           HP

HP, founded in 1939, is one of the largest IT companies in the world. It operates in three businesses i.e. the
personal systems business (PC, mobile computing devices), the imaging and printing (printers and photography
instruments) and technology solutions (servers, EDS, managed services and software. IT services and software
forms around 20% of HP's topline. HP acquired EDS in August 2008, creating a leading force in technology services.
EDS delivers a broad portfolio of information technology and business process outsourcing services to clients in
the manufacturing, financial services, healthcare, communications, energy, transportation, and consumer and retail
industries and to governments around the world. The combined revenue of HP and EDS for the IT services business
is expected to be more than US$ 38 bn, which will take HP much closer to IBM in the US$ 748 bn global technology
services market. Services and Software segment accounted for over 21% of HP's revenues and 28% of HP's
operating profits during CY08.

                                                  MICROSOFT (US)

Microsoft Corporation, the world's most valuable technology company by market capitalisation, was founded in
1975 by Bill Gates. The company is headquartered in Redmond, Washington. Microsoft engages in the development,
manufacture, license, and support of software products for computing devices. It operates in three divisions -
Platforms and Services, Business, and Entertainment and Devices. The company also offers operating systems for
servers, personal computers, server applications and developer tools, training and certification services. Its products
provide messaging and collaboration, database management, e-commerce, and mobile information access
capabilities. It also offers consulting services and online communication and information services, including email
and instant messaging, online search and premium content. Microsoft's core Windows and Office businesses
coupled with a double digit growth in all the other business lines aided the topline growth during CY08. Windows
Vista saw a lot of adoption with more than 180 m licenses sold during the fiscal. Traction continued for Microsoft
Office 2007 which sold over 120 m licenses during 2008. Going forward the company sees a lot of traction building
in entertainment and healthcare domains and in BRIC geographies.

Source: Equitymaster Research, Company Annual Reports, Yahoo Finance                        TTM - Trailing twelve months

								
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