4 Compute trend ratios and comment on the financial performance of Infosys Technologies Ltd. from the following extract of its income statements of five years. (in Rs. Crore) Particulars 2010-11 2009-10 2008-09 2007-08 2006-07 Revenue 27,501 22,742 21,693 16,692 13,893 Operating Profit (PBIDT) 8,968 7,861 7,195 5,238 4,391 PAT from ordinary activities 6,835 6,218 5,988 4,659 3,856 (Source: Infosys Technologies Ltd. – Annual Report) [Preparation of trend analysis-4, Preparation of trend ratios-4, Conclusion-2]
Solution:- Infosys Technologies Ltd.
Trend Analysis
| Particulars | 2010-11 | 2009-10 | 2008-09 | 2007-08 | 2006-07 |
| Revenue | 27,501 | 22,742 | 21,693 | 16,692 | 13,893 |
| Operating Profit (PBIDT) | 8,968 | 7,861 | 7,195 | 5,238 | 4,391 |
| PAT from ordinary activities | 6,835 | 6,218 | 5,988 | 4,659 | 3,856 |
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Trend ratios
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| Revenue | 197.95 | 163.69 | 156.14 | 120.15 | 100 |
| Operating Profit (PBIDT) | 204.24 | 179.03 | 163.86 | 119.29 | 100 |
| PAT from ordinary activities | 177.26 | 161.26 | 155.29 | 120.82 | 100 |
Comment: The Revenue and Operating Profit (PBIDT) have almost doubled in four years. The PAT from ordinary activities has increased by 77.26% in the same period.
