The Hindu Business Line : Infy's HR value doubles to Rs 21,139.97 crore

THE human resource (HR) value of the country's second largest software exporter Infosys Technologies Ltd shot up by almost 100 per cent to touch Rs 21,139.97 crore during fiscal 2004, whereas its economic value added (EVA) grew by 51.68 per cent to Rs 689.63 crore. Infosys' HR value grew by 96.14 per cent in 2004, over the previous year's Rs 10,777.96 crore, when the company added about 9,758 employees to its rolls taking overall headcount to 25,634.

Infosys used the Lev and Schwartz model to compute the value of its human resources, the company said in its latest annual report filed with the Securities and Exchange Commission. The evaluation is based on the present value of the future earnings of the employees and on the assumptions of employee compensation including all direct and indirect benefits earned both in India and abroad. It also considered the incremental earnings based on group/age and discounted the future earnings at 14.09 per cent (16.99 per cent in the previous year), the cost of capital for Infosys for computing the HR value. Infosys also reported a substantial jump in the education index of its employees for 2004 at 74,057, up from 44,972 in the previous year. "This reflects the quality of employees at Infosys," the report said. However, the value added per software engineer and the value added per employee declined marginally for the year. While the value added per software engineer decreased to Rs 21.7 lakh (Rs 26.1 lakh), the value added per employee declined to Rs 20.1 lakh (Rs 23.73 lakh). Infy's EVA for 2004 stood at Rs 689.63 crore as against Rs 454.65 crore last year. EVA measures the profitability of a company after taking into account the cost of all capital including equity. It is the post-tax return on capital employed (adjusted for the tax shield on debt) minus the cost of capital employed. EVA as percentage of the capital employed stood at 22.07 per cent in 2004 as against 18.23 per cent in the previous year.

More Stories on : Software | Human Resources

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Manmohan Singh's team takes charge — 29 of Cabinet rank in 68-member Ministry

The loyalty factor in Congress Party

Infy's HR value doubles to Rs 21,139.97 crore

Infosys brand valued at Rs 8,185 crore

Sensex, Nifty dance to the tune of global forces — Correlation with emerging markets