1. Performance of Infosys for the Second Quarter and Half Year ended September 30, 2001 10-October-2001 Nandan M. Nilekani Managing Director, President and Chief Operating Officer Nandan M. Nilekani Managing Director, President and Chief Operating Officer

2. Safe Harbour Certain statements in this release concerning our future growth prospects are forward- looking statements which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2001 and quarterly report on Form 6-K for the quarter ended June 30, 2001. This filing is available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company’s filings with the Securities and Exchange Commission and our reports to shareholders. The company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company.www.sec.gov

3. Agenda  Financial Performance  Operational Performance  Client acquisition and significant projects undertaken  Human resources  Infrastructure  Outlook for the future

4. Financial Performance

5. The Quarter at a Glance (Indian GAAP) 46% Total income (Rs.cr) Exports (Rs.cr) 45% 47% Operating profit (Rs.cr) 446.10 Q2 01Q2 02 650.13 441.26 638.27 Q2 01Q2 02 176.42 258.92 Q2 02 Q2 01

6. The Quarter at a Glance (Indian GAAP) PBT (Rs.cr) 37% *From ordinary activities 31% PAT* (Rs.cr) 31% Basic EPS* (Rs) 171.76 Q2 01Q2 02 234.56 154.01 201.56 Q2 01Q2 02 30.47 Q2 02 Q2 01 23.28

7. Highlights (Indian GAAP) (Rs.cr) FY2002FY2002FY2001 % growth over Q2Q1Q2Q1 02Q2 01 Income650.13612.52446.106.145.7 S/w development expenses306.95285.56204.577.550.0 Gross profit343.18326.96241.525.042.1 S,G&A expenses84.2686.4465.10(2.5)29.4 Operating profit258.92240.51176.427.746.8 Depreciation39.0135.4824.2410.061.0 Operating profit after depreciation219.91205.03152.187.344.5 Other income 14.6613.5019.588.6(25.1) PBT234.56218.53171.767.336.6 Provision for tax33.0028.5017.7515.885.9 PAT from ordinary activities201.56190.03154.016.130.9

8. Half Year at a Glance (Indian GAAP) 58% Total income (Rs.cr) Exports (Rs.cr) 56% 59% Operating profit (Rs.cr) 801.63 H1 01H1 02 1262.65 792.32 1234.58 H1 01H1 02 314.06 499.43 H1 02 H1 01

9. Half Year at a Glance (Indian GAAP) PBT (Rs.cr) 48% *From ordinary activities 42% PAT* (Rs.cr) 39% Basic EPS* (Rs) 306.77 H1 01H1 02 453.09 275.31 391.59 H1 01H1 02 59.19 H1 02 H1 01 42.45

10. Highlights (Indian GAAP) (Rs.cr) FY2002%FY2001 % GrowthH1 Income1262.65100.0801.62100.057.5 S/w development expenses592.5146.9375.4246.857.8 Gross profit670.1353.1426.2053.257.2 S,G&A expenses170.7113.5112.1514.052.2 Operating profit499.4339.6314.0639.259.0 Depreciation74.495.941.975.277.5 Operating profit after depreciation424.9433.7272.0833.956.2 Other income 28.152.2334.694.3(18.9) PBT453.0935.9306.7738.347.7 Provision for tax61.504.931.463.995.5 PAT from ordinary activities391.5931.0275.3134.342.2 Extraordinary items--5.490.7- Net profit after ext. items391.5931.0280.8135.039.5

11. Highlights Q1 FY 02Q2 FY 02H1 FY 02  Indian GAAP  Y-O-Y Growth Income 72.3%45.7%57.5% PAT from ord. activities 56.7%30.9%42.2%  US GAAP  Y-O-Y Growth Revenues 62.6% 40.1%50.3% Net income 46.3%26.0%35.1%  New clients262854  Repeat business95.2%90.0%92.5%  Headcount  Gross addition 3158331,148  Net addition 116607723  Period end headcount 9,94710,55410,554

12. (Rs.cr) Sep 30, 01%Sep 30, 00% LIABILITIES Shareholders’ funds*1,742.491001,094.04100 Total liabilities1,742.491001,094.04100 ASSETS Fixed assets713.6641365.1933 Investments 44.44345.734 Deferred tax assets18.641-- Current assets Cash & equivalents 714.8541535.9049 Accounts receivables 343.6020243.0622 Other current assets336.1019176.9416 Less: Current liabilities(428.80)(25)(272.78)(25) Net current assets965.7555683.1262 Total assets1,742.491001,094.04100 Balance Sheet Summary

13. FY2002 FY2002FY2001FY2002FY2001LTMLTM Q2Q1Q2H1H1Sep01Sep 00 North America71.1%72.2% 75.0%71.6%74.7%72.1%76.1% Europe18.9%19.8%18.1%19.4%17.7%19.5%16.3% India1.8%2.6%1.1%2.2%1.2%1.9%1.3% Rest of the world8.1%5.3%5.8%6.8%6.4%6.5%6.3% Total100.0% 100.0%100.0% 100.0%100.0%100.0%100.0% LTM – Last Twelve Months Region wise Revenue (%)

14. Operational Performance

15. Utilization Rates

16. Revenues by Project type FY2002FY2002FY2001FY2002FY 2001LTMLTM Q2Q1Q2H1H1Sep 01Sep 00 Fixed Price29.9%27.0%27.6% 28.5%27.1%28.7%29.3% Time & Materials70.1%73.0% 72.4% 71.5%72.9%71.3%70.7% Total100.0% 100.0%100.0% 100.0%100.0%100.0%100.0%

17. Onsite-Offshore Revenue split FY2002FY2002FY2001FY2002FY2001LTMLTM Q2Q1Q2H1H1Sep 01Sep 00 Onsite50.3%50.5%54.6% 50.4%53.7%50.1%52.2% Offshore49.7%49.5% 45.4% 49.6%46.3%49.9%47.8% Total100.0%100.0%100.0% 100.0%100.0%100.0%100.0%

18. Customer Concentration FY2002FY2002FY2001FY2002FY2001 Q2Q1Q2H1H1 Top client contribution to revenues6.4%6.7%7.7% 6.6%7.4% Top 5 client contribution to revenues 25.3%27.4% 24.9% 26.1%24.4% Top 10 client contribution to revenues 39.7% 43.7%38.0% 41.2%36.9% Million dollar clients* 8484578457 Five million dollar clients*2221122212 Ten million dollar clients*14116146 *LTM

19. Diversifying Customer Risk

20. YearAR% ofDSO (mn$)Operating Revenue H1 FY 0271.8113.650 H1 FY 0152.8215.255 FY 200164.9415.958 Accounts Receivables

21. Other Highlights  Software revenues in US dollar terms grew by 5.2% during the quarter over the quarter ended June 30, 2001. Revenue growth comprised volume growth of 2.6% and price growth of 2.6%, as compared to the quarter ended June 30, 2001  Interim dividend of Rs. 7.50 per share (150% on an equity share of par value of Rs. 5 per share) declared by the Board

22. Client Acquisition and Significant Projects Undertaken

23. Client Acquisition  Client acquisitions during the quarter was 28 as compared to 26 in Q1 of FY 2002  Strengthened presence in the financial services industry through strategic services like  Post merger integration for UFJ Holdings, The Sanwa Bank, The Tokai Bank and the Toyo Trust and Banking Company  Straight through processing – a mission critical application development project for a leading financial institution  Security consulting for Bank Muscat, one of the largest banks in Oman  Other prestigious clients added in the financial services industry include  DGZ DekaBank, the largest investment bank in Germany  ING Group  Royal Bank of Canada Financial Group, the largest and oldest financial institution in Canada  Won its first consulting engagement in the government sector with an assignment for UK Government’s National Health Service

24. Projects Undertaken  Currently working with Lear Corporation and Visteon, two of the largest automotive suppliers in the world  Started work for the Japan-based JGC Corporation, a fully integrated engineering procurement construction company  Won engagements from a leading apparel company and a large office supplies superstore in the US  Other prestigious clients in the retail sector include  Trader Joe’s, a US-based speciality grocer  McCain Foods, a diversified foods major based in Canada  Pier 1 Imports, one of the leading retailer of gifts and home furnishings located in the US  Vivendi Water Systems, the world’s largest water company and Dentsu MarchFirst, the IT subsidiary of Dentsu Inc., a leading advertisement major in Japan are other significant clients added during the quarter

25. Banking Products  Successfully deployed Finacle TM, Infosys’ core banking solution, for Kenya Commercial Bank, the largest bank in East Africa with over 100 branches in Kenya and a presence in Tanzania  Successfully completed the implementation of BankAway corporate banking and WAP banking at National Bank of Abu Dhabi, the leading bank in the Middle East  Successfully implemented BankAway (retail banking) for IDBI Banking

26. Human Resources

27.  Total employees strength at 10,554 as on September 30, 2001, up from 9,831 as on March 31, 2001 and 7,925 as on September 30, 2000  Net addition of 607 employees during the quarter as compared to 116 during the quarter ended June 30, 2001  92 lateral employees joined during the quarter  9,297 software professionals as on September 30, 2001, up from 8,656 as on March 31, 2001 and 6,941 as on September 30, 2000  Of these software professionals, 690 are undergoing training and 146 belong to the Banking Products group  Deferred the joining schedules of campus recruits to align them with our business requirements

28. Infrastructure

29.  Capital expenditure of Rs. 129.77 cr was incurred during the quarter  As of September 30, 2001, the company had 19,98,800 sq. ft of space capable of accommodating 11,100 professionals and 15,61,000 sq. ft under construction including the Infosys Leadership Institute

30. Outlook for the Future

31. Indian GAAP  Quarter ending December 31, 2001  Income from software development services and products is expected to be in the range of Rs. 640 cr to Rs. 656 cr  Earnings per share is expected to be in the range of Rs. 29.00 to Rs. 31.00  Fiscal year ending March 31, 2002  Income from software development services and products is expected to be in the range of Rs. 2,540 cr to Rs. 2,590 cr  Earnings per share is expected to be in the range of Rs. 120.00 to Rs. 123.00

32. Summary

33.  Reported a comfortable quarter amidst turbulent conditions  Pricing pressure continues  Challenging business environment  Phased-out joining schedules of campus recruits to align with business requirements  Effective cost management  Increase breadth and depth of services  Prepared to seize business opportunities

34. Thank You