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The basic revenue generation of any outsourcing or consulting company is the number of billed man hours it had for that year.

In my quest to figure out the relationship between the net income, market cap and employees of a consulting company, I did a sample study on Infosys (NYSE:INFY).

Infosys was founded as a private limited company in Pune, India. It went public on the Bombay stock exchange in 1993 and went public on the NASDAQ in 1999. Its sales for 1981-82 were Rs 0.11 crore.

Following are my findings. Figures are in crore (1 crore = Rs10 million; 1USD = Rs40.50 (approx)).

DM 1

Following is the 10 year growth chart:

DM 2

Disclosure: Author has a long position in INFY

Source: Infosys: The Relationship Between Net Income, Market Cap and Employees