Infosys posts robust growth

Wednesday, 12 July 2006, 19:30 IST
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BANGALORE: Infosys Technologies Ltd, India's second largest IT bellwether, has posted robust topline and bottomline growth for the first quarter (April-June) and revised its guidance upwards for the current fiscal (2006-07), riding on a strong dollar and increasing business. According to the company's financial results for the first quarter (Q1) of FY 2006-07 released here Wednesday, net profit grew by a whopping 50.4 percent to $173 million. This was up from $120 million in the corresponding quarter a year ago under the Indian GAAP and sequentially by 18.9 percent from the previous quarter (January-March) at $152 million. Similarly, the consolidated revenue for the quarter under review has shot up by 46 percent to $685 million from $470 million in the same quarter a year ago under the Indian GAAP and sequentially by 15 percent from the last quarter at $595 million. Under the US GAAP, the company posted net income of $174 million in the first quarter as against $122 million in the same quarter a year ago, registering year-on-year (YoY) growth of 43 percent. In the case of consolidated revenue, the YoY growth is 38.7 percent to $660 million from $476 million in the same quarter a year ago. "Our efforts in building the brand, developing the client base and expanding strategic accounts have fuelled our robust organic model," said Infosys CEO, president and managing director Nandan M. Nilekani in a statement after the financial results were notified to the stock exchanges. Admitting the company benefited from the depreciation of the Indian rupee against all major currencies during the quarter, chief financial officer (CFO) V. Balakrishnan said the company was able to maintain its margins despite increase in compensation (salaries) and visa costs. "We continue to focus on margins without compromising on investments needed to meet our growth objectives," Balakrishnan said. "We witnessed strong growth during the quarter and we believe we have the required scale, execution capabilities and end-to-end service offering to take advantage of the momentum seen in the marketplace," said chief operating officer and board member S. Gopalakrishnan. Under the US GAAP, the consolidated revenues is expected to be about $2.92 billion for 2006-07 as against $2.8 billion projected in the beginning of the current fiscal (April 14). Similarly, for the second quarter (July-September) of the current fiscal, the consolidated income is expected to be about $715 million under the U.S. GAAP, with YoY growth projection of 37 percent. During the quarter under review, the company has added 38 new clients as against 36 in the same quarter a year ago. Sequentially, however, the client acquisition has remained the same as it was in the previous quarter (Jan-Mar) at 38. On the hiring front, the company and its subsidiaries added 5,694 employees, taking the total workforce to 58,409 at the end of June 30 as against 39,806 employees a year ago and 52,715 at the end of March 30, 2006.
Source: IANS