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Profit growth of IT firms at 4 year high
By agencies
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Friday, 13 May 2005, 19:30 IST
MUMBAI: The information technology industry is booming again. The net profit growth of 26 IT companies surged to a four-year high of 42 percent for the year ended March 2005. Income from IT services rose over 37 percent.
Software giants Infosys Technologies and Wipro outperformed the sector averages. Infosys' revenue from IT services rose 46.9 percent while its net profit increased by 48.48 percent. Wipro's net profit grew at 57.9 percent, while sales rose 38.9 percent.
The sales and revenue growth of the IT sector had dipped to a new low in fiscal 2002 when it posted a modest 10 percent rise in revenues. Net profit growth was at 3.88 percent, with the bottomline of Wipro actually declining by over three percent.
10 companies drove the strong growth in the IT sector in the last couple of years.
The revenues of these firms have more than doubled in two years. Seven companies more than doubled their bottomline.
The revenues and net profit of Geometric Software, KPIT Cummins, Hexaware Technologies and Flextronics Software more than doubled in two years. Wipro doubled its revenue in two years while its net profit rose by almost 100 percent.
Infosys, a 
5 billion software firm in 1999, became the first IT services company along with TCS and Wipro to become billion dollar firms in 2004.
With the sales revenue of over 70 billion in the fiscal 2005, Infosys is likely to be a $2 billion company next year. The net profit of Infosys jumped up from 1.33 billion in 1999 to 12.44 billion in 2004 and to 18.47 billion in 2005.
5 billion software firm in 1999, became the first IT services company along with TCS and Wipro to become billion dollar firms in 2004.
With the sales revenue of over 70 billion in the fiscal 2005, Infosys is likely to be a $2 billion company next year. The net profit of Infosys jumped up from 1.33 billion in 1999 to 12.44 billion in 2004 and to 18.47 billion in 2005.