Infosys net at Rs. 190 cr. in Q1; faces price pressure

By Our Staff Reporter

BANGALORE, JULY 10. Projects that were already firmly underway even as the slump in the U.S. made headlines, seem to have sustained the bottom line of Infosys Technologies, even though the increase in profits has been slower. The company has announced its financial results for the first quarter of the financial year 2001-02, here on Tuesday.

The effects of the slowdown however are beginning to show with pricing pressures mounting, customers cancelling `some projects' and a drop of 6 per cent in the company's offshore billing. While admitting that the company was facing `pricing pressures' from existing and new customers, the Chairman and CEO Mr. N. R. Narayana Murthy said the company would retain its original estimates of revenue and profit for the current year.

The company has achieved a net profit of Rs. 190.03 crores for the quarter ended June 30, 2001, an increase of 49.9 per cent over the corresponding period in the previous year. Total income was Rs. 626.01 crores against Rs. 370.64 crores for the same period last year, an increase of 68.9 per cent. The operating profit before depreciation and interest charges has risen by 66 per cent to Rs. 254.01 crores from Rs. 152.75 crores. Depreciation claimed Rs. 35.48 crores (Rs. 17.74 crores) and taxation Rs. 28.50 crores (Rs. 13.71 crores).

Earnings per share stood at Rs. 28.72 (for a share with par value of Rs. 5) as against Rs. 19.17 for the same period last year.

There has been a net addition of employees of 116 during the first quarter, taking the strength to 9,947 as on June 30, 2002. Infosys' Managing Director Mr. Nandan Nilekani said that there had been no retrenchments and the company still expected to increase its staff strength by about 1,500 during this financial year.

Total income for the next quarter was expected to be between Rs. 625 crores to Rs. 640 crores and earnings per share between Rs. 28 and Rs. 29. For the fiscal year ending March 31, 2002, total income was expected to be between Rs. 2,500 crores and Rs. 2,560 crores and earning per share between Rs. 118 and Rs. 121, the release said.

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