Date:15/04/2005 URL: http://www.thehindubusinessline.com/2005/04/15/stories/2005041500871200.htm

Back Infosys to ramp up China team as clientele is growing

Our Bureau

Bangalore , April 14

INFOSYS Technologiesplans to increase the employee strength in China to around 1,000 from the current level of 122.

The Chief Financial Officer, Mr Mohandas Pai, told newspersons on Thursday that though the operations in China had incurred a loss, the company saw better prospects in the long term. Hence, the plans to increase the employees' strength, as there has been an increase in number of clients as well as business.

On revenues of Rs 8 crore, the China operations posted a loss of the same amount. Some of its other subsidiaries have, however, performed well.

Its BPO arm Progeon generated revenues of about Rs 191 crore and a net income of Rs 30.6 crore. For the fourth quarter, Progeon posted a net profit of Rs 16 crore on revenues of Rs 63.6 crore. It added two new clients during the last quarter taking the total number of clients to 19. Its employee base stands at 3,966 up from 3,422 in the previous quarter.

Its operations in Australia yielded revenues of Rs 303 crore for 2004-05 and it has already broken even. The Infosys Consulting posted revenues of Rs 21 crore, but incurred a loss of Rs 33 crore for the same period.

The company has taken a forward cover for $353 million and has marked it to the market. Infosys has considered rupee conversion versus dollar at 43.62. Mr Pai said the dollar will move in a narrow range going forward.

Revenues from onsite operations for the last quarter fell 5 per cent to 48.1 per cent compared with a year ago figures while revenues from offshore operations rose 5 per cent to 51.9 per cent.

The company generated about 5 per cent of its revenues from new business while the rest came from repeat orders from existing clients.

Infosys' revenues from North America continue to be the highest though it fell 6 per cent to 65.2 per cent during the last 12 months ended March 2005. Revenues from Europe rose nearly 3 per cent to 22.3 per cent during the same period.

From fixed price offering, its revenue during the last 12 months fell nearly 4 per cent to 30 per cent while revenues from time and materials rose nearly 4 per cent to 70 per cent.