Date:12/10/2007 URL: http://www.thehindu.com/2007/10/12/stories/2007101262032100.htm

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Business

Infosys revenues cross $1 b in Q2

Special Correspondent

Revises upwards guidance for 2007-08

Adds 48 new clients during the quarter
Has $1.4b hedging position

— PHOTO: G. R. N. SOMASHEKAR

REACHING A MILESTONE: S. Gopalakrishnan (right), CEO, and S. D. Shibulal, Chief Operating Officer, Infosys, at a press conference in Bangalore on Thursday.

BANGALORE: Infosys Technologies has reported an 8.8 per cent sequential growth in its revenues for the quarter ended September 30, 2007, to earn Rs. 4,106 crore. The net profit after taxes was Rs. 1,100 crore, representing an 18.4 per cent year-on-year growth. Earnings per share increased by 15 per cent (compared to the same quarter last year) to Rs. 19.26. The company will declare an interim dividend of Rs. 6 per share (120 per cent on a par value of Rs. 5 per share).

Infosys CEO and Managing Director, S. Gopalakrishnan, told reporters here on Thursday that, “We reached another milestone by crossing $1 billion revenues this quarter. The offshoring model continues to be popular even with North American clients though we have increased focus on markets less impacted by the U.S. dollar; clients in Europe now account for 26.4 per cent of total client base”.

With revenues going up and 48 new clients added during the quarter, the company has revised upwards its guidance for 2007-08, with income expected to be in the Rs. 16,588-16,648 crore range and a year-on-year growth of 19.5 per cent, Chief Operating Officer, S. D. Shibulal, said. “Pricing remained stable and in fact went up by 1.9 per cent last quarter. A good number of new clients added were in Europe. These include a multi-million dollar contract from Royal Philips Electronics of the Netherlands and finance and accounting services for a global automotives components manufacturer,” he said.

V. Balakrishna, Chief Financial Officer, said, “Though the depreciating U.S. dollar impacted overall profitability, we managed to improve operating margins. Our hedging position as on September 30 was $1.4 billion”.

The anticipated revenues for the whole fiscal from global operations has been based on the U.S. dollar remaining around Rs. 39.50 and “currency movement can always be two-ways”.