Software outsourcer Infosys Technologies on Friday said its cash and cash equivalents stood at Rs 13,796 crore at the second quarter ended September 30, 2009, an increase of 55.75 per cent over the corresponding period a year-ago.

“Cash and cash equivalents, including investments in liquid mutual funds, as on September 30, 2009 was Rs 13,796 crore, against Rs 8,858 crore as on September 30, 2008,” Infosys said in a statement.

Commenting on the liquidity and capital expenditure plans of the company, Infosys Chief Financial Officer V Balakrishnan said: “The global currency markets continue to be extremely volatile, even though we have seen some stability in the rupee against the US dollar this quarter.”

“We continue to focus on high quality growth with superior margins. Our balance sheet has been further strengthened with cash and cash equivalents reaching $2.8 billion.” Mr. Balakrishnan added.

However, the company’s net current assets on consolidated basis declined on a quarter-on-quarter basis to Rs 12,110 crore at the end of September quarter. The same stood at Rs 13,271 crore for the three months ended June 30, 2009.

Current assets are used to fund day-to-day operations and pay ongoing expenses. It represents the sum of cash and cash-equivalents, inventory and other assets that could be converted to cash in a short span of time.

The country’s second largest software exporter today reported a 7.5 per cent growth in consolidated net profit at Rs 1,540 crore for the second quarter ended September 2009.

“In the second quarter, the business climate has improved,” Infosys CEO and Managing Director S Gopalakrishnan said.

Total income stood at Rs 5,821 crore at the end of the September quarter, an increase of over six per cent over the year-ago period.

“Clients are now looking to invest in a few strategic initiatives and relationships to maximise value from opportunities when the economic downturn ends,” Mr. Gopalakrishnan added.

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