The Hindu : Infosys Q1 net at Rs. 278 cr.

Online edition of India's National Newspaper
Friday, Jul 11, 2003

Business

Business

Infosys Q1 net at Rs. 278 cr.

By Our Staff Reporter

BANGALORE JULY 10. Infosys Technologies has reported a 28.3 per cent growth (Indian GAAP) in net profit at Rs. 278.12 crores in the first quarter of the current financial year against Rs. 216.85 crores in the same quarter of the previous year. Income from software development services and products was Rs. 1,081.98 crores for the quarter, up 41.51 per cent on the income in the same period last year and the company added 22 new clients during the quarter.

The company's back office unit, Progeon, has shown a 6.76 per cent quarter-on-quarter growth in PAT.

The Chief Executive Officer of the company, Nandan Nilekani, said, "While the effect of the latest Iraq war and SARS has gone away, there are several schools of thought on how the economy will affect business.''

He also said the rupee appreciation was likely to impact the company's revenues by about Rs. 100 crores (roughly 2 per cent) by the end of the financial year.

According to the audited results taken on by the company's board here today, earnings per equity share (of par value Rs. 5 each) increased by 28.14 per cent to Rs. 41.98 from Rs. 32.76 in the corresponding quarter of last year.

The company's "forward looking statements'' for the next quarter and for the whole year include a projected income of Rs. 1,086-1,095 crores for Q2 and projected income of Rs. 4,420-4,483 crores for the year ending March 31, 2004. Earnings per share are projected to hold at around Rs. 42 per quarter for the remaining three quarters as well.

North America continues to be the company's main market, accounting for 74.7 per cent of the revenues for the quarter ended June 30, which is actually an increase of 3 per cent from the previous quarter. The share of revenue from the EU market accounts for 17.4 per cent down from 18.7 per cent in the previous quarter.

The contributions to revenues from the domestic market and the "rest of the world'' too have come down to 2.1 per cent and 5.8 per cent for the first quarter compared to 2.8 per cent and 6.8 per cent respectively for the previous quarter.

The onsite and offshore contributions to revenues are expected to remain the same for the rest of the year, as in this quarter at 55 per cent and 45 per cent.

Manpower utilisation (including training) was at 77.3 per cent for the quarter.

The company took on 1,739 new employees during the quarter, raising the total strength to 17,095 as on June 30, 2003.

Capex was at Rs. 58.38 crores for the quarter and as on June 30, 2003, the company had 36.59 lakh sq. ft. of space, which could hold 18,733 seats.

A further 4.60 lakh sq. ft. was under construction, which could take 4,438 seats, a company release says.

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