Infosys profit up 10 % at Rs.6,823 cr in 2010-11

Infosys CEO and MD K. Gopalakrishnan. File photo  

IT major Infosys Technologies on Friday reported revenues of Rs.27,501 crore in 2010-11, an increase of 20.9 per cent over the previous year. The company made a net profit of Rs.6,823 crore during the year, 9.7 per cent higher than in 2009-10.

Announcing the results here, company CEO and Managing Director S. Gopalakrishnan admitted that margins had been under pressure, but that the company “is investing in human resources to take advantage of opportunities that may arise in the future.”

The company's earnings in the fourth quarter ending March 31, 2011, amounted to Rs.7,250 crore, 22 per cent higher than in the previous year. Post-tax profits amounted to Rs.1,818 crore, 13.6 per cent higher than in the same quarter in the previous year. The post-tax profit in the fourth quarter of 2009-10 includes Rs.48 crore from sale of investments in OnMobile Systems of the U.S.

The board has recommended a final dividend of Rs.20 a share of face value Rs. 5. Together with the interim dividend of Rs. 10 and the 30th year special dividend of Rs. 30, the total dividend works out to Rs.60.

The company' cost of sales increased by 22.2 per cent during the year, faster than the growth in revenues. Mr. Gopalakrishnan said the company would continue to focus attention on its margins. At present volatility, he said, contributed 100 basis points to the 300 basis point fall in margins in the fourth quarter. Chief Operating Officer K. D. Shibulal admitted that the 10-12 percentage increase in wage costs “has impacted our margins.” However, the company was determined to invest in people to be able to take advantage of opportunities that might arise in the future, he added.

Chief Financial Officer V. Balakrishnan said the dividend payout for the full year would amount to Rs.1,200 crore. The increase in wage costs ‘would get normalised' over the course of the current financial year..

Mr. Gopalakrishnan said the company expected revenues to range between Rs.31,727 crore and Rs.32,270 crore in 2011-12, an increase of between 15.4 and 17.3 per cent over the previous year.

Company Head, (Human Resource Development and Education and Research) T. V. Mohandas Pai said the company planned to make a gross addition of 45,000 people to its workforce in this financial year.

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Printable version | Jun 16, 2021 11:01:46 PM |

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