The Telegraph
Since 1st March, 1999
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Billion-dollar Infy show
- Tech titan fails to cheer markets

Mumbai, Oct. 11: Technology titan Infosys once again beat most Street estimates to clock revenues of over $1 billion in the second quarter ended September 30 — and forecast that it would close the financial year with consolidated revenues of anywhere between $4.16 billion and $4.17 billion.

“We have achieved another milestone by crossing $1 billion in revenues this quarter,” said S. Gopalakrishnan, CEO and managing director.

Infosys reported second- quarter revenues of $1,022 million, 37 per cent higher than the year-ago quarter and 10 per cent higher than the previous quarter.

The company has earned in a quarter what it took 23 years to achieve in a full year back in 2003-04.

At the end of the first quarter, the infotech giant had forecast that its second-quarter revenues would be $928 million; it topped the forecast by $39 million, or 4.2 per cent.

But that didn’t cheer the market — and the stock was clobbered on a day when the sensex hit a new high. The stock closed on the Bombay Stock Exchange at Rs 1,976, down Rs 148.55 or 7 per cent.

Infosys, which earned just 1 per cent of its second-quarter revenues in India, reported a net profit of Rs 1,100 crore, an 18.4 per cent increase over the year-ago period.

Its income rose 19 per cent to Rs 4,106 crore. It declared an interim dividend of Rs 6 per share.

Gopalakrishnan said Infosys was considering spending as much as $500 million to make an overseas acquisition, but didn’t give any details.

The company forecast that its revenues in the third quarter ended December 31 would be in the range of $1,073 million to $1,078 million, indicating a year-on-year growth of 30.7-31.3 per cent.

In rupee terms, the company said it expected to report a 16.5 per cent increase in income which would be in the range of Rs 4,238-4,258 crore. For the full year ended March 31, it forecast an income in the range of Rs 16,588 crore to Rs 16,648 crore, a year on year growth of 19.4 to 19.8 per cent.

The company said the number of employees had risen to 80,501 but its attrition rate had also nudged up to 14.2 per cent from 13.7 per cent in the previous quarter. It plans to hire 30,000 people this year, more than its July estimate of 26,000.

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