The Hindu : Infosys net profit up at Rs. 328 crores in Q3

Online edition of India's National Newspaper
Saturday, Jan 10, 2004

Business

Business

Infosys net profit up at Rs. 328 crores in Q3

By Our Staff Reporter

BANGALORE, JAN. 9. The IT belwether, Infosys Technologies, has said the margins will hold for the rest of the year. A strengthening rupee will remain a concern, though at the end of previous quarter the company had said it had hedged some $139 million of forward sales at Rs. 46.70 to a dollar.

For the third quarter ended December 31, 2003, the company reported a net profit (after taxes) of Rs. 328.14 crores, up 28 per cent over the same period last year. The income was at Rs. 1,235.26 crores, up 28.86 per cent year on year.

For the second time in a row, the company revised its forecast for full year EPS (earnings per share) to Rs. 186.70, up 4.65 per cent over the previous forecast of Rs. 178.40, made at the end of the quarter ended September 30, 2003. This time too, the company has posted better results than it forecast. On the `business outlook,' the company's CEO, President and Managing Director, Nandan Nilekani, said, "We have reorganised Infosys (read more verticalisation) to meet increased expectations from clients, a fast-changing economy and a new competitive scenario.''

For the third quarter, the EPS increased by 27.73 per cent year on year to Rs. 49.43. The company added 30 new clients in the quarter, taking the tally to some 350, worldwide.

For the three months to March 31, income from software development and products is projected to be between Rs. 1,260 crores and Rs. 1,269 crores, with EPS of Rs. 49.50 Consolidated income was expected to be between Rs. 1,319 crores and Rs. 1,331 crores, with EPS of Rs. 49.70. For the year ending March 31, 2004 income from software services and products was expected to be between Rs. 4,712 crores and Rs. 4,721 crores with EPS of Rs. 186.20.

Consolidated income for the year would be between Rs. 4,823 crores and Rs. 4,835 crores, with EPS of Rs.186.70. Conversions are at Rs. 45.50 to a dollar (ten paise more to the dollar, on the conversion factor used at the end of the previous quater).

Income from the BPO outfit, Projeon, which added one client in the quarter, has also beat the forecast by Rs. 3 crores at Rs. 21.78 crores. Net addition to Projeon's staff strength in the quarter was 362, taking the total to 1,400. No forecast was made this time for Projeon, while at the end of the half year the projected income for the year had been set at between Rs. 73 crores and Rs. 80 crores.

Profit booking in shares

Infosys shares witnessed a sharp upsurge on the bourses before the results were out reaching an intra-day high of Rs. 6,100 on the National Stock Exchange and Rs. 6,129 on BSE. However profit booking emerged after the results were out and the IT bellwether closed at Rs. 5, 802 on NSE and 5805.80 on BSE, losing early gains. Around 7.61 lakh shares were traded on NSE while BSE registered a volume of 3.36 lakh shares.

PTI reports

Secondlawsuit notice served

The company today said it had been served with the notice in second sexual harassment lawsuit filed against the company and its former director, Phaneesh Murthy, during the quarter ended December 2003.

The lawsuit was filed in the previous quarter by a former American Infosys employee, Jeniffer Griffith, alleging sexual harassment by Mr. Murthy during his tenure with the company, a charge he has denied as `absurd.'

"The lawsuit was filed in the last quarter... the notice was served on us this quarter,'' the Infosys Director and Chief Financial Officer, T. V. Mohandas Pai. told reporters here.

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