The Hindu : Business : Infosys net up 57 p.c. at Rs. 3,850 cr.

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Saturday, Apr 14, 2007
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Infosys net up 57 p.c. at Rs. 3,850 cr.

Special Correspondent

For 2007-08, the company expects to add 24,500 employees on a gross basis

— PHOTO: G. R. N. SOMASHEKAR

ROBUST GROWTH: Nandan Nilekani (left), CEO and Managing Director, Infosys, and S. Gopalakrishnan, COO, at a press conference in Bangalore on Friday.

BANGALORE: Infosys Technologies reported an income of Rs. 13,893 crore (consolidated) for the year ended March 31, 2007, with a year-on-year growth of 45.9 per cent and a net profit after tax of Rs. 3,850 crore, a 56.6 per cent growth.

130 p.c. final dividend

Earnings per share for the fiscal increased from Rs. 45 to Rs. 69.11. The board of directors has recommended a final dividend of 130 per cent (Rs. 6.50 per share). An interim dividend of 100 per cent (Rs. 5 per share) had already been paid on the doubled capital. The total dividend recommended for the year will absorb Rs. 649 crore. "The global IT services industry continues to grow strong with exciting opportunities and our revenues grew by $1 billion," CEO and Managing Director, Nandan M. Nilekani, told reporters here on Friday.

About 30,946 employees were recruited by Infosys and its subsidiaries, taking the total number of staff to 72,241. For 2007-08, the company expects to add 24,500 employees on a gross basis. The Mysore training centre can train 13,500 employees at a time.

Income in the fourth quarter was up 43.8 per cent at Rs. 3,772 crore. The profit after tax was Rs. 1,144 crore, a year-on-year growth of 70 per cent. The net profit for the quarter and year ended March 31, 2007, includes a reversal of tax provisions amounting to Rs. 124 crore and Rs. 125 crore, respectively.

Excluding this reversal, the earnings per share for the quarter and year ended March 31, 2007 would have been Rs. 18.10 and Rs. 66.86, respectively, resulting in a year-on-year growth of 48 per cent and 48.5 per cent, respectively.

The top management was cautious about the outlook. Income for the quarter ending June 30, 2007, is expected to be in the range of Rs. 3,896-3,913 crore, recording a year-on-year growth of 29.2-29.8 per cent. For the year ending March 31, 2008, income is expected to be in the range of Rs. 17,038-17,308 crore, a growth of 22.6-24.6 per cent year-on-year.

To manage any further weakening of the dollar, the company had maintained a liquidity position equal to $1.4 billion. Consolidated earnings per American Depository Share are expected to be around 41 cents this year, a 28.2 per cent year-on-year growth. About the optimism on continued revenue growth from overseas business, S. Gopalakrishnan, COO, said, "Our continuing investments in brand, infrastructure, technology, people, intellectual capital and service offerings will be to our advantage."

The number of `million dollar' clients increased from 256 to 275 and the company has acquired its first $200 million client.

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