The Hindu : Business : Infosys net up 21% at Rs. 4,660 crore

Online edition of India's National Newspaper
Wednesday, Apr 16, 2008
ePaper | Mobile/PDA Version

Business

Business

Infosys net up 21% at Rs. 4,660 crore

Staff Reporter

Increases dividend pay-out ratio to 30 % of net profit

— PHOTO: G. R. N. SOMASHEKAR

DIVERSIFYING GEOGRAPHIES: S. D. Shibulal (right). COO; S. Gopalakrishnan (centre), CEO and Managing Director; and V. Balakrishana, CFO, Infosys Technologies, at a press conference in Bangalore on Tuesday.

BANGALORE: Infosys Technologies, a leading IT services company, earned revenues of Rs. 16,692 crore during 2007-08, registering an increase of 20 per cent over the previous year.

The company made a net profit of Rs. 4,659 crore, an increase of 20.8 per cent over the same period in the previous year.

Announcing the annual results at a press conference here on Tuesday, Infosys CEO and Managing Director, S. Gopalakrishnan, said the company’s move to diversify across geographies had reduced its dependence on the North American markets. While the share of revenues from the European markets increased by almost three percentage points, the share of revenues emanating from North America has fallen by 2.6 percentage points. The company has announced an increase in the dividend pay-out ratio to 30 per cent of net profit. This was among the highest offer made by any Indian corporate, Mr. Gopalakrishnan said.

Statistics released by the company show that revenue from application development and maintenance processes had fallen by almost three per cent in 2007-08. This was compensated by the increase in revenue from consulting services and package implementation.

Mr. Gopalakrishnan said 76 per cent of the company’s top hundred clients had informed Infosys that their IT budgets “would remain flat” in the early part of the current financial year.

“Because of the slowdown, the spending will be less, decision-making cycles will get longer and there will be project cancellations,” said Mr. Gopalakrishnan.

However, he said the company expected the situation to improve in the second half of 2008-09.

Income was likely to increase by about 21 per cent in the first quarter of the current year, he said.

Quoting hiring statistics and trends board member Mohandas Pai said the attrition rates for the fourth quarter have been the lowest in three years.

Printer friendly page
Send this article to Friends by E-Mail

Business

News Update

Stories in this Section