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IT giant Infosys earns profit of Rs 673 crores

Written by: Staff

Bangalore, Apr 14: Information Technology giant Infosys has earned a net profit before exceptional item (after tax) of Rs 673 crores for the fourth quarter ended March 31 thereby registering a year on year growth of 31.2 per cent.

The income generated during the quarter crossed Rs 2624 crores and the earnings per share, before exceptional item, increased from Rs 19.01 to Rs 24.45.

The consolidated results for the year ended March 31 comprised an income of Rs 9521 crores (YoY growth 33.5 per cent) and the net profit after tax before exceptional item was Rs 2458 crores. The earnings per share before exceptional item increased to Rs 90.06 from 68.79 in the previous year.

Speaking to newsmen here Infosys Chairman and Chief Mentor N R Narayana Murthy expressing happiness on overall performance of the company said '' this has been a happy, intense rewarding and exhilarating journey of 25 years. Infosys has created a team of high performers who have consistently demonstrated their ability to build the company of the future,'' he added.

Chief Executive Officer, President and Managing Director Nandan M Nilekani, who was also present, said ' it took us 23 years to reach the first billion dollars in revenues while we reached the next billion dollars in 23 months. The global IT services industry is showing signs of stronger growth and Infosys is well poised to take advantage,' he added.

According to a release issued by the company, the Board of Directors recommended a 1:1 bonus issue (stock dividend) for all shareholders including the Additional Depository Receipt (ADR) holders. A silver jubilee special dividend of Rs 30 per share was also announced. The board also recommended a final dividend of Rs 8.50 per share for fiscal 2006.

The company's outlook for the quarter ending June 30 was that the income should be in the range of Rs 2793 crores and Rs 2816 crores and earnings per share was expectec to be between Rs 24.76 and Rs 25.20. The income during fiscal year ending March 31,2007 was expected to be in the range of Rs 12,254 crores and Rs 12,446 crores and earnings per share was likely to be between Rs 113.85 and Rs 115.61.

The company had 52715 employees as on March 31,2006 including gross addition of 5170 employees for the fourth quarter. It added 38 new clients of whom nine contributed more than US Dollars 50 million each in annual revenues.

With regard to expansion of services and significant projects, the company along with Progeon began a large, long term business process outsourcing engagement in master data management, customer data integration and project information management for a leading global consumer electronics brand. It has also commenced a consulting engagement on customer data integration for a leading high tech company and developed a scalable, high performance system for a leading software vendor in line with its product licensing and pricing strategy.

In Banking and Capital Markets area, Infosys was working with a large auto finance major to develop a loans origination platform which would help the client achieve a high degree of business process configurability for increased customer satisfaction. A US Dollars 50 billion US Banking institution, offering a broad array of financial services including retain and corporate banking, had sought infosys expertise to analyse and identify an implementation road map for its consumer lending operations. to step up its operative efficiencies.

The company also expanded its footprint in Europe by securing new client engagements in a variety of industries.

The board also appointed Jeffrey Sean Lehman, a Law Professor and former President of Cornell University, as an Additional Director of the company with immediate effect. T V Mohandas Pai, a board member and Chief Finance Officer would also give up his position voluntarily from April 30 and would head Human Resources Development and Education and Research areas and Administration. Current Senior Vice President (Finance) and Company Secretary V Balakrishnan would take over as Chief Finance Officer from May One.



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