Financial Daily from THE HINDU group of publications
Thursday, Apr 11, 2002
Info-Tech - Software
Corporate Results - Software
Infosys posts 37 pc growth in revenue -- Net up 28.5 pc; to pay Rs 20 total
WELL DONE, MY BOY!: Mr N.R. Narayana Murthy, Chief Mentor, Infosys Technologies (right), and Mr Nandan M. Nilekani, CEO, President & Managing Director, at a press conference in Bangalore on Wednesday.
BANGALORE, April 10
SOFTWARE major Infosys Technologies beat its revenue target for 2001-02 by registering a growth of 37 per cent over the previous year, while its net profit surged by 28.5 per cent.
The company clocked a net profit of Rs 807.96 crore on an income of Rs 2,603.59 crore for 2001-02 fiscal as against a net of Rs 628.81 crore on an income of Rs 1,900.56 crore registered in the previous year.
For the fourth quarter ended March 31, 2002, the company's net profit stood at Rs 210.32 crore, up 2.08 per cent from its previous quarter. Income for the fourth quarter stood at Rs 680.13 crore, an increase of 2.92 per cent over the previous quarter's Rs 660.81 crore. Software development expenses also went up by 4.30 per cent to Rs 322.81 crore (Rs 309.50 crore).
"Last year was difficult for both Infosys and the Indian software industry," said Mr Nandan Nilekani, CEO, President and Managing Director, Infosys. "There is an enhanced interest in the offshore model. However, the sales and ramp-up cycles have elongated, and pricing pressure continues. We believe that the outlook for the next 12 months will continue to be challenging.''
The revenue growth during the year comprised volume growth of 35 per cent offset by a price decline of 2.5 per cent, said Mr Nilekani. The company's cash and cash equivalents stood at Rs 1,027 crore at the end of the year.
The company added 29 new clients during the quarter including marquee names such as Cardif, the insurance subsidiary of BNP Paribas, DaimlerChrysler and Fujitsu. It also expanded its footprint in the telecom sector and retail segment. The total client addition for the year stood at 116. Currently, the company has 293 active accounts.
Infosys witnessed a marginal shift in regionwise revenues during the year, with Europe contributing 19.5 per cent (18.8 per cent last year) to the company's topline.
Contribution from the US stood at 71.2 per cent (73.5 per cent), India - 2 per cent (1.4 per cent) and the rest of the world 7.3 per cent (6.3 per cent).
Contribution from offshore increased marginally during the year to 49.2 per cent (48.5 per cent) while onsite component decreased to 50.8 per cent (51.5 per cent). The company increased its total employee strength to 10,738 during the year from 9,831 last year. The number of software professionals as on March 31, 2002 went up to 9,405 (8656). Of the 9,405 professionals, 176 belong to the banking business unit.
The Infosys board has recommended a total dividend of Rs 20 (400 per cent on a equity share of par value of Rs 5 per share) for the year-ended March 31, 2002.
The total dividend includes the earlier declared interim dividend of Rs 7.50 per share (150 per cent) and the final dividend of Rs 12.50 per share (250 per cent) declared today.
The board of directors also recommended that the FII limit in Infosys be raised from 49 per cent to 100 per cent, as per the RBI guidelines.
The board has recommended for an approval of the members in the ensuing annual general meeting in this regard.
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