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From $250 to $1 bn, Infy rolls on

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CIOL Bureau
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BANGALORE: Starting with $250 with a team of eight people, Infosys Technologies has today become a $1.06 billion with a workforce of 25,000 plus spread across the globe. The two decades long journey has been marked with milestones to boast of and a sex-scandal too.

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"During the year, our revenues crossed the landmark figure of $1 billion. We have grown from US$ 121 million, in 1999, to a consolidated revenue of $1.06 billion in 2004," said Nandan M. Nilekani, CEO, President and Managing Director. "Today, we have the required size, brand, compelling value proposition and ambition to build the next generation software services and consulting company."

The company recently started a consulting subsidiary in the U.S. with an initial investment of $20 million and plans to make it 500 strong very soon. "We have made substantial investments to enhance our end-to-end capability and expand our global footprint to new markets like Australia and China," said S Gopalakrishnan, Member of the Board and COO. "Our investment in Infosys Consulting, Inc., will enable us to leverage our Global Delivery Model in the consulting space to offer better value to our clients."

Infosys, which prefers projecting conservatively and exceeds it, has projected its income to be between Rs5,994 crore and Rs6,041 crore, representing a growth of 24 per cent over the previous performance. For the first quarter of fiscal 2005, the company projects income of Rs1,363 crore and Rs1,371 crore, representing a growth of 25 per cent, annually.

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"We added and successfully assimilated over 11,900 employees (gross) during the year. This is the highest addition so far. At over 25,600 employees, we have built the scale required to leverage our client relationships," said K Dinesh, Member of the Board and Head — Human



Resource Development, Information Systems, Quality and Productivity and Communication Design Group.

During the quarter, Infosys added 38 new clients and increased its total client strength to about 400 clients worldwide. Infosys regrouped itself on the basis of industry verticals. "Our universe of Fortune 1000 clients has expanded, with 3 clients providing revenues of $50 million each," said Basab Pradhan, Head — World-wide Sales and Senior Vice President. "There is a strong desire among large corporations worldwide to leverage the offshore model. Our solutions and alliance strategy have evoked deep interest from our clients."

"We have successfully maintained our margins, despite the drop in price realization during the year and an appreciating rupee. Free cash flows have been the highest on record. We have absorbed the cost of a 52 per cent increase in our employee base," said TV Mohandas Pai, Member of the Board and Chief Financial Officer. "We continue to balance the cash required for growth with that of enhancing returns to the shareholders. Our special one-time dividend payment is a reflection of our focus in this direction."

CIOL Bureau

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