Goldman raises Infy’s revenue, earnings estimates

BANGALORE: Goldman Sachs said it was raising the revenue and earnings

estimates of India's Infosys Technologies for the next two years after the

company reported stronger-than-expected third-quarter results.

Goldman said in a research note dated January 11 and obtained by Reuters on

Monday that it was raising Infosys' 2001 (April-March) net profit estimates by

2.7 per cent to $132 million and by 12.3 per cent to $198 million for 2002.

Goldman also said it was increasing Infosys' revenue estimates by 5.3 per

cent to $414 million and by 6.9 per cent to $612 million for 2002.

"We maintain our long-term positive view on Infosys and reiterate our

Recommended List rating on the stock," Goldman analysts Anil Tewari and

Rajeev Gupta said.

"The company's recent positive comments and better reassurance on growth

leaves us comfortable in maintaining our view that Infosys is very well

positioned to weather the current market environment and continue to deliver

industry-leading results," Goldman said.

In mid-morning deals on Monday, Infosys' shares were up about four per cent

at Rs 6,010 against an overall flat performance by the Bombay Stock Exchange’s

30-share index.

Infosys, India's third-largest software exporter, announced last week a 125

per cent surge in net profit to Rs 1.66 billion ($35.74 million) for the

October-December quarter on sales of Rs 5.52 billion, up 136 per cent from a

year earlier.

Goldman's comments on Infosys are in contrast to UBS Warburg which recently

cut its stock rating on the company to "hold" from "buy"

citing, among other things, a decline in the firm's billing and utilization

rates in the third quarter.

Bangalore-based Infosys, a stock market-favorite, offers computer software

services to customers that include global giants Boeing Co., Cisco Systems Inc

and Reebok International .

($1 = 46.525 Indian rupees).

(C) Reuters Limited 2001.