BANGALORE: Infosys Technologies Ltd has posted a net profit after tax & exceptional items of Rs 896 crore for the quarter ended September 30, 2006 as compared to Rs 592 crore for the quarter ended September 30, 2005.
The net profit has shown a yearly growth of 51.35 per cent.
During the second quarter, total Income has increased from Rs 2215 crore for the quarter ended September 30, 2005 to Rs 3339 crore for the quarter ended September 30, 2006 with a growth of 50.74.
The group has posted a net profit after tax & exceptional item and minority interest of Rs 929 crore for the quarter ended September 30, 2006, with a growth of 53.3 per cent as compared to Rs 606 crore for the quarter ended September 30, 2005. Total Income has increased from Rs 2338 crore for the quarter ended September 30, 2005 to Rs 3517 crore for the quarter ended September 30, 2006. Total income has shown a growth of 50.42 per cent.
Announcing the results, Nandan M Nilekani, CEO and Managing Director of the company, said, “Our business model provides a compelling value proposition to clients in a flat world,” said. “Our robust organic growth coupled with investments in various strategic areas helped us to grow faster in this environment. We have revised our guidance to cross $ 3 billion in revenues this fiscal.”
Providing the business outlook for the quarter ending December 31, 2006, Infosys Technologies has said that it expects income to be in the range of Rs 3,602 crore and Rs 3,625 crore with a year on year growth of 42.3 per cent to 43.2 per cent. Earnings per share is expected to be in the range of Rs 16.84 with a year on year growth of 42.2 per cent.
For the fiscal year ending March 31, 2007, the company said that it expects total income to be in the range of Rs 13,853 crore and Rs 13,899 crore with a year on year growth of 45.5 per cent – 46 per cent.
Earnings per share are expected to be Rs 66 with a yearly growth of 46.6 per cent.
Commenting on the results, S Gopalakrishnan, COO, President and Joint Managing Director, said, “We saw strong double-digit sequential growth during the quarter.”
“Package Implementation, Testing, Consulting and Business Process Management services are growing fast. We have built the necessary scale and momentum into these services for rapid growth.”
Meanwhile, the company has declared an interim dividend of Rs 5 on each equity share (100 per cent on a par value of Rs 5 per share).
ADS offering: The company informed BSE that the Board of Directors of the company at its meeting held on October 11, 2006, has approved the sponsoring a Secondary American Depositary Share (ADS) Offering, against equity shares held by the company’s existing shareholders.
The Board decided that the Offering will consist of a maximum of 30 million equity shares. The Board also decided that as part of this offering, ADSs will be placed with Japanese investors through a Public Offer without Listing (POWL).
The Board has convened an Extraordinary General Meeting (EGM) of the members of the company on November 07, 2006 to seek approval for the Offering and expects the Offering to be completed thereafter.
All equity shareholders would be eligible to offer their equity shares in the offering on a pari-passu basis. The company will not be issuing any new shares in the Offering. The underwriters to the offering will determine the price of the ADSs being sold in the Offering. The proceeds of the Offering, after meeting the expenses of the Offering, will be proportionately paid to the selling shareholders in the Offering.
The Company’s announcement of the offering is pursuant to the notification of the Reserve Bank of India and the operating guidelines issued as per circular A P (DIR Series) Circular dated November 23, 2002.
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