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Infy reports $1 billion revenues in six months

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CIOL Bureau
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BANGALORE: Infosys Technologies Ltd., reported a 36 percent rise in its net profit for the second quarter ended September 30.

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The company recorded a net profit of Rs 606 crore for the second quarter from Rs 477 crore reported during the year-ago period. Its revenues rose to Rs 2294 crore from Rs 1750 crore during the same period. Infosys had added 34 clients in the latest quarter.

For the six month period, Infosys net profits rose from Rs 835 crore in 2004-05 to Rs 1137 crore for the current fiscal. The company's revnues crossed $1 billion at Rs 4366 crore from Rs 3267 crore for the corresponding period last year.

Giving guidance for the next quarter (Q3), the company said that it expected income for the next quarter would be in the range of Rs. 2,443 crore and Rs. 2,452 crore, with a growth of 30.25— 30.73%. The earnings per share is expected to be at Rs. 23.10.

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For the fiscal year ending March 31, 2006, Infosys expects its income to be in the range of Rs. 9,361 crore and Rs. 9,383 crore, with growth of 31.30— 31.61%. Earnings per share is expected to be between Rs. 89.00 and Rs. 89.40.

Speaking on the results, Nandan M. Nilekani, CEO, president and managing director, Infosys, said, “It took us the whole of fiscal 2004 to reach a revenue of $ 1 billion. We reached the same level in the first six months of this year.”

The company has declared an interim dividend of Rs. 6.50 per share (130% on an equity share of par value of Rs. 5 each) at the board meeting held on Monday. An interim dividend of Rs. 5.00 (100% on an equity share of par value of Rs. 5 each) was declared for the corresponding period in the previous year. The record date for payment of dividend will be October 18, 2005.

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Cash and cash equivalents, including investments in liquid mutual funds, increased by Rs. 528 crore during the quarter, from Rs. 3,265 crore to Rs. 3,793 crore, after incurring capital expenditure of Rs. 303 crore. Operating cash flows for the quarter ended September 30, 2005 were Rs. 629 crore (Rs. 468 crore for the quarter ended September 30, 2004).

“During this quarter we recruited 8,026 employees (gross), which is the highest ever during any quarter,” said S. Gopalakrishnan, Member of the Board and COO.

Meanwhile during the analyst call, Nilekani, said that N.R. Narayana Murthy is set to retire as executive chairman of Infosys in August 2006. However, Murthy will continue to be the Infosys' chief mentor, he added.

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