Market cheers Infy results

MUMBAI: Shares of IT bellwether Infosys Technologies rose as much as 4.96 per cent to Rs 6,129 at

the BSE after the company today announced results in line with street expectations.

"The results were certainly better than expected and the guidance provided by Infosys has triggered the rally in technology shares today," said Arun Kejriwal, chief executive, Kejriwal Research and Information Services.

Infosys Technologies Ltd reported a 28.02 per cent rise in net profit to Rs 328.14 crore for the quarter ended December 31, 2003 on a yearly basis. Total income increased 29.77 per cent 02 to Rs 1282.74 crore in the quarter ended December 31, 2003.

"The rise in bottomline numbers can be attributed to stable pricing as well as improved margins. Overall scenario in the technology sector looks bright, with high volume businesses coming to India," said an IT analyst, with a domestic brokerage.

A section of the market believes that the addition of 30 new clients is a huge positive for the company.





Tejas Doshi, IT analyst, Networth Stockbroking said that the addition of clients will keep the momentum going.

"The positives from the growing clientele will reflect in the Infosys stockprice over a period of time," said Doshi.

However, another analyst with a Mumbai-based brokerage has cautioned investors saying that that term of additional contracts is crucial.

"We are still not sure whether the contracts are for the shorter or longer term. There will be further clarification about this aspect in the meeting with the management," the analyst added.

Source: IRIS