Infosys Q4 net up 67% Y-o-Y at Rs 559 cr

Infosys has reported a 66.64 per cent surge in net profit to Rs 558.64 crore (Rs 5.59 billion) for the fourth quarter ended March 31, 2005 as against Rs 335.23 crore (Rs 3.35 billion) in the same period last fiscal.

"We are beginning to see the results of various initiatives taken over the last few years," said Nandan M Nilekani, CEO, president and managing director. "Our clients increasingly see us as a strategic long-term partner who can offer a wide range of services and contribute to their business goals." 

Infosys made a net profit of Rs 45.19 crore (Rs 451.9 million) in selling its whole stake in US-based Yantra Corporation which it had incubated.

"During the quarter, we realised the gains on our investment in Yantra Corporation, the first Infosys incubated firm", Infosys COO S Gopalakrishnan said.

Infosys said it expects growth of 33 per cent in revenues between Rs 2002 crore (Rs 20.02 billion) and Rs 2020 crore (Rs 20.20 billion) during the first quarter ending June and earning per share of Rs 19.30, a jump 32.7 per cent.

Revenues for the whole year (2005-2006) is expected to increase by 26.6 per cent between Rs 8890 crore (Rs 88.9 billion) and Rs 9029 crore (Rs 90.29 billion), while earning per share is expected to be between Rs 84.60 and Rs 85.90.

The firm added 11,116 employees including 1,521 people in the fourth quarter to take its total strength to 36,750 employees, including its business process outsourcing arm Progeon.

"We have added a record number of employees during the year and our variable compensation plan helped align our employees costs to the growth in business," he said.

T V Mohandas Pai, chief financial officer, Infosys said pricing has been stable. "The movement of the rupee against the US dollar was hedged efficiently".

Highlights

Consolidated results for the quarter ended March 31, 2005

• Income was Rs 1,987.32 crore (Rs 19.87 billion) for the fourth quarter ended March 31, 2005; YoY growth of 47.27 per cent
• Net profit after tax before exceptional item was Rs 513.45 crore (Rs 5.13 billion) for the fourth quarter ended March 31, 2005; YoY growth of 53.16 per cent. Net profit after tax and exceptional item was Rs 558.64 crore (Rs 5.59 billion); YoY growth of 66.64 per cent
• Earnings per share before exceptional item increased to Rs 19.01 from Rs 12.59 for the corresponding quarter in the previous year, an increase of 50.99 per cent. Earnings per share after exceptional item for the fourth quarter ended March 31, 2005 was Rs 20.68; YoY growth of 64.26 per cent

Consolidated results for the year ended March 31, 2005

• Income was Rs 7,129.65 crore (Rs 71.3 billion) for the year ended March 31, 2005; YoY growth of 46.91 per cent
• Net profit after tax before exceptional item was Rs 1,846.48 crore (Rs 18.46 billion) for the year ended March 31, 2005; YoY growth of 48.48 per cent. Net profit after tax and exceptional item was Rs 1,891.67 crore (Rs 18.92 billion); YoY growth of 52.11  per cent.
• Earnings per share before exceptional item increased to Rs. 68.79 from Rs. 46.85 for the corresponding year, an increase of 46.83 per cent. Earnings per share after exceptional item for the year ended March 31, 2005 was Rs 70.48 for the corresponding year; YoY growth of 50.44 per cent