Infosys technologies announced the results for the quarter ending September 30 on Wednesday.
Highlights
Consolidated results for the quarter ended September 30, 2006
Income was Rs. 3,451 crore for the second quarter ended September 30, 2006; YoY growth was 50.4%
Net profit after tax and before exceptional items was Rs. 930 crore for the quarter ended September 30, 2006; YoY growth was 52.0%
Earnings per share* before exceptional items increased to Rs. 16.75 from Rs. 11.13 for the corresponding quarter in the previous year; YoY growth was 50.5%
Interim dividend of Rs. 5 per share (100% on par value of Rs. 5 per share) compared to Rs. 3.25 (65% on par value of Rs. 5 per share) for the corresponding period in the previous year
Others
45 new clients were added during the quarter by Infosys and subsidiaries
Gross addition of 10,795 employees (net 7,741) for the quarter by Infosys and subsidiaries
66,150 employees as on September 30, 2006 for Infosys and subsidiaries
"Our business model provides a compelling value proposition to clients in a flat world," said Nandan M Nilekani, CEO and managing director. "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."
US GAAP: Highlights
Consolidated results for the quarter ended September 30, 2006
Second quarter revenues at $ 746 million, up 42.4% from the corresponding quarter last fiscal
Earnings per American Depositary Share (ADS)* increased to $ 0.36 from $ 0.25 in the corresponding quarter last fiscal
Business outlook
The company's outlook (consolidated) for the quarter ending December 31, 2006 and the fiscal year ending March 31, 2007, under Indian GAAP and US GAAP, is as follows:
Outlook under Indian GAAP - consolidated
Quarter ending December 31, 2006**
Income is expected to be in the range of Rs. 3,602 crore and Rs. 3,625 crore; YoY growth of 42.3% - 43.2%
Earnings per share* are expected to be Rs. 16.84; YoY growth of 42.2%
Fiscal year ending March 31, 2007**
Income is expected to be in the range of Rs. 13,853 crore and Rs. 13,899 crore; YoY growth of 45.5% - 46.0%
Earnings per share* are expected to be Rs. 66; YoY growth of 46.6%
Outlook under US GAAP
Quarter ending December 31, 2006
Consolidated revenues expected to be between $ 790 million and $ 795 million for the quarter ending December 31, 2006 (YoY growth of 41.3% - 42.2%) and between $ 3.03
billion and $ 3.04 billion for the fiscal year ending March 31, 2007 (YoY growth of 40.6% - 41.1%)
Consolidated earnings per ADS* expected to be $ 0.37 for the quarter ending December 31, 2006; (YoY growth of 42.3%) and $ 1.44 for the fiscal year ending March 31, 2007; (YoY growth of 41.1%)
Fiscal year ending March 31, 2007
Consolidated revenues are expected to be in the range of $ 3.03 billion and $ 3.04 billion; YoY growth of 40.6% - 41.1%
Consolidated earnings per American Depositary Share* are expected to be $ 1.44; YoY growth of 41.1%
* Adjusted for the issue of bonus shares in the ratio of 1:1 allotted on July 15, 2006
** conversion 1 $ = Rs. 45.60
"We saw strong double-digit sequential growth during the quarter," said S Gopalakrishnan, COO, president and joint managing director. "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."
Dividend Declaration
The company has declared an interim dividend of Rs. 5 per share (100% on an equity share of par value of Rs. 5 each) at the board meeting held today. An interim dividend of Rs. 3.25 (65% 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 20, 2006.
