Indian infotech giant Infosys Technologies Ltd has registered a net profit of Rs 649 crore (Rs 6.49 billion) for the third quarter ended December 31, 2005 as compared to Rs 496 crore (Rs 4.96 billion) for the previous corresponding period, showing a year-on-year growth of 30.58 per cent.
The company's total income jumped from Rs 1,845 crore (Rs 18.45 billion) in Q3-05 to Rs 2,532 crore (Rs 25.32 billion) for the quarter ended December 31, 2005, showing an year-on-year growth of 35 per cent.
- Infosys's Earnings per share before exceptional items increased to Rs 23.68 from Rs 18.50 for the corresponding quarter in the previous year, an increase of 28%.
- The company and its subsidiaries added 36 new clients during the quarter.
- Gross addition of 5,135 employees (net 3,226 employees) for the quarter by Infosys and subsidiaries.
- 49,422 employees as on December 31, 2005 for Infosys and subsidiaries.
"We have seen another quarter of steady growth," said Nandan M Nilekani, CEO, president and managing director, Infosys. "Our initiatives in strategic alignment, capability building and operational excellence are all on track."
Business outlook
The company's outlook (consolidated) for the quarter and the fiscal year ending March 31, 2006, under Indian GAAP and US GAAP, is as follows:
Outlook under Indian GAAP -- consolidated
Quarter ending March 31, 2006*
- Income is expected to be in the range of Rs 2,590 crore (Rs 25.90 billion) and Rs 2,599 crore (Rs 25.99 billion); YoY growth of 30.35%-30.80%.
- Earnings per share before exceptional items is expected to be between Rs 24.30 and Rs 24.70; YoY growth of 27.83%-29.93%.
Fiscal year ending March 31, 2006*
- Income is expected to be in the range of Rs 9,487 crore (Rs 94.87 billion) and Rs 9,496 crore (Rs 94.96 billion); YoY growth of 33.10%-33.20%.
- Earnings per share before exceptional items is expected to be between Rs 89.90 and Rs 90.30; YoY growth of 30.69%-31.27%
* conversion 1 US$ = Rs 44.50
Outlook under US GAAP
Quarter ending March 31, 2006
- Consolidated revenues is expected to be in the range of $582 million and $ 584 million; YoY growth of 27.91%-28.35%.
- Consolidated earnings per American Depositary Share is expected to be between $ 0.55 and $ 0.56; YoY growth of 17.02%-19.15%.
Fiscal year ending March 31, 2006
- Consolidated revenues is expected to be $ 2.14 billion; growth of 34.59%.
- Consolidated earnings per American Depositary Share is expected to be between $2.04 and $2.05; growth of 29.94%-30.57%.
"We have just celebrated the 10th anniversary of some of our development centers outside Bangalore," said S Gopalakrishnan, Member of the Board and COO. "All these centers have matured and are contributing significantly to Infosys' growth."
Progeon MD to quit
Akshaya Bhargava, managing director and chief executive officer, has expressed a desire to leave Progeon for personal reasons and will remit office from March 1, 2006.
Akshaya has been associated with Progeon from its early days and has been one of the main factors for Progeon's current success.
Amitabh Chaudhry, currently chief operating officer, will take over as managing director and chief executive officer with effect from March 2, 2006. Amitabh has been associated with Progeon since early 2003 and has been responsible for building industry-leading execution capabilities within Progeon.
N R Narayana Murthy, chairman and chief mentor, Infosys Technologies Limited, said, "Akshaya has led Progeon from a start-up to its current eminent position. We wish him all success in his future endeavors. Amitabh's role has been seminal in building the operations and solutions team at Progeon and in managing its high growth."
Intellectual property development
Infosys is actively engaged in software services and solutions research and development. The Software Engineering and Technology Lab (SETLabs) spearheads Infosys' commitment to innovation and Intellectual Property (IP) development. During this quarter, SETLabs generated 7 invention disclosures and filed 6 patents.
In the last three quarters since April 2005, 82 invention disclosures were generated and 20 patents were filed.
Expansion of services and significant projects Infosys' continued focus on being the business transformational partner for its clients gained significant momentum this quarter.
Infosys' Strategic Global Sourcing Unit and Infosys Consulting Inc. undertook an assessment of the sourcing strategy and processes for a leading hi-tech company. This assessment will enable the client to achieve its vision of consolidating vendors, reducing spend on local contractors while increasing spend on offshore managed services vendors.
Infosys' hi-tech and discrete manufacturing unit, along with Infosys' product engineering practice, is helping a major hi-tech corporate in building a GSM cell phone for emerging markets.
HTDM is also working with Infosys' subsidiary Progeon to offer business process outsourcing services to a leading discrete manufacturer in the master data management arena.
"In the last two quarters, we have been able to build on our consulting capabilities," said S D Shibulal, member of the board and head - worldwide customer sales & delivery. "Our collaborative approach to the market-place, combined with the strengths of our various business units, is finding good traction with our clients and is showing positive results."
In a strategic engagement, Infosys was selected as the global sourcing partner for a large aerospace conglomerate in the US. Infosys successfully implemented three large business-critical systems for a leading aerospace company in the US, including the replacement of a SGI-based graphics and arts illustration system with a Windows-based SGE solution.
Infosys is re-engineering the client's engineering and authoring application for improved performance and scalability.
One of the largest insurance and financial services companies in North America has sought Infosys' expertise in developing an agency front-end portal that will strengthen its distribution capacity and drive product performance, while providing a common technology solution to enhance agent productivity.
A premier luxury retailer, dedicated to providing customers with distinctive merchandise and superior service, has sought Infosys' expertise to improve item management functionality for its direct and catalog channels through process and systems improvement.
Infosys continued to make inroads in the European market. A leading UK-based multi-utility company in the gas, power and utilities services industry signed up Infosys to implement Microsoft BizTalk for creating connectivity infrastructure for its market-facing and customer-facing businesses.
An Australian retail chain engaged Infosys to assess its Oracle BEPL integration strategy and implementation. A pharmaceutical multinational in Australia has engaged Infosys to undertake a complete upgrade of its worldwide Oracle database, operating system and applications infrastructure.
Infosys' subsidiary in China continued to forge ahead, acquiring a number of new clients this quarter. A global provider of reliable power, precision environmental and connectivity solutions for telecommunications and data network infrastructure engaged with Infosys to develop a nextgeneration energy system management software.
