The breakeven of Infosys Consulting has once again been deferred and it is expected to turn the corner in another 3-4 quarters.
This arm employs around 180 persons and has posted a loss of Rs 13 crore (Rs 130 million) on a topline of Rs 4.4 crore (Rs 44 million) for the first quarter of FY'07.
Infosys Consulting was launched in April 2004 and Infosys has so far invested close to $20 million. Infosys Consulting posted a topline of $5.6 million for FY2006 as against a topline of $4.8 million for FY05.
Kris Gopalakrishnan, COO, Infosys, said the consulting arm is still in the investment mode and they hope to see it making money in 3-4 quarters.
The company's another subsidiary, Infosys China, also continues to be in the red posting a Rs 10-crore (Rs 100 million) loss on a topline of Rs 3.03 crore (Rs 30.3 million).
Infosys presently employs 660 employees in China and is looking at gathering steam in near future.
The company, however, was categorical to add that these negatives will not have an effect on its numbers.
While these two have been turning in weak numbers, Finacle, the banking product of Infosys, has posted sales of Rs 130 crore (Rs 1.3 billion) for the quarter and Progeon, the BPO operations of Infosys, has come in with a topline of Rs 127 crore (Rs 1.27 billion) with net margins of Rs 20 crore (Rs 200 million).
The company is pretty upbeat on the outsourcing scenario.
"The Indian fundamentals are pretty strong and we have the required scales to back this. Even if economies slow down a bit, the corporations we are in dialogue with are upbeat on the IT spending. We have built our model on the defensive mechanism and as and when things slow down there is pressure on corporations to trim costs where we figure in. On the other hand, we also benefit when the economies are on the upswing."
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