Infosys Reports Impressive Second Quarter Results

The Bangalore-based company reported for its second quarter ended Sept. 30 earnings per American Depositary Share (ADS) increased 11 cents to 36 cents per share over the same quarter last year. Net income for the quarter was $97 million, compared with $65 million from the same quarter last year, and sales for the quarter leaped 51 percent to $379 million for the same time period. In addition, Infosys added 32 new clients and hired 5,010 net new employees during the quarter.

What's more, Infoysys increased its revenue forecast and says it expects consolidated net revenue to climb 48 percent to 49 percent, to somewhere between $407 million and $410 million, for its next quarter ending Dec. 31. And for its entire fiscal year ending March 31, 2005, it now expects sales to end up between $1.555 billion and $1.561 billion, a growth of 46 percent to 47 percent.

The company also expects consolidated earnings per ADS to increase 41 percent to 38 cents for its quarter ending Dec. 31, and $1.46 for the fiscal year, a gain of 42 percent.

"Offshoring has become a megatrend in the industry as more customers leverage their partnerships with Infosys to increase their global competitiveness," Infoysys CEO Nandan M. Nilekani said in a statement. "We continue to focus on scalability, which is the key to rapid growth, and on differentiation, which is the key to higher client value."

In planning for future growth, Infosys has spent $38 million on property, plants and equipment in the past quarter and has about 3.5 million square feet of infrastructure under construction, according to T.V. Mohandas Pai, its CFO and a board member.

For its six months, the company reported net income of $180 million, or 68 cents per share, compared with sales of $123 million, or 47 cents per share, for the year-ago period.