Infosys profits rise on new contracts

Infosys has reported a sharp rise in quarterly profits on the back of new contracts and has given an upbeat outlook for the year ahead. Its pre-tax profits in the three months to 30 June rose to $291 million from $199 million in the same period in 2006.

Its sales rose 40 per cent to $928 million as the firm, which now employs 75,000 staff, won new business from European and US firms.

It has increased its sales forecast for the year as a whole, revenues now expected to rise about 30 per cent to $4 billion.

Infosys disclosed that it added 35 new clients during the quarter including two leading European banks, a top US carmaker and a British retailer and that its business would continue to be based on developing long-term partnerships with clients.

S Gopalakrishnan, chief executive, said, "As clients recognise the strategic imperative of global sourcing in an increasingly flat business world, the demand for end-to-end players like Infosys continues to be strong."

Gopalakrishnan took over Nandan Nilekani who relinquished charge as CEO on becoming chairman.