Infosys stuns with a 50 per cent surge in Q1 net

Infosys Technologies, the second largest IT services company behind TCS, has once again come up with a set of quarterly numbers, which has far exceeded analyst expectations. The company said it is seeing strong business momentum in key markets like US and Europe, which has led to guidance upgrades for the current quarter and FY 06-07.

Consolidated net profits of the company for the quarter jumped 50.38 per cent to Rs800 crore from Rs532 crore for the previous year quarter. On a sequential basis, consolidated net profits have increased 18.87 per cent from Rs673 crore reported for the March 2006 quarter.

Consolidated revenues were higher by 49.74 per cent at Rs3,143 crore as against Rs2,099 crore for the first quarter of FY 05-06. Revenues have grown 16.58 per cent sequentially from Rs2,696 crore reported for previous quarter ended March 2006.

Income from operations on a consolidated basis increased by 45.58 per cent to Rs3,015 crore from Rs2,071 crore for the previous year quarter.

Operating profits increased 33.88 per cent while operating margins as a percentage of operating revenues declined to 29.49 per cent from 32.06 per cent.

Software development expenses, including salaries and other costs, increased 50.9 per cent during the quarter. Selling & marketing expenses went up by 44.68 per cent while general expenses increased by 68.42 per cent. Depreciation charges for the quarter were higher by 32.5 per cent.

The company benefited from a 3.5 times jump in other income to Rs128 crore from Rs28 crore for the previous year quarter. Under other income, interest income was at Rs52 crore for the quarter while exchange gains were at Rs52 crore against a loss of Rs10 crore for the previous year quarter.