Infosys Q4 net rises 53 per cent
By Our Corporate Bureau | 15 Apr 2005
Bangalore: Infosys' net profits rose 53 per cent to Rs513 crore, while revenues grew 47 per cent to Rs1,987.32 crore for quarter-ended March 31, 2005, over corresponding last year. Sequentially, the growth in net profits and revenues was at 3.25 per cent and 5.96 per cent respectively. Onsite volumes grew by 4.6 per cent while offshore volumes rose by 6.6 per cent during the March quarter..
After including a realisation of Rs45 crore through a stake sale in subsidiary Yantra Corporation, Infosys' net profit for the fourth quarter of FY05 stood at Rs558 crore. For the year 2005, net profits grew by 52 per cent to Rs1,891.7 crore, while its revenues grew by 47 per cent to Rs7,129.65 crore.
The company has recommended a final dividend of Rs6.50 per share (130 per cent on a par value of Rs5 per share) for fiscal 2005 amounting to Rs175.87 crore. Including the interim dividend of Rs5 per share amounting to Rs133.93 crore, the total dividend recommended for the year is Rs11.50 per share amounting to Rs309.8 crore. For fiscal 2006, Infosys expects income to be in the range of R 8,890 crore and Rs9,029 crore, a growth of 24.7 per cent to 26.6 per cent.
Nandan Nilekani, president, CEO and managing director, Infosys said: "Customers' focus on issues related to compliance of Sarbanes-Oxley Act, Anti-Money Laundering Act and the Patriot Act, would have short-term impact on the earnings."
"We are hopeful of seeing traction in volume from Q2 onwards," he said.
Infosys expects the pricing to be stable, Nilekani said, adding: "The trend towards offshoring continues". Infosys expects strong growth in segments such as communication service provider business and the auto and aerospace sectors, he said.
T V Mohandas Pai, CFO, said the company does not see any major impact of the fringe benefit tax on its earnings and hence has not factored it in its outlook. Infosys has managed to maintain its operating margins at 33 per cent for the year, while its net profit margins was around 26 per cent.
The company is yet to finalise the timing for its proposed secondary offering of American Depository Shares.
