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Infosys projects 20% growth in 2002-03

Fakir Chand in Bangalore

Infosys Technologies Ltd, the Bangalore-based global software company, is projecting a revenue growth between 17 per cent and 20 per cent for the current fiscal year 2002-03, as against the actual growth of around 37 per cent it achieved during the preceding fiscal year (2001-02), the results of which it announced on Wednesday morning.

Contrary to higher expectations of a better turn around in the company's performance during the new fiscal in anticipation of a revival in the US or world economy in the coming months, Infosys' CEO Nandan M Nilekani declared in Bangalore on Wednesday that the income from software development services and products were projected to be between Rs 30.85 billion and Rs 31.70 billion, and the earnings per share to be between Rs 141 and Rs 145.

"The outlook for the first quarter of the current fiscal year ending June 2002 is slightly better than the fourth quarter of fiscal 2001-02 as revenues are projected to be between Rs 6.84 billion and Rs 6.94 billion against Rs 6.80 billion for the quarter ended March 31, 2002.

Admitting that the outlook for the next 12 months would continue to be challenging, Nilekani said despite the year that just ended being difficult for the Indian software industry on the whole, Infosys performed well to exceed its projected growth rate of 30 per cent by another 7 per cent.

"Our experience in the tough year of 2001-02 shows that there is an enhanced interest in the offshore model. However, the sales and ramp-up cycles have elongated and pricing pressure continues to prolong," Nilekani stated.

Earlier in the day, Infosys has declared its annual results for the fiscal 2001-02, posting a gross revenue of Rs 26.04 billion, including Rs 25.52 billion from overseas' software services and products, registering a growth rate of around 37 per cent over the previous fiscal (2000-01) of Rs 19 billion.

Similarly, its net profit for the year under review at Rs 8.08 billion was up by about 30 per cent over the corresponding period of 2002-01 of Rs 6.23 billion.

In view of its performance in a year of downturns and slowdowns, especially in the dominant US market, the company's board of directors had recommended a final dividend of Rs 12.50 per share of Rs 5 for the fiscal year (2001-02), taking the total dividend for the year to Rs 20 per share, including the interim dividend of Rs 7.50 per share, or a whopping 400 per cent for the entire year.

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