Infosys earns $1 bn in second quarter

A spiraling rupee not withstanding, Infosys Technologies crossed the $1 billion (Rs 4,106 crore) milestone in revenues during the second quarter of 2007-08, up 18.4 per cent year this year.

On Thursday, the company announced a net profit of Rs 1,100 crore for the quarter ended September 2008 against Rs 929 crore in the same quarter last year. It has revised its annual guidance by 2-3 per cent to Rs 16,588-16,648 crore, up 19.4-19.8 per cent. The guidance at the end of the first quarter was Rs 16,238-16,433 crore.

The software major has factored in a loss of Rs 2,000 crore in consolidated income and Rs 250 crore in net profit due to the rupee’s appreciation for 2007-08. To cushion the impact of a rising rupee, the company has increased its currency exposure by $500 million to $1.4 billion till September 2007.

Infosys has improved its operating margin by 2.5 percentage points to 32.5 per cent in the second quarter, up from 30 per cent in April-June 2007. The operating cash flow increased to Rs 1,144 crore in the second quarter from Rs 961 crore in the same period a year ago.

S Gopalakrishnan, chief executive officer and managing director, said, "Though these are challenging times, we are on a strong footing to face competition and sustain growth through our global delivery model," he said.

The information technology bellwether declared an interim dividend of Rs 6 a share, 120 per cent over the par value of Rs 5, as against Rs 5 a share in the corresponding period the previous financial year.