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Last Updated: Wednesday, 12 January, 2005, 09:19 GMT
Profits soar at India's Infosys
Infosys HQ
US demand remains strong for Infosys outsourcing
Profits at Indian software firm Infosys leapt by more than 50% in the final three months of 2004.

Alongside a 52% rise in net earnings to 4.97bn rupees ($114m; 61m), Infosys said its profit for the year to March would be up 47% on the year before.

The firm's business has been built on IT and call-centre outsourcing for Western corporations.

Despite criticism of outsourcing during the US election, demand from US firms has underpinned the strong figures.

Currency squeeze

Infosys shares in Mumbai (Bombay) rose immediately after the results, before slipping back to lie almost 1% down on the day, in line with the broader market.

The company is facing increasing competition, as well as dealing with a strengthening rupee.

The appreciating currency, up 6% between September and December, meant a slight reduction in predicted sales for the full year, the firm said, tempering its forecast for revenue growth from 48% to 46%.

But the firm said it was managing to protect its profit margin, delivering results ahead of analysts' expectations.

Key rivals Tata and Wipro report their own results within days, but a third competitor, Mphasis, has already announced profits down 6% for the December quarter and cut its full-year forecasts.

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