Page last updated at 12:35 GMT, Tuesday, 13 January 2009

Infosys thrives despite slowdown

Infosys management team
Infosys says that the Satyam scandal is a "one-off event" for the industry

Quarterly profits at Indian outsourcing giant Infosys have jumped by 33% after the company won new contracts from firms seeking to cut their costs.

Infosys added that it had not seen any fall-out from the accounting fraud at Satyam, which has cast a shadow on India's booming outsourcing industry.

Profits totalled 16.4bn rupees (229m) in the final three months of 2008.

Infosys shares rose on the news and on hopes it would benefit from the problems facing Satyam.

"Customers clearly understand it's a one-off event," said V. Balakrishnan, Infosys's chief financial officer.

But he said that the company would not actively pursue Satyam's clients or employees.

Currency lift

Mr Balakrishnan said that the firm had also benefited from a weaker rupee, as Infosys bills most of its US clients in dollars.

However, the firm cut its earnings forecast for the full financial year, which ends in March, as clients squeeze contract prices because of the global economic downturn.

Infosys's clients include Philips Electronics and Goldman Sachs.

The company's shares ended the day up 6.4% at 1,230.15 rupees.



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SEE ALSO
Satyam scandal shocks India
08 Jan 09 |  Business
UK buy bolsters India's Infosys
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Infosys prospers despite slowdown
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