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Tuesday, 10 October, 2000, 14:23 GMT 15:23 UK
Boomtime for Indian software giant
IT billboard
India's information technology sector continues to grow
India's leading software firm, Infosys Technologies, has more than doubled its second quarter profits with a 122% increase.

The company has posted a net profit of 2.81bn rupees ($62m) in the period April to September, Infosys officials announced.

The results are absolutely fantastic - at least 20% higher than the most conservative market expectations

Broker Arjun Kapur
The company's revenue figures have also increased to 8.36bn rupees ($181.6m) from 4.01bn rupees ($86.9m) last year.

Company officials say the gains were driven by new demands on its internet services by global clients and the growth of e-commerce worldwide.

Global clients

Chairman NR Narayana Murthy said the formula behind the company's continued success was its ability to maximise growth and minimise risks.

Infosys has added 27 new clients during this period including the US-based Eastman Chemicals Co., networking giant Cisco Systems, sports goods firm Reebok and US retail clothing chain JC Penney.

Infosys chairman Narayana Murthy
Narayana Murthy: Maximum growth, minimum risks
Company president, Nandan Nilekani, said the growth of information technology continued to offer unprecedented business opportunities.

"In order to tap these, we have proactively started work in the wireless and broadband areas," he said.

The results surprised financial analysts who said they would revise their estimates for the company's revenue for the full year.

"The results are absolutely fantastic - at least 20% higher than the most conservative market expectations," said Arjun Kapur of Delhi-based broking house ARK Securities Group.

Share falls

However, the spectacular results failed to cheer up the stock markets and the Infosys stock fell nearly 2% on India's National Stock Exchange.

Bombay stockbrokers
Great demand for the Infosys share
Analysts attribute the selling of Infosys shares to global factors like rising oil prices, fears about the US economy and the continued weakness on the US tech-heavy stock exchange, Nasdaq, which sets the tone for most Asian markets including India.

But they said Infosys' strong financial showing would continue to boost foreign investor confidence in India's IT sector.

Infosys was the first Indian firm to be listed on the US technology exchange, the Nasdaq.

Another Indian software company, Satyam Computer Services, also announced a 107% jump for the first half of this year.

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See also:

14 Sep 00 | South Asia
Microsoft announces India deal
09 Jul 99 | South Asia
Profit boost for software leader
17 Mar 00 | South Asia
India's high-tech hopes
13 Mar 00 | South Asia
Murdoch eyes 'cyber' Bangalore
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