Consulting, China arms in the red

Infosys' two subsidiaries "� Infosys Consulting and Infosys China "� continued to incur losses. The impact of the losses on the net profit of the group is Rs 7 crore for the first quarter ended June 30, 2007.

While Infosys Consulting recorded Rs 52 crore revenue for the quarter, the loss was Rs 3 crore.

Infosys China recorded a revenue of Rs 15 crore with Rs 4 crore loss.

During the last financial year, Infosys Consulting incurred a loss of Rs 110 crore, while Infosys China suffered Rs 30 crore loss.

However, Infosys claimed that both the subsidiaries were in an investment mode and were a part of the long-term strategy for the company.

"Infosys Consulting is contributing to the company's downstream revenue. We expect it to turn around in the next four-five quarters," said Infosys COO S D Shibulal.

Similarly, China is considered a 'necessary option' for the company. "We always have options outside India. China is one of them. It has deep talent pool. We will continue to invest in China," he added.

Meanwhile, Infosys' other subsidiaries continued to show profits.

Infosys BPO recorded Rs 200 crore revenue with a net profit of Rs 36 crore. Infosys Australia's revenue for the quarter was Rs 144 crore with a net profit of Rs 23 crore. In the last financial year, Infosys BPO's revenue was Rs 662 crore with a net profit of Rs 151 crore.

Infosys Australia recorded Rs 445 crore revenue with a net profit of Rs 71 crore.