|
Infosys |
|
Rs crore |
July-Sept 04 |
July-Sept 05 |
|
Total income |
1720.00 |
2215.00 |
|
Depreciation |
56.00 |
90.00 |
|
Net profit |
455.00 |
592.00 |
|
EPS |
16.61 |
21.13 |
|
TCS |
|
Total income |
2448.19 |
2982.60 |
|
Depreciation |
36.79 |
62.85 |
|
Net profit |
574.76 |
693.71 |
|
EPS |
6.93 |
14.45 |
| |
| The rise in net profit and income, quarter-on-quarter, was 10 per cent and 10.16 per cent, respectively. PBIDT rose 7.95 per cent, quarter-on-quarter.
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| The shares of Infosys rose 2.3 per cent to close at Rs 2,683.90, its best since March 2000, helping to boost a falling market.
|
| |
| TCS shares rose 1.3 per cent to Rs 1,467.90. The BSE IT index was up 1.66 per cent (53.72 points). TCS also beat analysts' expectations, though the company announced results after the market closed. Even in a weak market, technology companies have been holding on well with the rupee losing ground.
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| While a weakening currency was a positive for software services companies which derived a bulk of their revenues in dollars, the gains might be muted as most companies hedged their exposure limiting the gains, an analyst said.
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| Infosys added 34 new clients and TCS 74 in the second quarter, which saw the two companies among five winners in a $2.2-billion outsourcing deal with Dutch ABN Amro Bank.
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| Infosys added a net 6,390 employees, bringing its work force to 46,196. After hiring 12,500 people in the first half, it plans to add 7,700 more in the second. TCS added 4,424 net employees for a total of 53,329.
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| The company paid out an interim dividend of Rs 6.50 per share (130 per cent on par value of Rs 5 per share) compared with Rs 5 (100 per cent on par value of Rs 5 per share) for the corresponding period in the previous year. TCS paid a second interim dividend of Rs 3 per share.
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| Infosys President and Managing Director Nandan Nilekani said, 'We have seen robust growth during the quarter due to effective focus on offering a broad array of services to our clients. It took us the whole of financial year 2004 to reach a revenue of $1 billion. We reached the same level in the first six months of this year and we should be in the range of $2.14 billion by end of the year.'
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| Nilekani also said NR Narayana Murthy had decided to retire as executive chairman of Infosys in August 2006. Murthy, however, will continue to be the chief mentor of Infosys.
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| Mohandas Pai, Infosys CFO, noted that 'the pricing environment is stable with an upward bias. We have maintained margins despite a record hiring of employees during the quarter. Liquid assets have gone up by Rs 528 crore. The rupee has depreciated during the quarter creating a more benign margin environment'.
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| He added that Infosys is investing more and more in building new businesses such as consulting and its Chinese operations. The capex in the quarter has been around Rs 303 crore.
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| TCS Chief Executive S Ramadorai said, 'There is a growth momentum. There are big deals out there which will be available to companies like TCS,' he said. |
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