Offshore services provider Infosys Technologies Ltd grew both net profit and revenue in excess of 40% in its first fiscal quarter, driven by new contract awards in the US retail and banking sectors.
In the three months ending June 30, 2004, the Bangalore, India-based company grew net profit 43% to $83m on revenue that increased 43.8% to $335m. Despite paying out a dividend of $189m, and incurring capital expenditure costs of $34m during the quarter, Infosys’ cash position stood at a healthy $468m at the end of June.
Infosys added 29 new clients during the quarter, including two large US retailers and one of the top 10 US banks, which selected Infosys and its business process outsourcing subsidiary Progeon as strategic partners.
The company said in April that its revenue growth in 2005 would be between 30% to 31%, down from 41% growth in the year to March 2004. However, S Gopalakrishnan, Infosys’ COO, said that pricing levels remained stable during the first quarter, despite growing competition from Western IT services providers building up their low-cost, offshore delivery operations.
Experienced consultants and sales directors are in high demand from offshore vendors such as Infosys as they look to add greater credibility to their customer-facing operations. Infosys announced a new recruitment coup, with Ming Tsai, formerly the head of IBM Business Consulting’s retail business, joining the company as managing director of Infosys Consulting.
Overall, Infosys added 2,305 new employees, taking its total workforce to 27,939 at the end of the quarter.