Infosys Technologies

The
Bangalore-based software major Infosys Technologies (Infosys) has managed to retain the top position it achieved in 2001-02. The company continued with its excellent all round performance topping the profit and gross block size rankings, while in sales it was just a rank below Wipro at #2. While Infosys managed to meet its 30% topline growth guidance comfortably, an appreciating rupee and declining rates impacted its profit performance in the fourth quarter of fiscal 2003.

Nevertheless, Infosys clocked revenues of Rs 3,622.69 crore, up 39% and a net profit of Rs 957.93 crore, up by 19% over the previous year. Infosys’ gross block stood grew 33% to Rs 1,273.31 crore, securing it the first rank in gross block size and 16 in the growth in gross block. However, the ROCE of the company declined from 50% to 44% due to investments in assets that are yet to produce profits.

Infosys was the only company amongst its peers to report an impressive profit growth during fiscal 2003. While the company’s performance for the full year was impressive and above expectations, the performance in the fourth quarter was weak and the company’s disappointing guidance for the first quarter of fiscal 2004 acted as a dampener to the market sentiments on the stock. Infosys’ BPO subsidiary Progeon has received funding from Citicorp International Finance Corporation, USA, and performed well during 2002-03 clocking revenues of Rs 21
crore.