Cruising steady growth of its offshore business, Bangalore-based IT major Infosys Technologies has revised income expectations of this financial year to a range of Rs 7,132 crore - 7,160 crore, 47-48 per cent more than over last year. Better than expected Q2 earnings lifted the stock 1.6 per cent to Rs 1,712.25 on the Bombay Stock Exchange (BSE). Though offshoring revenues overtook other operations by only a whisper thin 0.2 per cent, Infosys said its offshore business was growing faster — at 15.3 per cent — while total volumes growth was at 12.6 per cent in the quarter. Speaking to reporters on Tuesday, Nandan Nilekani, CEO, president and managing director, Infosys said, ‘‘The growth momentum continues in the second quarter. This is in line with our strategy to focus more on offshoring.’’ Infosys revenues are Rs 1,749 crore in Q2, going up 51.88 per cent over the corresponding period last year, a rally analysts were not taking for granted after leading IT services firm MphasiS’ and CMC reported lower than expected Q2 earnings. Infy’s net profits are at Rs 447.37 crore, an increase of 48.64 per cent, it added 32 new clients during the quarter, taking the total client base to 431. ‘‘We have scaled up recruitment, education and leadership development infrastructure to meet growing business needs,’’ COO S. Gopalakrishnan said, adding, ‘‘We have been able to maintain margins, despite adding more than 5,000 people.’’ The company employed nearly 8,000 new empployees this year, said Hema Ravichandar, head of human resources, Infosys. In the next two quarters, plans are to hire 4,000-4,500 people, about 2,000 more in the full year than the previously planned 10,000. Attrition is at 10.8 per cent, well below the industry average. Earlier this year, Infosys announced it would invest $32 mn this fiscal, of which $10 mn will be for banking, $16 mn for IBUs, $2.5 mn for its China operations and $3.5 mn into Infosys Consulting. ‘‘We have already invested $7.5 million in the first half, in the third quarter we plan to invest $12.5 million and remaining in the last quarter,’’ said T.V. Mohandas Pai, chief financial officer. Infosys, which rallied 22 per cent in the past 3 months, closed 1.6 per cent higher at Rs 1,712 after flirting with its highest close in nearly four years for a while. The company has declared an interim dividend of Rs 5 per share at its board meeting on Tuesday. Earnings per share for the fiscal are expected to be Rs 67, 43 per cent more than last year.
