Infosys reboots expectations yet again

This year, Infosys expects income between Rs 13,350 and Rs 13,400 crore, 40.2-40.7 up on an annual basis. This quarter, it expects income in the Rs 3,257-Rs 3,280 crore range, an annual growth rate of 42-43.

Infy8217;s income is up 45.6 at Rs 3,015 crore, from Rs 2,071 crore posted during Q1 2005. During last quarter of 2005, the company recorded a net profit of Rs 680 crore on income of Rs 2,624 crore.

Infosys CEO and MD Nandan M. Nilekani said, 8216;8216;Our efforts in building the brand, developing the client base and expanding strategic accounts have fuelled our robust organic growth.8217;8217; The revised guidance is a result of the company8217;s strong performance and Rupee depreciation against major foreign currencies, he added.

Though global economies are concerned about trade and economic deficits, Infosys8217; customer centric business model would help it grow in trying times, Nilekani stressed.

Margins were also hit by a recent increase in employee salaries and visa costs, though the negative impact was negated by Rupee depreciation and higher revenues.

Infosys recently announced plans to recruit 25,000 employees this year, and has already added 8,097 employees, 5,694 during the first quarter. HRD, Education and Research head T.V. Mohandas Pai said that 7,000 more will be recruited in Q2 2006 and 10,000 in the second half of the year. The company currently has 58,409 employees.

Murthy moves to mentoring

Bangalore: Infosys founder N R Narayanamurthy, who will resign as the executive chairman of the company8217;s board on August 20, will be appointed as an additional director of the company from August 21, 2006. The board of directors of the company has approved a proposal for the company8217;s founder to continue as its chief mentor and non-executive chairman, T.V. Mohandas Pai said. Murthy turns 60 on August 20 and had said earlier that he would resign that day, as per service rules of the company. Infosys8217; board has also approved a proposal to promote current COO and Deputy Managing Director S Gopalakrishan to the post of President, COO and Joint Managing Director. Current President, CEO and Managing Director Nandan M Nilekani will be re-designated as CEO and Managing Director on August 21, the company announced today. Asked about the appointment of an executive chairman on the company8217;s board, Pai said that since Narayana Murthy will function as non-executive chairman, Nandan Nilekani would take on the Chairman8217;s tasks. 8216;8216;Nilekani is the senior-most person on the board on a full time basis. Right now he is the successor to Murthy, though we don8217;t have an executive chairman,8217;8217; he said.