BANGALORE, April 10: Infosys Technologies has registered a 79 per cent jump in its net profit to Rs 60.36 crore for 1997-98. The company has recommended a final dividend of Rs 4.50 per share on a pro-rata basis. It had earlier paid an interim dividend of Rs 1.50 per share (15 per cent). The total dividend for the year is Rs 6.00 per share, while it was 55 and 50 per cent in the previous year. Earnings per share worked out to Rs 37.69 against its previous Rs 21.02.The company's strong growth in profit has come on the back of a 81 per cent rise in turnover from Rs 143.81 crore to Rs 260.37 crore. Revenue from exports grew to Rs 250.94 crore from Rs 125.28 crore, a whopping 100 per cent growth.
During 1997-98, the company's shares were shifted to the A group on the Bombay Stock Exchange. The market capitalisation as on March 31, 1998, was around Rs 2,937 crore as against its previous Rs 731 crore.
Chairman and managing director NR Narayana Murthy, however, said the revenue growth for the next year may not keep pace as the company is planning an overseas expansion.
Commenting on the company's performance, Murthy said, "Our growth is mainly driven by our focus on the offshore software development models, coupled with branding some of our services."
Deputy managing director Nandan M Nilekani said, "Over 70 per cent of our business comes from our customers through repeat business. While the US market continues to contribute significantly to our revenues, efforts are on to increase business in Europe and Asian markets, especially Japan."
The company opened four marketing offices -- two each in Canada and Japan -- in the financial year, taking the total number of branches to 12. Infosys added 40 more clients in its list.
"The company will continue to maintain its status as a zero-debt company, and fund its growth through internal accruals," chief financial officer TV Mohandas Pai said.
The company depreciates its technology assets over a two-to-five-year period. The policy reflects the technological changes happening elsewhere in the world, Pai said. Capital expenditure during the year was Rs 34 crore, while the estimated capital expenditure in 1998-99 is around Rs 150 crore.The company launched several new packages during the year, including engineering services, Internet and intranet solutions and enterprise package solutions.
It has co-opted onto its board additional directors, Marti G Subramanyam, Charles E Merrill Professor of Finance, Economics and International Business at the Leonard N Stern School of Business, New York University, US.Construction has commenced on a new project, Infosys Park, at Bangalore, adjoining its existing facility. To be ready by December 2000, the park can accommodate up to 1,000 software-and-support professionals.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
