The results were released after a meeting of the company's board of directors was held here on Thursday morning. The company's total income increased to Rs 98.43 crore from Rs 45.81 crore, of which overseas income accounted for Rs 96.38 crore, up from Rs.43.79 crore. Total expenses increased to Rs 66.82 crore from Rs 32.08 crore.

The company's profit before tax as on June 30, 1998, was Rs 26.67 crore compared with 10.18 crore.

The company's total income and profit before tax increased by nearly Rs 5.11 crore and Rs 2.04 crore owing to the exchange-rate fluctuation. The company says its income included a one-time non-recurring gain of Rs 1.28 crore from the translation of outstanding foreign currency bank balances and accounts receivable as on March 31,1998.

There was no significant exchange-rate fluctuation in the quarter ended June 30, 1997. The company made a provision of Rs 1 crore towards investment in Yantra Corporation, its American subsidiary, in the first quarter.

The board of directors also took on record the un-audited financial statements of Infosys and its subsidiary Yantra Corporation for the three months ended June 30, 1998, prepared in accordance with US accounting standards. The net revenue for the quarter ended June 30, 1998, was $23.94 million compared with $12.79 million for the corresponding period in the previous year.

Gross profits increased to $10.10 million from $5.24 million, while net income increased to $4.77 million from $1.76 million. Net profit as per local accounting standards increased to $5.76 million from $2.67 million for the first quarter in 1997-98.

Chairman and managing director NR Narayana Murthy had warned investors a few months ago that revenue growth in 1998-99 would not maintain the same momentum as in thepast few years owing to the company's plans for overseas expansion. However, the first-quarter results do not reflect any loss of momentum, analysts say.

The company recorded an 81 per cent growth in total income and a 79 per cent growth in net profit in 1997-98 over the previous year though its American subsidiary, Yantra Corporation, posted a net loss of Rs 5.87 crore ($1.56 million) and net revenues of only Rs 4.78 crore ($1.27 million) during 1997-98. The subsidiary is expected to post higher revenues this year as the benefits of the R&D expenditure incurred now are likely to accrue in the coming years.