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Thursday, Apr 11, 2002

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Infy forecasts growth of 18-22 pc in 2002-03

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SOFTWARE consulting firm Infosys Technologies Ltd expects to report revenue between Rs 3,085 crore and Rs 3,170 crore for the financial year 2002-03, up 18-22 per cent over last year's topline.

Earnings per share is expected to be between Rs 141 and Rs 145 for the current fiscal. However, the company projected a flat first quarter guidance for the current fiscal as it hopes to report revenue in the range of Rs 684-Rs 694 crore. ``Spending on technology will trail corporate recovery'', the Chief Executive Officer, Mr Nandan Nilekani, said, adding that 2002 spending would be flat or decline marginally.

Maintaining that a continued pressure on rates was translating into more offshore outsourcing, Mr Nilekani said that the company would try to protect its net margins. The company's revenue growth for March quarter comprised 6.3 per cent volume growth, offset by a price decline of 4.8 per cent as compared to the previous quarter.

The company expects to report an utilisation rate between 70-80 per cent for the current fiscal. Infosys reported utilisation rate including trainees at 72.4 per cent for its March quarter.

Infosys has planned a capital expenditure of $45 million for the current fiscal. Meanwhile, the company announced its foray into business process management services through the proposed launch of its yet-to-be-named subsidiary. The board approved of investments to the tune of $5 million towards this initiative.

While the initial focus of BPM would be in areas of transaction processing and accounting services, financial services would be a key vertical. The services would be offered on multiple forms — business process re-engineering, shared services platform and business intelligence services.

Infosys has also taken over the management of applications of two clients under its IT outsourcing. However, the company plans to reduce its exposure to troubled telecom equipment manufacturers and concentrate on telecom service providers in its telecom vertical.

Currently, the firm has assisted Sony Ericsson Mobile Communications in Europe to maintain critical core sourcing application. Infosys also added new clients - - Eastern Communications Company and ZTE Corp in the Asia-Pacific region in the last quarter.

Revenues from Infosys' banking business unit grew by over 100 per cent last fiscal, crossing Rs 100 crore. Infosys acquired SimpleRM, a customer relationship management product from TriVium Systems Inc for $1 million on a non-exclusive basis. The company plans to integrate this product with its own banking product, Finacle.

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