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Abhrajit Gangopadhyay

Bangalore , May 17

THE contribution of American Express to Infosys Technologies' topline is likely to stay flat or shrink further over the next quarter, sources have said. While the ramp-down in the account of one of Infosys' top 10 clients continues through this quarter, an upswing is seen later, they added.

American Express's contribution came down by close to 13.5 per cent in the March quarter, with Rs 45-crore billing to the company in the quarter, while it grew by 19.7 per cent in the December quarter, accounting for Rs 55-crore business in that quarter.

"There could be a bunch of projects from the client coming to an end," the sources said, adding that the account was likely to report an uptick from the June quarter as new projects from American Express gain momentum.

The slowdown in the American Express account follows similar deceleration in another top 10 client, Aetna.

"We do not share any concern over this ramp-down. ... It should be seen as a blip on the broader growth screen," a software analyst with a foreign brokerage said.

"It is imperative that the management has factored in such minor crimps in its robust guidance for financial year '05, as growth in other top accounts and tier-II relationships promise greater maturity going forward."

Said another analyst with a domestic brokerage, "What could be interesting to note is whether the new project flows are more high-end work with some consulting scope thrown in."

Infosys shares closed at Rs 4,527.05, down 10.92 per cent from the previous day's close on the Bombay Stock Exchange on Monday, tracking a 11.1-per cent drop in the Sensex.

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