One country’s miseryÂ fuels another country’s prosperity.
As the U.S. reels under a cataclysmic recession, Indian tech firms like Infosys Technologies that provide software and BPO services for large American corporations are riding the wave of success.Â
India’s software giant Infosys turned in yet another quarter of impressive results and added nearly 5,000 jobs (gross) even as Silicon Valley continues to be battered by massive job losses.
Profits were up 2.6% year-over-year to $321 million for the quarter ended March 31, 2009 while revenues fell 1.8% in the same period to $1.12 billion.
For the full Fiscal Year 2009, Infosys reported a net profit of $1.28 billion (up 10.1%) on revenues of $4.66 billion (up 11.7%).
Infosys CEO S.Gopalakrishnan couldn’t contain his glee:
Many of our clients are impacted by the financial crisis and are looking to us to help them reduce their expenses and optimize their businesses. Our services, solutions and business model are well suited to help them in this environment. We are focusing on enhancing our business and investing smartly for theÂ future.
In line with prior quarters, North America brought in the bulk of Infosys’ revenues.
North America accounted for 64.6% of revenues in the quarter and Europe for 24.3%. Domestic revenues were a piffling 1.6%.
By segment, the financial sector accounted for 33% of revenues followed by manufacturing (20.8%), retail (13.5%) and telecom (16.7%).
Other Key Metrics on March 31, 2009:
* Added 37 clients in the quarter compared to 30 in the previous quarter
* 46.2% of revenues came from onsite work and 53.8% from offshore work
* 579 active clients compared to 538 at the end of March 2008
* 104,850 employees (91,187 a year earlier)
* $2 billion in cash and cash equivalent.
For the fiscal year ending March 31, 2010, Infosys expects revenues in the range of $4.35 billion-$4.52 billion, a year-over-year decline of 6.7%-3.1% and earnings per American Depositary Share in the range of $1.91 and $2, a decline of 15.1%-11.1%.