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  • Jan 10th, 2004
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Infosys Technologies Ltd, India's largest listed software services firm, reported a 28 percent rise in quarterly profit on Friday and raised its full-year forecasts on a booming outsourcing business.

Infosys forecast its earnings would grow 30.6 percent for the year to March 2004, up from an earlier estimate of 25 percent.

"Now that the economy is picking up, the budgets of our clients are much more stable and going forward there is optimism," Chief Operating Officer Kris Gopalakrishnan told Reuters in a telephone interview.

Expectations of growing orders and stable prices prompted the firm to raise its full-year guidance, he said. It also raised its full-year revenue growth forecast to 33 percent from 28 percent.

Infosys shares were up 0.41 percent at 5,863 rupees at 0847 GMT after initially jumping five percent to a near three-year high.

The benchmark Bombay exchange index was up one percent, retreating from a record high set earlier.

Bangalore-based Infosys, which derives three-quarters of its revenues from the US market, reported a profit of 3.28 billion rupees ($72.1 million), or 48.5 rupees per diluted share, in the fiscal third quarter ended December 31.

That compared with a profit of 2.56 billion rupees, or 38.22 rupees per diluted share, in the year-ago period and 3.0 billion rupees in the second quarter.

"It is a strong performance and has beaten market estimates, driven by strong volume growth and slight improvement in margins," said Pratish Krishnan, analyst at Cholamandalam Securities.

"The stock has been an under-performer and I think the results should perk sentiment."

Copyright Reuters, 2004


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