Nilekani's Infosys Bolsters Indian Markets

Faces In The News Nilekani's Infosys Bolsters Indian Markets Chris Noon, 07.12.06, 6:29 AM ET

London - Nandan Nikekani's Infosys Technologies, the Bangalore-based technology giant, has helped buttress the Indian stock market in its time of need.

If there was any damp sentiment in the market because of the plant blasts in Mumbai's commuter trains and stations Tuesday, it didn't show. Infosys shares were up over 7% at 3,386.45 rupees ($73.59) in a firm Mumbai market, where the benchmark BSE index was up 3%.

Earlier, Nilekani's Infosys--which fosters relationships with some of the world's largest companies to give it large growing revenue streams for many years--raised its revenue forecast for the full year to 133.5-134 billion rupees ($2.89-2.9 billion), from 122.54-124.46 billion rupees it forecast three months ago. It said net profit rose to 8 billion rupees ($173 million) for the fiscal first quarter ended June, from 5.32 billion rupees a year earlier. "It is a better business environment than last year," Nilekani was quoted as saying. "Offshore IT spending will continue to be buoyant even if there is a slowdown in the U.S. economy," he added.

Revenue from software services for the quarter expanded 45.6%, to 30.15 billion rupees ($652 million) from 20.71 billion rupees, helped by the addition of 38 new clients. "We benefited from the depreciation of the rupee against all major currencies during the quarter,'' Chief Financial Officer V. Balakrishnan said in a statement.

Nilekani, who ranked 33rd on India's 40 Richest list in 2005, was also re-designated as CEO.

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