Business & Economy

Infosys posts huge profits,
rides high on outsourcing 

What is India News Service, Tuesday, 12 October 2004, 1900 hrs IST


Infosys Technologies, India's second-largest software services company, posted its biggest quarterly profit jump in three years on Tuesday as outsourcing accelerated in a rebounding US economy. 

Infosys said second-quarter profit climbed 49 percent from a year earlier, beating analysts' forecasts for a 44 percent rise. 

Infosys raised its full-year forecast, expecting earnings per share to grow 43 percent. In July, it had forecast 34 percent EPS growth. It also raised its full-year revenue growth forecast to 47-48 percent from 39-40 percent guidance given earlier. 

Demand for India's information technology services is red-hot as the industry expands into new areas such as manufacturing and retail from finance.

No more duty cuts to check inflation: With inflation coming down for two consecutive weeks, the Union Finance Ministry today indicated that there would not be any more duty cuts to check inflation.

Steel firms starved of gas: Gas-based steel manufacturing companies are perplexed over the government's policy of supplying natural gas to the fertiliser and power companies on a priority basis.

China and India supply the demand: With 37% of the world's population, China and India generate the biggest demand for commodities worldwide. So for the least developed economies that depend entirely on commodity exports, nothing could be better news than the rapid growth of the two Asian giants. 

Nobel Prize for theory on government policies: Norwegian Finn E. Kydland and American Edward C. Prescott received the 2004 Nobel Memorial Prize in Economic Sciences on Monday for shedding light on how government policies and actions affect economies worldwide. 

Xinjiang plans to revive old silk route link: Seeking to revive the old silk route link between the two regions, a visiting delegation from Xinjiang Uyghur autonomous region of China and Indian industry on Monday decided to study the feasibility of laying a natural gas pipeline across the two countries and open direct air link between Kashgar and New Delhi.

IBM launches smallest PC: IBM launched the world's smallest full functional desktop computer in India within weeks of its worldwide launch to increase its share of the commercial PC market.
 
SC tells Ansals to pay Rs 3-cr: Supreme Court on Monday directed Ansals, owner of Uphaar theatre, to deposit Rs 3.01 crore as an interim amount of the compensation fixed by the Delhi High Court. Fifty nine people died in the fire that engulfed the theatre in 1997 and the kin of the victims have since been fighting a court battle.

Xerox gets FIPB nod: Xerox Corporation on Monday announced acquisition of 36.4 per cent stake of Mcorpglobal in Xerox Modicorp, taking the total stake to 86 per cent.

Overall:

Infosys profits soared: Outsourcing has become a boon for the Indian software major.

Government said it wouldn't cut any more duties: Inflation is coming down, and more duty cuts are unlikely. 

IBM launched smallest PC in India: The global major has a 12 per cent market share in India, and has quickly brought a premium product to the country .