Technology bellwether Infosys Technologies has announced fourth quarter and full year 2006-07 results, which are in line with expectations. Adjusted for extraordinary items the growth in bottom line is muted. However, the stock has rallied more than 3 per cent on better than expected guidance for the current quarter and full year 2007-08

For the quarter ended 31 March 2007, Infosys has reported a net profit of Rs1,144 crore, or Rs19.95 per share, an increase of 69.9 per cent over Rs673 crore, or Rs11.92 per share, reported for the previous year quarter. Consolidated revenues increased by 43.8 per cent to Rs3,772 crore from Rs2,624 crore for the last year quarter.

On a sequential basis, net profits have increased by an impressive 16.4 per cent from Rs983 crore, or Rs17.24 per share, reported for the quarter ended December 2006. Sequentially, revenues have increased by a modest 3.2 per cent from Rs3,655 crore achieved for the previous quarter.

Net profit for the quarter includes a tax write-back of Rs124 crore. Adjusted for this amount, net profit growth is 51.56 per cent on a year-on-year basis and 3.76 per cent sequentially.

For the full year 2006-07, net profits of the company has gone up by 56.9 per cent to Rs3,856 crore, or Rs67.7 per share, from Rs2,458 crore, or Rs43.78 crore, for the previous year. Full year revenues have increased by 45.9 per cent to Rs13,893 crore from Rs9,521 crore for last year.

After adjusting for the tax provision reversal of Rs125 crore for the full year, net profit growth is 46.43 per cent.

Infosys gained 34 new clients during the last quarter. The number of million- dollar clients increased to 275 while annual revenues from its top client have crossed the $200 million mark. The largest client now contributes 8.5 per cent of total revenues.

Infosys added a net 2,809 employees during the last quarter, taking the total employee strength to 72,241. Employee attrition for the quarter was at 13.7 per cent as compared to 13.5 per cent for the previous quarter and 11.2 per cent for the previous year quarter. Employee utilisation, excluding trainees, for the quarter declined to 73 per cent from 75.8 for the previous quarter and 77 per cent a year ago.

Guidance
For the quarter ending June 2007, Revenues are expected to be in the range of Rs3,896 crore and Rs3,913 crore, an expected growth of between 29.2 per cent and 29.8 per cent year on year. EPS before exceptional item is expected to be Rs. 17.84 for a year-on-year growth of 24.2 per cent

For the full year 2007-08, revenues are expected to be in the range of Rs17,038 crore and Rs17,308 crore, an expected growth of between 22.6 per cent and 24.6 per cent. EPS before exceptional item are expected to be between Rs80.29 and Rs81.58, growth of between 20 per cent and 22 per cent