Failing to meet analysts expectations, Infosys Technologies reported a 23.14 per cent jump in quarterly earnings on Thursday but warned that sliding profit margins will slow earnings growth this year. For the quarter ended March 31, 2003, Infosys reported sales of Rs 1,019.85 crore, up by 50 per cent over the corresponding fourth quarter’s Rs 680.14 crore. Net profit stood at Rs 259 crore, up by 23.14 per cent over Rs 210.33 crore recorded during the fourth quarter last year.But the results fell short of market expectations, partly because Infosys had to lower prices amid competition. For the entire fiscal 2002-03, Infosys reported sales of Rs 3,622.69 crore, a growth of 39.14 per cent over Rs 2,603.59 crore recorded in the previous year. Net profit stood at Rs 957.93 crore, up by 18.56 per cent over Rs 807.96 crore recorded in 2001-02.‘‘The uncertainties relating to the US economy continues to have an impact on the industry growth with longer sales cycles,’’ Infosys CEO, president and MD, Nandan M. Nilekani said here. He said pricing pressure continued during the year. ‘‘But we are managing costs to meet the margin challenges,’’ he said. Nilekani said the Infosys board had recommended a final dividend of Rs 14.50 per share (290 per cent on par value of Rs 5 per share) for fiscal 2003, amounting to Rs 96.05 crore.Utilisation rate of employees excluding trainees was 82.20 per cent for the year as compared to 72.90 per cent in the previous year. ‘‘The pricing pressure continues. The decline in blended revenue productivity has been partly offset by improved utilisation,’’ member of the board and head-customer delivery, S.D. Shibulal said.
