New clients boost Infosys profits

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Indian outsourcing firm Infosys has seen quarterly profits rise sharply on the back of new contracts and has given an upbeat outlook for the year ahead.

Pre-tax profits in the three months to 30 June rose to $291m (£143m) from $199m in the same period in 2006.

Sales rose 40% to $928m as the firm, which now employs 75,000 staff, won new business from European and US firms.

It has increased its sales forecast for the year as a whole, revenues now expected to rise about 30% to $4bn.

'Strong demand'

Infosys supplies a range of back-office business services including software consulting, systems integration and production planning, benefiting from its low-cost base and highly trained staff.

The Bangalore-based firm added 35 new clients during the quarter including two leading European banks, a top US carmaker and a British retailer.

Infosys said its business would continue to be based on developing long-term partnerships with clients.

"As clients recognize the strategic imperative of global sourcing in an increasingly flat business world, the demand for end-to-end players like Infosys continues to be strong," said its chief executive S Gopalakrishnan.

Mr Gopalakrishnan took the helm of the business last month following a management reshuffle which saw previous boss Nandan Nilekani become chairman.

Infosys was linked with a possible merger with French IT firm Cap Gemini last month, sending its share price soaring.