Profit at the Nasdaq-listed company for the three months to June was Rs8 billion ($177 million) on revenues that climbed 45.6 percent from a year earlier to Rs30.2 billion, Infosys said in a statement.
"We witnessed strong growth during the quarter and we believe we have the required scale, execution capabilities, and end-to-end service offering to take advantage of the momentum seen in the marketplace," the company said.
The company's shares were up Rs214.15 or 6.80 percent to 3,364.95 in afternoon trade, helping bolster the overall market after deadly blasts on Tuesday on Mumbai commuter trains left 183 dead and more than 600 injured.
The benchmark 30-share Mumbai stock exchange Sensex index gained 186.47 points or 1.76 percent to 10,800.82.
Infosys, India's second largest software exporter after Tata Consultancy Services, said that it added 38 new clients during the first quarter.
The firm, launched by seven entrepreneurs 25 years ago with an investment of just $200, revised upwards its revenue guidance by Rs10 billion.
It put revenues at Rs133 billion to Rs134 billion for the year to March 2007, which would represent a gain of 43 percent, with earnings per share at Rs124.51 to Rs125.74, equal to an overall gain of 39.6 percent.
In April the company had forecast revenue growth of 29 to 31 percent and earnings per share growth of 26 to 28 percent.
"This year appears to be a strong one for Infosys. The IT offshoring story is so robust that any concerns over higher salaries could get nullified," said Hemendra Gandhi, a software analyst with brokerage BRICS Securities. "We expect billing rates to improve from here on also," he said.
He said that the only long-term concern could be the rupee-dollar exchange rate as a weaker local currency in recent months has helped exporters.
Infosys said that it benefited from the depreciation of the Indian currency during the quarter.
"Our margins have been maintained despite increases in salaries and visa costs," said V. Balakrishnan, chief financial officer. "We continue to focus on margins without compromising on investments needed to meet our growth objectives."
The company said that it had decided to appoint its chairman and "chief mentor," N. R. Narayana Murthy, to a special director level post as he is slated to retire at the age of 60 in August. "Murthy will serve as the non-executive chairman of the board and chief mentor with effect from August 21," the statement said.
Infosys became the first Indian company to breach the billion-dollar-revenue threshold in the year ended March 2004 in a country that has been called the "back-office" of the world because of its information technology services.
"During the quarter, revenues from two of our clients crossed the $100 million," said S.D. Shibulal, head of Worldwide Customer Sales and Delivery.
"Growth in Europe continues to be strong. Our growth during the quarter is driven mainly by telecoms, financial services, and manufacturing sectors," he said.
Infosys recruited 8,097 more employees taking total staff strength to 58,409. It plans to hire a total of 25,000 during the current financial year to March 2007 to cope with its burgeoning business.
© 2006 Agence France-Presse
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