Sequentially, over the last quarter of 2007-08, Infosys revenue grew by 6.9 per cent from Rs 4,542 crore while profits grew by 4.2 per cent from Rs 1,249 crore. The company has projected revenue in the range of Rs 5,229 crore and Rs 5,272 crore — a year-on-year increase of 27.4 per cent to 28.4 per cent — over the next three months.

On the back of the depreciating rupee and prospects of continued good performance Infosys has also revised its outlook for the 2008-09 fiscal year. The company is now projecting revenues between Rs 21,278 crore and Rs 21,622 crore, a year on year growth of 27.4 per cent to 28.4 per cent. At the end of the 2007-08 fiscal, amid worries over the appreciating rupee, Infosys had projected a revenue growth in the range of Rs 19,984 crore and Rs 20,214 crore or 19.2 per cent to 21.1 per cent.

“Although the global economic environment continues to remain uncertain and could impact IT spending in the short term, we see several opportunities for growth as customers relentlessly focus on improving efficiency,” Infosys CEO and managing director Kris Gopalakrishnan stated.

“Margins for the quarter were impacted due to increases in salary and visa costs which to some extent were offset by rupee depreciation,” CFO V Balakrishnan said. The impact of the depreciating rupee on the company's margins was 2.5 per cent, he said.

Projecting continued volatility in the currency market over the short term the Infosys CFO expressed confidence that the chances of the rupee appreciating against the dollar were also slim in the short term given the existing global cues. The company said it hedged $ 811 million over the next quarter to account for currency volatility.

While there have been “sporadic requests” for changes in existing contracts “the pricing environment continued to remain stable,” chief operating officer S D Shibulal said.