Infosys' cash, equivalents cross $2 bn mark

15 Apr 2009, PTI


NEW DELHI: Software services major Infosys Technologies today said its cash and cash equivalents stood at over $2 billion at the end of last fiscal in spite of credit crisis worldwide.

"The cash and cash equivalents, including investments in liquid mutual funds and certificate of deposits, as on March 31, 2009 were Rs 10,993 crore," a company statement said.

Commenting on the liquidity and capital expenditure plans of the company, Infosys Technologies Chief Financial Officer V Balakrishnan said: "We improved our operating margins during fiscal 2009 despite a very difficult global economic environment combined with highly volatile currency markets."

"We have a strong balance sheet with cash and cash equivalents of over $2 billion," Balakrishnan added.

Besides, the software firm is comfortably placed in terms of current assets for the financial year ended March 31, 2009, at Rs 12,288 crore, a major source of fund for companies to meet their day to day expenses.

At the end of the fourth quarter of the last fiscal, the company's current assets stood at Rs 12,288 crore, a rise of 44.63 per cent from the previous period a year ago.

In the March quarter of 2007-08, the current assets of the company stood at Rs 8,496 crore.

An analysis of the balance sheet data of the last five financial years shows that the net current assets of the company are on an uptrend since FY'04.

In FY'04, they were at Rs 1,220.12 crore, which increased to Rs 2,384.58 crore in FY'05. In 2005-06 and FY'07 they rose further to Rs 3,832 crore and Rs 7,137 crore, respectively.

Current assets are used to fund day-to-day operations and pay ongoing expenses. Current assets represents the sum of cash and cash equivalents, inventory and other assets that could be converted to cash in a short span of time.

Infosys Technologies today reported a 29 per cent increase in its fourth quarter net profit on improved operating margins, but forecast a decline in its revenue and earnings during the current fiscal as many of its clients have been hit by the global financial crisis.

The country's second largest IT exporter's net profit after tax stood at Rs 1,613 crore in the quarter ended March 31. The revenue rose 24.1 per cent to Rs 5,635 crore on year-on-year basis.