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Infosys readies $80-million capex blueprint for '01-'02

K Giriprakash in Bangalore

Infosys Technologies plans to invest around $80 million during fiscal 2002 in capital expenditure.

According to Infosys' latest annual report, a majority of the funds will be utilised in India. This would be funded out of internal accruals and existing cash balances of the company.

Infosys incurred $96.8 million, $35.9 million and $16.1 million in fiscal 2001, 2000 and 1999, respectively, towards capital expenditure.

During March, 1999, in order to partially fund the expansion of its existing Indian facilities and telecommunication infrastructure in Bangalore, Bhubaneswar, Madras, Mangalore and Pune and to develop new facilities, the company raised approximately $70.38 million in gross aggregate proceeds through its initial US public offering of American depositary shares.

The company's initial public offering was in February 1993 on the Bangalore Stock Exchange and raised approximately $4.4 million in gross aggregate proceeds.

To further fund its capital programs, Infosys raised approximately $7.7 million in gross aggregate proceeds through a private placement of shares in October 1994.

These shares were purchased by foreign institutional investors, mutual funds as well as Indian domestic financial institutions and corporations.

Through its worldwide sales headquarters in Fremont, California, and 24 other sales offices located in the United States, Canada, the United Kingdom, France, Belgium, Sweden, Germany, UAE, Australia, Japan, Hong Kong, Argentina and India, the company markets its services to large IT-intensive businesses.

During fiscal 2001, the company derived 73.5 per cent of its revenues from North America, 18.8 per cent from Europe and 1.4 per cent from India. While the company derives its revenues primarily from the United States, Infosys maintains a diversified client base, with its largest client representing 7.3 per cent of fiscal 2001 revenues.

As of March 31, 2001, the company had approximately 273 clients. This diversified client base is comprised primarily of Fortune 500 companies, growing Internet companies and other multinational companies.

As a result of its commitment to quality and client service, the company enjoys a high level of repeat business.

For fiscal 2001 and 2000, existing clients from the previous fiscal year generated 84.5 per cent and 87.6 per cent, respectively, of the company's revenues.

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