Bangalore: Driven by volume growth and stable prices, software major Infosys today (Oct 12, 2004) reported a 48.64 per cent jump in net profits at Rs 447.37 crore for the second quarter ended September, as against Rs 300.16 crore posted during the same period last year.

Infosys reported revenues of Rs 1,749.33 crore in the second quarter, up by 51.88 per cent over Rs 1151.80 crore registered between July and September 2003.

"Offshoring has become a mega-trend in the industry, as more customers leverage their partnership with Infosys to increase their global competitiveness," Infosys CEO, President and Managing Director Nandan M Nilekani said after the firm posted firm results that beat market expectations.

Infosys upped guidance for the fiscal year 2004-05 between Rs 7,132 crore and Rs 7,160 crore with an expected growth of about 48 per cent, as against its earlier projection between Rs 6731 crore and Rs 6772 crore.

The Bangalore-based Infosys declared an interim dividend of 100 per cent at Rs five per share.

"The total volume growth during the quarter was 12.60 per cent, with offshore volume growing more rapidly, at 15.30 per cent," Infosys Director and Head, Worldwide Cutomer Delivery, S D Shibulal said.

The Nasdaq-listed Infosys hired 5,010 employees during the second quarter to touch a total strength of 32,949.

"Pricing has been stable. Our expense management model has demonstrated flexibility in absorbing the cost of recruiting 5,010 net employees while maintaining margins," Infosys CFO T V Mohandas Pai said.

He said the firm has spent Rs 176.06 crore on capital expenditure during the quarter and is currently building 3.5 million sq feet of space across the country.

"We have scaled up our recruitment, education and leadership development infrastructure to meet the growing business needs," Infosys COO S Gopalakrishnan said.