North America accounted for about 74 percent of Infosys' total revenues in the third quarter. The quarter's profit was an increase of 94.5 percent but failed to hit the consensus estimate of 1.85 billion rupees. Infosys forecast total income in the fiscal year through March 2002 will rise to between 25 and 25.6 billion rupees. That's up from 19.6 billion rupees for the year ended March 31. The trend of declining blended rates and the shift to offshore projects was likely to continue and this will put additional pressure on profit margins, analysts said.
Blended rates refer to weighted average billing rates.
Analysts were also unhappy with the rising cost of non-revenue generating employees, known as the bench. Reuters contributed to this report. Pages will open in a new browser window External sites are not endorsed by CNN Interactive. An AOL Time Warner Company. All Rights Reserved.