Most of the growth has come from the company's overseas business. Income from software development overseas increased to Rs 214.48 crore, up from Rs 102.93 crore in the first half last year. Of the increase in income from overseas sales, exchange rate fluctuation accounted for Rs 13.50 crore, compared to Rs 8.39 crore for the year ended March 98.

Growth from domestic sales has, however, remained stagnant at Rs 3.04 crore, the same in the first half last year.

While administrative expenses have increased marginally from Rs 12.06 crore to Rs 19.92 crore, software developmentexpenses have increased sharply from Rs 60.60 crore to Rs 121.75 crore.

INSIGHT:

On the growth path

Infosys' operating margins have risen to 33 per cent from 31 per cent owing largely to the increased momentum in order growth and an expansive cost-cutting exercise undertaken by the company. Incidentally, the company had invested around Rs 10.75 crore in its loss-making subsidiary Yantra. Around one-third of this liability has already being scaled down.

The fact that the company in the near past has garnered a huge $8 million contract against global competition like Cambridge Technologies of the United States, speaks volumes about its global competitiveness. Moreover, the company is well on its growth path up the value chain owing to the same. The audited financial results for the half year ended September 30, 1998 have more or less being in line with the expectation. Commensurately, the stock price decreased marginally to close at Rs 2,305. The stock should comfortably continue tooutperform the BSE Sensex.