New Delhi  - India's second-largest software company, Infosys Technologies Ltd, announced Tuesday a net profit growth of 9.2 per cent in the quarter that ended March 31, its slowest rate in several years.

Appreciation of the Indian rupee against the dollar, rising wages and an economic slowdown in the United States, where a majority of India's outsourcing clients are located, were among the factors pulling down India's IT industry, analysts said.

Net income at Infosys rose to 12.5 billion rupees (313 million dollars) in the fourth quarter, up from 11.4 billion rupees in the same period a year earlier, it said.

Infosys said its year-on-year profit growth for the past fiscal year was 20.8 per cent. Infosys is usually the first information-technology major to announce results in India for the financial year, indicating trends in the industry.

The company, which had reported fourth-quarter profit growth of about 70 per cent in the previous fiscal year, said it was pleased to have maintained margins despite an
11-per-cent appreciation in the rupee against the dollar.

The company also announced a special dividend of 20 rupees per share for 2007-2008.

"Our special dividend payment is to celebrate the achievement of 1 billion dollars net income milestone and is in line with our desire to balance the cash required in the business with that of enhancing returns to our shareholders," Infosys chief financial officer V Balakrishnan said in a statement.

India's IT industry has played a major role in fuelling the country's economic growth, reporting consistent revenue growth of 45 to 50 per cent between 2003 and 2007, but there are now fears of a slowdown.

"While there could be short-term challenges due to global economic uncertainties, we as a company see significant growth opportunities in the medium and long term," S Gopalakrishnan, Infosys chief executive officer, said in a news release.

India's stock markets, which opened with losses Tuesday after a three-day break, had risen by more than 2.5 per cent within three hours of trading after the Infosys results were released. Infosys shares rose by more than 6 per cent. (dpa)