Infosys Technologies announced 6.9% rise in net profit for the first quarter of FY09 (quarter-on-quarter). The company reported a year-on-year increase of 28.7% in income for the quarter. As the economy is going through tough time, the quarterly results of Infosys are looking better than expectations of market experts. The company added 49 new clients and has increased head count by 7,182 during April-June period.

The company has issued a “cautious” guidance for the current financial year. The company has reported a pressure on margins. Infosys is also in process of price negotiation with some clients. The stock was under pressure during the trading session on Friday.

Few months back, IT companies were looking very week as the US Dollar was declining compared to Indian currency. Most ITES and BPO companies were also hit by the fears of recession in United States. IT stocks were showing little participation in the stock market rally.

After the stock market crash, which started in second half of January 2008, Technology and Pharmaceutical stocks are looking safe investments for long term.

After the recent rise in valuation of US dollar, Indian IT companies are expected to announce decent rise in their quarterly net profits. The profitability in terms of US currency may be lower. However, higher conversion in Indian currency will offer their companies some relief.