Infosys Limited (INFY) 6-K Guidance revised upwards. Revenues expected to grow 34% in fiscal 2006

Exhibit 99.10

Infosys Technologies Limited
Regd. Office : Electronics City, Hosur Road, Bangalore — 560 100, India.

Audited financial results for the quarter and half-year ended September 30, 2005

(in Rs. crore except per share data)
	Quarter ended				Half-year ended				Year ended
	September 30,				September 30,				March 31,
	2005		2004		2005		2004		2005
Income from software services and products		2,170		1,690		4,137		3,161		6,860
Software development expenses		1,167		910		2,231		1,702		3,655
Gross profit		1,003		780		1,906		1,459		3,205
Selling and marketing expenses		125		103		244		190		392
General and administration expenses		173		117		310		218		488
Operating profit before interest, depreciation and amortization		705		560		1,352		1,051		2,325
Interest		—		—		—		—		—
Depreciation and amortization		90		56		165		106		268
Operating profit after interest, depreciation and amortization		615		504		1,187		945		2,057
Other income		45		30		76		48		128
Provision for investments		1		—		1		—		—
Net profit before tax and exceptional item		659		534		1,262		993		2,185
Provision for taxation		67		79		146		144		325
Net profit after tax and before exceptional item		592		455		1,116		849		1,860
Exceptional item — net income from sale of investments in Yantra Corporation		—		—		—		—		45
Net profit after tax and exceptional item		592		455		1,116		849		1,905
Paid-up equity share capital (par value Rs. 5/-each, fully paid) (see note 8)		136		134		136		134		135
Reserves and surplus		6,269		3,938		6,269		3,938		5,107
Earnings per share (par value Rs. 5/- each)
Before exceptional items
Basic		21.75		16.99		41.08		31.76		69.26
Diluted		21.13		16.61		39.92		31.14		67.46
After exceptional items
Basic		21.75		16.99		41.08		31.76		70.95
Diluted		21.13		16.61		39.92		31.14		69.10
Dividend per share (par value Rs. 5/- each)
Interim dividend		6.50		5.00		6.50		5.00		5.00
Final dividend		—		—		—		—		6.50
Total dividend		6.50		5.00		6.50		5.00		11.50
Total dividend percentage (%)		130		100		130		100		230
Aggregate of non-promoters’ shareholding (unaudited)
Number of shares		21,89,18,795		20,89,88,934		21,89,18,795		20,89,88,934		21,17,06,813
Percentage of shareholding		80.30		78,02		80.30		78.02		78.24

Other information

(in Rs. crore)
	Quarter ended				Half-year ended						Year ended
	September 30,				September 30,						March 31,
	2005		2004		2005			2004			2005
Staff costs		1,004		780		1,918			1,471			3,182
Items exceeding 10% of aggregate expenditure		—		—		—			—			—
Details of other income:
Interest of deposits		23		14		47			33			72
Dividends on mutual funds		18		8		31			17			37
Miscellaneous income		4		2		7			4			10
Exchange differences		—		6		(9	)		(6	)		9
Total		45		30		76			48			128

Audited Consolidated financial results of Infosys Technologies Limited and subsidiaries

(in Rs. crore except per share data)
	Quarter ended				Half-year ended				Year ended
	September 30,				September 30,				March 31,
	2005		2004		2005		2004		2005
Income from software services, products and business process management		2,294		1,749		4,366		3,267		7,130
Software development and business process management expenses		1,212		927		2,316		1,732		3,765
Gross profit		1,082		822		2,050		1,535		3,365
Selling and marketing expenses		149		122		291		228		461
General and administration expenses		199		139		361		257		569
Operating profit before interest, depreciation, amortization, minority interest and exceptional item		734		561		1,398		1,050		2,335
interest		—		—		—		—		—
Depreciation and amortization		96		61		176		113		287
Operating profit after interest, depreciation, amortization and before minority interest and exceptional item		638		500		1,222		937		2,048
Other income		44		30		72		45		125
Provision for investments		1		—		1		—		—
Net profit before tax, and before minority interest and exceptional item		681		530		1,293		982		2,173
Provision for taxation		69		83		150		147		326
Net profit after, tax and before minority interest and exceptional item		612		447		1,143		835		1,847
Exceptional item — net income from sale of investments in Yantra corporation		—		—		—		—		45
Net profit after tax and exceptional item and before minority interest		612		447		1,143		835		1,892
Minority interest		6		—		6		—		—
Net profit after tax, exceptional item and minority interest		606		447		1,137		835		1,892
Paid-up equity share capital (par value Rs. 5/- each, fully paid) (see note 8)		136		134		136		134		135
Reserves & surplus		6,323		3,921		6,323		3,921		5,090
Preference shares issued by subsidiary		—		94		—		94		94
Earnings per share (par value Rs. 5/- each) Before exceptional items
Basic		22.26		16.71		41.87		31.25		68.79
Diluted		21.63		16.34		40.69		30.64		67.00
After exceptional items
Basic		22.26		16.71		41.87		31.25		70.48
Diluted		21.63		16.34		40.69		30.64		63.64
Dividend per share (par value Rs. 5/- each)
Interim dividend		6.50		5.00		6.50		5.00		5.00
Final dividend		—		—		—		—		6.50
Total dividend		6.50		5.00		6.50		5.00		11.50
Total dividend percent age (%)		130		100		130		100		230
Aggregate of non-promoters’ shareholding (unaudited)
Number of shares		21,89,18,795		20,89,88,934		21,89,18,795		20,89,88,934		21,17,06,813
Percentage of shareholding		80.30		78.02		80.30		78.02		78.24

Principles of consolidation : The financial statements are prepared in accordance with the principles and procedures for the preparation and presentation of consolidated financial statements as set out in the Accounting Standard on Consolidated Financial Statements prescribed by the Institute of Chartered Accountants of India. The financial statements of the parent company and its subsidiaries have been combined on a line-by-line basis by adding together the book values of like items of assets, liabilities, income and expenses, after eliminating intra-group balances and transactions and resulting unrealized gains / losses. The consolidated financial statements are prepared by applying uniform accounting policies.

Note:

1.	The above audited quarterly financials have been taken on record by the Board of Directors at its meeting held on October 11, 2005. There are no qualifications in the auditors, reports for these periods.
2.	An interim dividend of Rs. 6.50 per share (130% on an equity share of par value Rs. 5/-) has been declared at the above board meeting for the half-year ended September 30, 2005. The record date for the payment of dividend will be October 18, 2005. The interim dividend for the half-year ended September 30, 2004 was Rs. 5.00 per share (100% on an equity share of par value Rs. 5/-).
3.	Information on investor complaints pursuant to Clause 41 of the Listing Agreement for the quarter ended September 30, 2005

Nature of complaints received	Opening balance		Additions		Disposals		Closing balance
Dividend related		—		63		63		—

4.	During the quarter ended September 30, 2005, the company invested US$ 5 million (Rs. 22 crore) in its wholly-owned subsidiary, Infosys Consulting Inc. As of September 30, 2005, the company had invested US$ 15 million (Rs. 67 crore) in the subsidiary.
5.	During the quarter ended September 30, 2005, the tax authorities in an overseas tax jurisdiction completed the assessment of income upto fiscal year 2004. Based on the assessment order, management has re-estimated its takes liabilities and written back an amount of Rs. 20 crore. The tax provision for the quarter is net of the write-back.
6.	During the quarter ended June 30, 2005, the company successfully completed the sponsored secondary ADS program of over US$ 1 billion. This is the largest ever international equity offering from India and the first POWL (Public Offer Without Listing) issue by an Indian Company in Japan.
7.	On June 30, 2005 Citicorp International Finance Corporation exercised its rights under the shareholder’s agreement with Progeon and converted the preference shares to equity shares. Pursuant to the conversion, the share capital of Progeon increased by Rs. 9 crore to Rs. 33 crore and the share premium increased by Rs. 79 crore to Rs. 85 crore.
8.	During the half-year ended September 30, 2005 and 2004 and the year ended March 31, 2005 the company issued 20,88,963, 12,96,446 and 40,06,325 equity shares respectively, pursuant to the exercise of stock options by certain employees under the 1998 and 1999 stock option plans.
9.	Mr. Philip Yeo retired by rotation as a director of the company at the Annual General Meeting held on June 11, 2005.
10.	The Board of Directors appointed Mr. David L. Boyles as an additional director of the company effective July 12, 2005.

Segment reporting (Consolidated — Audited)

(in Rs. crore)
	Quarter ended				Half-year ended				Year ended
	September 30,				September 30,				March 31,
	2005		2004		2005		2004		2005
Revenue by industry segment
Financial services		819		616		1,571		1,133		2,466
Manufacturing		309		258		585		485		1,032
Telecom		383		323		739		694		1,320
Retail		241		167		439		341		698
Others		542		385		1,032		714		1,614
Total		2,294		1,749		4,366		3,267		7,130
Less : Inter-segment revenue		—		—		—		—		—
Net revenue from operations		2,294		1,749		4,366		3,267		7,130
Segment profit before tax, interest, depreciation and amortization :
Financial services		255		188		494		348		782
Manufacturing		93		88		174		160		338
Telecom		148		115		279		193		452
Retail		75		60		138		131		253
Others		162		110		313		225		516
Total		734		561		1,398		1,057		2,341
Less : Interest		—		—		—		—		—
Other un-allocable expenditure (excluding un-allocable income)		96		61		176		120		293
Operating profit before tax		638		500		1,222		937		2,048

Notes on segment information

Principal segments

The company’s operations predominantly relate to providing technology services, delivered to clients globally, operating in various industry segments. Accordingly, revenues represented along industry verticals comprise the primary basis of the segmental information set out above.

Segmental capital employed

Fixed assets used in the company’s business or liabilities contracted have not been identified to any of the reportable segments, as the fixed assets and support services are used interchangeably between segments. Accordingly, no disclosure relating to total segment assets and liabilities has been made

		By order of the Board for Infosys Technologies Limited
Bangalore, India	S. Gopalakrishnan	Nandan M. Nilekani
October 11, 2005	Chief Operating Officer	Chief Executive Officer,
	and Deputy Managing Director	President and Managing Director

The Board has also taken on record the unaudited consolidated results of Infosys Technologies Limited and its subsidiaries for the quarter and half-year ended September 30, 2005, prepared as per US GAAP. A summary of the financial statements is as follows

(in US$ million, except per ADS data)
	Quarter ended				Half-year ended				Year ended
	September 30,				September 30,				March 31,
	2005		2004		2005		2004		2005
Revenues		524		379		1,000		713		1,592
Cost of revenues		297		214		571		401		904
Gross profit		227		165		429		312		688
Net income		138		97		260		180		419
Earnings per American Depositary Share
Basic		0.51		0.36		0.96		0.68		1.57
Diluted		0.49		0.35		0.93		0.66		1.52
Total assets		1,734		1,108		1,734		1,108		1,454
Cash and cash equivalents		334		335		334		335		410
Liquid mutual funds		531		210		531		210		278

The reconciliation of net income as per Indian GAAP and US GAAP is as follows:

(in US $ million)
	Quarter ended				Half-year ended					Year ended
	September 30,				September 30,					March 31,
	2005		2004		2005		2004			2005
Consolidated net profit as per Indian GAAP		138		97		260		183			423
Deferred taxes		—		—		—		2			2
Gain on forward foreign exchange contracts		—		—		—		(4	)		(4	)
Amortization of intangible assets		—		—		—		(1	)		(2	)
Consolidated net income as per US GAAP (unaudited)		138		97		260		180			419

Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the success of our investments, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT, business process outsourcing and consulting services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry.

Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2005 and quarter ended June 30, 2005. These filings are available at www.sec.gov. We may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company’s filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statements that may be made from time to time by or on our behalf.