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This excerpt taken from the INFY 6-K filed Apr 20, 2005. Raghavendra
Can I ask something very simple for a change. I wanted to ask you about the operating margins, quarter on quarter what has been the improvement in the numbers, and also what is the outlook on capital expenditure for the new year?
Mohandas Pai
Under Indian GAAP, quarter on quarter there has been a small increase, if you look at the consolidated figures, our fourth quarter is 33.5% PBIDT as against 32.9%, it has gone up by 0.6%, and it has gone up primarily because our sales and marketing has come down to 5.9 to 6.2, and at the gross profit level is up at 47.6. But these are very marginal things that happen quarter to quarter. I would not read a trend. If you look at capex, last year we spend Rs. 831 crores, this year we are going to spend Rs. 950 to Rs. 1100 crores, that is the range that we are going to spend. Last year we added 10,381 seats, and this year we are going to add 20,000 seats.
Male participant
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Mohandas Pai
Yeah, Rs. 950-1100 crores is full year consolidated and mostly in Infosys.
Male participant
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Mohandas Pai
Yeah, right now we have 36,750 employees, we have about 33,000 odd seats, we are short of seats. So we have to clear the backlog and hopefully create more capacity, so when you grow there is capacity to grow into. Right now there is no capacity to grow into.
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