The Nasdaq-listed firm said total revenues jumped 29 percent to 11.3 billion rupees for the quarter ended September compared with the same period a year earlier.

"Growth continues to be strong. Pricing is showing signs of stability," said Nandan Nilekani, chief executive officer and managing director of Infosys Technologies Ltd.

"We are making investments in order to enhance our end-to-end solution capability," Nilekani said.

The firm added 29 new clients during the quarter and increased its revenue guidance.

The company said total revenues were projected to be between 11.7 billion and 11.8 billion rupees in the quarter ending December.

For the fiscal year to March 2004, revenues were forecast at between 46.2 billion rupees and 46.6 billion rupees.

Infosys said it has applied to the Chinese government to set up a wholly-owned subsidiary which will employ 200 software professionals and entail an investment of five million dollars.

"The China subsidiary will be offering end-to-end software services to domestic companies in China and multinational companies operating in China. It will also serve as a hub for software services in Asia-Pacific," a company statement said.

T.V. Mohandas Pai, chief financial officer, said an appreciation in the Indian currency would have an impact on the company's margins.

"We are increasing capital spending on our global infrastructure. We continue to hedge our forex exposure but the appreciating rupee may impact margins," Pai said.

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