HIGHLIGHTS-Infosys executives on margins, outlook

BANGALORE, July 10 (Reuters) - Infosys Technologies Ltd (INFY.BO) beat expectations with a 17 percent rise in quarterly profit and raised its full-year forecast at the lower end on hopes for a pick up in outsourcing demand from overseas clients. [ID:nBOM468675

The No. 2 Indian outsourcer said dollar denominated revenues for the September quarter could drop 7.1 to 8.7 percent from a year earlier as short-term global economic environment continued to be challenging. [ID:nBMA003309]

The Nasdaq-listed firm (INFY.O), which develops applications, designs supply chains and offers back-office services, said net profit rose to 15.27 billion rupees ($314 million) in April-June, its fiscal first quarter, from 13.02 billion a year ago.

A Reuters poll had estimated a net profit of 13.97 billion rupees. [ID:nBMA003308]

Following are the comments from senior officials of Infosys after announcing the results.

V. BALAKRISHNAN, CHIEF FINANCIAL OFFICER:

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ON MARGINS

* It (the stronger rupee) was more than offset by the cross currency movements.

* Plans of hiring locally in some of the overseas jurisdictions and also increased investment in sales -- some of them have not happened.

* Overall the margin was better than what we expected.

* For the year, with the revised number, we expect the operating margin to drop somewhere between 100-150 basis points.

S.D. SHIBULAL, CHIEF OPERATING OFFICER:

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ON BUSINESS ENVIRONMENT

* The business environment continues to be challenging and turbulent.