BANGALORE, India (AFP) — Indian software giant Infosys on Tuesday posted a lower-than-expected quarterly net profit, as the US economic slowdown hit the budgets of clients in its biggest market.

Net profit rose 9.2 percent to 12.49 billion rupees (315.04 million dollars) in the fourth quarter ended March, from 11.45 billion rupees. The profit missed analyst estimates of 12.6 billion rupees.

But shares of India’s second-largest software exporter gained, bolstering peers too, as investors drew hope from its promise of higher sales and welcomed a special dividend to celebrate its first billion-dollar yearly profit.

“We want to buy peace with investors,” said V. Balakrishnan, chief financial officer of Infosys, whose shares rose more than six percent Tuesday.

“We have 2.25 billion dollars in cash. What do we do with it? It’s a good time to celebrate.”

Infosys shares rose 91.5 rupees, or 6.44 percent, to 1,514 rupees at close of trading on the Mumbai stock exchange.

Shares of Infosys and other software firms plunged last year. Investors took fright at rising costs, the looming US slowdown and the Indian rupee’s 12.3 percent jump against the dollar.

Infosys, the first Indian software firm to report quarterly results, Tata Consultancy and Wipro have been bracing for a cut in the budgets of US clients beleaguered by the credit crunch in the world’s biggest economy.

An Infosys survey showed that as many as 76 percent of customers in the US, which provides two-thirds of the revenue earned by Indian software makers, planned either to cut budgets or leave them unchanged.

“US companies are passing through a corridor of uncertainty as they come to terms with the slowdown, or recession, in the US economy,” said Tejas Doshi, an analyst at Mumbai-based Sushil Finance.

“They have not been able to decide on their budgets,” Doshi said. “New project starts and business starts have been delayed because of the uncertainty, which has definitely impacted Indian software firms.”

Infosys added 40 clients during the quarter. Revenue rose by a fifth to 1.136 billion dollars.

“There could be short-term challenges due to global economic uncertainties,” chief executive officer Kris Gopalakrishnan conceded.

Companies such as Infosys and bigger rival Tata Consultancy have benefitted in the past decade from work farmed out by companies in the US and Europe seeking to cut costs by tapping India’s low-cost engineering talent pool.

“There will be lightness in spending in the US, a cut in discretionary spending on technology,” said chief operating officer S.D. Shibulal.

“But once they come to grips with the situation, they will need to grow their business, spend on technology. We believe our growth will continue,” added Shibulal, who expects the US economy to perform better in the second half.

For the year to March 31, 2009, Infosys forecast revenue to increase by as much as 21.1 percent, and earnings per share to rise by up to 18.3 percent. That compares with growth rates of 20.1 percent and 18 percent, respectively, in the year just ended.

The company also said it would increase its dividend payout ratio to as much as 30 percent of net profit, from 20 percent, starting this fiscal year.

For the year ended March 31, Infosys will pay a final dividend of 7.25 rupees per share amounting to 4.15 billion rupees and a special dividend of 20 rupees per share, adding up to 11.44 billion rupees.