India's second largest software company Infosys Technologies has reported a 14% rise in net profit in the first quarter, but tempered the news with a cautious forecast.

Net profit rose to 2.16 billion rupees (£28m) in the three months to June, as revenue rose 24% to 7.64bn rupees.

But Chief Executive Nandan Nilekani said travel warnings issued in late May and early June by foreign governments because of fears of war between India and Pakistan, could affect future performance.

"The war fear didn't really have an impact on our current business but it did impact on visitors coming and meeting us, and therefore has a potential impact in the future," said Mr Nilekani told the BBC's World Business Report.

"We are being cautious because the world economy continues to be uncertain," he added.

When trading commenced in India's largest listed software services exporter, shares rose by 2.5% to 3,478 rupees, before surrendering some of the gains because of Mr Nilekani's statement.

Tough times

The Nasdaq-listed company, the first major Indian software firm to report results, provides services to about 300 clients including Cisco, the ING Group and Boeing.

After almost doubling profits annually in previous years, Infosys - like rivals Wipro and Satyam Computer Services - has struggled recently to sustain growth as the global economic slowdown has knocked technology spending.

Revenues in the current quarter are likely to remain flat, Mr Nilekani said.

Nevertheless, the company reported it had increased its workforce by almost 5%, or 566 new jobs, during the quarter, taking it to11,304.

Infosys also said its employee utilisation rate rose to 78.9% from 72.4%.