Hi Pavan,
please have a look at SAP note 1150217.
You can e.g. copy and paste "Benoît" into a txt file and open it with the notepad editor in Windows 7.0. The editor detects the encoding correctly and shows "Benoît". This means your result is correct (if you want to have it based on UTF-8), but the tool used to display the data expects a different encoding.
Best regards,
Nils Buerckel