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Infosys Tech sticks to Q3 revenue guidance

NEW DELHI: Infosys Technologies on Monday said it would continue to stick to its original revenue guidance for the third quarter and the fiscal as it did not see any reason to revise it after doing it once in the wake of the global financial crisis.

“We do not give revised guidance in the middle of the quarter. The next guidance will be at the end of the third quarter. Whatever revision we had to do we have already done,” Infosys Technologies CEO Kris Gopalkrishnan said on the sidelines of the World Economic Forum.

Mr. Gopalkrishnan said the company was looking at acquisitions in Europe and Japan. It was setting up a team to hunt for target companies, he added. The billing rate for the IT services had been flat, despite the economic challenges. The company would continue to retain its workforce and indicated plans for hiring another 25,000 people, he said.

Infosys had earlier scaled down its dollar guidance by about three percentage points for the full year to 13.1-15.2 per cent, perhaps its lowest revenue growth since inception from 19 to 20 per cent.

The company is also likely to see some impact on its third-quarter results due to significant rupee depreciation vis-a-vis the dollar but to what extent that will happen will be difficult to ascertain. The rupee has depreciated at about 20 per cent over the last few months. ``The currency movements will have an impact. With each depreciation of the rupee, the impact on margin is 50 basis point. Rupee depreciation is positive for us but it is offset by other currencies also depreciating,” he said.

Earlier, Infosys Technologies co-founder Nandan Nilekani said that growth in the IT sector would be slower in the wake of the current ‘unprecedented’ challenges that the world economy was facing but exuded confidence that the sector will bounce back.

Infosys had earlier scaled down its dollar guidance by about three per cent for the full year to 13.1-15.2 per cent, perhaps its lowest revenue growth since inception from 19-20 per cent.

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