Infosys CEO on results: Decent quarter in tough environment

After reporting Q2 profit of Rs 2,370 crore, Infosys CEO SD Shibulal told CNBC TV18 that the July September was a decent quarter for the company considering the prevailing tough environment.

The fact that the company is making investments in the products and platform and its employees points to its confidence.

He said Infosys closed six large deals in the quarter, of which two where infrstructure-related. There were 8 transformational deals.

He also said the dollar revenue guidance, which the company has left unchanged at 5 percent, has not taken the Lodestone acquisition into account. Analysts had expected Infosys to revise upwards its revenue guidance to 6 percent for the full year.

[caption id=“attachment_488363” align=“alignleft” width=“380”] Shibulal said Lodestone buyout is not yet completed and the guidance next quarter will take this into consideration.[/caption]

Explaining the rationale, Shibulal said Lodestone buyout is not yet completed and the guidance next quarter will take this into consideration.

He attributed the reason for cutting earnings per share guidance to the rupee appreciation.

The 160 basis points reduction in EBIT margins is because of the increase in costs, Balakrishnan said. However, Rajeev Bansal said such ups and downs in margins are bound to happen as the company is on an execution journey of its strategy. He expects the margins to normalize in the next two quarters.

Balakrishnan also noted that Infosys is not projecting any reduction in margins, despite the company giving 2-6 percent wage hike across offshore and onsite staff.

On India business, he said the company has been on a sub-scale for the country. But the company has won large transformational deals from in India and this is good, considering the country is all about transformational projects.

On the rupee, Balakrishnan said the company will take only short-term views as the situation is uncertainty.