Infosys today announced a better-than-expected earnings for the October-December quarter but cut tweaked the revenue guidance for the full year. While it cut the dollar revenue projection for the full year to 7.2-7.6 percent, in constant currency terms the guidance was upgraded at the bottom end to 8.4 percent.
Here are the key points the management made at the press conference today:
On H1-B Visa
The company is not overly concerned about impact of H-1B visa rule changes on its business. In fact CEO Vishal Sikka said he expected US President elect Donald Trump's policies to be business friendly. He said the company has not seen any discernible pattern in client behaviour. The comments come at a time when there are concerns that the new government in the US is likely to push for a change in rules to curb "abuse" of H-1B and L1 visas by foreign workers. The move is likely to significantly impact Indian IT firms and professionals.
On business prospects:
According to the company the retail vertical continues to be volatile and it is likely to continue to see some ups and downs. However, the officials also said that despite the headwinds, pipeline is healthy in the financial services vertical. The manufacturing vertical is also seeing good traction. The companny said its expects most sectors except energy vertical to bounce back going forward.
On exchange rates:
The company sees cross-currency headwinds continuing in the near term.
On Q3 Earnings:
The company managed to maintain margin despite pricing pressure. It saw strong growth in new dimensions during the quarter. Region wise, the company said European business declined 2.5 percent but sequentially it rose 1.1 percent in constant currency terms. On the other hand, North America declined 0.6 percent in both sequential and constant currency terms.
The management expects the downward pressure on pricing to stay steady going forward. There was pricing pressure during the quarter.
Updated Date: Jan 13, 2017 11:49 AM