Shibulal cautiously optimistic: Key highlights of Infosys Q1 results

IT major Infosys reported an 11.7 percent increase in employee utilisation rate for the first quarter ended June 30, 2013, but attrition continued to be a worry as the attrition rate grew to 16.9% for the April-June quarter against 16.3% in the previous quarter.

• Company has kept its dollar guidance unchanged given the cautious economic environment

•Margins were flat q/q as better utilization and currency benefits negated the impact of higher wages, slightly lower billing rates, and higher onsite.

•Infosys CFO Rajiv Bansal expects pricing to remain stable-to-marginally down in the current fiscal year ending March 2014

•Volumes rose 4.1 percent in the first quarter compared with the previous one and its contract win ratio also improved, Chief Executive SD Shibulal said.

• Given regulatory challenges in US, Canada and Australia guidance has been unchanged at 6-10%, says Shibulal

• Europe seen a marginal decline, we have done reasonably well this quarter but multiple challenges remain, says Shibulal

• The company will take a 3 percentage point hit on margins in the second quarter due to the 8 percent wage hike given to offshore employees in the quarter.

[caption id=“attachment_951067” align=“alignleft” width=“380”] Shibulal cautiously optimistic about deal pipeline. Picture: AFP[/caption]

• The revision in rupee revenue guidance was on account of the currency depreciation.

• Cross currency impacted revenue by 13.7 million US dollars

• 74% staff utilisation; constant currency pricing flat sequentially

• Co did not raise dollar guidance as it did not want to extrapolate April-June quarter’s performance to other quarters. Moreover, uncertain environment continues to prevail.

• US Immigration Bill may not impact deal pipeline much, however it has created a lot of uncertainty in the market

•Attrition levels may come down in the next few quarters.

•Murthy would aim at high quality growth with margins, says Shibulal.

• Won seven large deals during the quarter, of which three were more than $100 million.Management expects revenues from these deals to flow in over the next three to five years

•Regulatory environment globally still challenging due to which discretionary spending by clients is still stressed

• Added 66 clients during Q1.

•Cross currency growth stood at 3.4 percent quarter on quarter