Confident of meeting guidance despite challenges: Infosys

Rajiv Bansal, CFO, says growth in Europe remains challenging, but macroeconomic data coming from US is encouraging.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead Travelcafe
moneycontrol.com

Home » News » Earnings » Results Boardroom

Jul 13, 2013, 02.57 PM | Source: Moneycontrol.com

Confident of meeting guidance despite challenges: Infosys

Rajiv Bansal, CFO, says growth in Europe remains challenging, but macroeconomic data coming from US is encouraging.

Like this story, share it with millions of investors on M3

Confident of meeting guidance despite challenges: Infosys

Rajiv Bansal, CFO, says growth in Europe remains challenging, but macroeconomic data coming from US is encouraging.

Post Your Comments

Share Cancel

Rajiv Bansal, CFO, Infosys
Moneycontrol Bureau

India's second largest software services exporter Infosys says the environment remains challenging, but is confident of meeting its full year US Dollar revenue growth guidance of 6-10 percent.

The Bangalore-based company on Friday reported a better-than-expected consolidated net profit of Rs 2,374 crore, up 4 percent year-on-year in the first quarter. Revenue in Rupee terms rose 17 percent from a year ago to Rs 11,267 crore.

US Dollar revenue gained 14 percent to USD 1.99 billion.

The environment remains challenging and discretionary spends are slow, Rajiv Bansal, CFO, told moneycontrol.com in an interaction.

European markets remain challenging, growth in China is slowing, the currency is volatile and there is the regulatory overhang, he points out.

However, the US economy is looking better and the macro-economic data coming from the United States is "encouraging," Bansal added.

North America accounted for 61.4 percent and Europe 23.6 percent of Infosys' total revenue last quarter.

"Even if we have flat growth for the remaining quarters, we should end up at 7.7 percent growth for the full year," which is within its guided 6-10 percent range, he said.

Earlier in the day SD Shibulal, CEO, said, he was cautiously optimistic of the rest of the year, as deal pipeline remained strong.

Lodestone AG, the Zurich, Switzerland-based management consultancy Infosys acquired in 2012, also boosted growth. The company reported a net income of USD 1.88 million on revenue of USD 90.67 million in April-June, compared with a loss of USD 3.44 million on revenue of USD 70.33 million in Jan-March. 

Bansal said that growth at Lodestone was as per plan and the company would be the single consulting face for Infosys in Europe.

Also Read: Infosys says wage hikes to hurt Q2 margin by up to 300 bps

There have been several media reports in the recent past, linking Infosys with potential acquisitions. Bansal refused to give specific names, but said the company continued to seek acquisition opportunities.

It had liquid assets including cash and cash equivalents, available-for-sale financial assets, and government bonds worth Rs 24,078 crore at the end of June.

Meanwhile, Bansal said that the company was closely watching developments related to the US immigration bill. The bill, if passed, could impact IT companies in a big way, he felt, but added that the passage of the bill was still a long drawn process and it was too early to talk about steps that companies, including Infosys, would have to take to lessen the impact.

The street cheered Infosys' better-than-expected results. The stock hit a high of Rs 2,905.60 on NSE on Friday. It closed at Rs 2,804.20, up close to 11 percent.

Nachiket Kelkar
nachiket.kelkar@network18online.com

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
Confident of meeting guidance despite challenges: Infosys

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login