Infosys Q2: Management views on pricing, deals, clients, guidance

Infosys , India's second largest software services exporter, just about met street expectations with its second quarter results, but hugely disappointed the street with a deeper cut in earnings per share guidance for the full year, sending its shares down over 7% in morning trade.

V Balakrishnan, chief financial officer, Infosys  has resigned from his position and will be heading the company’s BPO arm, Finacle, with effect from November.

Also Read: Infosys Q2 net up 24% YoY; shrs sink on poor guidance

Here is what the Infosys management had to say on various aspects of the business in their interaction with CNBC-TV18

Business environment

Rajiv Bansal: Industry going through a challenging period

Rajiv Bansal: Challenging times for Infosys and the industry

SD Shibulal: Q2 has a been a decent quarter in tough time

Guidance

V Bala: Retain margin guidance in FY13, despite wage hikes, rupee uptick

(Infosys had guided for a 200 basis point-decline in margins)

Shibulal: FY13 USD revenue guidance of 5% does not include Lodestone acquisition

Wage hike

Shibulal: Wage hike is 6% offshore and 2-3% onsite

Pricing

Shibulal: Pricing down 0.2%, quarter-on-quarter (QoQ)

Basab Pradhan: Competitive pressure in pricing continues

Basab Pradhan: BFSI sector continue to face challenges. To a great degree, BFSI may have bottomed out

Clients/Deals

Shibulal: 14 out of 39 clients added in financial services

Shibulal:  Added 6 large clients in Q2

Shibulal: Signed 2 large infra-led deals in Q2

Basab Pradhan: Working with 60 clients on products and platforms excluding Finacle

Shibu: Top 5 clients grew 7.8% QoQ, Top 10 clients grew 5.7% QoQ

Shibu: Winning transformation deals in India, will reflect in next few quarters

Basab Pradhan: Continental Europe as a market is opening up

Basab Pradhan: Making significant investment in Europe to enhance footprint

On Bala's new role

Bala: Transition to larger roles a standard practice at Infosys

Shibulal: Finacle is growing at 18%

Shibulal: Bala has done a fabulous job of being CFO for last 6 years

Shibulal: Infy BPO is growing at a faster pace than overall business

Lodestone

Shibulal:To factor in Lodestone acquisition in Oct-Dec

BG Srinivas: Confident that opportunities will be leveraged with Lodestone

BG Srinivas: Expect to close Lodestone deal in a week