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See no impact of US slowdown on Infosys: Nandan Nilekani
Managing Director and CEO of Infosys Nandan Nilekani does not anticipate any impact of the US slowdown on Infosys. Nilekani says that Q2 saw a 1.2% increase in blended prices. Margin expansion is also on account of rupee depreciation, he said.
Managing Director and CEO of Infosys Nandan Nilekani does not anticipate any impact of the US slowdown on Infosys. Nilekani says that Q2 saw a 1.2% increase in blended prices. Margin expansion is also on account of rupee depreciation, he said.
Excerpts from CNBC-TV18's exclusive interview with Nandan Nilekani:
Q: There were apprehensions that because of all the talk of US slowdown you may choose to be a little bit more circumspect this time but your guidance is even stronger?
A: Yes, I think we had a good quarter; we grew sequentially in dollar terms at 13%, rupee terms at 14.5%. We also had a 2.5% improvement in our operating margin through visas, SG&A and rupee depreciation.
Right now the business is good, we did check but all our customers are making commitments, so we are able to revise our annual guidance to over USD 3 billion, which comes to about 40-41% annual growth rate in dollar terms.
Q: Are you assuming any uptick in pricing at all?
A: This quarter there has been a 1.2% uptick in blended revenue productivity, but basically we are not assuming anything much different, in the sense that it's slightly upward but nothing more than that.
Q: There is no worry at all because your guidance is now at Rs 66 for the full year, is there no worry that you are picking up from your clients at this stage about a possible slowdown and its impact?
A: We did do a dipstick because we had heard about the fact that there was this concern about the global slowdown but our conversation with clients have not indicated anything as such. We believe that our clients continue to think that they will invest in us as they have done before and therefore we have been able to give more than 40% guidance.
Right now the business is good, we did check but all our customers are making commitments, so we are able to revise our annual guidance to over USD 3 billion, which comes to about 40-41% annual growth rate in dollar terms.
