Infosys may lower FY13 dollar guidance

Infosys has sounded the warning bell. The IT bellwether has prompted fears that it could revise its guidance lower. Its top management has told analysts that it expects challenges in meeting its whole year dollar revenue guidance, reports Sunanda Jayaseelan of CNBC-TV18.

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The company has already revised it guidance once during the year to five percent. Now there are fears that it might revise it below 5 percent.

There is couple of reasons for lowering its guidance like deferrals by customers, ramp down in projects and there are concerns that it's been pointing out throughout the year and lastly challenges which came from hurricane Sandy. Infy says that it expects to continue seeing challenges as far as FY13 is concerned.  

UBS says that it is not surprised by the fact that Infosys is facing challenges in meeting its whole year dollar revenue guidance. UBS estimates lower dollar revenue guidance of 3.8 percent for the fiscal. On the other hand Barclays says that there are early sign of a decline as far as IT budgets are concerned for FY13 and hence it is also estimating much lower whole year dollar revenue guidance.

Nomura says that it is not surprised, while it says that it sees challenges in Infosys meeting its guidance also expects its peers including TCS to go ahead and maintain better margins and be able to actually get better spends out of the BFSI sector which is a key area that Infosys says its expecting to challenges coming out of in FY13.