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Last Updated : Jan 13, 2012 11:22 AM IST | Source: CNBC-TV18

Why did Infosys cut its FY12 dollar guidance?

IT major Infosys reported a better than expected numbers in the third quarter of FY12. However, the company disappointed with its dollar revenue guidance for the fourth. In an interview to CNBC-TV18, the management discuss the quarter gone by and give their outlook going forward.


IT major Infosys reported a better than expected numbers in the third quarter of FY12. However, the company disappointed with its dollar revenue guidance for the fourth quarter.


The company posted a net profit of Rs 2,372 crore in the third quarter, a growth of 24.5% as compared to Rs 1906 crore in the previous quarter.


Its revenues moved up 14.8% to Rs 9,298 crore from Rs 8,099 crore, quarter-on-quarter.


In an interview to CNBC-TV18, Infosys management including SD Shibulal, chief executive officer and managing director; V Balakrishnan, chief financial officer, BG Srinivas, senior VP, head Europe, global head-Mfg, Engg Svcs, Ashok Vemuri, senior VP, head-America, global head Fin Svcs and insurance, Chandrashekar Kakal, senior VP and global head-biz IT Svcs and Basab Pradhan , senior VP, head-global sales, speak about the quarter gone by and give their outlook going forward.


FY12 $ guidance downer: Is Infosys headed for re-rating?


Below is the edited transcript of the interview with CNBC-TV18's Udayan Mukherjee and Sonia Shenoy. Also watch the accompanying videos.


Q: The investors are a bit disappointed that you chose to give flat dollar guidance for the Q4. Why did you do that?


Shibulal: In Q3, we have done well. We have grown 3.4% in reported currency and 4.4% in constant currency. The operating margins are up by 3% from last quarter to this quarter.


We have had good client additions. We have added one of the largest number of clients this quarter, 49 new clients have been added. Six of them are in Fortune 500. That is good client addition.


The quality of revenue is very important to focus on. Our revenue productivity has gone up again this quarter by 0.8%. If you look at year-on-year, our revenue productivity is up by 5%. That means even in a very tough environment we are able to maintain the quality of revenue. On nine month basis, our revenue productivity has gone up by 6%. So, we have been able to maintain the revenue productivity and the quality of revenue in a pretty tough environment.

There were good deal wins in Q3

First Published on Jan 12, 2012 11:15 am