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

Moneycontrol Bureau

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