Infy work-in-progress, result directionally upbeat: Cowen

Latha: What is the first comment on Infosys? Is it better than you thought?

A: It looks better than I thought. Constant currency numbers looks better, EBIT margin numbers looks better despite the fact that they were probably helped by foreign exchange and again I think this is going to be a work in progress. We should start to see a gradual improvement across the board and across all the metrics and obviously the end game is going to be for Infosys to openly come out and generate industry like or sector like growth rates. I don’t know if it happens today, I don’t know if it happens next year but directionally I think this is where they are going.

Reema: Has Infosys done enough in terms of the revenues for you to believe that the company is on the right track and very soon they will be equal to the industry growth rates, has it done enough with 3.2 percent dollar revenue growth on the topline?

A: It is a work in progress. So we need to see a couple of good quarters for us to come out and get to that conclusion. So when you go through two-three years of very tough internal issues and restructuring, I think it is time to get your act together but from the directional perspective, it seems that they are getting there. So will they do enough, are we 100 percent believers that this is where they are going, it is difficult to come out and say that. A restructuring story does have some ups and downs. I am assume we may still need to go through this but all I know it seems that some of the actions that Chairman Murthy took in the past year or so are beginning to translate into more positive metrics and I think that is the important thing to focus on.