Nasscom guidance is ambitious: Infosys

Claims client feedback led to muted guidance for fiscal

PTI | May 17, 2012



Country's second largest software services exporter Infosys on Wednesday termed the growth target given by industry body Nasscom (11-14 per cent) for the year as "ambitious", given the uncertain domestic and global macroeconomic scenario.

"I think the industry growth of 11-15 percent looks ambitious now, but Nasscom has stuck to its stand; so we will see," Infosys CFO V Balakrishnan told reporters on the sidelines of an event in Mumbai.

Even after the tepid numbers reported by some IT companies for the March quarter, the National Association of Software and Services Companies (Nasscom) -- currently headed by N Chandrasekaran of TCS -- has maintained an industry growth target of 11-14 percent in revenues for FY13.

While announcing its earnings last month, the Infosys management had said its topline would grow at 8-10 percent in dollar terms, hurting the company scrip at the bourses, which tanked 11 percent on that day.

"If you look at the industry, at least the top two players have given guidance for 0-1 percent growth in the first quarter," he pointed out today.

He said client feedback had led Infosys to give its muted guidance for the fiscal.

"Either we will be right or Nasscom will be right, you'll know by the end of the year," he added.

On asked if the company will be revising its guidance, given the recent depreciation in the rupee which generally helps exporters, Balakrishnan said its too early for a revision.

"Its too early, (to revise guidance due to rupee movement), we have to wait and see. It is not only about rupee-dollar, it is about cross currencies too; they are also moving in different ways," he said.

He further said for the industry, every single percentage movement will have an impact of 40-50 bps impact on the margins.

When asked to comment on reports that the company is facing attrition due to its announcement of no pay-hike this year, Balakrishnan said no such thing has been witnessed in the company.

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