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We have done fairly well in a challenging environment: Infosys

The co lost $13 million in currency fluctuations, had the cancellation of a large transformational programme in Europe

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Press Trust of India Bangalore
Last Updated : Jan 24 2013 | 2:11 AM IST

IT services giant major Infosys today said it has done fairly well in a "very challenging" environment with dollar-denominated revenues growing 4.8% year-on-year and addition of 51 new clients.

"Out of the 51 new clients, the company has won four large ones. One of which is in excess of $300 million. We also won four transformation deals," Infosys MD and CEO S D Shibulal told reporters here announcing the quarterly results.

He said on a quarter-on-quarter basis, the company had guided for $1.77-1.78 billion revenue for April-June quarter and on a constant currency basis, it achieved $1.78 billion.
Shibulal said currency effects and cancellation of a large transformational programme in Europe led to "weak" quarterly results.

"We lost $13 million in currency fluctuations and had the cancellation of a large transformational programme in Europe," he added.

The FY 2013 revenue growth guidance has been cut because of currency fluctuations and the current business environment in the US and Europe, Shibulal said.

"Infosys is also facing difficult visa norms and is being forced to spend more on visas to ship techies to the US. Hence, the rise in visa expense and employee costs resulted in a decline in margins in the first quarter of the financial year 2013," he said.

Shibulal defended the company's move for not giving a guidance for the second quarter for the first time in many quarters, saying Infosys was not in a position to give a quarter-on-quarter guidance because the global economic situation "is extremely volatile at the moment".

"Quarterly guidance will only be provided with the business environment stabilises globally," he added.

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First Published: Jul 12 2012 | 5:54 PM IST

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