Friday, September 08, 2006

Infosys on track to meet guidance: Nilekani

NEW DELHI, SEPTEMBER 7: India's second largest software exporter Infosys Technologies said it is well on track to achieve the revenue forecast for the second quarter and the whole year.

"As of now, we have given a certain guidance. That's our guidance for the second quarter and for the whole year", Nandan Nilekani, CEO of the Nasdaq-listed Infosys, which mainly works on the Global Delivery Model, said. he Bangalore-based firm had revised its guidance upwards projecting its revenues to grow by 40.2-40.7 per cent in 2006-07 to be in the range of Rs 133.5 billion and Rs 134 billion and for the Q2 ending September the revenue is forecast to be in the region of Rs 32.57-Rs 32.80 billion, a Y-o-Y growth of 42-43 per cent.

Nilekani was responding to questions if rising wages and fluctuation of the rupee has had any impact on the company's guidance and operating margin. Rupee has gained ground against the US dollar, while touching a two-month high earlier this week.

"Wages are going up at 10-15 per cent a year. The effective impact of wages is about 1.5-2 per cent a year on our revenues. But we have a number of ways to offset that like economy of scale, changing the mix of value services, increasing the offshore content, making the brand stronger, having more innovative solutions", he said.

If there would be any impact on the margins in subsequent quarters, Nilekani said, "We have always said that margins will be in a narrow band."

On rupee depreciation, which helped Infosys post a robust revenue in Q1, Nilekani said, "We focus on our real business. You have to focus on what is in your control".


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