Despite decent numbers, Infosys has put out a disappointing guidance for the March quarter – forecasting just 1-2% growth in revenues to $1.6-1.62 billion, compared to the 6% growth posted in the December quarter.
The company seemed to be worried about the economy in general as well as with the currency fluctuations.
“The weaker economic recovery in developed markets coupled with high unemployment and risk of sovereign default could impact industry growth” said S Gopalakrishnan, CEO and Managing Director.
V. Balakrishnan, Chief Financial Officer said: “Uncertainties related to sustainability of the global economic recovery could create greater currency volatility in the near future” said “Our focus will continue to be on high-quality growth balancing both the revenue growth and margins.”
For the full year, Infosys expects revenues to grow by around 26% to $6.05 billion. On Oct. 15, 2010, Infosys had said it expects FY11 revenue in the range of US$5.95bn and US$6bn
Dipen Shah, Senior Vice President(PCG Research), Kotak Securities said the results were “marginally lower” than expectations. “The Management commentary reflects caution on the back of macro economic concerns. Thus, the 4Q and FY11 guidance are below market expectation. The underlying fundamentals remain strong, in our opinion,” he said.