Infosys Q1 FY13 results & guidance disappoint: Comments from ET Bureau

With the country's second-largest software services exporter, Infosys cutting its revenue guidance in dollar terms for the current financial year, outlook for the Indian IT industry remains bleak. Infosys revenues are now expected to be about $7.34 billion, year on year growth of 5% versus Nasscom IT industry growth forecast of 11%-14%.


Also check: Live blog - Infosys results



Here is a look at some of the post-result comments on Infosys from the ET Bureau:

> Sign that the bench is growing and projects in pipeline not coming through

> Infosys now in danger of being tagged as a consistent underperformer - It is consistency in reverse at Infosys nowadays. Whereas until nearly two years ago Infosys never failed to outperform, it is now in danger of being tagged as a consistent underperformer. Hearing chief executive S D Shibulal and the top management of Infosys gives a feeling of Déjà vu. There are the same old catchphrases about Infosys 3.0, high-quality growth and prospects in the medium to long term. While that is all fine for five years from now, they sound tired today.

By now, after another cut in topline guidance, it is clear that the problems at Infosys at mostly specific to the company. It boils down to an unwillingness to adapt to changing circumstances, to get aggressive about winning deals without worrying too much about margins and so-called quality of revenue. And where is the energy? With so much cash on hand, it can afford easily to buy, if only to infuse some fresh blood and fresh thinking. Risk aversion is proving to be too risky for Infosys. They must bear in mind the Keynesian dictum that in the long run we are all dead.

> Conclusive proof that its mainstay business is in big trouble

> Infosys results below estimates - Lower than the low expectations that were set. Question again is whether it is Infosys alone or is industry in for more trouble.