Infosys revenues in line with expectations: Sandip Agarwal, Edelweiss Financial Services

In a chat with ET Now, Sandip Agarwal of Edelweiss Financial Services, shares his views on the Infosys results. Excerpts:

ET Now: What is your first take? What is the good news and what is the bad news?

Sandip Agarwal: The good news is that the revenues are very strong. We had expected a 3.5% growth. It has come at 3.7-3.8%. So, the revenues are definitely better and are in line with our expectations. We had expected flat margins, whereby we were not anyway expecting any kind of improvement in the margins because Infosys had earlier also mentioned that there are some costs which will come.

Coming to the guidance, 9% to 10% ideally yes, if you have done 3.7 in this quarter, it will imply that you need only 0% growth sequentially in the next two quarters. I would only like to say one thing that the demand environment is improving and it should benefit everyone. With Infosys having a lot of discretionary components in its revenue, I would say that the management is cautious at this time. But if the environment remains robust, things can improve further.