Infosys reaffirms guidance of 7-9% top line growth for this fiscal

BANGALORE: Infosys said that it will be in better position to share its strategy in three months even as the management retained its earlier guidance of recording a 7-9% top line growth and retaining margins between 24-25% for the current fiscal year.

The Bangalore-based software exporter said that it see a very stable demand environment although there remain a few wrinkles in certain sectors it operates, including retail and consumer packed goods and life sciences, said a senior executive.

“In the next few weeks we will be rethinking our strategy,” said UB Pravin Rao, chief operating officer Infosys, adding, “It’s too early to say if there would be any major shift in our strategy. We are looking at an October time-frame. We will be in a better position to articulate our strategy by then”

“At this stage, we’re not seeing anything fundamentally different. We’re still looking at 7-9% growth. We expect margins for the year to be around 24-25%,” Rao said at an investor conference on Tuesday in Mumbai.

Rao said that the cost optimisation initiatives undertaken by the company has helped the firm though he acknowledged that it will take a while before the country’s second-largest software exporter retains its growth.

Infosys guidance of a 7-9% growth is far less than that the 13-15% growth projected by industry lobby Nasscom.

On the attrition front – Infosys recorded a high attrition rate of 19.5% during the end of first quarter, Rao said that it will take a few more quarters before the company can bring down the attrition levels to comfortable level.

“In the recent past, there has been a lot of distraction around CEO succession and top-level exits. With the new leadership in place, that distraction will go away,” said Rao.