The Telegraph
Since 1st March, 1999
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Infosys sticks to forecast

Mumbai, Aug. 27: Software services major Infosys Technologies Ltd today stuck to its earnings forecast for this fiscal, even as the company’s senior management placed their bets on the transportation and insurance sectors which are expected to remain high spenders.

The company stated this at its annual analysts meet held in Bangalore today. However, though positive, these announcements failed to evoke any significant reaction among analysts or the stock markets as it came along expected lines.

Infosys, while announcing its first quarter results, had struck the usual conservative tone when it forecast income from software development services and products to be between Rs 762 crore and Rs 781 crore for the quarter ending September 30, 2002. Further, income for the fiscal was projected to be between Rs 3,108 crore and Rs 3,195 crore.

The company had adopted such an outlook due to what it called, delays in client and prospect visits arising from adverse travel advisories and the challenging global business environment.

The analysts’ meet held today on the theme ‘Living up to the promise’, was attended by over 85 analysts and fund managers. CEO, president and managing director Nandan M Nilekani, COO and deputy managing director S Gopalakrishnan and CFO and director (finance and administration) T. V. Mohandas Pai delivered the theme address.

Speaking on the theme, Nilekani said the global delivery model is one of the sources of the company’s competitive strengths and that offshore has become the mainstream for delivering technology-enabled business solutions.

Pai told analysts that Infosys is looking at acquisitions and alliances as an alternative to supplement organic growth. However, the company has not yet made an acquisition due to variety of factors like valuation, absence of revenue visibility apart from financial weakness and viability.

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