'Infosys expects weaker revenue growth'
New
York,
Sep
13:
Software
services
major
Infosys
Technologies
expects
a
weaker
revenue
growth
in
the
current
financial
year
amid
global
economic
slowdown,
a
US
media
report
said.
"Economic
uncertainties
are
weighing
on
customers' information
technology
spending
in
the
US
and
Europe
as
the
malaise
of
weakening
growth
spreads,"
Infosys
Chief
Executive
S
Gopalakrishnan
was
quoted
as
saying.
That
uncertainty
is
being
reflected
in
[customers']
ability
to
increase
their
spending....Even
when
budgets
are
released
they're
not
sure
if
they'll
get
the
returns...so
they
are
not
able
to
kick
off
projects",
Gopalakrishnan
said.
Last year, Infosys posted revenue of Rs 167 billion, reporting a 20 per cent year-over-year rise. The report said that another IT major Tata Consultancy Services had also stated similar concerns earlier.
However, he said that Infosys isn't seeing any rise in cancellations or demands for price cuts from its clients. The company is maintaining its margin guidance for the fiscal year.
Besides, the report also quoted Gopalakrishnan saying that the company's 407.1 million pound offer for UK-based enterprise-software consulting company Axon Group PLC is a "fair valuation of the company" and that the offer had Axon management's support.
He further added that it is possible that a rival bid may arise, but did not mention that whether Infosys would raise its offer if new bidder emerges.
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