Infosys, a company that has a history of exceeding the higher end of its guidance, has faltered just two times in the last decade insofar as the results for the quarter ending on December 31 are concerned, and this was the second time that this had happened. However, in spite of this, Mr S.D. Shibulal, Co-Founder, Chief Executive Officer and Managing Director, Infosys Ltd, feels that his company is on the right track. In this interview, he outlines the importance of looking at the long-term growth and the significance of focusing on high quality growth. Excerpts:

When presenting results for the last quarter, you guided for $1,802 million to $1,840 million, but delivered only $1,806 million. How did you miss your guidance?

Guidance pertains to the facts as we see them. When we give guidance, we are only ten days into the quarter. Normally, we exceed expectations, but when the environment is volatile, we face challenges. That is why in the middle of the quarter, we offered a re-guidance and said that it will be closer to the lower end.

If you exclude products, BFSI has shown a growth of just 1.3 per cent. What is the issue? Is it because Q3 is a weak quarter?

If you look at the last ten years, BFSI has been stable. You should not look at it on a quarter-on-quarter basis. You should consider the secular trend. If you look at the 49 clients we added, 14 are in BFSI.

Infosys typically puts margins first and volumes next. Do you think that a time will come when you will be forced to sacrifice your margins?

We have always focused on high quality growth in the past and the present and in the future. We focus on high growth and high margins and we see no reason to change our aspirations. We are focused on transformation, products and platforms, and we want to address all the requirements of the client and deal with growth, innovation and efficiency.

>balaji.n@thehindu.co.in

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