Infosys may revise its revenue guidance upwards in the range of 2-3 per cent, according to analysts from brokerage houses.
Analysts feel that the company could revise its growth for fiscal 2013 to 10-13 per cent compared with the 8-10 per cent growth estimates that it had given for fiscal 2013. In FY12, Infosys grew at 15.8 per cent.
For the 2013 fiscal, it gave a bleak revenue guidance in the range of Rs 38,431-39,136 crore. This increase can be attributed to a spate of recent measures, an acquisition being the latest one.
“Guidance will be upped by 2-3 per cent,” said AK Prabhakar, senior vice-president (Equity Research) at AnandRathi Financial Services. We expect the company to increase its annual revenue guidance marginally,” said Dipen Shah, Analyst at Kotak Securities.
Lodestone is a Switzerland-based company that has a large business and technology consulting practice and which gives Infosys access to 200 clients in Germany and Europe. In fiscal 2012, Infosys revised its guidance in 3 out of the 4 quarters citing visibility issues in outsourcing deals and since then the company has come under increasing scrutiny from investors on their growth prospects.
Despite a higher guidance, Infosys still will not outpace Nasscom’s estimates which peg the Indian IT sector to grow in the range of 11-14 per cent for fiscal 2013.
This increase is reflected in the stock price to a certain extent, said an analyst, who did not wish to be quoted. Delay in new contract closures, ramp down in certain existing projects, leadership changes in some of its existing North American customers, increased pricing pressures and continued delays in decision making are some of the issues that Infosys faces.