No impact of US slowdown on Infosys: Nilekani

Managing director and CEO of Infosys, Mr Nandan Nilekani does not anticipate any impact of the US slowdown on Infosys. Mr Nilekani says that Q2 saw a 1.2 per cent increase in blended prices. Margin expansion is also on account of rupee depreciation, he said.
The following are the excerpts from CNBC-TV18’s exclusive interview with Mr Nandan Nilekani:

Q: There were apprehensions that because of all the talk of US slowdown you may choose to be a little bit more circumspect this time but your guidance is even stronger?

A: Yes, I think we had a good quarter; we grew sequentially in dollar terms at 13 per cent, rupee terms at 14.5 per cent. We also had a 2.5 per cent improvement in our operating margin through visas, SG&A and rupee depreciation.

Q: Are you assuming any uptick in pricing at all?

A: This quarter there has been a 1.2 per cent uptick in blended revenue productivity, but basically we are not assuming anything much different, in the sense that it’s slightly upward but nothing more than that.

Q: Tell us a little about your sponsored ADS and when you plan to offer that?

A: I am limited by what I can speak about this sponsored ADS, it has been approved by the board, it is up to 30 million shares. We have articulated a long-term goal, being in one of the global indices, so this is a part of that journey. Beyond that we cannot really talk about ADS due to SEZ laws and other constraints.

Q: Just as a snapshot, how have the subsidiaries performed and are you seeing margin improvement across your subsidiaries as well in this quarter?

A: Overall the subsidiaries have contributed totally about $5 million to our bottomline, so the bottomline of Infosys is $193 million, consolidated to $198 million.

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