Infosys Management Expects Q1 To Be Volatile; Stock Down By 6%; Accumulate Around ±0.5

Infosys (NYSE:INFY) chief operating officer (NYSE:COO) UB Pravin Rao lowered its Q1 margin guidance by 200 bps mainly on the back of higher visa and compensation costs. However, the COO said he was confident of meeting its FY2017 revenue growth guidance of 11.5%-13.5%. He Rao told investors that overall demand remains “volatile” and weaker spending in the energy and insurance sector will weigh on the company’s performance over the next few quarters. He also highlighted on the ongoing slowdown of its enterprise resource planning (ERP) and business process outsourcing (BPO) businesses, and said that the company was working to turn around those businesses. The retail sector performance also remained soft last few quarters especially across the US and Europe. Mr Rao says commoditisation has taken place in the industry; the…


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