Infosys to see flat growth in Q1

By agencies   |   Wednesday, 08 June 2005, 19:30 IST
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BANGALORE: IT major Infosys Ltd has maintained that its performance in the first quarter ending June 30, 2005 will be flat while it is acquiring new clients at better prices. "The company expects the first quarter to be flat as some clients were occupied with internal work and compliance related matters but the growth for 2005-06 was expected to be 28-30 percent," the Managing Director, Nandan Nilekani said. The company would achieve revenues of $2 billion this fiscal, he said. The Bangalore based company had given outlook of ''flat performance'' for Q1 of 2005-06 while announcing results for 2004-05 in April. Referring to pricing pressures, he said pricing was stable with an upward bias. The company was able to charge better prices to new clients. However, its (improved pricing) impact on the revenues would be seen with a time lag as only five percent of revenues came from new clients while repeat business had 95 percent share, Nilekani added. The dollar-rupee price variations was a issue that the company and industry had to live with, he said adding one had to remain ahead on productivity front to deal with the challenge of exchange rate volatility. Infosys also said that it would increase fivefold the number of people in its business-consulting unit in the U.S.in two years. Infosys Consulting Inc., incorporated in Texas, will have 500 people by March 2007, Chief Executive Nilekani said.