We have done fairly well, says Infosys chief

IT services giant major Infosys on Thursday said it has done fairly well in a 'very challenging' environment with dollar-denominated revenues growing 4.8 per cent year-on-year and addition of 51 new clients.

"Out of the 51 new clients, the company has won four large ones. One of which is in excess of $300 million. We also won four transformation deals," Infosys MD and CEO S D Shibulal told reporters here announcing the quarterly results.

He said on a quarter-on-quarter basis, the company had guided for $1.77-1.78 billion revenue for April-June quarter and on a constant currency basis, it achieved $1.78 billion.

Shibulal said currency effects and cancellation of a large transformational programme in Europe led to 'weak' quarterly results.

"We lost $13 million in currency fluctuations and had the cancellation of a large transformational programme in Europe," he added.

The FY 2013 revenue growth guidance has been cut because of currency fluctuations and the current business environment in the US and Europe, Shibulal said.

"Infosys is also facing difficult visa norms and is being forced to spend more on visas to ship techies to the US.

Hence, the rise in visa expense and employee costs resulted in a decline in margins in the first quarter of the financial year 2013,"

he said.

Shibulal defended the company's move for not giving a guidance for the second quarter for the first time in many quarters, saying Infosys was not in a position to give a quarter-on-quarter guidance because the global economic situation 'is extremely volatile at the moment'.

"Quarterly guidance will only be provided with the business environment stabilises globally," he added.

Infosys CFO V Balakrishnan said 20,000 employees, who were promoted recently, will get the pay hikes and it would come into effect from July 1, 2012.

"Pay hike for the rest is not yet decided," he added.

On the issue of an employee Jack Jay Palmer alleging misuse of US visas by the company, Balakrishnan said Infosys would go into the mediation process to a neutral third party with an open mind, though 'we have a strong case' against the whistle-blower.

Mediation conference is a process by which parties submit their dispute to a third party who helps them reach a settlement.

Palmer had alleged that Infosys was misusing B1 businesses visas issued by the US.

B1 visas are issued for short-term business visitors and not for employees being sent onsite for work.