Infosys sticks to revenue guidance amid euro zone crisis

The country's second largest software exporter Infosys today retained its guidance of 17-19% revenue growth in FY12 notwithstanding the persisting euro zone debt crisis.

"I hope the developments in the eurozone area will be in an orderly fashion so that the companies can plan, unlike the 2008 crisis," Infosys Chairman Kris Gopalakrishnan told reporters here on the sidelines of the India Economic Summit 2011 today.

He added that any change in guidance would be made in the next quarter results, as by early January its clients finalise their IT budgets.

Italy, which has been at the centre of the euro zone crisis, now has its premier-designate and economist Mario Monti trying to form a new government as the nation tries to avoid financial disaster.

In Greece, Lucas Papademos has been sworn in as Prime Minister after his predecessor George Papandreou was forced to step down following a call for a referendum on a euro zone rescue package for the debt-laden country.

The Bangalore-based company had lowered its guidance, with revenues expected to be in the range of $7.08-7.20 billion, (17.1-19.1% growth year-on-year) as against $7.13-7.25 billion it had expected earlier.

The debt crisis in Europe and the unemployment and economic uncertainties in the US are major concerns for the Indian software firms, which get more than 80% revenues from these markets.

With the uncertainities prevailing, it is expected that clients may cut discretionary spends.

Talking about expansion, Gopalakrishnan said, "We are working on setting up a development centre in Indore. We are looking for a site."

Infosys will spend Rs 100 crore in the first phase and employ 5,000 people.
    
Infosys also said it plans to source its entire energy requirement from renewable sources in the next five years.
    
"Right now 20% of our energy consumption is from renewable sources, and by 2017 we want to take that to 100%. As a user of renewable energy, we want to actually drive consumption. We want to be a consumer of that," Gopalkrishnan said.
    
Gopalkrishnan also expressed reservations about the present consumption-driven economic model and strongly advocated that the country should not follow it.
    
"I believe, it is not sustainable because per capita we are consuming too much power, too much water, too much resources and things like that," he said.