Risks could prompt downward revision of guidance: Infosys

Don't want to miss the best from Business Standard?

Infosys may slash its revenue guidance for the second time this financial year, stung by “risks” like challenges in the banking and financial services sector and cancellation of projects.

However, in the short term, the Bengaluru-based company remains confident of a "better" second quarter compared to the April-June, 2016, period.

“We see that our Q2 growth is going to be higher than Q1 growth. But we do see risks that would get us towards territory of downward revision of guidance because the atmosphere during the course of Q2 has worsened compared to what we saw in the beginning of Q2, you see the example of RBS,” Infosys CEO Vishal Sikka said.

Infosys had earlier said it will ramp down about 3,000 jobs following Royal Bank of Scotland's decision to cancel its project to set up a separate bank in the UK.

While announcing its first quarter earnings, Infosys had slashed its annual sales growth guidance to 10.8-12.3 per cent in US dollar terms for 2016-17, down from the previous forecast of 11.8-13.8 per cent.

Sikka admitted there were "some internal execution issues" that had impacted its performance in the first quarter of FY17 but added that those issues have been resolved.

"...this was purely because of internal reasons, because of execution reasons... we have made changes to the management and over the course of Q2, we have arrested the de-growth that we saw in consulting," he said.