Low Earnings Visibility Due to Headwinds: Vishal Sikka To BloombergQuint
Low Earnings Visibility Due to Headwinds: Infosys CEO To BloombergQuint
The Infosys stock fell over 10 percent after India’s second-largest software services company slashed its annual sales forecast. The reduced outlook came after Infosys reported first-quarter revenue that lagged expectations.
The company’s visibility remains limited due to headwinds in its non-core sectors, Chief Executive Officer Vishal Sikka told BloombergQuint in an interview. Sikka pointed that the weakness is not in the company’s core sectors.
In the main part of the business that we have been focusing on, we’ve been doing quite well. There has been a slowdown in Consulting and Pinnacle India. I’m not too worried about it, but none the less, it will impact our performance.Vishal Sikka, Managing Director and CEO, Infosys
Aggressive Pricing?
Sikka denied that the company’s pricing was too aggressive, and said the industry as a whole has been facing pricing pressure. Infosys, he said, has been gaining in large deals and top accounts because of emphasis on innovation.
There is opportunity for automation and therefore companies want to deliver at a lower cost and the way to do that is not to drop cost, but deliver more innovation so that less people are required on a project with more software and more automation.Vishal Sikka, Managing Director and CEO, Infosys
Brexit Impact
On being asked about the probable impact of Brexit on Infosys, Sikka echoed other top businessmen, saying it was too early to tell.
My sense is that it will take a couple of years to unfold. So far there has been volatility in markets and volatility in currency, but no change in the business environment.Vishal Sikka, Managing Director and CEO, Infosys