On the operating profit margin, Infosys CFO M D Ranganath said that in the near term they expect face certain pressure as the company will be making growth led investments. (Reuters)
Infosys’ share price slipped 1.77% on Tuesday on the Bombay Stock Exchange following the management’s commentary on Monday that they are likely to experience a weaker second half of the fiscal and a certain stress on the operating profit margins.
Infosys Chief Operating Officer Pravin Rao at an investor call said that there were few challenges the company was facing currently with the long holiday period in the month of December putting pressure on the business momentum.
He said all the business verticals for Infosys have performing well with a bounce bank witnessed in both retail and financial services segment. However there were challenges from the verticals of telecom and banking.
Infosys has retained its annual revenue guidance of 10-12% for FY12 and expects to return back to the industry growth rate only in FY17.
On the operating profit margin, Infosys CFO M D Ranganath said that in the near term they expect face certain pressure as the company will be making growth led investments.
“We expect margins to be plus or minus one per cent from the 25% level in the short to medium term,” Ranganath said.
He said the fourth quarter of FY16 would set the growth tone for the remainder of 2016 calendar year, adding that it was focusing on bagging the large deals.
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