The Infosys guidance is a little higher than what the market was anticipating. Is the result a thumbs up from your end?
Yes definitely we can say it is a beat in terms of revenue but there is a marginal decline in operating margins. In revenue terms, we were expecting around 4.4% of revenue growth which came at 4.8% on a quarter-on-quarter basis and that was a major surprise. The most exciting thing was they have revised the guidance upwards to 14-16% which is a key positive news from the Infosys side.
How are you looking at the overall operating margin guidance? That has been retained at 22-24%. Also, how are you reading into the large deal momentum of $2.6 billion in TCV?
The large deal swings that came are much in line with our expectations and are fairly decent. The large deals in previous quarter were exactly at the same rate. On the margin front, they have impacted the overall margin performance in all the sectors and in all the IT companies.
Apart from that, a transition process is involved and that has also impacted the margin a bit. The rising cost may impact margin going ahead because they have retained the guidance for 22-24%. But I believe the higher volume growth may offset some of the operating expenses in 2022.
How are you looking at the overall guidance instilling confidence?
It is definitely giving a higher visibility in terms of revenue growth and the ramping up of the deals that they have borne in the previous quarters. It definitely helps in building confidence in terms of the overall scenario.
