‘Currency volatility, rupee remain a concern’ | business | Hindustan Times
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‘Currency volatility, rupee remain a concern’

Brushing aside concerns over protectionist moves in the US and the uncertainties over the global economic environment, IT major Infosys Technologies has raised its annual revenue forecast by 25 per cent. S.D. Shibulal, chief operating officer, Infosys told HT that the company is being cautiously optimistic. Excerpts:

business Updated: Oct 15, 2010 21:56 IST
Vivek Sinha

Brushing aside concerns over protectionist moves in the US and the uncertainties over the global economic environment, IT major Infosys Technologies has raised its annual revenue forecast by 25 per cent. S.D. Shibulal, chief operating officer, Infosys told HT that the company is being cautiously optimistic. Excerpts:

Of late there has been talks about protectionist moves, especially in the US; still you have raised revenue guidance. What makes you so bullish?
Protectionism concerns remain. However, our forecast is based on our client’s technology-related expenditure plans over the next two quarters and an analysis of various factors. We have also considered holidays and leaves on the anvil and the historical behaviour of our business before raising the revenue forecast.

But aren’t you concerned about currency volatility and the uncertain economic scenario?
Currency volatility and rupee appreciation remain a major concern. However, it is an external phenomenon and on our part we can only hedge ourselves against the issue. Generally, we maintain short-term hedges for two quarters. At present, we have around $650 million as currency hedges. We have successfully managed our business and seen both extremes of rupee appreciation and depreciation at around R40 and R50 respectively. So we are confident of taking the present situation in our stride.

How have your US clients reacted to protectionist moves?
We have not seen our clients make much of the issue. Our client partners and master client owners have not reported anything adverse to us.

What are the new business segments that you plan to enter?
We are eyeing life sciences, energy, utility services and media entertainment as new growth verticals.