Software exporter Infosys on Saturday said the company generates $250 million free cash every quarter and will use the slowdown to fine tune their business.
In an interview to CNN, Infosys Co-chairman Nandan Nilekani said, “Infosys has a very strong position. We have two billion dollar in cash. We produce $250 million every quarter in free cash flow.”
However, Nilekani added for the coming financial year, the company’s growth would decline by 3-6 per cent in dollar terms because of the uncertainty in the global economy. “We are waiting for this whole thing to get over,” he said.
Talking about the clients reaction to the slowdown, he said “I think our customers are cautious. They are still waiting and watching, and seeing how and when the recovery will happen. I think they’re very, very prudent about their IT spending. So we are seeing all that on our business. It’s a very uncertain environment out there.”
The clients are waiting and watching, because they don’t really know how long this crisis will last. They’re waiting for growth to come back.
They’re waiting for liquidity to improve, he added. Further the company co-chairman said, “We actually use this occasion to really even fine-tune your business even further, and be ready for the next upturn whenever it comes.”
The company announced its fourth quarter results this month and reported first ever sequential fall in its revenue in a decade for the March 2009 quarter.