Shares of Infosys slid by as much as 6.5% to Rs1,637 after media reports stated that the company's Q2 earnings might be affected by the dollar's gain versus the UK pound over the past few days. An Infosys executive was quoted as saying that it was too early to revise FY09 US GAAP earnings forecast. Infosys lost 4% on the week to close at Rs1,644. The stock had touched a 52-week high of Rs2,141 on October 10, 2007 and a 52-week low of Rs1212 on January 22, 2008.
Infosys is most likely to miss its US Dollar revenue guidance for both, the July-September quarter and the full fiscal year, said the brokerage in a note after a day long meetings at Bangalore. About 28% of Infosys' invoices are denominated in pound, euro and Australian dollar, according to the brokerage. The adverse movement of these currencies against the US dollar is creating a cross-currency headwind, it said. The 19-21% YoY FY09 US dollar revenue growth guidance will need to be revised down to 17-19%, the brokerage said.
Meanwhile, Infosys CFO V. Balakrishnan was quoted as saying that its dollar numbers for the latest quarter could be impacted. "It is too early to speculate whether we will miss the US dollar revenue guidance numbers," he told a business news channel. The Indian rupee's depreciation against the US dollar will offset any impact on margins, Balakrishnan said, adding that the pricing environment was still fine. Around 30% of the company's revenues come from non-dollar currencies, which have fallen versus the greenback, Balakrishnan said.
Infosys is most likely to miss its US Dollar revenue guidance for both, the July-September quarter and the full fiscal year, said the brokerage in a note after a day long meetings at Bangalore. About 28% of Infosys' invoices are denominated in pound, euro and Australian dollar, according to the brokerage. The adverse movement of these currencies against the US dollar is creating a cross-currency headwind, it said. The 19-21% YoY FY09 US dollar revenue growth guidance will need to be revised down to 17-19%, the brokerage said.
Meanwhile, Infosys CFO V. Balakrishnan was quoted as saying that its dollar numbers for the latest quarter could be impacted. "It is too early to speculate whether we will miss the US dollar revenue guidance numbers," he told a business news channel. The Indian rupee's depreciation against the US dollar will offset any impact on margins, Balakrishnan said, adding that the pricing environment was still fine. Around 30% of the company's revenues come from non-dollar currencies, which have fallen versus the greenback, Balakrishnan said.
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