Infosys Conference Call Excerpts

Here is an excerpt from the Conference Call with the Management of Infosys Technologies held on the 28th of Nov,

  • Mr Gopalakrishnan sai that near-term visibility remained low, with 2009 budgets expected to decline YoY
  • The company indicated that IT budgets of financial sector could have stabilized while retail could be under pressure
  • Management agreed that there could be pricing pressure in 2009
  • On the other hand, the company is highly focused on reducing costs to maintain margins. Travel budgets and new investments could be reduced now and company could limit employee variable wages if margins come under severe pressure.
  • Finally, if margin performance comes under pressure, the pain would be shared
    between employees, business investments and shareholders in the ratio 50:25:25

Is Gopalkrishnan’s strategy right in sailing through difficult times ?