Infosys sticks to FY11-12 revenue guidance amid Euro debt crisis

Infosys, the Bangalore-based company had lowered its guidance, with revenues expected to be in the range of $7.08-$7.20 billion, (17.1%-19.1% growth year-on-year) as against $7.13-$7.25 billion it had expected earlier

Mumbai: The country's second largest software exporter Infosys on Monday retained its guidance of 17%-19% revenue growth in FY11-12 notwithstanding the persisting Eurozone debt crisis, reports PTI.

“I hope the developments in the Eurozone area will be in an orderly fashion so that the companies can plan, unlike the 2008 crisis,” Infosys chairman Kris Gopalakrishnan told reporters here on the sidelines of the India Economic Summit 2011 yesterday.

He added that any change in guidance would be made in the next quarter results, as by early January its clients finalise their IT budgets.

Italy, which has been at the centre of the Eurozone crisis, now has its premier-designate and economist Mario Monti trying to form a new government as the nation tries to avoid financial disaster.

In Greece, Lucas Papademos has been sworn in as prime minister after his predecessor George Papandreou was forced to step down following a call for a referendum on a eurozone rescue package for the debt-laden country.

The Bangalore-based company had lowered its guidance, with revenues expected to be in the range of $7.08-$7.20 billion, (17.1%-19.1% growth year-on-year) as against $7.13-$7.25 billion it had expected earlier.

The debt crisis in Europe and the unemployment and economic uncertainties in the US are major concerns for the Indian software firms, which get more than 80% revenues from these markets.

With the uncertainties prevailing, it is expected that clients may cut discretionary spends.

Talking about expansion, Mr Gopalakrishnan said, “We are working on setting up a development centre in Indore. We are looking for a site.”

Infosys will spend Rs100 crore in the first phase and employ 5,000 people.

Infosys also said it plans to source its entire energy requirement from renewable sources in the next five years.

“Right now 20% of our energy consumption is from renewable sources, and by 2017 we want to take that to 100%. As a user of renewable energy, we want to actually drive consumption. We want to be a consumer of that,” Mr Gopalkrishnan said.

Mr Gopalkrishnan also expressed reservations about the present consumption-driven economic model and strongly advocated that the country should not follow it.

“I believe, it is not sustainable because per capita we are consuming too much power, too much water, too much resources and things like that,” he said.

User

2G scam trial; RADAG official identifies signature of accused

Reliance Anil Dhirubhai Ambani Group president AN Sethuraman identified the signatures of Hari Nair, senior vice president of the firm who, in the capacity of company secretary of Swan Telecom, had allegedly signed its documents such as memorandum and the articles of association

New Delhi: Reliance Anil Dhirubhai Ambani Group (ADAG) president AN Sethuraman on Monday told a Delhi court that it ‘appeared’ that Hari Nair, senior vice president of the firm and an accused in second generation (2G) spectrum scam, had certified documents accompanying applications for 15 circles for UAS licences on behalf of Swan Telecom, reports PTI.

“The signature appears to be of Mr Hari Nair,” Mr Sethuraman, testifying as second prosecution witness, told special CBI judge OP Saini.

He identified the signatures of Mr Nair who, in the capacity of company secretary of Swan Telecom, had allegedly signed its documents such as memorandum and the articles of association.

Mr Sethuraman said all the applications for Unified Access Services (UAS) licences on behalf of Swan Telecom were signed and submitted by him (the witness) in March 2007.

“I had submitted applications for 15 circles for UAS licences on behalf of Swan Telecom in March 2007,” he said.

Mr Sethuraman said he was on the payroll of RADAG but submitted the applications for UAS licenses in the capacity as an authorised signatory of Swan Telecom.

The witness said he had informed the Department of Telecom (DoT) about the change of name from Swan Capital Pvt Ltd to Swan Telecom Pvt Ltd by a letter on 6 March 2007. The letter accompanied a certificate issued by Nair, he said.

“I have been shown one letter dated 6 March 2007, addressed to DoT, Sanchar Bhawan, New Delhi. The same bears my signature. Through this letter, I had intimated DoT regarding change of name of company, that is, from Swan Capital Pvt Ltd to Swan Telecom Pvt Ltd,” he said.

Reliance ADAG-led Reliance Telecom (RTL) has been put on trial in 2G spectrum allocation case on the ground that Swan Telecom Pvt Ltd (STPL) was ‘just a mask’ for it.

Mr Sethuraman said besides Assam and North-East, Swan Telecom had applied for UAS licences in Andhra Pradesh, Gujarat, Haryana, Karnataka, Kerela, Maharashtra, Punjab, Rajsathan, Tamil Nadu, Delhi, Uttar Pradesh (east and west telecom circle) and Mumbai telecom circles.

Earlier, Mr Sethuraman, in his statement to CBI on 24 March 2011, had also identified the signatures of Mr Nair on the memorandum of association and article of association of STPL.

He had said Mr Nair had certified that equity share holder of STPL does not have substantial equity in more than one licencee company.

He had also told the agency that he was not aware why STPL withdrew its applications for licences in Assam and North-East telecom circle.

Mr Sethuraman’s cross-examination would continue on Tuesday.

General manager of Reliance Infrastructure, a group firm of Reliance ADA group, Ashish Karyekar, who was to depose before the court, was present but could not be examined due to paucity of time.

User

CBI probing alleged SingTel violation of Indian telecom laws

SingTel was billing the local customers in India without having the telecom license in the country flouting the telecom norms and conditions, as alleged by the telecom department

New Delhi: The Central Bureau of Investigation (CBI) is investigating into a complaint by Department of Telecom (DoT) for alleged violation of Indian laws by SingTel which offered international long distance (ILD) services without a licence, reports PTI.

“With regard to action against the non-licensed entity Singapore Telecommunications (SingTel) for violation of the Telegraph Act, 1885, DoT had registered a complaint in this regard with Economic Offence Wing of CBI on 29 November 2010 and the matter is presently under investigation by CBI,” telecom minister Kapil Sibal said on 9th November, in reply to a letter from a member of Parliament.

SingTel was billing the local customers in India without having the telecom license in the country flouting the telecom norms and conditions, as alleged by the telecom department.

The issue was brought before the government by a Lok Sabha MP.

The government has already fined Rs50 crore each Bharti Airtel and Tata Communications which had an arrangement with SingTel.

The DoT complained that the SingTel was offering ILD services and it was “acquiring customers in India...” without having license thus violating the Indian Telegraph Act, 1885.

The period covered services provided between 2005 and 2009, sources said.

The penalty on Bharti Airtel and Tata Telecom was based on recommendations of an internal DoT committee.

As per the licensing norms, Indian ILD operators are authorised to provide Indian circuits to a foreign carrier (like SingTel in this case) so that they are able to provide end-to-end services to their customers in their territories.

The committee found, from submissions made by Bharti that the company had raised the invoice to SingTel at its Singapore address for the portion of circuit provided by Bharti Airtel.

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)