Following a comment by Infosys CFO, Mr Balakrishnan yesterday, broking firm ICICI Securities has issued a note cautioning investors with regard to the company's revenue projections. 

Infosys CFO had suggested that the company was unlikely to achieve the top end of its US dollar revenue growth guidance for Q3FY12 and FY12E. ICICI Securities believes that the statement is like having alarm bells rung rather than just an exercise of expectations management.

ICICI Securities in its note mentioned that the company had guided for 3-5% QoQ growth for Q3FY12 at the end of Q2FY12 and 17-19% YoY growth for FY12E. The broking firm had modelled US dollar revenues to grow at 18.9% in FY12E and hence it hints that it could likely revisit its estimates. It says, "we continue to remain cautious on the sector till macroeconomic uncertainties ebb and CY12 IT budgets are finalised and suggest staying put with TCS and Infosys."

(Share Manthan, November 22, 2011)