Infosys scouting for acquisitions in Europe
16 May 2012
India's second largest software exporter, Infosys Ltd, is scouting to acquire global companies, especially in Europe, backed by a cash pile of about $4 billion, and would be only too happy to revise its earlier decision to ''withhold'' wage hikes if the economy improves.
''The $4 billion cash, which we have, we might look at utilising these for overseas acquisitions. This could be mainly Europe, and we might also look at other global destinations,'' Infosys chief financial officer V Balakrishnan, said, adding, ''but this it has to be the right company, right price… .''
Acquiring a company in Europe will help the Indian firm increase its presence, add a local sales force and new lines of businesses.
Nasscom's about 11-14 per cent growth target for the current financial looks "ambitious" in the present gloomy market, he said, Infosys expects the company's revenue growth to be about 8-9 per cent.
On the rupee movement, Balakrishnan said every single percentage movement will have an impact of 40-50 bps impact on the margins.
Infosys might also look at revising its decision to withhold wage hikes, in case of an improvement in the economic conditions.
''Nothing has changed, since our results. At the moment, we are not giving wage hikes, but we will relook at the environment and if is conducive we will provide a wage hike,'' Balakrishnan said.
Tata Consultancy Services (TCS) had promised hikes of 12-14 per cent, while that of Wipro was 6-8 per cent for financial year ending March 31, 2013. Infosys had withheld pay hikes, citing uncertain economic conditions.
