BANGALORE, INDIA: Infosys Technologies, India's second-largest software services exporter, expects operating margins to fall due to rupee volatility and economic uncertainty, its chief financial officer said on Friday.
V. Balakrishnan said he expects a 130 basis points decline in operating margins in the fiscal year to March 2011."We are optimistic about the long term, cautious about the short term," he said after announcing the quarterly financial results.
“Our operating margins improved marginally during the quarter, while our cash reserves increased to $3.9 billion from $.3.4 billion in the previous quarter (April-June),” he added.
Infosys, which kicked off results for India's showpiece outsourcing industry, raised its annual revenue forecast after it topped market estimates with a 13 percent rise in quarterly profit on rising outsourcing demand.
During the reporting quarter, the attrition rate stood at 17.1 per cent compared to 15.8 per cent in the previous quarter.
"We have seen record hiring this (second) quarter and attrition has decreased. Our new career architecture is showing positive results," board member and head of HRD and education and research T.V. Mohandas Pai said.
(With inputs from IANS)