Infy: Indian political system paralyzed

BANGALORE, INDIA: A shade of anomaly amid mundane statements and murky predictions marked the conservative Infosys Limited's third quarter results announcement on Thursday.

Assuming a tone to call a spade just that, it's chief financial officer V Balakrishnan accused the current political system of the country of being "paralyzed".

"No reforms are happening. So, India is not seen as a growth story."

He also said that for a country that runs a trade deficit over a considerable period, the currency couldn't be expected to appreciate.

The software major, posted a YoY growth of 33.3 per cent with its net profit at Rs. 2,372 crore in the September-December quarter, majorly contributed by the rupee depreciation. From North America and Europe alone, Infosys raked in about 87 per cent of its revenues.

"In a volatile global economic environment," Balakrishnan said, "India is seen as an emerging market risk to that extent, the inflows could be lower. If you put all these together, the currency has to depreciate."

He also pointed out that India has a realistic scope of 12-13 per cent development, "When we are talking about 7 per cent." The country, however, has a great growth potential and could do a lot of transformational projects, added Balakrishnan.

"The government has taken some steps to increase investment opportunities, such as opening up the retail industry, so some money will come. I think it will balance out."

But then, he lamented that 90 per cent of the time they had to toe the line of the government and its policies.

"We've taken rupee at 52 for the next quarter, but I think as long as the country runs a sustained trade deficit, you will see the currency depreciating over a longer period of time."