Infosys Technologies (INFY)

Lou Miscioscia - Lehman Brothers - Analyst

Okay, thank you. I wonder if you could go into and maybe just talk generally about both your top and bottom line guidance. Obviously fiscal ‘05 was a fantastic year for you all, a 50% top line growth. You know an incredible bottom line growth but obviously the current guidance is pretty modest both in the June quarter for a quarter-to-quarter gain and obviously for the full year. Do you really think that there’s going to be this much of a deceleration or comparably to the last 2 years, we know that very often you all come out with a very conservative number initially, obviously and then look to beat that, but I just want to try to get some thoughts from you.

Mohandas Pai

You know last year we gave a guidance at the beginning of the year and our actual figures were much higher than that. We gave a guidance of 30% to 31% and we achieved something like about 49.9%. The difference in this year has been that in the fourth quarter of fiscal ‘05, which has just concluded, the sequential growth rate came down and it came down to 7.7% as against double digits and the first quarter of this year we expect our revenue growth to be flat and we expect to grow around 7% from the second quarter onwards, on a sequential basis giving us a growth rate of 28% to 30%. This is what we see at this point of time. What we have seen the last quarter, continuing this quarter, is that a number of clients in the US have been focusing on compliance especially complying with Sarbanes Oxley. The senior management has been caught up with that and as such the focus has shifted from spending on IT to develop revenues to compliance and the impact of that which happened in the latter part of the last quarter, would be felt this quarter primarily because the momentum that was there came down and now the momentum needs to be built again. We think from all indications — from our study of all the businesses and the portfolio that we have, that growth will pick up again from the beginning of the second quarter, that is why we are projecting about 7% growth a quarter from the second quarter onwards.