Thursday, June 9 2005 11:02 Hrs (IST) - World Time -

Mumbai: IT major Infosys Ltd yesterday (Jun 8, 2005) maintained that its performance in the first quarter (Q1) ending June 30, 2005 will be flat while it is acquiring new clients at better prices.

"The company expects Q1 to be flat as some clients were occupied with internal work and compliance related matters but the growth for 2005-06 was expected to be 28-30 per cent," Infosys managing director Nandan Nilekani said at a interactive meet in Mumbai.

Infosys would achieve revenues of $2 billion this fiscal, he said. The Bangalore-based company had given outlook of "flat performance" for Q1 of 2005-06 while announcing results for 2004-05 in April.

Referring to pricing pressures, he said pricing was stable with an upward bias. The company was able to charge better prices to new clients. However, its (improved pricing) impact on the revenues would be seen with a time lag as only five per cent of revenues came from new clients while repeat business had 95 per cent share, Nilekani said.

The US-Rupee price variations was a issue that the company and industry had to live with, he said adding one had to remain ahead on productivity front to deal with the challenge of exchange rate volatility.