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India IT firms Q1 net seen up, US slowdown a worry
Posted by naatmad on Wednesday, 9 July, 2008
* What: Fiscal Q1 earnings from India’s top IT services firms
* When: From Friday, July 11
* Weaker rupee a help, U.S. financial turmoil to cut orders
BANGALORE, July 9 – India’s top information technology outsouring companies are set to report quarterly profit rose by up to a third thanks to a weaker rupee, but further losses for their major clients, U.S. financial companies, could lead to falling orders. Infosys Technologies and No. 4 Satyam Computer Services are expected to raise their revenue guidance for the full-year to March, analysts said, adding they are keen to see evidence of new deals and their pricing. Although Indian outsourcing firms are expanding to Europe, Asia and the Middle East to lower their dependence on the United States, the country still accounts for roughly half of their sales. Morgan Stanley said in a report this month the credit crisis fallout would extend into 2009, and that mortgage asset overhangs would drive additional write-downs for Wall Street firms, such as Citigroup , as they struggle to clean up their balance sheets.
Source Reuters
