labels: infosys technologies, economy - general, investment - general
Infosys warns of slow growth as tech-sector dragged into red news
Bangalore:
11 April 2003
Bangalore: Infosys Technologies has cautioned that its earnings growth would slow down to 13-15 per cent in the current year, tracking external uncertainties. The Infosys stock price fell by as much as 26 per cent on the Bombay Stock Exchange following such cautious outlook and sank to its six-month low, dragging the tech-sector into deep red.

The guidance, which was below analysts' expectation, could sway investors' sentiment towards the technology sector, dealers say. "Despite the challenging market conditions and uncertainties we have done well and beaten our own guidance for the year 2002-03," says Nandan Nilekani, CEO, president and managing director, Infosys.

The company says its income from software development business for the current year would be in the range of Rs 4,408-4,479 crore and earnings per share would be in the range of Rs 161-163. The income from business process outsourcing subsidiary Progeon is likely between Rs 76 crore and Rs 85 crore.

For its first quarter of the current fiscal, the company expects its income between Rs 1,033 crore and Rs 1,043 crore for its software development initiatives while Progeon is likely to report an income in the range of Rs 9.48-10.40 crore in the June quarter.

"We have looked and analysed the macro-economic scenario, including the short-term impacts like Iraq war and the Sars virus, business expected from existing and prospective clients, besides our competition to arrive at the outlook," says Nilekani.

 


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Infosys warns of slow growth as tech-sector dragged into red