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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