Business sentiment has worsened since Nov: Infy

BANGALORE, INDIA: Infosys Ltd, the No.2 Indian software services exporter, has seen business sentiment worsen marginally since November as clients have tightened discretionary spending on technology, Chief Executive S. D. Shibulal told reporters.

December quarter operating margins rose to 31 per cent from 28 per cent in the previous quarter, he said, adding that the company would retain its hiring targets for the fiscal year ending March 2012.

Earlier on Thursday, Infosys cut its full-year revenue outlook because of the debt crisis in Europe, sending its shares down by as much as 7.7 per cent to their lowest in more than a month. However, the company beat market forecasts with a 33 per cent rise in fiscal third-quarter profit, helped by a weak rupee.