Euro crisis, slowdown to hit Indian IT growth: Infy

CIOL Bureau
New Update

BANGALORE, INDIA: European debt crisis and slower growth in developed markets could affect the growth of the Indian IT industry, a top Infosys official said Thursday.


"The global economy, driven by slower growth in developed markets and coupled with the European crisis, could impact the growth of the Indian IT industry," Infosys chief executive S.D. Shibulal said in a statement here.

Though the country's second IT bellwether posted robust growth in the third quarter, posting 31 percent year-on-year (YoY) and 15 percent sequential revenue growth on a depreciating rupee, it has marginally lowered the revenue guidance for this fiscal (2011-12) in dollar terms to $7.03 billion from $7.14 billion projected a quarter ago.

"The global currency market continues to be volatile with the Indian rupee depreciating 11 percent during the quarter (October-December). Managing extreme currency volatility in an uncertain economic environment is going to be a challenge for the industry," said Infosys board member and chief financial executive V. Balakrishnan.

A depreciating rupee, uncertainty in the global economy and negative sentiments impacted the blue chip company's scrip on the Bombay Stock Exchange (BSE), leading to a drastic fall of 6.76 percent to Rs.2,635 per share of Rs.5 on par from the opening price of Rs.2,744 and Wednesday closing price of Rs.2,826 in the first hour of trading session.