BANGALORE: Indian software leader Infosys Technologies Ltd. on Tuesday
declined to comment on market talk of a slowdown in the sector, ahead of the
announcement of its quarterly results.
"We are in the process of closing our books for the quarter-end. We are
not able to offer any comments," said Infosys co-founder and deputy
managing director S Gopalakrishnan.
The firm will announce its financial results for the third quarter ending
December 31, 2000, on January 9.
A slowdown in technology spending in the United States and a tide of earnings
warnings from industry leaders have prompted fears that Indian software firms'
export prospects would be hit. The US accounts for about 60 per cent of India's
booming software exports.
Credit Suisse First Boston in a recent report lowered its rating for the
sector to neutral saying the slowing US economy will adversely affect its growth
rate.
It downgraded all firms in the industry to hold, citing tougher macro
environment conditions and rich valuations.
But some industry experts expect the cost-effectiveness of India's software
sector to help major companies continue to report strong sales growth.
Infosys reported a 122 per cent jump in net profit to Rs 2.81 billion ($60.20
million) in the first half ended September 30, 2000, against the year-ago
period.
On Tuesday, Infosys shares closed 4.23 per cent down at Rs 5,551.0 at the
Bombay Stock Exchange in line with a sharp fall in technology stocks. Bombay's
main 30-share index ended over two per cent lower at 3,826.82.
The Infosys stock hit a new 52-week low of 5,500 earlier in the day.
India's software industry has leapfrogged compared to other sectors with
top-tier firms reporting profit growth of more than 100 per cent over succeeding
quarters in the last one year.
Infosys declines comment on tech slowdown
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BANGALORE: Indian software leader Infosys Technologies Ltd. on Tuesday
declined to comment on market talk of a slowdown in the sector, ahead of the
announcement of its quarterly results.
"We are in the process of closing our books for the quarter-end. We are
not able to offer any comments," said Infosys co-founder and deputy
managing director S Gopalakrishnan.
The firm will announce its financial results for the third quarter ending
December 31, 2000, on January 9.
A slowdown in technology spending in the United States and a tide of earnings
warnings from industry leaders have prompted fears that Indian software firms'
export prospects would be hit. The US accounts for about 60 per cent of India's
booming software exports.
Credit Suisse First Boston in a recent report lowered its rating for the
sector to neutral saying the slowing US economy will adversely affect its growth
rate.
It downgraded all firms in the industry to hold, citing tougher macro
environment conditions and rich valuations.
But some industry experts expect the cost-effectiveness of India's software
sector to help major companies continue to report strong sales growth.
Infosys reported a 122 per cent jump in net profit to Rs 2.81 billion ($60.20
million) in the first half ended September 30, 2000, against the year-ago
period.
On Tuesday, Infosys shares closed 4.23 per cent down at Rs 5,551.0 at the
Bombay Stock Exchange in line with a sharp fall in technology stocks. Bombay's
main 30-share index ended over two per cent lower at 3,826.82.
The Infosys stock hit a new 52-week low of 5,500 earlier in the day.
India's software industry has leapfrogged compared to other sectors with
top-tier firms reporting profit growth of more than 100 per cent over succeeding
quarters in the last one year.
(C) Reuters Limited 2000.