India software sector earnings growth seen slowing
Ratan:
Here is something interesting.
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By Y.P.Rajesh
BANGALORE, India, July 21 (Reuters) - Indian computer software blue chip Infosys Technologies Ltd (Nasdaq:INFY - news) expects profit growth of the country's software industry to slow to 30-40 percent during 1999/2000 (April-March) from around 45 percent in 1998/99, a senior company official said on Wednesday.
''Our estimate is that the industry growth this year would be in the region of 30-40 percent in dollar terms,'' Nandan Nilekani, managing director and chief operating officer of Infosys, told Reuters in an interview.
''The endeavour of Infosys is to be at (the same level) or better than the industry's growth rate,'' Nilekani said in this southern Indian city where the firm is headquartered.
He said the slowdown would be due to 1999/2000 being a ''year of change'' as the business to fix the ''Millennium Bug'' in computers is winding down.
''Customers are now focussing on new things like e-commerce. So it's an era of flux and in this context we see a 30-40 percent growth in dollar terms.''
Infosys, Nilekani said, will have to watch its performance during the remaining three quarters of 1999/2000 after its massive rise in profits for the first three months ending June, 1999.
The only Indian company listed on the U.S. technology-rich Nasdaq, Infosys beat all expectations to report a net profit of 606.1 million rupees ($13.3 million) during the first quarter against 236.7 million rupees ($4.78 million) in the year-ago quarter.
Subsequently, the firm's American Depository Receipts (ADRs) climbed sharply to touch a high of $121 at the Nasdaq market last week. The ADR however fell this week to close on Tuesday at $85 3/4.
At the Bombay Stock Exchange, the domestic share of Infosys was quoted at 4,750 rupees at 1000 GMT on Wednesday, down 331.75 rupees from its previous close.
($1=43.25 rupees)
(Bangalore Newsroom, +91-80-558-1454, fax +91-80-558-1457, yp.rajesh@reuters.com)
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