Infosys Net Climbs 27% as Customers Outsource More Work
By Ketaki Gokhale - Apr 13, 2012
Infosys Ltd. (INFO), India’s second-largest software-services exporter, slumped the most in almost three years in Mumbai trading after forecasting sales that lagged behind analyst estimates.
Sales in the year that began April 1 may be between 384.3 billion rupees ($7.5 billion) and 391.4 billion rupees, Bangalore, India-based Infosys said in a statement today. That lagged behind the 396.3 billion-rupee median of 64 analyst estimates compiled by Bloomberg. Infosys also reported fourth-quarter sales that missed estimates.
Indian software exporters Tata Consultancy Services Ltd. (TCS)and Wipro Ltd. (WPRO) tumbled the most in three months after Infosys Chief Executive Officer S.D. Shibulal said the year ahead“looks challenging” for information-technology services. Amid outsourcing deals that are taking longer to finalize, researcher Gartner Inc. this month cut its estimate for 2012 global industry spending growth, citing the dollar’s gains.
“It’s a shocker,” said Ankita Somani, an analyst at Angel Broking Ltd. “The results are very bad, the guidance is very, very disappointing. They are guiding less than the rate at which the industry will grow.”
India’s software industry will grow between 11 percent and 14 percent, and Infosys’s guidance is lower than that, Somani said in a phone interview today, citing a forecast by the National Association of Software and Service Companies, a group of Indian information-technology companies.
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