Infosys results: Nasscom to wait for earnings of other IT companies before reviewing growth estimates

BANGALORE: Nasscom, which has forecast 11% - 14% growth for the software industry in 2012-13, said it will wait for the performance of other software companies before reviewing its growth estimates after second-ranked software exporter shocked with 5% dollar growth guidance for the current financial year.

Infosys and first-ranked Tata Consultancy account for nearly a quarter of software export revenues from the country. They are reporting results today. First off the blocks, Infosys has lowered guidance to just around 5% from the 8-10% three months ago.


Full coverage of Infosys FY13 results

Nasscom had earlier said it may review its growth estimates in October but if other IT firms reflect the same sentiment, there could now be a possibility of an earlier revision. Infosys has not given a quarterly guidance this time reflecting a higher uncertainty in demand and currency volatility.

"This is just the first quarter. If we wait till October we get a better picture of the trend. Mid-sized IT firms have seen healthy growth," Nasscom president Som Mittal told ET.

Hexaware, Mindtree and Zensar are among the firms that have said they will grow ahead of industry estimates. Barring Hexaware, financial services is not the largest vertical for the other firms. Manufacturing is the top vertical for Mindtree and Zensar. For Infosys, financial services and Europe have the been the worst performing.

Somil Mehta, Senior Technical Analyst at Sharekhan Ltd

Infosys has been trending down since the last sevral months, so the overall trend remains negative. The stock was trading sideways in the last one month, forming a bearish flag pattern and today it has broken down with a breakaway gap and the negative momentum is expected to countinue with crucial support around Rs 2160/ 2010 and resistance around Rs 2331/2400.