Indian IT heavyweight Infosys Ltd (INFY.NS) made a deeper-than-expected cut to its sales forecast on Thursday as global economic uncertainty took a toll on tech spending, sending its shares down 10 percent and slamming hopes for a second-half recovery.
The prevailing dim global economic climate, competition for a bigger share of the outsourcing business and sharp currency fluctuations have slowed the pace of growth for Indian outsourcing companies and in recent quarters Infosys has been underperforming key rivals.
The company, India's No.2 software services exporter, had long been considered the industry bellwether for its practice of making and usually exceeding revenue forecasts.
It said it sees revenue in dollar terms rising 5 percent to $7.34 billion in the fiscal year to March 2013, down from its April estimate of 8-10 percent growth. The company also said pricing fell sharply. Most analysts were expecting Infosys to trim its sales growth outlook to 6-8 percent.
"Infosys' guidance is bad and it will have implications for the sector as well. It clearly reflects a slowdown in Europe and in the United States and (problems with) the company's internal policies," said Paras Adenwala, a fund manager at Capital Portfolio... Source/Origin >> Read More