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IT cos projected to register 11% jump in Q1 FY’09 revenues

IT cos projected to register 11% jump in Q1 FY’09 revenues
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First Published: Mon, Jul 07 2008. 05 04 PM IST
Updated: Mon, Jul 07 2008. 05 04 PM IST
PTI
New Delhi: Amid global financial turmoil, most Indian IT companies led by Infosys and TCS are expected to post sequential revenue growth in 6-11% range due to a depreciating rupee in the first quarter of this fiscal.
In the rupee terms, the top lines of frontline tech stocks are projected to grow in the range of 6.5% to 11.1% sequentially in the first quarter.
“The growth in the top lines is primarily driven by a volume growth of 1-2%, boosted 7% depreciation in the rupee against the US dollar during the quarter. In dollar terms, the sequential growth is expected to remain muted during the quarter,” brokerage firm Sharekhan said in a recent report.
Rupee has been sliding against the dollar since the start of April and at present has an exchange rate of about 43.
Sharekhan in its research note said the average exchange rate of Rs 42.8 against the dollar is also above the assumption of Rs 40 made by the domestic companies (Infosys assumed Rs 40.02 per dollar and Satyam Computer Services Rs 40 a dollar).
As of June 30, Rupee stood at 42.84 against the greenback compared to 39.9 on March 31. On a quarterly basis, the rupee has depreciated nearly 4.5%.
“Such a high depreciation in the quarter is likely to have a positive impact on the margins of the companies,” Sharekhan added.
In a research note on the IT industry, Emkay Global Financial Services said sequential revenue growth for companies in the sector would be in the range of 1-5%, fueled by rupee depreciation.
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First Published: Mon, Jul 07 2008. 05 04 PM IST
More Topics: IT Companies | Tech stocks | Infosys | TCS | Technology |