IT cos expect a weak quarter

Market is expecting a weak quarter for Indian IT companies owing to lower numbers of billing days on account of Thanksgiving Day and
Christmas holidays.

"This time, weak seasonality factor is overloaded with a deteriorating macro environment. The worsening economic situation in US, Europe and Japan is likely to reflect more prominently in reported numbers and management comments," says analyst Sanjeev Hota and Murali Kandala of Reliance Money.

Share prices of TCS and Wipro were marginally up, while IT bell-weather Infosys was trading 1 per cent down in the early morning session. However, shares of Satyam Computers were up over 3 per cent on reports of its likely merger with Tech-Mahindra.

Infosys is expected to announce its results on 13th January, followed by TCS, Satyam and Wipro on 16th, 17th and 19th of this month.

Analysts say that revenue growth of IT companies is expected to remain negative in USD terms. They add that seasonality factors coupled with weak industry environment and cross currency headwinds is likely to take its toll on the revenue growth in the third quarter of Financial Year 2009.

"We expect among the top 5 players, except HCL Technologies all the other four are expected to report a sequential de-growth in revenues in USD term," they add.

http://infotech.indiatimes.com/News/IT_cos_expect_a_weak_quarter/articleshow/

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IT cos expect a weak quarter