Infosys Feels IT-Outsourcing Pressure (INFY)
Infosys Ltd. (NASDAQ: INFY) is the king of IT-outsourcing in India, but today that king is finding itself under fire. The company said that it sees 8% to 10% for the year ending in March 2013 with a dollar-adjusted level…
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For the quarter which just ended, Infosys profit rose about 27% to $449 million on an adjusted basis and the results were more or less in-line with estimates in India. The company also ended the quarter with about $4.1 billion in cash on a converted basis.
Some hope may be on the way as better clarity comes into play in the next couple of months, but the news is clearly being taken as a negative with slower growth rates coming. Some of the issues around the company’s weak forecast are the outsourcing of jobs argument in America ahead of the election, a slow environment in Europe, and a slowing global growth story. Close to 75% of Infosys’ business is derived from the U.S. and Europe.
The stock is paying a steep price for having a disappointment today as shares are indicated down 14% at $48.88 after closing at $56.77 on Thursday. The 52-week trading range is $46.12 to $68.52. Wipro Ltd. (NYSE: WIT) is lower as well with an indicated drop of about 2.6% to $10.49.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
