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IT cos. to report healthy profit in Q1
By agencies
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Tuesday, 11 July 2006, 19:30 IST
NEW DELHI: IT companies are all set to report their results of growth and
earning along with strong employee additions for the June quarter.
After announcing a strong guidance of a 30 percent revenue growth and
26-28 per cent net profit growth for the current fiscal year, IT giant
Infosys is scheduled to bring out the results on June 12, while Wipro and
Satyam would announce their results later next week.
Contributing to growth of 9 percent to 11 percent over the previous
quarter, Singh said that he was expecting a strong performance from
Infosys, Satyam and TCS, while TCS and HCL Technologies may disappoint
marginally. Most of the Tier-1 IT companies are likely to report revenue
growth of 7 per cent to 10 per cent, with the exception of TCS.
Infosys is expected to raise the IT quarterly figures, given its strong
weight age to the Bombay Stock Exchange's 30-share benchmark sensitive
index.
IT stocks have registered a decent performance over the past few days on
expectations for robust Q1 results, with the margins for most of the IT
companies would expand with the exception of Satyam and TCS. High
integration costs and salary hikes are likely to offset the margin
expansion for TCS and Satyam respectively, despite the rupee depreciation.