Core Business Profit Probably Fell in Q4

Out of 50 companies 16 on the Nifty index of the National Stock Exchange have reported drop of 7.26 percent and 9 out of 30 companies on BSE’s benchmark Sensex gauge dropped at 5.93 percent. So the net profit growth has decreased below 10 percent for the first time in at least 10 quarters with 16 Nifty companies reporting a rise of 2.97 percent and Sensex companies reporting a rise of 6.91 percent.

“Margins are definitely under pressure. Even information technology (IT) companies have come under pressure on volume concerns,” said Vikas Khemani, head of wholesale capital markets at Edelweiss Securities Ltd (according to Livemint.com). Wipro’s revenue growth was the lowest among all IT companies and Infosys on the other hand put out a guidance of 8 to 10 percent much lower than Nasscom which made 11 to 14 percent guidance.

In contrast there are many companies which made a remarkably better profit than others like TCS and HCL Technologies results were a relief to the IT sector as TCS’s quarterly revenue growth was 2.4 percent from the previous year making annual revenue above $10 billion mark and HCL Technologies estimated rise was 28.75 percent.