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Nasscom signals lowering FY17 IT revenue growth target

Press Trust of India  |  New Delhi 

IT body has hinted that it may revisit its export revenue growth guidance of 10-12 per cent for 2016-17 against the backdrop of two of India's largest outsourcing companies, and Infosys, cautioning against global uncertainties.

"We are probably looking at the need for downward revision if... Other companies also indicate that (caution). But we cannot say this for sure at this juncture nor can we indicate a number," President R Chandrashekhar told PTI.

He noted that "there have been some positives and some negatives" in the earnings posted so far, but declined to make company-specific comments.

Stating that a definitive view cannot be taken till other companies come out with their results, Chandrashekhar said the industry body would firm up its views by October-end or November.

"We will also have to take into account of other companies that are yet to come out with their numbers as well as performance of global in-house centres as well as MNCs," he added.

Announcing its second quarter results, today slashed its revenue growth outlook to 8-9 per cent in constant currency for the fiscal.

This is the second time that the company has reduced its revenue guidance for the fiscal. In July, had said it expected revenues to grow 10.5-12 per cent in constant currency terms, lower than the previously estimated 11.5-13.5 per cent growth for the full year 2016-17.

This was on account of macroeconomic uncertainties, especially in the banking and financial services sector that accounts for the biggest chunk of Indian outsourcing industry's revenues.

However, the Bengaluru-based company was quick to add that it does not foresee any "particular external impact" of Britain's exit from the European Union (Brexit) on its performance, a key market for the industry.

Its larger rival has also indicated that it has been facing softness from BFSI clients for some time and expects it to be so in the remaining part of the current fiscal year.

Wipro, HCL Technologies and Mindtree are slated to announce their second quarter on October 21.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, October 14 2016. 21:07 IST